Monday 28 November

CITY STANDS TALL

MILLIE TURNER

DEMAND for office space in central London remains “incredibly robust” despite the rise of hybrid working and a deteriorating economic outlook, new figures reveal.

Uptake of central London offices surged 63 per cent in the first nine months of this year, in comparison with 2021, according to data from BNP Paribas Real Estate shared exclusively with City A.M.

The British capital experienced the second highest spike in office take-up in Europe, with Madrid and central Paris registering a 33 per cent and 27 per cent increase in office uptake respectively.

Only Dublin saw a bigger increase.

“While this trend is evident throughout key cities in Europe, it’s no surprise that demand in London has seen such a sharp recovery,” James Strevens, head of City leasing at BNP Paribas Real Estate, said.

“As one of Europe’s largest urban

economies, it remains hugely competitive on the world stage, attracting occupiers to its highly skilled talent pool, leading legal and regulatory systems, and influence over culture and arts.”

It is the latest sign that the uptick in remote working has failed to completely kill off office life, with the vacancy rate in central London standing at less than nine per cent at the end of the third quarter. The vacancy rate in the Square Mile is slightly higher at 11.4 per cent.

“Despite the hybrid working revolution, and some occupier consolidation, overall demand for office space has been incredibly robust this year,” Ben Thomson, head of tenant representation at BNP Paribas Real Estate, said.

“Occupiers are clear in what they want in a post Covid-19 world: amenity rich spaces to retain and attract talent and clients, sustainable buildings which support their ESG ambitions and prime locations close to transport hubs.”

STRIKES

Public sector pay calls are ‘unaffordable’

ILARIA GRASSO MACOLA

INCREASING public sector workers’ salaries in line with inflation is simply “unaffordable”, transport secretary Mark Harper said yesterday.

“We want to try and give all the workers in the public sector who work very hard decent pay rises, but they can’t be inflation-busting pay rises,” he told Sky News’ Sophy Ridge on Sunday.

“There simply isn’t the money to pay for those given the context.

“Private sector pay rises have generally been settled below the level of inflation, which I accept is difficult for people,” he added.

Salaries have been the focal point of the long-running dispute between rail unions and train operators.

Following his meeting with RMT boss Mick Lynch last week, Harper said talks between the two sides were progressing.

The rail strikes announced for December and January are still set to go ahead, which are likely to disrupt the hospitality and retail sectors’ busiest trading period.

Mark Harper, transport secretary

STANDING UP FOR THE CITY

Resilient office market shows City can weather doom and gloom

Right now it’s cold, often wet and the days are getting shorter and shorter.

At this time of year, it’s all too easy to sometimes let the grey gloom above us colour our view of how the City is doing.

But news that London’s office market remains resilient in the face of economic headwinds and a corporate pivot towards hybrid working models is a reason to be optimistic. Not only has the

THE CITY VIEW

London office market been robust, it has witnessed an increase in take-up far higher than the majority of rival European cities.

And the City continues to lead the way in many other ways.

Just last week, London was

ranked as the most technologically advanced city in Europe, beating Paris, Frankfurt and Madrid.

And last month, it was confirmed that the capital had retained its crown as the greenest finance centre in the world, shaking off challenges from New York, Amsterdam and Paris.

Yes, inflation is high, business and consumer confidence is low and the economic outlook isn’t great.

But the fact that London is holding strong in so many areas, is a reminder that the solution to the country’s economic woes is to make the most of the City and its powerful assets.

News that the government will reform EU-era Solvency II rules is welcome, and will allow the capital’s top-notch insurance sector to unleash capital into long term illiquid infrastructure projects to lift economic growth. More reforms that will harness

the city’s strengths, like this one, should be implemented as soon as possible to make sure that the upcoming recession is as shallow as possible.

As Lord Mayor of the City of London Corporation Nicholas Lyons writes in this paper today, “there is no road to recovery that does not run through the City”. Perhaps then, despite the economic challenges, and the weather, it’s not all doom and gloom.

UK economy more volatile compared to 30 years ago after series of sharp shocks

weaker business optimism and soaring inflation.

THE UK economy has become much more volatile compared to three decades ago, a survey out today shows.

Since the global financial crisis in 2008, the economy has grown much slower compared to the decade and a half in the run up to the catastrophe, according to consultancy BDO.

The firm said in the first 15 years of its “business trends”, Britain experienced “an almost consistent period of economic growth”.

However, the following 15 years have been characterised by sluggish output,

The swing has been fuelled by a series of crises that have rocked the UK economy, including banking failures, the Covid-19 pandemic and Russia’s invasion of Ukraine.

In fact, BDO’s latest quarterly inflation reading of nearly 119 is the highest in the survey’s 30-year history.

Prices have risen 11.1 per cent over the last year, turning the screw on households and businesses’ finances.

Experts expect the economy to suffer an around year long recession starting this winter, driven by spending falling

in response to rising prices, meaning BDO’s survey is likely to undergo a further downturn.

The firm’s employment index has held up well amid the economic slowdown.

Official figures show the unemployment rate is running at 3.6 per cent, a historic low.

“As the cost of living crisis continues and the country navigates a period of recession, the UK is likely to see a more significant drop in employment along with further falls in optimism and output,” Kaley Crossthwaite, partner at BDO, said.

BPC

THE TIMES

UK TURNS TO COAL AS A RESULT OF GAS PRICES

Rising gas prices resulting from the war in Ukraine have forced the UK to nearly double its coal imports .The increasing use of coal-generated power in the UK comes after years of a shift to cleaner forms of energy but is deemed as vital.

THE TELEGRAPH

FIRST LIGHT FUSION PLANS

£500M PROTOTYPE REACTOR

A nuclear startup attempting to crack the holy grail of nuclear fusion is planning a new plant. It is examining sites that will make both electricity and tritium, which is an isotope of hydrogen needed to fuel fusion reactions.

THE FINANCIAL TIMES

LEAH MONTEBELLO

BRITISH Patient Capital (BPC), the venture capital subsidiary of government-owned British Business Bank, has posted a “very active year” as it continues to back high-growth UK firms.

As the largest domestic investor in UK venture and venture growth opportunities, BPC announced that it now manages assets with a total value of £3.1bn.

During the year, BPC invested £341m across all programmes, bringing total investments since

EY

ATTEMPTS TO SMOOTH PATH TO RADICAL BREAK UP

EY has created a new decision-making panel to resolve wrangling over who should get what following the planned split of its business. The start of countryby-country votes among partners has already been delayed until next year.

inception in 2018 to more than £1.6bn. There are now 1,008 companies in the underlying fund portfolio, an increase of 332 on the previous year’s figure.

Four companies from BPC's portfolio also achieved unicorn status during this period –Thought Machine, Gocardless, Lendable and Wayve. Chair of BPC Russ Cummings said that although the industry was not immune to the increasing macro-economic uncertainty, the fundamental potential of the UK innovation economy remains “strong”.

JACK BARNETT

posts ‘very active year’ despite ongoing uncertainty

HAPPY CAMPERS Participants dressed as Father Christmas inspect other VW Camper Vans ahead of the New Forest VW Santa Run at Beaulieu Motor Museum in Hampshire

Halfords warns electric car tax to slow uptake

HOLLY WILLIAMS

THE BOSS of retailer Halfords has hit out at the chancellor’s move to start taxing electric cars, warning it will hold back the switch from petrol and diesel motors.

Chief executive Graham Stapleton told the PA news agency Jeremy Hunt’s autumn budget announcement that electric vehicles (EVs) would no longer be exempt from road tax from 2025 was “disappointing”.

Under the plans laid out in the Autumn Statement, electric cars registered from April 2025 will pay the lowest rate of £10 in the first year, then move to the standard rate, which is currently £165. Stapleton said it could impact the mass adoption of EVs, making them both costly to buy and now more costly to run.

He said: “There’s no doubt the duty change on electric vehicles is not

helpful. It won’t help the adoption of EVs for sure – we were surprised to see that (in the Autumn Statement). EV cars aren’t getting any cheaper quickly and increasing duty at this stage is disappointing.”

Since EVs came onto the market, these models have been exempt from annual road tax as the government has sought to incentivise take-up of electric cars.

But with an increasing number of drivers choosing EVs – 14.6 per cent of all new cars registered in 2022 up until the end of October were electric – the government is under increasing pressure to help fill the financial gap left by their road tax exemption.

Hunt said on making the announcement that it would “make our motoring tax system fairer” as the Office for Budget Responsibility has forecast that half of all new vehicles will be electric by 2025.

