Thursday 1 December 2022

STEFAN BOSCIA

THE UK is particularly vulnerable to China’s potential ability to disrupt international supply chains, a think tank has warned.

The Evenstar Institute, a London foreign policy think tank, said in a new report today that “Beijing has repeatedly targeted direct trade for strategic purposes in recent years” and that “the UK is heavily exposed indirectly to China via third countries over which

Beijing has significant influence”.

The Evenstar paper said there was “every reason to suspect” that Beijing would intentionally disrupt UK supply chains as retaliation for London’s increasingly frosty stance against China over the past few years.

It comes as Rishi Sunak earlier this week called for more “engagement and cooperation” with the growing superpower, while also declaring that the “golden era” of UK-China relations was over.

He also warned about the threat China poses to the UK’s national security, with the government this week buying out a state-owned Chinese firm from its stake in the

Sizewell C nuclear plant.

Evenstar said the UK’s defence supply chains could be at risk of Beijing-forced disruption.

“The exposure of the UK’s supply chain to China should be a key national security concern,” the think tank said.

The Prime Minister’s tone toward China has been considered a climbdown from his tough anti-Beijing rhetoric during the Tory leadership race, which has frustrated some of his backbenchers.

Former Prime Minister Liz Truss was planning on designating China as an official “threat” instead of a “systemic competitor”, however Sunak is now unlikely to make this designation.

Tory MP Sir Paul Beresford said yesterday during Prime Minister’s Questions that Sunak must get tougher on Beijing.

“China is more than just, as [Sunak] put it, a systemic challenge, but in fact an expanding, serious geopolitical threat,” he said.

EMILY HAWKINS

THE MAN behind luxury bag outfit Mulberry has urged ministers to reconsider a VAT-free shopping policy for tourists.

Some affluent shoppers were favouring shopping sprees in Paris or Milan over London, Mulberry boss Thierry Andretta said yesterday.

“The wealthy are still buying but they’re not choosing to buy in London,” he told PA.

Ministers have stuck to their guns after ditching a plan to introduce taxfree shopping for tourists, to the dismay of many luxury retailers in

the West End.

Sales on Bond Street and Regent Street have been impacted as tourists from the US and the Arab states shun the capital for locations they can benefit from tax breaks, Thierry said.

The UK’s refusal on the policy made it look like “bloody fools,” the boss of West End landlord Shaftesbury told City A.M. yesterday.

Ministers had scored an “own goal” ditching the policy, Brian Bickell said.

Responding to the calls, a HM Treasury spokesperson said a VATfree shopping scheme would “come at too high of a cost”.

HSBC to ditch more than 100 branches as Brits flock to mobile banking

BARNETT

BRITAIN’s biggest lender HSBC is closing 114 high street branches from next April driven by consumers shunning over the counter services in favour of online banking, it announced yesterday.

The number of Brits visiting their local HSBC branch has plummeted

since the pandemic, which engineered a surge in mobile banking app usage to reduce social contact.

The move adds to the 69 branches HSBC said it was ditching in March and means around one in four stores are now set to shut.

Over the past decade, online banking apps have emerged as the

main tool households use to budget.

The switch to mobile banking, aided by the ascent of smart phones, has watered down incentives for lenders to maintain a large high street presence, prompting a wave of branch closures in recent years.

Footfall in 74 per cent of branches HSBC is closing has collapsed at least 50 per cent.

Policymakers have warned the shrinking presence of high street bank branches could result in people who still rely on cash –typically older Brits –being frozen out of the country’s financial network.

Jackie Uhi, managing director of UK distribution at HSBC, said footfall in many branches had reached “an alltime low, with no signs of returning”.

JACK

Art-slashing climate extremists are missing the point on energy

STOP using oil or the Vermeer gets it. That’s the message from our friends at Just Stop Oil, who have somehow transmuted irritation at the use of fossil fuels to anger at the works of the Dutch masters. Yesterday the group said they were set to “escalate” their activity from attaching themselves to artworks to taking a knife to them in order to encourage the media to discuss Just Stop Oil’s goals and aims,

OBITUARY

so here we are –and they didn’t even need to ruin a Rembrandt to get us to do so. Perhaps that was the point.

Apart from the blindingly obvious –that destroying works of art is completely unrelated to the use of oil –it is worth

interrogating the demands of these extremists. For one thing, it remains clear that these groups have precious little answer to what would replace fossil fuels in the short-term, other than immediate destitution for most of the globe.

Campaigners too have recently extended their remit too, to frustration at the use of raw materials –and the carbon intensive mining that goes with it. This rather ignores the fact

that the very minerals and metals required for the energy transition are underground –and need digging up. Sky News’ Ed Conway has written extensively on, for instance, the sheer scale of copper required to build a single wind turbine. For the art vandals, who presumably wouldn’t dare read such things on their lithium-assisted iPhone, the answer is: an awful lot.