Homes selling for three per cent below asking price, says Zoopla

VICKY SHAW

HOMES have been selling for three per cent below their asking price typically in recent weeks, according to Zoopla. For much of 2021 and the first half of 2022, the average discount that homes were selling for was zero per cent, it said, meaning that properties were typically achieving their asking

price. The property website said it expects discounts to increase further in 2023.

Its latest housing market report said: “History shows that when discounts reach 5-6 per cent this points to flat to falling prices.

“It’s important sellers who want to achieve a sale are realistic on selling prices.”

Value of crypto fraud in the UK jumps to £226m

JACK MENDEL

THE VALUE of crypto fraud in the UK has sky-rocketed by almost a third, according to new figures.

The value of crypto frauds shot up by 32 per cent from £171m to £226m this year, according to data from Action Fraud obtained by law firm Pinsent Masons via a freedom of information request.

More than 10,000 crypto fraud reports were made this year, a 16 per cent rise on 2021, as thousands of crypto investors were scammed and left out of pocket.

Hinesh Shah, a senior associate at the firm who specialises in forensic accounting and financial crime investigations, said: “Whenever times are tough, fraudsters always seek to prey on less experienced investors by promising huge returns.

PA

“People should always be cautious when they receive an unsolicited suggestion to invest, from sources which they don’t recognise. This is especially true when it comes to cryptocurrencies.”

PA

Zoopla said it expects discounts on house prices to increase further in 2023

Amazon to see £29m tax hike as part of business rates shake-up

ANNA WISE

AMAZON could see its tax bill jump by £29m next year as a result of changes to business rates that are set to hit warehouses and online retailers the hardest.

The online retail giant is likely to be among the companies facing big tax hikes in the UK following the chancellor’s Autumn Statement,

according to new analysis from real estate adviser Altus Group.

Meanwhile flagship department stores and hotels could shave millions off their tax bills as bricks and mortar retailers receive greater support.

This is because the government is shaking up the business rates system and revaluing more than half a million retail properties across England and Wales. New rateable values, which are

used to calculate the business rates tax, will be based upon property values as of April 1, 2021.

That means that the pandemic “winners”, such as online retailers, will see a tax hike while the pandemic “losers”, like physical stores, could see their taxes fall. One of Amazon’s delivery stations in Longtown, Cumbria, will face a surge in its rateable value by 145 per cent.

Labour growth plans backed by small businesses

BEN JAGLOM

THE FEDERATION of Small Businesses (FSB) has said that proposed Labour plans to help small businesses get their unpaid invoices paid on time are “exactly what the UK’s 5.5m SMEs need”.

Under the proposals big businesses would be required to provide details on their company’s payment practices in their annual report.

This would require audit committees to issue a report on late payments. It added that more than £20bn in unpaid invoices are outstanding at any one time, costing small businesses £684m.

Labour noted that late payments act as a hindrance to growth and productivity for the UK’s small businesses, with money that could be spent on new technology and training for staff wasted trying to chase these unpaid amounts.

It added that research has found this is a bigger problem for British businesses than their European equivalents, with two in five SME business owners saying that they have suffered poor mental health as a result of unpaid invoices,

with a third reporting sleepless nights.

The Labour plans to deal with the late payments crisis join a raft of recent announcements to grow the UK’s economy which includes plans to invest in the country’s clean energy potential and an industrial strategy aimed at reviving manufacturing.

In a recent speech to the CBI, Labour leader Keir Starmer said that the UK should be a country where “aspiration is rewarded” and that he wants to give the UK its “hope and its future back”.

Tina McKenzie, policy and advocacy chair of the FSB, said: “Many small businesses are being held back by a culture that says it’s acceptable to pay them late.

“The laws are currently slack and supplier interest must be represented at the top of the chain, or this could have a chilling impact on the econ-

She added that “Labour is showing that they ‘get it’ when it comes to what small businesses need from government”.

US hedge fund set to refinance Superdry with £70m package

ILARIA GRASSO MACOLA

US HEDGE fund Elliott Advisors is set to refinance Superdry with £70m in funding as the clothing company is due to repay its debts early next year.

Advised by PwC, Superdry is in talks with Bantry Bay, a London-based fund backed by Elliott, to ensure a deal with a new asset-backed lending facility before the January deadline, the Sunday Times reported.

“Our asset-backed lending facility of

up to £70m is due to expire at the end of January 2023, although current projections suggest the group will remain cash positive throughout most of the first half of the calendar year,” chair Peter Sjolander said last month when Superdry posted full-year results.

“The directors acknowledge that, until these discussions conclude, a material uncertainty exists around the going concern of the group, although we remain confident of a positive outcome.”

The clothing retailer reported a profit of £22m for the year to April

Starmer has built bridges with industry

PA

THE ALL­ELECTRIC iX

Fuel economy and CO2 results for the BMW iX. Mpg (l/100km): Not applicable. CO2 emissions: 0 g/km. The iX xDrive40 electric range: 253­264 miles. The iX xDrive50 electric range: 365­380 miles. Range figures obtained after the battery had been fully charged. The iX is a battery electric vehicle requiring mains electricity for charging. Figures shown are for comparability purposes. Only compare electric range figures with other cars tested to the same technical procedures. These figures may not reflect real life driving results, which will depend upon a number of factors including the starting charge of the battery, accessories fitted (post registration), variations in weather, driving styles and vehicle load.

Tory rebellion grows over PM’s windpower ban

SAM BLEWETT

RISHI SUNAK is facing a growing rebellion of senior Conservatives who are joining Boris Johnson and Liz Truss in trying to force him to drop a ban on new onshore wind farms.

Former party chairman Sir Jake Berry yesterday added his name to the Tory MPs backing rival legislation trying to force a U-turn from the Prime Minister.

Sunak is also facing a split in opinion from within his own Cabinet, with levelling-up secretary Michael Gove understood to be backing an end to the moratorium.

Transport secretary Mark Harper acknowledged the situation is “not easy” but insisted the stream of Tory MPs saying they will not contest the next election is nothing for the party to worry about. Former prime ministers Truss and Johnson are among more than 20 Conservatives backing a pro-wind

amendment to the Levelling Up Bill.

Alok Sharma, who was the president of the Cop26 climate summit, has also backed the legislative move from former levelling-up secretary Simon Clarke.

Elliot Colburn and former ministers Robert Courts and Kevin Foster will also add their signatures to the amendment, the PA news agency has been told. Along with private backers, a rebel source said 30 Tories back the bid, coming close to eroding Sunak’s working majority of 69 votes if other opposition groups join Labour in backing the amendment.

Sir Jake said Gove’s divergent opinion “spells real danger for my government”, suggesting it is a “first crack in the wall” of discipline for Sunak.

Johnson did not seek to overturn the effective moratorium on new onshore wind projects, in place since 2015, during his time in Number 10.

Suella Braverman is to summon police chiefs to Downing Street for talks about cracking down on Just Stop Oil protests as officers anticipate a fortnight of disruption.

Scotland Yard warned it believes that the environmental activists will today launch two weeks of disruption in London in the run-up to Christmas.

Ineos and Rolls Royce to build nuclear plant

INEOS is reportedly in talks with Rolls-Royce to build a mini nuclear reactor and power its Scottish chemical refinery.

Jointly owned by China’s Petrochina, the Grangemouth factory will need to reach net-zero by 2045 to comply with the Scottish government’s environmental targets, the Sunday Telegraph reported.

While Scottish First Minister Nicola

Sturgeon has opposed the building of new nuclear power stations using current technology, the government has recently said it would consider new technologies such as small modular reactors (SMRs).

Cheaper and quicker to build due to their easier assembly, SMRs are part of Rolls-Royce’s strategy with the company planning to build 30 of them. The manufacturer is waiting for customers to rally behind the project as well as for the regulators’

green light on designs.

“Rolls-Royce SMR is talking to a number of industrial customers who see huge potential in using our UK developed technology to provide affordable, long-term, low carbon electricity, generated from a sustainable source,” a company spokesperson told the outlet.

“We do not comment publicly on any commercial discussions.”

Ineos was approached for comment.

PA

ILARIA GRASSO MACOLA

HOME SECRETARY

UK ‘all talk and no action’ on semiconductors

LEAH MONTEBELLO

THE UK is ‘missing out’ on semiconductor inward investment as international competition heats up, says a new parliamentary report.

MPs on the Business, Energy and Industrial Strategy Committee singled out cooperation with the US under the CHIPS Act and engagement with Taiwan as possible areas that could yield opportunities for the booming sector.

Making international partnerships was something to be explored in an overdue semiconductor strategy, the committee said, adding that the government should publish without any further delay.

“The government is putting UK plc at significant risk by failing to take action in support of the semiconductor industry,” committee chair Darren Jones warned.

“Other countries are investing in the

resilience of their semiconductor supply chains yet ministers in the UK can’t even publish their semiconductor strategy on time.”

Globally, the semiconductor industry is worth more than $500bn (£414m) and, despite a recent dip in demand, is expected to expand to over $1 trillion by 2030.

The report said the semiconductor strategy should include “facilitating the design and construction of new fabs”, referring to semiconductor production plants. It also backed an ‘open fab’ in South Wales, which would allow any firm to produce at the facilities, thereby driving further growth in the industry.

“At the moment, it is all talk and no action as regards semiconductors, but now is the time for action,” co-founder and chief executive of the British graphene microchip firm Paragraf Simon Thomas said.

Volkswagen’s new boss focused on recovering the brand’s ‘spirit’

ILARIA GRASSO MACOLA

VOLKSWAGEN’S new chief executive Thomas Schafer has made a U-turn in the company’s strategy, focusing on reducing “the portfolio of models” as well as introducing “proper vehicles”.

“We need to get back our spirit, our heart, and create new iconic people’s cars,” Schafer told the Sunday Times.

The German manufacturer has been through a turbulent few months, plagued by unsatisfactory results, boardroom reshuffles and production issues.

In July the group’s chief executive Herbert Diess was reportedly fired after delays in the development of software set back the launch of Volkswagen’s electric models.

Stations told to clamp down on fare dodgers

ILARIA GRASSO MACOLA

THE UK government has called on railway stations to keep their ticket barriers shut as it clamps down on fare evasion.

“For the barriers to be left open would be bad enough in the days when things were better. To do so when I am fighting so hard with the Treasury to justify all of the investment we’re being given is madness,” rail minister Huw Merriman said.

Data from the Office for Rail and Road reported the sector was spending around £21bn in 2020-21.

Merriman has been in talks with the parent companies of train operators and all parties agreed to the need to “ensure the barriers are manned and closed”, the Telegraph first reported. He also called to increase penalties.

According to the minister, fare evasion – which costs the taxpayer £240m a year – could lead to the Treasury cutting funding for future projects. The Rail Delivery Group added that the industry was investing in trained staff “to identify and challenge fare evaders”.

The brand’s range of electric vehicles has received a tepid response from consumers

EU revamps vaping taxes as cigarette alternatives continue to take over

LEAH MONTEBELLO

THE EU is set to introduce a new vaping levy as it revamps the tobacco industry’s tax structures and adapts to the vape boom.

According to a draft European Commission document, stronger vaping products would have an excise duty of at least 40 per cent applied, while lowerstrength vapes will face a 20 per cent duty, the Financial Times first reported.

Heated tobacco products will also be whacked by a 55 per cent duty, or a tax rate of €91 per 1,000 items sold.

On top of this, the changes look to boost the bloc’s minimum excise duty on cigarettes from €1.80 to €3.60 per pack of 20, ending an era of uber cheap prices across eastern European nations, where packs can sell for under €3.

The commission was not immediately available to comment.

The news comes as tobacco alternatives continue to grow in popularity across Europe.

Data from Action on Smoking and Health suggested that there are now five times as many vapers in the UK than there were in 2013, with over four million Brits now actively vaping.

Although Public Health England has said that vaping is “around 95 per cent safer than smoking”, pushback from health and environment groups remains strong.

Last week environment and health groups called for the sale of single-use e-cigarettes to be banned in the UK due to their “rapidly escalating threat”.

In an open letter to the environment secretary and health secretaries, 18 organisations, including Green Alliance and RSPCA, argued that disposable vapes are “unnecessary electrical items” that contain single use plastic, nicotine and batteries, all of which are “hazardous

The number of vapers in the UK has quintupled since 2013, data suggests

to the environment and wildlife when littered”.

The demand follows research from Material Focus earlier this year that showed that at least 1.3m disposable vapes are thrown away every week, equating to two vapes per second, enough to fill 22 football pitches per year.

DESPITE predictions of a ‘bleak Friday’, spending rebounded this Black Friday, with transactions up 3.2 per cent on last year, according to Barclaycard Payments.

Brits proved keen to snap up deals amid skyhigh inflation, while energyefficiency products led spending at Currys.

BARGAIN HUNT Brits rush for deals amid cost of living crisis

Tiktok calls in startup help for ecommerce push

LEAH MONTEBELLO

TIKTOK has called in tech start-ups to boost its ecommerce operations in a desperate attempt to diversify revenue streams.

According to initial reports from the Financial Times, Tiktok’s parent firm Bytedance has been working with Yunexpress as a logistics partner to get its social commerce offering off the ground on a more global scale.

It also works with Dutch ecommerce service Channel Engine to integrate and distribute order catalogues.

Social commerce is where users can buy and sell items within a social media app. McKinsey reckons the market is expected to grow to more than $2 trillion by 2025.

Whilst the trend has experienced huge success in China, it has struggled to rally as much momentum in Europe and the US.

Indeed, Tiktok Shop, which launched last year in the UK and south-east Asia, has been met with a number of obstacles – including reports of staff burnout and a lack of sales.

According to reports from the Financial Times, Bytedance, which owns

both Tiktok and Douyin, has outsourced some of its operations to boost the ecommerce arm.

It comes after reports that Tiktok cut its global revenue targets for 2022 by at least 20 per cent in September after it struggled to keep up momentum in the face of tightening advertising spend and wider macroeconomic instability.

Head of investment at Interactive Investor Victoria Scholar told City A.M. that although Facebook has been at odds with Bytedance-owned Tiktok

The social commerce market is expected to be worth $2 trillion by 2025

to nab the attention of Gen Z, the latter’s “overconfidence has led to a spending problem that has got out of control”.

However, it’s not just Tiktok that is betting on shopping. Alphabet-owned Youtube has reportedly been testing how influencers can sell products through the platform.

The firm plans to roll out two pilot shopping schemes next year, paying creators a commission on the products they sell via the channel.

Online safety bill to criminalise posts that encourage self-harm

LEAH MONTEBELLO

THE LONG-AWAITED online safety bill is set to criminalise content that encourages self-harm as it attempts to beef up its protections. While encouraging suicide is already illegal, there is widespread concern about material on the internet that encourages people to harm themselves.

The recent inquest into the death of 14-year-old Molly Russell found that unsafe online content contributed “in a more than minimal way” to her suicide.

Senior coroner Andrew Walker said material viewed by Russell on social media “shouldn’t have been available for a child to see”.

Under the reforms, social media firms will have to remove and limit

people’s exposure to material that deliberately encourages somebody to injure themselves. This includes posts, videos, images and other messages that encourage, for example, the self-infliction of significant wounds.

The criminalisation will also mean that any person who sends these communications will face prosecution too.

QATAR is reportedly reviewing its investment in London after the capital banned the country’s adverts from its transport network. In response to TfL, Qatar said it was “considering investment opportunities in other UK cities and home nations”, according to reports.

BT gears up for division merger as telecoms giant drives cost cutting

LEAH MONTEBELLO

BT IS GEARING up to merge two of its struggling divisions as the telecom giant continues its big squeeze.

The FTSE 100 firm is set to combine its global services division, which provides security and cloud computing services, with its enterprise unit, which serves business and government customers in the UK, according to reports from the Telegraph.

BT boss Philip Jansen upped the

company’s cost savings target by £500m to £3bn last month, paving the way for job cuts and tighter spending decisions.

The enterprise division shrunk five per cent in the first half of the year, whilst revenues from global services dropped two per cent.

A spokesman for BT told the paper: “We know that there is some overlap of activities between our global and enterprise units, and we are working on ways to eradicate this.”

QATAR RAGE Qatar says it is reviewing investments in London after ban on tube ads

Snowy Kyiv grapples with power outages amid Russian air strikes

TOM BALMFORTH AND LIDIA KELLI

SNOW FELL in Kyiv and temperatures hovered around freezing yesterday as millions in and around the Ukrainian capital struggled with disruptions to electricity supply and central heating caused by waves of Russian air strikes.

The cold weather is gradually pushing up the energy needs of consumers even as repair workers race to fix wrecked power facilities, grid operator Ukrenergo said.

Electricity producers yesterday were still unable to resume full power supply after Russia’s missile attacks on Wednesday and have no choice but to conserve energy by imposing blackouts, it said.

“The consumption restriction regime is still in place due to a capacity deficit, which currently stands at around 20 per cent,” Ukrenergo said on Telegram.

Moscow has targeted vital infrastructure in recent weeks through waves of air strikes that have

sparked widespread power outages and killed civilians. Fresh strikes last Wednesday caused the worst damage so far, leaving millions of people with no light, water or heat even as temperatures fell below 0 Celsius.