Energy and mining companies get an awfully bad rap in the

court of public opinion. And it is nonsense –for they are the drivers of climate-friendly energy.

Just yesterday Rio Tinto announced another few hundred million to invest in new greener kit. Shell and BP are investing huge sums in sustainability.

Where do Just Stop Oil and their fellow travellers like Extinction Rebellion think the money is going to come from in future to fund the transition? Selling sliced-up David Hockneys?

WHAT THE OTHER PAPERS SAY THIS MORNING

THE FINANCIAL TIMES

RISHI SUNAK SETS UP DEDICATED STRIKES UNIT

Rishi Sunak has created a dedicated unit to coordinate the UK government’s response to a threatened “winter of discontent”, as over 10,000 ambulance workers became the latest public sector employees to vote for strike action.

THE TELEGRAPH

TOP SAVINGS RATE HITS 10-YEAR HIGH OF SEVEN PER CENT

Savers can access the highest interest rate in almost a decade from today, following the launch of a new “best buy” account paying seven per cent by First Direct.

THE GUARDIAN EU RAISES PROSPECT OF BIG FINE OR BAN IF TWITTER FAILS TO FOLLOW NEW RULES

The European Union has raised the prospect of a substantial fine or ban for Twitter after warning that it must “significantly increase” efforts to comply with new online legislation.

Eurozone inflation drops for the first time since mid 2021

the ECB’s meeting next month.

INFLATION in Europe fell for the first time since mid 2021 and may have reached its peak, fresh figures out yesterday reveal.

Prices across the 19 countries using the euro climbed 10 per cent over the year to November, down from a rate of 10.6 per cent in October, according to Eurostat.

The drop was larger than analysts expected, raising expectations that the European Central Bank (ECB) could slow its aggressive interest rate hike cycle.

Before the figures were released, most experts were pencilling in a third successive 75 basis point rate rise at

However, softening price pressures “supports ECB doves’ calls for a slower pace of rate hikes going forward,” Melanie Debono, senior Europe economist at Pantheon Macroeconomics, said.

President Christine Lagarde and the rest of the ECB’s governing council have been forced to pivot from years of ultra stimulative policy to tightening financial conditions due to inflation hitting record highs this year.

Until this year, interest rates in Europe had been negative since 2013. The ECB signed off its first rate rise since 2011 in the summer and has lifted borrowing costs 75 basis points two times in a row.

That aggressive hiking campaign has been mirrored by the US Federal Reserve and Bank of England, who also have been jolted into reshaping policy by soaring prices.

Analysts reckon the eurozone economy will suffer a tough recession over the next year, driven by rising energy caused by Russia’s invasion of Ukraine prices cooling business activity.

Moscow has sucked supplies out of the bloc, forcing countries to find alternative providers and sending prices on an upward spiral.

Yesterday’s figures indicated energy price rises are dropping quickly, sparking hopes inflation is “past its peak,” Andrew Kenningham at Capital Economics, said.

JACK BARNETT

CHRISTINE MCVIE, 1943-2O22 Fleetwood Mac star Christine McVie died yesterday aged 79. Her family said she passed away peacefully and in the company of her loved ones.

Fed could slow in December but Pill fears worst

JACK BARNETT AND REPORTERS

THE PACE of US interest rate hikes could slow “as soon as” December, the country’s chief central banker said yesterday.

Speaking in Washington DC, Fed chief Jay Powell said that it “makes sense” to moderate rate hikes when the monetary authority has hit “the level of restraint that will be required to bring inflation down”.

However anybody hoping for a rapid reversal of rate hikes may be left disappointed, with Powell promising the Fed would “stay the course until the job is done”.

On this side of the Atlantic, the Bank of England’s chief economist warned that the UK was at risk of a “worst of both worlds” dynamic if wage growth became embedded into the economy alongside elevated energy prices.

Brexit is also partly to blame for UK

inflation surging to a four-decade high, Huw Pill said at an Institute of Charted Accountants event.

Pill said worker shortages in Britain had been “met by the inflow” of EU migrants while the UK was a bloc member.

However, after Brexit, this flow has “changed and disappeared”, resulting in businesses struggling to scale staffing levels to produce enough products to fulfill demand, Pill added.

The disappearance of EU workers could be plugged by inflows of people from elsewhere.

The Bank also announced yesterday it will apply a full fat version of the next round of the post-financial crisis Basel banking rules in a blow to lenders who had hoped it would make more significant concessions.

The new regulations will impose tighter restrictions on the capital banks have to set aside on loans, but smaller lenders may be exempt.

Now RMT announces strikes on Eurostar in run-up to Christmas

ILARIA GRASSO MACOLA

EUROSTAR passengers appear set for Christmas disruption after the RMT announced four days of strike action on the cross-Channel line.

Security staff contracted by Mitie are set to down tools on December 16, 18, 22 and 23 after rejecting a pay offer, it was announced yesterday.

City A.M. understands staff were offered around a 10 per cent increase.

RMT’s general secretary Mick Lynch said that while workers didn’t want to disrupt people’s travel plans, striking was “the only way management will listen”.

Mitie said it has robust contingencies in place over what is an extremely busy travel period.

ECB: Bitcoin is on the ‘road to irrelevance’

CHARLIE CONCHIE

THE EUROPEAN Central Bank (ECB) yesterday said Bitcoin is on the “road to irrelevance” as it slammed the cryptocurrency as a “speculative bubble” with no productive value.

ECB officials Ulrich Bindseil and Jurgen Schaaf wrote in a blog yesterday that Bitcoin was in an “artificially induced last gasp” which was inevitable even before the implosion of crypto exchange FTX earlier this month.

Cryptocurrency prices have fallen sharply in the past weeks after the collapse of Sam Bankman-Fried’s exchange, which has sparked a string of high profile bankruptcies.

Digital asset values have also fallen throughout the year in a so-called ‘crypto winter’, with Bitcoin trading down over 70 per cent from its November peak.

Bindseil and Schaaf attacked the currency and said it was “not suitable as an investment”.

“It does not generate cash flow (like real estate) or dividends (like equities), cannot be used productively (like commodities) or provide social benefits (like gold).”

The cross-Channel operator is the latest to be hit by RMT-led industrial action

BDO partner pay falls after £70m spending spree

its partnership to record high levels of 431 partners.

BDO’s managing partner has said the firm will continue investing in longterm growth after partners yesterday saw their payouts drop 15 per cent as the result of a £70m spending spree.

Speaking to City A.M. BDOmanaging partner Paul Eagland also refused to rule out a firm-wide split as he signalled BDO may follow EY in separating its audit segment from its advisory business.

Eagland’s comments came after BDO’s partners saw their pay drop 15 per cent to £647,000 after a £70m recruitment drive hit the accounting firm’s profitability.

The hiring spree saw BDO invest £70m into hiking salaries, promoting 3,000 people internally and hiring 1,000 new staff, boosting its headcount from 6,000 to 7,000 people.

Internal promotions, paired with external hires, also saw BDO boost its partnership numbers by 59, bringing

Eagland told City A.M. the firm will “continue to invest” in boosting audit quality in its bid to capitalise on the prospect of higher audit fees.

Eagland said higher expectations from regulators will “have an impact on audit prices” going forwards, which could see the cost of audits increase.

BDO also yesterday announced that its yearly revenues had increased 11 per cent to £809m, on the back of growth across all three of its business lines, including audit, tax and advisory.

The news comes as rival EY pushes forwards with plans to separate its advisory business from its audit practice, in what could be the biggest shakeup of the sector in decades.

Eagland said that while BDO is not currently investigating plans for a split in “any detail”, the firm will continue monitoring EY’s progress “over the next five years”.

Business leaders confidence hits second lowest on record, IoD says

JACK BARNETT

BUSINESS leaders’ confidence in the UK economy has slumped to the second lowest ever, a new survey out late last night revealed.

The business lobby group Institute of Directors’ economic confidence index dropped to minus 64 last month, a figure only surpassed by the minus 69 notched in the early stages

Ithaca Energy records $1.4bn profit amid booming oil and gas trading

NICHOLAS EARL

NORTH SEA producer Ithaca Energy yesterday reported a bumper $1.4bn (£1.16bn) profit in its first set of results since its London debut earlier this month.

Production for the year-to-date has risen to 68,246 barrels of oil equivalent per day, over 20 per cent higher than the rate for the entire

year in 2021.

The independent oil and gas trader has stakes in six of the 10 largest fields in the UK.

Ithaca revealed work regarding a final investment decision work is ongoing at the Cambo and Rosebank fields West of Shetland.

The firm said it remains committed to its dividend policy, which includes $400m in payments

next year.

Ithaca launched its initial public offering in London earlier this month, but shares have since dipped 21 per cent following a toughened Energy Profits Levy –suffering a $323m hit –and investor concerns over an increasingly mature portfolio.

Shares were up 4.33 per cent at close of play on the London Stock Exchange yesterday evening.

of the Covid-19 crisis in April 2020.

Soaring inflation is set to plunge Britain into an at least year-long recession fuelled by households cutting spending in response to their living standards deteriorating.

Prices have risen 11.1 per cent over the last year –the quickest acceleration in 41 years.

Around a third of leaders lamented rising taxes.

TRUSS BUDGET WILL SLOW GROWTH: LENDINVEST

Property fintech Lendinvest has warned that the fallout of Liz Truss’s disastrous mini-budget in September will drag on growth in the second half of the year, as borrowing slows amid sharp interest rate hikes. The London-listed firm, which provides mortgages and bridging loans for property, said that volatility in the market would temper growth in its assets under management while interest rate hikes would squeeze its margins.