On Saturday, Ukraine accused the Kremlin of reviving the “genocidal” tactics of Josef Stalin as Kyiv commemorated the 1932-33 famine that killed millions of Ukrainians.

“Once they wanted to destroy us with hunger, now – with darkness and cold,” Zelensky wrote on Telegram.

Protests erupt in China over Covid measures

CASEY HALL AND MARTIN QUIN POLLARD

HUNDREDS of demonstrators in Shanghai shouted and jostled with police yesterday evening as protests over China’s stringent Covid restrictions flared for a third day following a deadly apartment fire in the country’s far west.

The wave of civil disobedience, which has spread to other cities including Beijing, is unprecedented in mainland China since President Xi Jinping assumed power a decade ago and comes amid mounting frustration over his signature zeroCovid policy.

China has spent nearly three years living with some of the strictest Covid curbs in the world.

The fire at a residential high-rise building in the city of Urumqi triggered protests after videos of the incident posted on social media led to accusations that lockdowns were a factor in the death toll.

Urumqi officials abruptly held a news conference in the early hours of Saturday to deny Covid measures had hampered escape and rescue.

Many of Urumqi's 4m residents have been under some of the country’s longest lockdowns, barred from leaving their homes for as long as 100 days.

By evening yesterday, hundreds in Shanghai had gathered in the Wulumuqi Road area, named after Urumqi, to protest.

US Black Friday online sales reach record $9bn despite high inflation

DEBORAH SOPHIA AND MARIA PONNEZHATH

US SHOPPERS spent a record $9.12bn (£7.54bn) online this Black Friday, a report showed this weekend, as consumers weathered the squeeze from high inflation and grabbed steep discounts on everything from smartphones to toys.

Online spending rose 2.3 per cent on Black Friday, Adobe’s data and insights arm Adobe Analytics said, thanks to consumers holding out for discounts until the traditionally big shopping days, despite deals starting as early as October. Adobe Analytics had forecast Black Friday sales to rise a modest one per cent.

Adobe expects Cyber Monday to be

the season’s biggest online shopping day again, driving $11.2bn in spend.

Consumers were expected to flock to stores after the pandemic put a dampener on in-store shopping over the past two years, but Black Friday saw stores draw less traffic than usual. Instead, mobile shopping represented 48 per cent of all Black Friday digital sales, according to Adobe.

Protestors jostled with police last night as demonstrators gathered in cities across China following a deadly apartment fire in Urumqi

While spending hit a record, US stores attracted fewer Black Friday shoppers than usual

Blackouts have hit Kyiv amid freezing temperatures, with snowfall forecast to continue

WHEN former Tory chancellor George Osborne created the Office for Budget Responsibility (OBR) in 2010, he was unlikely to have envisioned it would become the source of financial market turmoil.

But, that upheaval was not the budget watchdog’s fault. Instead, it was former prime minister Liz Truss and exNumber 11 incumbent Kwasi Kwarteng’s disdain toward the OBR that partly sparked the calamitous response by investors to the pair’s mini budget in late September.

Jeremy Hunt has taken a completely different approach. He made allowing the OBR to mark the government’s fiscal homework a priority.

While the OBR is now one of the UK’s elite economic institutions, its latest set of economic forecasts seem somewhat optimistic.

PRODUCTIVITY BOOST

The organisation headed by Richard Hughes, a former senior treasury official, is leaning (very heavily) on assuming UK productivity growth surging over the next five years. It made a similar judgement in its March 2022 forecasts.

In fact, according to consultancy Pantheon Macroeconomics, the budget watchdog thinks long term output per hour growth will hit 1.3 per cent, more than double its average during the 2010s.

The Resolution Foundation estimates that assumption generates a whole percentage point of the OBR’s GDP growth projection over the next five years.

The OBR’s reasoning led it to project the economy will expand more than two per cent each year after 2024, about 0.5 percentage points above the UK’s annual average since the financial crisis in 2008.

As has been well documented, since the global banking system nearly collapsed, Britain has been gripped by a productivity malaise. It has barely inched higher each year.

The productivity estimate “looks too optimistic, given that business investment is set to comprise a smaller share of GDP over the next couple of years than back then,” Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said.

The biggest factor keeping productivity lower has been chronically low business investment.

In fact, in the OBR’s projections, business investment is on track to take a knock from higher interest rates and uncertainty over whether it is worth buying new computers and building new factories during a recession.

The Organisation for Economic Co-operations and Development reckons UK business investment will next grow one per cent, higher than the United States and Germany, but lower than France.

Experts are sceptical about a coming investment boom in the UK.

“The forthcoming recession and higher interest rates suggest we won’t get the private investment growth needed to move the needle for productivity growth. I think it will be hard for the UK to grow consistently at two per cent annual rates across the mediumterm,” James Smith, developed markets economist at ING, told City A.M.

In the autumn statement, Hunt confirmed the 130 per cent investment relief will finish at the end of next March,

TAKING THE

TO TASK

something the Confederation of British Industry has warned will keep productivity growth tepid.

NET MIGRATION RISE

Stronger population growth will also drive GDP higher, the OBR reckons. Net migration will hover around 215,000 each year over its forecast horizon, increasing the workforce and the economy’s potential output.

Those estimates are up around 75,000 from Osborne’s brain child’s forecasts in March.

That assessment looks more feasible than its productivity bet. Figures from the ONS last week revealed net migration topped 500,000 in the year to June, a record, although the numbers were pushed higher by Ukrainians fleeing Putin’s destruction and foreign students who have spent the last two years studying remotely finally moving to the UK.

This influx of foreign workers into the UK labour market is necessary to replace around 900,000 people who left the jobs market since the start of the pandemic.

A large chunk of this group are older

workers taking early retirement, suggesting “that many will never return,” the OBR reckons.

According to the OBR, the size of Britain’s workforce will not return to its pre-pandemic trend until around mid 2027, weighing on output. Over the course of the next five years, the labour force will miss out on 0.3 percentage points of growth.

Without an inflow of migrants to replace those workers, Britain will be unable to produce the same volume of goods and services, making the country poorer.

UNLEASHING SAVINGS

Now, the OBR is not alone in making this next assumption.

For months, economists have been betting households will unleash a wave of savings built up during the Covid-19 crisis when spending opportunities were blocked by lockdowns.

Brits have around £150bn in savings above their pre-pandemic trend.

The rationale goes as such: “households will… draw on their savings to cushion the impact of higher prices on their consumption,” according to the OBR. In fact, the organisation thinks the savings ratio –the amount of money households set aside each month from their pay packets –could hit zero per cent next year. Most recent data does not suggest this.

According to the Bank of England, in September, households saved £8.9bn, much higher than previous months.

They also spent just £100m on credit cards, compared to £700m in August.

When economic uncertainty rises, people tend to be more cautious. They may avoid taking on more debt for fear of losing their job and being unable to repay lenders. They are more likely to

pay off existing debt, particularly when interest rates are rising.

Ultimately, people are highly sensitive to their job security. If they think sometime in the future they could be laid off, then they will save more each month so they can pay for basic necessities should the worst happen.

Exercising greater caution on an individual level makes sense. But, if everyone does it, it sends a chill through the entire economy. That situation seems to be where we are headed. If the savings rate stays elevated, the OBR’s GDP forecasts will come in lower than expected.

Lots of commentators and politicians bashed the OBR in the lead up to the autumn statement earlier this month. Its forecasting record is not great, but it is tough to find any organisation which does have a good one.

This is not to say economic forecasts should be binned. Instead, it shows how challenging it is to get them bang on, particularly in a much more uncertain world.

As the old saying goes: “It is better to be approximately right than exactly wrong”.

CITY DASHBOARD

YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

LONDON REPORT BEST OF THE BROKERS

Global markets look to US jobs data in hope for Fed hike slowdown

SIGNS of a further slowdown in the US jobs market convincing the Federal Reserve to slow its interest rate hike cycle will top investors’ wish list this week.

London’s FTSE 100 index notched a decent showing last week, climbing 1.37 per cent to close at 7,486.67 points, while the domestically-focused midcap FTSE 250 index rose by a similar amount to finish at 19,545.70 points.

New jobs figures from across the pond out on Friday are likely to show employers reining in hiring in response to rising interest rates and uncertainty over the future health of the US economy.

While the American economy is holding up better than the UK and eurozone, firms are being squeezed by the Fed raising borrowing costs 75 basis points in a row to tame surging prices.

Last month, job openings fell to

261,000, while a string of sackings by tech giants including Facebook owner Meta indicate the US labour market is beginning to soften.