CHINESE CHIP COALITION

The Chinese government has reportedly set up a consortium with Alibaba and Tencent to create new semiconductor chip intellectual property. As reported by the Financial Times, Beijing is keen to reduce independence on the likes of Arm. The news comes as the country braces itself for US-led sanctions.

BIG TECH TURNED REGULATOR

Former Google executive Gill Whitehead will be joining Ofcom to oversee its new duties as the regulator for online safety.

Whitehead will head up the media watchdog’s Online Safety Group from April 2023, reporting to chief exec Dame Melanie Dawes. Whitehead currently leads the Digital Regulation Cooperation Forum, which oversees the digital expertise of four member regulators: the Competition and Markets Authority, Financial Services Authority, Information Commissioner’s Office and Ofcom.

LOUIS GOSS

Ithaca Energy has stakes in six of the top 10 largest oil and gas fields in the UK

ACCORDING to data published yesterday by TfL, levels of cycling in London are now 40 per cent higher than 2019 levels, despite a drop in commuting. The data also confirmed postpandemic hybrid working trends, with Friday, formerly the busiest weekday for Tube journeys, now the quietest.

ON YOUR BIKE Cycling up 40 per cent in London since pandemic, TfL data shows

FCA fines Julius Baer £18m over Yukos dealings

LOUIS GOSS

THE UK’s financial watchdog has fined private bank Julius Baer more than £18m over its “corrupt” dealings with Russian oil company Yukos.

The UK’s Financial Conduct Authority (FCA) yesterday fined the Swiss outfit’s international business and sanctioned three of its executives over the private bank’s use of third-party agents in carrying out business with Yukos Group.

The FCA claimed Julius Baer paid $3m (£2.5m) in fees to a third-party agent, Dmitri Merinson, in return for introducing the bank to companies owned by Yukos Group.

The fees were paid on the understanding Yukos companies would hand large sums of cash over to Julius Baer, through which the private bank could generate significant returns.

Yukos Group later made a series of “uncommercial” foreign exchange transactions with Julius Baer through

PENNON FEELS LUCK DRYING OUT AS PROFITS PLUMMET

which the Russian-owned companies were charged far higher than standard rates.

The proceeds of these foreign exchange transactions were subsequently shared between Julius Baer and Merinson in the form of commission payments.

Juliuis Baer became aware of the commission payments made to Merinson in 2012, but failed to report those matters to the FCA until 2014, despite suspecting a potential fraud had been committed.

Mark Steward, FCA executive director of enforcement and market oversight, said: “There were obvious signs that the relationships here were corrupt, which senior individuals saw and ignored.”

“These weaknesses create the circumstances in which financial crime of the most serious kind can flourish.”

Alongside the £18m fine, the FCA also imposed bans on three of Julius Baer’s former executives.

GLASS HALF-EMPTY Loungers profits dip as Covid support

ends

BAR GROUP

Loungers yesterday posted lower earnings for the half-year, after it benefitted from government aid with VAT and business rates last year. The Cosy Club and Lounges operator posted 53 per cent revenue growth, compared to the equivalent prepandemic half-year period in 2020.

The firm also revealed it opened 11 new sites, including eight Lounges and three Cosy Clubs, over the six month period of trading.

Octopus granted takeover date for Bulb acquisition

NICHOLAS EARL

OCTOPUS Energy is inching closer to completing its protracted takeover of Bulb, after a High Court judge set a date for the deal to be finalised. Justice Zacaroli yesterday confirmed the acquisition can be completed on 20 December via the energy transfer scheme, despite legal challenges from rival suppliers.

RIO TINTO COMMITS $600M TO BOOST ITS GREEN AMBITIONS

Profits dipped for Pennon this half year as inflationary pressures get the better of the water services group, it revealed yesterday. Underlying profit before tax slumped 75 per cent compared to 2021 levels, reflecting the near-term pressures on earnings from inflation-driven power pricing and financing costs. The Bristol Water owner said that power costs had jumped to around £49m from £24m a year ago.Pennon recently said it expects fullyear power costs to rise to around £106m. Boss Susan Davy called the results “resilient”. Underlying revenue jumped nearly 10 per cent to £425.5m in the half year thanks to growth in non-household demand, as well as contract wins for the company. Shares slumped 2.45 per cent.

Rio Tinto is pledging to invest a further $600m in renewable energy assets in the Pilbara region, as part of the company’s efforts to decarbonise its Western Australian iron ore operations. This will help fund multiple key green energy projects such as the construction of two solar farms as well as on-grid battery storage in the Pilbara by 2026. The scandal-ridden miner has been seeking to restore its reputation after it destroyed the Juukan Gorge’s sacred cave system to extract £75m of iron ore. It has since set up a new foundation named after the gorge to support cultural projects in Western Australia and is committed to overhauling its workplace environment after a damning external review.