The Fed is worried strong demand for workers rubbing against weaker labor supply will push wages higher, embedding high inflation into the economy.

There is “little sign of a wage price spiral despite still high levels of vacancies. If anything, we are now starting to see in the current earnings season reports that the big tech companies are letting people go in their thousands,” Michael Hewson, chief economist at CMC Markets UK, said. A reduction in job openings would embolden the Fed to ease off the rate hike accelerator.

In London, Bank of England data on credit card spending and mortgage approvals will be closely watched for recession signals tomorrow.

Short haul airline and FTSE 250-listed Easyjet is well placed to step up capacity and capitalise on international travel demand scaling back to pre-pandemic levels. The firm posts half yearly results tomorrow, and broker Peel Hunt reckons clients should snap up the stock, which has fallen more than a third this year. Recent dollar weakness should also help its earnings.

FUTURE

Investors will zero in on magazine giant Future’s outlook when the firm updates markets on Wednesday. Specifically, whether the cost of living squeeze could weigh on magazine sales. A slowdown in advertising income due to greater economic uncertainty could deal a heavy blow to the firm’s finances, Peel Hunt reckons. Its shares are down around 60 per cent this year.

NO SAVINGS

JACK BARNETT ECONOMICS AND MARKETS REPORTER

BOOST YET For months, experts have been betting on UK consumers raiding their pandemic savings to fuel spending. This has not yet happened on the scale predicted. Latest Bank of England figures this week are likely to show people are still hoarding money as the UK heads for a slump.

EDITED BY SASCHA O’SULLIVAN

Farage wants to reawaken the Brexit mob with a ragbag of populist policies

dent, testicular cancer and a plane crash have not slowed him down, and he remains, whether one likes it or not, one of the most approachable and relatable politicians in Britain.

THE veteran political journalist Michael Crick recently described Nigel Farage as “the most significant politician of the century so far”. This might seem like a blatant piece of liberal-baiting clickbait, given that Farage has stood for election to the House of Commons no fewer than seven times without success, but Crick is neither a fool nor a hyperbolist. Farage genuinely changed the terms and focus of the debate over Europe, and placed the issue of immigration, especially across the English Channel, beyond the narrow confines simply of cranks and racists.

Farage also seems to have retired more often than Sinatra, but last week he wrote in the Telegraph issuing a message of defiance to his critics. The party he founded in 2018 as the Brexit Party, renamed last year Reform UK, will field candidates across the UK, and will set its face against electoral pacts with the Conservatives or anyone else. They are out to win, not merely to enable.

This is not all about Nigel, we are assured. Although he co-founded the party with financial trader and hotelier Catherine Blaiklock, he is merely its honorary president, the leadership being held by the ambitious but often implausible Richard Tice. Farage admit-

ted that he “communicates regularly” with Tice, but is loath to portray Reform UK as another Farage vehicle. Ever since Reform UK took over the corporeal existence of the Brexit Party, it has been in search of an animating spirit. It has tried on the clothing of lockdown scepticism, support for low taxation, an increase in direct democracy and opposition to net-zero carbon emissions, but nothing has quite given it the traction it wants. Now it returns to familiar territory, with Farage installing himself as the watchdog of Brexit. In his Telegraph peroration last week, he warned “I didn't spend 25

years of my life battling to secure a seemingly hopeless cause only to watch Jeremy Hunt give it away”. Farage was always about Brexit, and now, the UK has left the European Union and no serious body of thought really imagines we will be seeking readmission in the near future. Is he merely seeking to refight old battles and feel the sun of his glorious summer on his face again? He is certainly bullish about Reform UK’s prospects: he points out that the party has been polling as much as 9 per cent nationally of late, modest enough but toe-to-toe with the Liberal Democrats, and that 40 per cent of Con-

servative votes would consider voting for a party led by Farage (which Reform UK currently is not).

But the shape of the Brexit debate has changed, and while immigration is still very much a live issue in constituencies around the country, it evokes a different kind of antagonism. The European Union served a useful purpose: it was an outside entity for which we could blame all our problems on. Now we have pulled ourselves from its clutches, our immigration debacle - both on the question of asylum and low-skilled workers - is all of our own making.

Nigel Farage is 58. A serious road acci-

Perhaps he also sees himself as a man of destiny. He finally delivered what some thought was an undreamable dream and, while he is easily moved to ruddy-cheeked outrage, it is obvious that nothing gives him the existential joy and satisfaction of hostility towards the EU institutions and Remain voters.

Some of this leaves an unpleasant taste. Many people will not be relieved to see Farage as some kind of independent-minded arbiter of loyalty to the cause he has worshipped for so long. And his rhetoric about the failures of the Conservative government, the disappointment of the electorate and their disenchantment with the “usual suspects” plays to a certain crowd who often bemoan “the media”. But Farage knows, better than anyone else, that disenchantment and alienation are among the most powerful political motivators, rarely in a good way.

British politics is due a little bit of change. But the resurrection of Farage as our Brexit inquisitor and pastor, keeping us true to the one faith, is not that change. Reform UK’s manifesto is a ragbag of populist chants placed like baubles on the Brexit Christmas tree. Let us not chase the banality of soundbites and the echo chamber of mutual reassurance. He might be good company, but we can do better than this.

£ Eliot Wilson is co-founder of Pivot Point and a columnist with City A.M.

Stabilising the economy depends upon ensuring new start ups stay in our shores

TONIGHT I will welcome the Prime Minister, the Lord Chancellor, the Archbishop of Canterbury, the Chancellor of the Exchequer and guests from across the City - and beyond - to Guildhall for the annual Lord Mayor’s Banquet.

While the worst of the pandemic is behind us, we are facing the bleakest economic outlook that we have seen for many years, with the economy in recession, public finances severely stretched, and high inflation driving a cost-of-living crisis. The City of London is so much at the heart of the UK economy, that there is no way it can be immune to this situation.

There is no road to recovery that does not run through the City, and so our financial and professional services sector must do all we can to support the UK economy through this crisis.

The immediate challenge will be how we best serve people and businesses through this difficult period – how we can keep them afloat, alleviate the rising debt burdens people are facing and

Nicholas Lyons

keep the economy moving. Now is the time for financial services firms and utility providers to demonstrate responsibility – by providing affordable credit to tide people through and where necessary to defer payments and waive insurance premiums.

But the longer-term challenge is how the financial and professional services sector can help the UK rediscover elusive economic growth. In the Autumn Statement, the Chancellor had a very tough task of trying to balance the books in a short timescale. Markets have been reassured for now following the turmoil at the end of September.

Nevertheless, the UK needs a longerterm plan. Successive governments

have not done enough to update our national infrastructure and develop renewable energy supply and storage. The country will need long-term investment from government, and the right environment for private sector investment too. The reforms announced to the Solvency II regime are a step in the right direction. This reform will help to make the funding of long-dated loans easier – supporting both major infrastructure projects as well as the development of green technologies across the UK – but there is more that needs to happen to stimulate growth.

Money is short, but by mobilising private savings and pension funds, we can unleash the capital to boost the earlystage growth economy. To do this, we need to create a positive ecosystem for early-stage investment.

We have world-leading tech and scientific expertise here in the UK, often at the forefront of innovation. But far too often, we have failed to reap enough of the benefits here in the UK. Many of our newest companies have

for decades left our shores and been acquired by asset owners in other financial centres. We need our British companies to scale and to list here in London, so we need to make the UK a destination where high-growth businesses can access the investment they need at any stage of their journey. This will require government to get behind business and entrepreneurs and dismantle barriers to entry into UK markets. We need to show these firms that we are serious about wanting them to grow and stay here, by implementing the reforms proposed by the UK Secondary Capital Raising Review, the UK Listings Review and the UK Fintech Review.

By backing innovation, creating the environment for firms to list and grow here, and being more bold and creative in how we invest in the earlystage growth economy, the City can drive the UK’s economic recovery and finance our future.

£ Nicholas Lyons is the Lord Mayor of the City of London Corporation

Eliot Wilson

Nigel Farage has said Reform UK will stand at the next election

EX-PRIME MINISTERS, UNITED Who would’ve thought after all that’s happened, Boris Johnson and Liz Truss could work together again. But as the saying goes, the enemy of your enemy is your friend and Rishi Sunak has united them in a rebellion over a ban on onshore wind farms

LETTERS TO THE EDITOR

2008 moment for crypto

[Re: FTX implosion shows urgent need for crypto rules, says Bank of England, Nov 21]

The sudden interest by global regulators in response to the FTX fiasco only serves to further highlight that the events of the past few weeks might well be looked back on as our industry’s version of the Lehman collapse.