OFGEM TELLS NETWORKS TO USE PROFITS TO FUND PLANS

The UK’s local energy networks will have to spend more of their profits to boost the electricity grid after Ofgem refused to allow any further rises in household bills for investment. The watchdog has confirmed a five-year investment package for the UK’s electricity distribution network companies, with the aim of boosting green energy across the country. Ofgem has confirmed this investment will be delivered without any increase in network charges on bills, which will remain at an average of £100 per year, per bill-payer. It is also contingent on the networks supporting the country’s shift from a high dependence on imported fossil fuels towards using more homegrown, renewable energy.

Big Six firms Centrica, Eon and Scottish Power applied for a judicial review of the deal earlier this week over concerns of the perceived lack of transparency and government funding involved in Octopus’ takeover. The judge confirmed this was now the “only obstacle” for Bulb’s assets being transferred over to Octopus. However, he also ruled out making a verdict on potential judicial reviews.

This will have to be overseen by another judge in a separate case lodged with the administrative courts.

Such a review has to be tabled before the takeover date in less than three weeks.

Centrica, EON and Scottish Power declined to comment on the latest developments.

City A.M. understands Centrica is still set to pursue a judicial review.

NOT SO BRIGHT FUTURE Firm behind The Week and Homes warns of 2023 slowdown

SHARES in Future slumped over five per cent yesterday despite posting both revenue and profit growth.

Investor focus appeared to land on the firm’s cautious outlook, with the chief predicting a “modest” year.

WHILE fintech firms globally have been rocked by rate hikes and a venture capital slowdown, buynow pay-later firms are facing a particularly unpleasant cocktail of pressures.

Companies like Klarna, Laybuy and Clearpay are bracing for looming but still unclear regulation and the tide of public sentiment is in danger of turning against them as the cost of living soars, all while big tech firms and banks increasingly try to eat their lunch with competing products.

Consumers have leant on debt this year to cope with rising prices, forcing the firms to tighten their lending criteria as they face the prospect of surging

THE BOTTOM LINE

defaults and the moral challenge of plunging shoppers into deeper debt.

Klarna said it had managed to cut default rates back to 0.7 per cent but the challenge will linger as prices stay lofty in the months ahead.

The firm said yesterday it will also be leaning more on non-credit products like its new price comparison tool to boost growth.

Away from the consumer challenges, firms are scrambling to get onto sounder financial footing as investor sentiment shifts away from a growth-atall-costs mindset and onto profits.

Klarna was forced to slash its headcount by ten per cent earlier in the year and suffered an 85 per cent drop in its valuation when it raised fresh cash in July.

The turnaround measures seem to have paid some dividends so far as they reduced costs by $169m between the second and third quarters.

But much of the major cost-cutting has likely now been done and Klarna will be banking on more bumper growth in the months ahead to swing into the black.

Siemiatkowski and co will therefore be hoping that shoppers don’t tighten the purse strings for too long.

CHARLIE CONCHIE

Klarna targets profit next year despite hefty loss

CHARLIE CONCHIE

BUY-NOW pay-later giant Klarna said it was targeting profitability in the second half of 2023 despite losses nearly doubling in the third quarter of the year.

In its third quarter results yesterday, the Swedish-headquartered fintech firm said losses had swelled to SEK 2.13bn (£170m) in the three months to the end of September, up from SEK 1.18bn (£93m) in the same period last year.

However, Klarna’s founder and chief Sebastian Siemiatkowski insisted the firm had made “huge progress” towards profitability by slashing credit losses to 0.7 per cent of its total merchandise value and reducing its operating loss by 42 per cent on the previous quarter.

The UK and US had been the firm’s growth engines in the third quarter of the year, Klarna said, after a surge in stateside popularity for Klarna’s products during the pandemic.

“The US continues to show massive growth with volumes up 92 per cent year-on-year,” Siemiatkowski said in a statement. “That is a brilliant result considering 2021 was significantly boosted

by pandemic-driven e-commerce growth, and because we have driven credit losses down 16 per cent compared to the last quarter and credit loss rates down 30 per cent versus 2021.”

He added that 99 per cent of its customers were settling their debts and 70 per cent of those using buy-now paylater products were settled early.

The figures come after a turbulent period for the firm, in which it has slashed its headcount and tapered back its growth plans while the sector is buffeted by a sharp downturn this year.

Buy-now pay-later firms have suffered from a particular slump in investor sentiment as consumer demand weakens amid soaring prices. Klarna has been among a host of firms to see its valuation hammered amid growing scepticism from investors, with an $800m July funding round delivering an 85 per cent blow to Klarna’s valuation.

Uncertainty also hangs over the future regulatory framework in the sector, with tighter rules set to come into force in the UK in 2024. The Treasury is expected to deliver another update on the plans this year.

Emma probed by watchdog over concerns of pressure selling tactics

EMILY HAWKINS

COMPETITION regulators are probing mattress seller Emma Sleep after concerns some of its online sales practices could be falling foul of consumer law.

The mattress brand is being investigated for potentially misleading shoppers by its use of countdown timers, with concerns of false warnings that a discounted price will end soon.

A probe into Emma was “just the

start of our work into potentially misleading online claims and all sectors are under scrutiny,” according to the Competition and Markets Authority’s interim chief Sarah Cardell yesterday.

The watchdog is launching a new programme looking at potentially harmful online sales methods, including so-called “pressure selling tactics” such as urgency claims.

“Companies should take note,” Cardell said yesterday.

THE WORLD’s second largest fashion retailer H&M yesterday announced a wave of layoffs with 1,500 jobs to be cut globally amid weakening demand. The Swedish fashion giant said job cuts come amid a plan set out earlier this autumn to save £160m per year.

FASHION FEARS H&M to cut 1,500 jobs as clothes industry faces torrid times ahead

Home REIT and short seller trade further blows

CHARLIE CONCHIE

A WAR OF words between Home REIT and short seller Viceroy Research erupted further yesterday as the social housing investor looked to shake off suggestions that its charity tenants cannot meet their rent.

Viceroy, which was one of the first firms to raise the alarm on collapsed Germany payments firm Wirecard, last week slammed FTSE 250 investor Home REIT with accusations that its tenants cannot afford rent and are run by bad actors.

In a statement, Home REIT hit back at the allegations and said that Viceroy’s claims were “baseless and misleading” and told the firm to “discontinue their campaign in the media”.

Addressing accusations that its tenants are not paying up, Home REIT chiefs said that its rent is “ultimately

supported by central government funding” and “local authorities’ statutory duty to house homeless people”.

Statements published by the firm claimed it had received £36m of £36.6m rent owed across its portfolio.

However, Viceroy criticised the defence yesterday afternoon and said suggestions that its rent is backed by government funding are unfounded.

“The illusion that Home REIT’s rent is somehow government-backed is completely falsified by the bankruptcy administration of one of its major clients: Circle Housing & Support,” Viceroy said.

Circle Housing and Support entered into administration in July this year, the firm states on its website.

The spat sent Home REIT shares down 10 per cent yesterday. The firm is trading down 35 per cent since Viceroy published its initial attack last Wednesday.

VICEROY AND HOME REIT SLUG IT OUT

CLAIM RESPONSE

“Financial data of Home REIT’s tenants show... many cannot afford rent, have not been paying

“The report was published without any engagement with the company’s board, Investment Advisor or wider advisory team.

“It is the board’s belief that the report is inaccurate and misleading... being based on mistaken assumptions, misinformed comments and disputable allegations.”

Viceroy 23rd November

Home REIT 23rd November

“This response all but confirms roundtripping of revenues to tenants via vendor agreements, low tenant quality and related party structures between major tenants.”

“Home REIT’s

ultimately

by central government funding and Local Authorities’ statutory duty to house homeless people.”

Home REIT 30th November

“The illusion that Home REIT’s rent is somehow government-backed is completely falsified by the bankruptcy administration of one of its major clients: Circle Housing & Support.”

Viceroy 30th November

rent, are in administration, are run by bad actors or simply do not provide social housing services.”

“We strongly believe that these are not the people who should be entrusted to look after the vulnerable.”

“It is with deep frustration that the board is having to spend time and resources responding to these baseless and misleading allegations.”

rent is

supported

Labour ramps up ‘salmon and scrambled eggs offensive’ in bid to raise £30m election war chest

EXCLUSIVE STEFAN BOSCIA

LABOUR party bosses want a £30m war chest to fight the next election, with Sir Keir Starmer stepping up his efforts to attract private donations to the party.

Starmer has increased his appearances at donation dinners over recent months, according to Labour sources, as the party tries to break its financial dependence on the unions.

Labour’s largest union backer Unite has threatened to withdraw all funding for abandoning Jeremy Corbyn’s leftwing policies, while several other more supportive unions are cash-strapped after the pandemic.

This has led to Starmer and senior Labour MPs going on an enhanced donations drive to fund the next election,

expected by the end of 2024, which Labour are raging favourites to win.

Labour insiders told City A.M. that the party wanted £30m to fight the election –roughly double what the Conservatives spent during the 2019 campaign.

“Keir had an event in his office recently and he told MPs they had to bring two or three potential donors,” a Labour insider said. “They’re becoming a lot more professional with it.”

The party managed to raise £5m in the first quarter of 2022-23, which was more than the Tories.

Shadow cabinet ministers have been told over recent months to redouble their efforts, with one veteran MP saying getting donations is “becoming much easier” as Labour’s poll leads grow over the Tories.