Just as we saw in traditional financial markets in 2008, the so-called “crypto winter” was always likely to endanger those businesses that did not have the operating safeguards and security practices in place to manage through the market downturn. While this makes for “doom headlines” and

shakes the confidence of market spectators, it does not change the commitment of forward-thinking, innovative companies to unlock the potential of crypto, DeFi and blockchain technology.

For crypto to continue to grow and become mainstream, customers must have trust in the infrastructure and framework underpinning it. Ultimately the industry needs to combine the best attributes of DeFi with the elements of TradFi that ensure the necessary levels of trust, safety and oversight.

It is this sweet spot in between old and new where we will see long term, sustainable products and services that enable access to fairer markets, broader wealth creation and the achievement of financial well-being for millions of people across the world.

Todd Crosland CoinZoom

Terrible at times tables? Our reliance on fintechs doing our maths dents our income

Elena Siniscalco

LONDONERS are the most “maths anxious” people in the UK. If reading this sentence sends a chill down your spine, then you’re probably one of the maths anxious people.

The term is a little puzzling - do we mean people who are actually scared of numbers? After all, people seem to be scared of anything these days. You might have seen that video on TikTok of a lady running away screaming at the sight of a jar of olives. But it means feeling anxious about using numbers and doing maths.

Fifty-eight per cent of adults in London have low numeracy, according to charity National Numeracy. This means they have the same maths skills of an 11 year old. In total, 16 million workers in the UK are believed to have low numeracy skills.

Having low numeracy affects how much money you make. There is a 3.2 per cent gap in wages between someone with low numeracy and someone

EXPLAINER-IN-BRIEF: FINDING THE ENERGY FOR A FIGHT OVER ENERGY

After housing, the next cause of rebellion for Conservative MPs seems to be energy. Last week ex-prime ministers Boris Johnson and Liz Truss joined the rebellion on onshore wind, siding with those who want to see the ban on new planning permissions removed.

It is interesting, given that Johnson wasn’t a fan of onshore wind himself during his time as PM, and always pushed for offshore development instead. But having reinstated the ban on fracking, Rishi Sunak will have to

find a coherent energy strategy to sustain the country.

Sunak has already confirmed he will go ahead with Sizewell C, the nuclear plant to be built in Suffolk. The Chancellor defined the £20bn project the "only one way to stop being at the mercy of international gas prices".

He will also be looking at the controversial plans for a coal mine in Cumbria. The decision on the mine has been delayed multiple times, and is now expected for December 8.

with basic numeric skills. And it affects how you manage the money you make, too. People with low numeracy can struggle to pay or split bills or contrast and compare options to find better deals. During a cost-of-living crisis, this is even more of a problem.

“Over the last 6 months we’ve experienced a significant increase in those people coming to us to improve their numeracy, to in turn improve their money management”, says Sam Sims, Chief Executive of National Numeracy. With rising costs, stagnant wages, and reports of financial scams on the rise, people want to take matters into their own hands. It takes courage to do that, as maths anxiety is all about a lack of confidence in your own skills, says Sims.

And maybe it’s not a coincidence that London, the financial heart of the country, is the place where this anxiety is felt the most. Employment in sectors with workers with high numeracy is higher in London than on the national average. The capital is good at jobs that require skillfulness with numbers, like finance and insurance. But it’s also the place where the costs are the highest, where inequalities are still wide, and where people might feel less at ease to admit they don’t understand how numbers work.

For some of us, it is not as much a question of lack of capacity as of laziness - we’d rather someone else did the maths for us. Online banking platforms have sniffed an opportunity there - and a lucrative one for sure. Monzo and Revolut’s entire mission is to make life easier for you. It’s incredibly quick to open an account - these financial services pride themselves on the fact you can do it “in minutes”and it is super easy to make transac-

tions and transfer money. They’re not necessarily to blame for this. According to Nilan Peiris, chief product officer of digital bank Wise, the key to the project is transparency. Wise has a comparison table on its website with the costs of international transfers from different providerseven those that are cheaper than Wise itself. Transparency helps people make the best decisions for their needs, he says. “We don’t believe you should need a PhD in analytics to avoid losing hundreds of pounds sending money abroad”, Peiris adds.

Surely, none of us needs a PhD to manage our finances - true. But a lack of opportunities - or in other cases the knowledge that we can go by without doing any maths - has made us over reliant on external providers who work the numbers for us. And this gap between our understanding and our money has consequences on our savings and our wages. So maybe it’s time we stop underestimating the problem.

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For some of us, it is not as much a question of mathematical capacity as laziness

WE

ELENA SINISCALCO

Use of online banking apps has soared

A trade deal between India and the UK hit the rocks after Suella Braverman cast doubts over immigration. But France is increasingly looking to India, who are looking around for alternatives to Russia as an arms supplier.

DEHLI DREAMING As the UK-India trade deal stalls, France swoops in

TRAVEL

DRINKING FORMULA 1 FIZZ IN TRENTO

The curtain has fallen on the 2022 F1 season, and on the podium at the Abu Dhabi finale world champion Max Verstappen toasted runners-up Charles Leclerc and Sergio Perez with non-alcoholic rose water. Where’s the party in that, you ask? Due to the same alcohol laws that are stifling celebrations for us boozy Brits at the World Cup in Qatar, F1 races in Muslim states –the UAE, Bahrain and Saudi Arabia – require the drivers to lay off the booze until they get back to their hotels. Once back in those safe confines, they drink real champagne… actually, no they don’t.

It’s Formula One that’s made champagnespraying celebrations de rigueur inside the world’s more obnoxious nightclubs. But they’ve now switched from the best-known brands in Reims and Epernay to an Italian sparkling vino that sounds pretty racey anyway: Ferrari.

No relation to the red cars tearing around the circuit, Ferrari Trento was founded in 1902 at the foot of the Dolomites, creating award-winning sparkling wine from Chardonnay grapes according to the traditional methode Champenoise. In its cellars rest over 24 million bottles fermenting from two to 15 years. Don’t confuse Trento with Prosecco, or Franciacorta or Lambrusco, for that matter. Trento (or Trentodoc) is its own thing, and superior to most of the fizz you’ll find under £50 on the supermarket shelf. It’s organic, crisp and bursting with lively flavours.

Trento itself is well worth a visit. An hour’s drive north from Verona airport, it’s one of Italy’s most prosperous cities and boasts attractive late medieval and renaissance architecture restored to their original pastel colours, centered around its Romanesque-gothic 12th century duomo, and its buzzing bars and restaurants spilling onto a handsome piazza. The vineyards are located on the hillsides to the west of the city. Here, among Ferrari’s vines, you’ll find one of the region’s finest restaurants. The Locanda Margon is led by 33-year-old chef Edoardo Fumagalli. The wines served here all come from the Lunelli family’s portfolio, which includes Ferrari, and they own the restaurant to boot. These pair with some of the most creative dishes I’ve ever seen, vivid in colour as well as taste. My amuse bouche was a seaweed and tumeric butterfly served in a bowl of flowers. Local canestrato cheese is served like a cigar with chocolate ash. Spaghetti is cooked in a fragrant infusion of hibiscus and geranium. Beer sorbet with a wafer arrives hanging from a helium balloon. Sweets are served on a chunk of amethyst. Incredible theatre that compliments rather than distracts from the food and wonderful bubbles.

If you wish to go the whole hog and unleash your Lewis Hamilton, an F1-sized jeroboam of Ferrari Brut will set you back £340. The company also makes limited edition bottles of Blanc de Blancs dedicated to specific races, such as Miami, Mexico City, and the Northamptonshire village of Silverstone (available from £30).

Elton John’s been known to serve it at his legendary shindigs, and although it only found its way onto the F1 podium permanently in the past year (with a sponsorship deal running through 2025) its first appearance came at the 1981 Italian Grand Prix, through a one-off arrangement,

THE TRAVEL HACK

Black Friday sales have begun and it’s a great time to get inspired and book bucket list stuff.

Intrepid Travel have their Everest Base Camp trek at £953 for a fifteenday hike.

For something closer to home, Habitat Escapes properties in the Cotswolds have incredible packages available - but book soon.

For skiing, Ski Solutions has amazing experiences in the Alps for Black Friday on their website.

where it was lapped up by a thirsty Alain Prost.

This season alone, 76 jeroboams of Ferrari Trento were sprayed on the F1 rostrum and 60,000 regular bottles of Brut were polished off in the hospitality suites. Jeroboams signed by the winning drivers have been put up for auction and bids have surpassed £30,000, with all proceeds destined for victims of the war in Ukraine.

Motor racing’s soaking celebrations weren’t forged overnight. While we’re talking about the sparkling stuff, here are three key dates that shaped F1 sparkling supernova:

OCTOBER 12, 1936: LONG ISLAND, NEW YORK, USA

America’s Vanderbilt Cup was run at New York’s Roosevelt Raceway. Winner Tazio Nuvolari was presented with a trophy taller than himself. But he received another gift too – a chilled bottle of Moet & Chandon. It was the first time that champagne had appeared on the podium. Organiser George Washington Vanderbilt III - yachtsman and scientific explorer - was great friends with Monsieur Ladoucette, Moet’s US agent. “Come to the race”, said Vanderbilt, “and bring some cases of your fizzy drink. I’m sure the drivers will need some refreshment”. Before this date, drivers had been more partial to a nip of brandy with a cigar.

JULY 2, 1950: REIMS, FRANCE

It was very first Formula One World Championship season, and F1 had come to the Champagne region. The wine growing families from the region all gathered at the Reims-Gueux circuit, eager to meet the drivers. The throng of VIPs, with names like Lanson, Mumm and Pommery, were hugely hospitable on their home turf, awarding grateful drivers cases of their produce. Monsieur Chandon held a large banquet at his chateau that evening, and drivers like Fangio were honoured to accept the invitation. Thereafter, champagne (and more recently other sparkling wines) always featured in the post-race celebrations.

JUNE 11, 1967: LE MANS, FRANCE

It was a particularly hot day, and when winners Dan Gurney and AJ Foyt mounted the podium, the magnums of champagne at the

Bubbly on the Formula 1 podium is an iconic sporting image - Adam HayNicholls finds the exact fizz in Trento

BOOK THIS

rear of the stage had been sat in the sun for over half an hour. The wire cages had been removed from the corks already. As the silverware was being presented, one of the corks shot in the air with a bang, and the champagne spilled forth, showering the podium party. Gurney, in an attempt to shield his boss, Henry Ford II, tried in vain to stop the flow by putting his hand over the top of the bottle – as a result, everyone got drenched with bubbly and a legend was born.

JULY 6, 1969: CLERMONTFERRAND, FRANCE

THE LONG WEEKEND

RETREAT EAST SUFFOLK

Angelina Villa-Clarke checks into an inventive countryside hideaway

If you’re only just catching onto World Cup Fever, the good news is it’s not too late to book a trip to Qatar to catch the final.

Sports World - aka the FA’s official travel partner - has packages to the Quarter Final, Semi Final and Final available from £1,395 per person. Sportsworld.co.uk

Jackie Stewart was, and remains, a favourite of the champagne lords since he was the first to ‘do a Gurney’ on the F1 podium, setting a traditional celebration that would prove a mainstay 50-odd years on. “The 1969 French Grand Prix was 28 degrees,” the three-time world champion tells City A.M. “The podium bubbly had been sat there in the sun for the whole race. I didn’t even touch the cork, I just undid the wire and Whoosh! I put my thumb over the bottle – a good Scotsman doesn’t want to spill a drop – but the more pressure I applied the further it went. It was all quite by accident but, when you think about it, the perfect way to celebrate.”

NEED TO KNOW

British Airways flies to Trento from London return from £123; Rooms at the Grand Hotel Trento start from £109 per night; grandhoteltrento.com.

THE WEEKEND: You’ll find Retreat East along a quiet lane in the middle of Suffolk’s glorious rolling countryside (watch out for the discreet sign, as you’ll probably miss it). Made up of a series of converted barns, this newly-evolved project takes all the best elements of the archetypal countryside stay and merges it into one. Stylish interiors? Tick. A spa? Tick. A surprising inventive menu inspired by locally-sourced produce? Big tick. Carved out of a former dairy farm, the project was created by architect Dominic Richard, a graduate of The Prince of Wales’ Institute of Architecture. The idea was to offer a bolthole for city-dwellers to escape to as an antidote to urban stress. He bought what was then a rundown farm and set about creating an organic, sustainable retreat that would be both an asset to the local community and a pitstop for weary Londoners. Originally open to members’ only, it has now opened up to one-time guests. You stay in one of a series of 16 barns –some cater for two people, others house up to eight. All have bucolic charm with characterful interiors and homely touches. Many have their own kitchens if you want to hunker down for a while. At its heart is the lofty Great Barn, the original 16th century farmhouse and now home to the restaurant, spa and bar with pool table and snug sofas.

WHERE? We stayed in The Piggery – a mini home-from-home with impressive exposed beams, wood-burner and brick floor. Feeling more like a standalone cottage, it has its own kitchen, a sunny courtyard area and a beautifullydesigned bedroom with a candy-coloured pink four-poster bed, standalone tub and original stone walls.

TOP TIP

Try an Elemental Herbology facial at the spa, which uses honey, rosemary and teatree to brighten and deep clean the skin. It’s deeply cocooning. The vibe at Retreat East is as relaxed as you get, and you can pad over to the spa in your dressing gown.

Ticking the eco box, Retreat East has been built as sustainably as possible with solar panels, responsibly sourced wood, an onsite well for water and its own sewage plant to ensure that the project impacts the environment as little as possible. The kitchen garden is organic and fertilised using composted food waste. A rewilding programme for the former agricultural land is also underway.

THE FOOD: Head chef Adam Spicer uses many ingredients from an abundant kitchen garden to create an upscale menu. It wouldn’t be hard to imagine finding similar dishes in a Michelinstarred dining room. Start with Parmesan Gougeres and a Rhubarb Sour while you browse the menu. (Be warned: the snack section of the menu is incredibly moreish). A starter of ‘Fresh Figs’, for instance, is elevated with salted candied walnuts, pickled grapes, nasturtiums and dressed with rapeseed oil. The main of ‘Spring Suffolk Chicken’ was wonderfully complex with a rich chicken butter sauce, sorrel, BBQ spring onions and a crispy potato terrine. For those not wanting to miss out, there is a seven-course tasting menu, at a reasonable £69 per person.

ASK ABOUT: Guests can ask for a tour of the impressive farm gardens. Much of the organic produce used in the restaurant is grown here, with chef Adam and gardener Helen working collaboratively to grow heritage varieties and to ensure that there is little waste.

NEED TO KNOW: Prices at Retreat East start from £130 per night. Visit retreateast.co.uk for more information.

SPORT

STILL IN IT... JUST Draw gives Germany hope but they remain bottom of Group E at 16pt

KRAMARIC SCORES BRACE IN CRUCIAL CROATIA WIN

£Croatia went level on points with Morocco in Group F last night with a 4-1 win over Canada. Alphonso Davies scored Canada’s first ever World Cup goal before Andrej Kramaric netted twice and Marko Livaja and Lovro Majer added one each to give Croatia the win.

MOROCCO PUT SLOPPY BELGIUM TO THE SWORD

£Morocco sprung a World Cup shock by beating world No2 Belgium 2-0 yesterday in Group F. They took the lead when Abdelhamid Sabiri flew straight in and made the result safe in stoppage time when Zakaria Aboukhlal finished a breakaway.

COSTA RICA BOUNCE BACK WITH WIN OVER JAPAN

£Costa Rica grabbed a World Cup lifeline with a surprise 1-0 win over Japan in Group E. Keysher Fuller struck the late winner as the side beaten 7-0 in their opening game toppled Germany’s conquerors.

TODAY’S GAMES AND WHY YOU SHOULD WATCH THEM

£Cameroon v Serbia, 10am, ITV Both teams will be looking for their first points and first goals of Qatar 2022 when Cameroon meet Serbia.

£South Korea v Ghana, 1pm, BBC Hopefully this contest bears more resemblance to Ghana’s first match, a five-goal thriller with Portugal, than South Korea’s goalless draw against Uruguay.

£Brazil v Switzerland, 4pm, ITV Brazil have already lived up to their billing as one of the most exciting teams at this World Cup, even if Neymar will be absent against Switzerland with injury.

£Portugal v Uruguay, 7pm, ITV The Ronaldo show continues as football’s most famous free agent and Portugal face fellow pantomime villain Luis Suarez and Uruguay.

ENGLAND NEED A REFRESH

ENGLAND’S 0-0 draw with the USA at the World Cup on Friday was a wake-up call which raised several issues that Gareth Southgate can’t ignore ahead of their final Group B game with Wales tomorrow.

I was surprised that Southgate named exactly the same team that had beaten Iran four days earlier. The USA were always going to be very different opponents.

The Iran match became easy because they lost their goalkeeper early on and then lost their way after going behind, but even still it revealed some vulnerabilities in the England team.

Maybe they were too buoyant before the USA. If not complacent, they were certainly second to everything. The decision making was poor and, on the whole, it was a tired performance.