City of London update

Speak for the City and shape its future

CITY of London elections are your way to help shape the future of the Square Mile.

Unlike elsewhere, both workers and residents can vote and you must reconfirm your registration each year. If you are a City worker, you can request a vote at your organisation at www.speakforthecity.com

Voter registration forms must be received by 16th December.

If you would like to receive this by email or have any questions, please contact electoralservices@cityoflondon.gov.uk

While the next election for all Common

Councillors will not be held until 2025, elections for Aldermen and by-elections may be held at any time.

If you are passionate about the City and are interested in standing for election in the future, please find out more at www.speakforthecity.com/ stand

Have a say on Pedes trian sc heme

City stakeholders are being asked to give their views on street changes aimed at improving conditions for pedestrians.

The City Corporation is considering making permanent changes which were originally introduced in 2020 to enable social distancing during lockdown.

The Pedestrian Priority Streets scheme includes wider pavements, new seating and greenery, two-way cycle lanes and traffic restrictions on streets in the Cheapside and Bank area.

Monday, 12 December is the deadline to have your say on the impact of the changes and whether they should be made permanent.

www.cityoflondon.gov.uk/ pedestrianpriority

News, info and of fer s at www.cityof london.gov.uk/eshot

A shadow cabinet minister told City A.M. that most of the frontbench are meeting with potential donors every week. “A lot of the people donating have a lot of money, but come from working class backgrounds and want to see a Labour government,” they said.

“They really want to see change and want to make it happen –we’re more than happy to facilitate that.”

Starmer and shadow chancellor Rachel Reeves have also been on a socalled “salmon and scrambled eggs offensive” in the City.

A City insider said “there may well be enhanced interest in giving donations among some” in the Square Mile on the back of the pair’s efforts, but that there are concerns in some quarters about how moderate the party is away from its leadership.

Watchdog launches probe into £120m ‘festival of Brexit’ UK strengthens cyber laws for key services

STEFAN BOSCIA

A PARLIAMENTARY watchdog will investigate the government’s socalled festival of Brexit amid reports of poor attendance figures.

The National Audit Office (NAO) yesterday announced it was launching an inquiry into ‘Unboxed: Creativity in the UK’ –which Jacob Rees-Mogg titled the “festival of Brexit” –which cost the taxpayer £120m.

The probe will look into the organisation of the now closed festival and whether it delivered value for taxpayer money.

Unboxed was in 10 locations

across the UK and included art installations and interactive educational exhibits. The festival was launched as a way to celebrate Britain’s “diversity and talent” postBrexit, but was plagued by low attendance numbers.

Former Brexit minister David Jones branded the event’s funding, which cost four times as much as the Platinum Jubilee celebrations, “shocking” amid crippling inflation.

The NAO’s probe will “identify lessons for the future from the experience of how projects have performed against their targets, and about the importance of agreeing clear objectives”.

THE GOVERNMENT confirmed yesterday that it would strengthen its cybersecurity laws to better protect essential services like water, energy and transport from online attacks.

In response to a public consultation earlier this year, outsourced IT services will be brought into the remit of existing regulations.

Cyber minister Julia Lopez said key functions like healthcare “must not be brought to a standstill by criminals and hostile states”.

The number of cyber attacks globally have jumped in recent months.

LEAH MONTEBELLO

IMAGES of the £2.6bn development of the Euston HS2 station and Tube station were yesterday revealed. Due to be completed between 2031 and 2036, the station will expand across three levels, with a 300 metre-long concourse –the longest in the UK. Following government orders, the design was turned from an initial 11-platform hub to a simpler one with 10 platforms.

FROM 27TH OF NOVEMBER BY REDFIELD WILTON (%)

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Labour

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Green Party

LNG risks UK’s green goals and hydrogen plans

EXCLUSIVE NICHOLAS EARL

THE UK risks both higher emissions and undermining its energy security strategy if it becomes over-reliant on liquefied natural gas (LNG) to meets its energy needs, analysts have warned.

Downing Street is targeting net zero carbon emissions by 2050 and is aiming to significantly reduce its reliance on fossil fuels and ramp up domestic renewable generation over the coming decades to boost its supply security.

However, it has been relying on LNG supplies to meet its energy needs this winter, while also shipping supplies to the continent to stave off blackouts amid a Russian supply squeeze.

Patrick King, analyst at Rystad Energy, told City A.M. that overseas LNG supplies had a significantly higher carbon footprint than the UK’s domestic fossil fuel supplies.

He said: “When compared to piped natural gas, LNG shipments have a far higher emissions intensity, this is due to the energy intensive processes required through the products lifecycle.”

There are also concerns over whether LNG gas could be repurposed as part of the UK’s energy security strategy. For blue hydrogen, which is produced from low carbon gas, to be considered ‘blue’ it has to have a maximum carbon intensity of 72g of CO2 per kwh.