England’s fitness is a concern because playing every few days at a World Cup takes it out of you physically and mentally.

Harry Kane in particular looks weary,

FOOTBALL COMMENT

him get another chance against Wales. Show faith and let him know that you can have one bad performance, but I would like to see him operate higher up the pitch than he did on Friday.

yet Southgate persisted with him for the whole game. I think he was tired even before the World Cup and then picked up a knock in the Iran win. He looks desperate to score, which means he is probably impatient to play even when he might be better resting.

England have such a good squad full of talent that Southgate should show more trust in some of the other players. They should beat Wales and top the group but in any case are almost certain to qualify for the last 16 so we will surely see some changes on Tuesday evening.

Jude Bellingham was poor against the USA, who offered far more intense opposition than Iran, but I would like to see

I would also bring in Phil Foden, Jack Grealish and Marcus Rashford. It’s crazy that a player of Foden’s quality has only played 20 minutes so far in Qatar so I’d give him a game on the right, with Grealish playing centrally and Rashford attacking from the left wing. And why not allow Kane a break and try Wilson up front?

HUNGRY

In defence, I’d use Trent Alexander-Arnold at right-back and try another centre-back alongside Harry Maguire, probably

Foden has played just 20 minutes so far in Qatar

Ben White. Those on the bench are hungry for action so Southgate should have a look at them now.

In my experience of World Cups, it’s normal for the team to change as the tournament goes on. By the third group game of Mexico ‘86, we had a three different midfielders to the opening match: myself, Peter Reid and Steve Hodge. Gary Lineker scored a hat-trick in a 3-0 win over Poland, we advanced to the second round and that is how the team stayed. There are lessons to be learned from that.

England are not going to lose to Wales by four goals on Tuesday, so their qualification is pretty much bullet proof. Southgate, then, has the safety net to make changes and should see it as a positive: a chance to improve the fitness of the whole squad and inject some hunger into the side.

Trevor Steven is a former England footballer who played at two World Cups and two European Championships. @TrevorSteven63.

Niclas Fullkrug scored a crucial goal for Germany last night as his side drew 1-1 against Spain to keep their hopes of progressing through to the World Cup round of 16 alive. In the only meeting in Qatar’s group stages between previous World Cup winners, Antonio Rudiger thought he had put the Germans ahead only for his effort to be ruled offside. Spanish substitute Alvaro Morata broke the deadlock when the Atletico Madrid striker found the back of the net. Germany earned the draw in the 83rd minute when Fullkrug finished off a counter-attacking move. The result puts Spain top of Group E on four points with Japan and Costa Rica each on three. Germany remain bottom on one point with one matchday to go.

Trevor Steven

Southgate has such a talented squad, he should show more trust in some of the other players

ON TOP OF THE WORLD Canada win Davis Cup for first time

BRADBURY WINS OPENING EVENT ON DP WORLD TOUR

£ Englishman Dan Bradbury won the opening event of the DP World Tour yesterday in just his third professional start. The Brit finished three shots ahead of Sami Valimaki when he shot a four-under final round of 67 to finish 21 under. “It is going to take a few days for this victory to sink in,” he said.

“What I have achieved is unbelievable. It’s just a lot of pressure taken off your back –that’s nice, and the victory was all the more special because my mother was here to witness it.” The win has earned Bradbury a spot at next year’s Open Championship.

Elsewhere, Cameron Smith won on home soil as he took the Fortinet Australian PGA Championship by three strokes. “It’s awesome. I really didn’t think I had it in me at the start of the week,” said Smith.

LEICESTER TIGERS SURVIVE LONDON IRISH COMEBACK

£ Leicester Tigers survived a late comeback yesterday to beat London Irish 33-31 in rugby’s Premiership.

Leicester raced ahead and bagged a bonus point try within 30 minutes to lead Irish 26-7 but the London club

found their groove and began chipping away at the lead. Heading into the final five minutes Irish were 33-31 down and chasing the win but the reigning Premiership champions held on for the victory. Irish remain bottom of the Premiership table, two points adrift of Bristol Bears.

BOURNEMOUTH CONFIRM O’NEIL ON 18-MONTH DEAL

£ Gary O’Neil has been appointed the manager of Bournemouth after a successful spell as interim boss. The Cherries have earned 13 points from 11 Premier League games with O’Neil in charge after a poor start to the season under Scott Parker. The deal will see him remain at the club for 18 months with an option to extend that period by a further 12 months.

BRITAIN TO PLAY COLOMBIA IN THE 2023 DAVIS CUP

£ Great Britain have been drawn away from home against Colombia in the qualifying round of the 2023 Davis Cup. While Britain had a wildcard this year, they will need to progress through the qualifier in 2023. The tie will take place the week after the Australian Open.

England head coach under fire after worst results since 2008, writes Matt Hardy

LACKLUSTRE. Monotonous. Embarrassing. Those were some of the non-explicit words that were uttered as 81,000 fans left Twickenham on Saturday evening – many of them before the final whistle.

England’s 13-27 humiliation at the hands of a brilliant South Africa outfit condemned head coach Eddie Jones to his second loss in this month’s Autumn Nations Series and his seventh defeat in this calendar year.

England finish 2022 with a winning record of five in 12, their worst run of international results since 2008 – the years of Martin Johnson as head coach.

Losses to Scotland, Ireland, France, Australia, Argentina and South Africa combined with a draw against New Zealand makes for uncomfortable reading for Jones.

England have often looked devoid of a Plan B, or C for that matter, and have seen themselves become a side few seemingly fear.

Jones is on the ropes; and it’s not just the fans who have turned on the 2019 World Cup runner-up coach. But he is likely to hang on for another year and conclude his eight-year tenure with England when his side’s World Cup campaign comes to an end in France.

DISAPPOINTED

The Rugby Football Union’s Review Panel has said it would convene to discuss the results of the autumn with RFU CEO Bill Sweeney stating: “We would like to thank England fans for their patience and support, it matters to us how they feel.

“Like them we are really disappointed with the results of the Autumn Nations Series.

“Despite strong individual performances and some great new talent coming into the team, the overall results are not where we expect them to be.”

But the panel the RFU so often like to talk about is one of anonymity – never has the English rugby governing body disclosed who is in fact on this panel taking key decisions surrounding one

JONES

W vs Italy (0-33) W vs Wales (23-19) L vs Ireland (15-32) L vs France (25-13) L vs Australia (30-28) W vs Australia (17-25) W vs Australia (17-21)

L vs Argentina (29-30) W vs Japan (52-13) D vs New Zealand (25-25)

L vs South Africa (13-17)

Win percentage: 41.7 (2008: 36.3)

of the richest unions in the world with one of the biggest playing pools.

“I think they’re [reviews] always uncomfortable when you’re not winning,” Jones said. “I haven’t found the review comfortable when you’re not winning. I’ll just have the normal review. He [Sweeney] will have his opinion, based on what you guys write, and I’ll have my opinion. And we’ll share it.

“The only thing I feel about it is preparing the team as well as I can, and I don’t really care what other people think.

“Like them we are really disappointed with the results,” Jones said of fan frustration following his side’s loss to a clinical, well-drilled and disciplined Springbok side.

“We would like to thank England

fans for their patience and support, it matters to us how they feel.

“I have coached for a number of years and I believe I can coach well.

The reality is, however, that Jones has lost the fanbase – the folk who pay upwards of £80 to watch his side get dominated all over the park.

Jones’s England looked stagnant, stuck in a mindset of repetitive selection and an unfounded belief he can replicate the 2016 side that went on a significant run of victories.

The player skill is there, the depth is there and the quality is there – but bringing that together is a coach’s job and Jones has been unable to do that this month.

The three games England failed to win this autumn didn’t get away from

them because of one moment of genius or game-changing skill from the opposition, they were games where England were dominated for much of the match.

There are 10 months to go until the start of the World Cup, and usually England – the only northern hemisphere side to have lifted the Webb Ellis Trophy – head to the showpiece tournament as Europe’s favourite to win the title.

But not this time; England have dropped off while others have progressed.

Jones is unlikely to leave his role yet he is hanging on.

English rugby appears to be in a mess, both domestic and internationally.

Canada lifted tennis’ Davis Cup for the first time yesterday with a 2-0 win over Australia in Malaga. The best-of-three tie began with Denis Shapovalov toppling Thanasi Kokkinakis 6-2 6-4 before team-mate Felix Auger-Aliassime beat Alex de Minaur 6-3 6-4 to give the North American side an unassailable lead. “The emotions are tough to describe,” Auger-Aliassime said after their first win in 109 years.

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