While domestic pipelined gas has a carbon intensity of 10.4g and shale gas (fracking) has a carbon intensity of 13.8g, LNG has a carbon intensity of 57g of CO2 per kwh – with Qatari LNG producing around 62g of CO2 per kwh, according to government data.

This makes LNG at risk of crossing the 72g maximum threshold, with further emissions expected in the later reforming, transport and sequestration processes.

PARTNER CONTENT

WHAT FORCES ARE IMPACTING THE OIL AND GAS INDUSTRY?

The first is capital availability, for a variety of reasons. For instance, there's ESG pressure on some companies fundamentally pulling out of investing in oil and gas specifically, or having limited scope, or just higher criteria in terms of what they can and can't invest in. So, with less capital for oil and gas, the deals that need capital are obviously more competitive. Generally, for larger deals it's easier, and for smaller deals it's harder, but there is a similar volume of opportunity chasing an increasingly smaller pool of capital. So, that’s pretty important and fundamental.

The second force at play is ultimately tied a bit to Ukraine. It's just inflation and general costs. Currencies are going down, and inflation is going up. That means people's ability to be transacting at the prices and volumes they have been, particularly in the renewables space, is going to be harder. So, either sale prices have to come down or the cost of debt has to go down, and right now the cost of debt is going up and banks are continuing to raise rates every quarter.

On the oil and gas side, it's a bit of the inverse, as for those who are lending or investing it's the

MASTERCARD DENIED

A UK appeals court has blocked Mastercard’s bid to prevent three million dead people from ‘participating’ in a £10bn class action lawsuit against the credit card company. The UK’s Court of Appeals refused to exclude three million individuals who died after the classaction lawsuit was first filed in September 2016. The lawsuit, which was filed by consumer champion Walter Merricks, could see 46m of Mastercard’s UK customers receive payouts of around £300 each.

THE CITY’S ‘CLASS CEILING’

The Law Society yesterday backed calls to break the “class ceiling”, following a report by the SocioEconomic Diversity Taskforce which showed almost two-thirds of senior leaders in the UK’s top law firms, accounting firms, and financial services companies come from professional family backgrounds. The solicitors’ body said it backed the City’s push towards driving this figure down to 50 per cent.

CLASS-ACTION THREAT

Class-action lawsuits pose an increasing threat to UK companies, according to new research showing the majority of British people would now willingly take part in collective claims. Most British people (60 per cent) would now be willing to take part in a claim against a company whose actions have impacted them, while 55 per cent would be willing to sign up to a claim against their own employer, Portland polling shows.

struments where, if you can show you’re cutting your emissions, you get savings on your interest. That will incentivize someone to do something –why pay more interest if you can lower it?

You're also seeing companies being more proactive in terms of the projects that they do to offset their carbon emissions, with localized, nature-based solutions and carbon capture and storage (CCS) projects. For instance, these projects can have strong environmental and positive community impact, but you also get the carbon credits that go with it. For CCS, as there is a cost for having emissions, you're seeing a lot of companies integrate their projects with multi-pronged carbon strategies.

Energy M&A: What’s Energizing the Industry?

FOCUS ON ESG AFFECTING

ENERGY SECTOR?

Sam Merlin, partner at Hannam & Partners

A lot of oil and gas companies now have corporate mandates and requirements on reporting what their carbon footprints are and what their plans are to reduce those emissions. Pretty much everyone's doing it. The

variability is really high. Does it mean anything? I think a lot of that is debatable, as while some is high quality, a lot is just lip service. What is demonstrable is a lot of the oil and gas companies are starting to get their debt and financing instruments linked to cutting their carbon emissions. We've seen a lot of loan in-

I think you see it as well in terms of the strategies of where companies are moving. Are they going to become broader “energy” companies, owning globally significant renewable power assets? Some of the Europeans are going more power-focused, some are going more biofuels, hydrogen, and CCS-focused. They’re finding niches where they have the know-how and the infrastructure to deliver results and make money. Knowing there is a finite life for oil and gas – you can't create what doesn’t exist, so once it's not there anymore your business has to continue to pivot and grow.

To read the full interview, please scan the QR code.

Hannam & Partners is a leading independent investment bank with expertise across the energy, mining, and financial services sectors. Owned by its partners, Hannam & Partners has a proven track record and is known for its honest advice and technical ability to manage complex situations.

IDRIS and Sabrina Elba have backed meal shake firm Huel in its latest $24m (£20m) funding round. Led by growth equity investor Highland Europe, the injection will support product innovation and growth in the US. Sales are up 40 per cent this year.

DATASITE: Sam Merlin, Partner at Hannam & Partners, shares his insights on how the energy sector is shifting

cause your money is scarce and limited – you can command significant returns and structure products on the deals that you're doing.

THE

Crypto AM Summit and Awards:The winners are…

SOME of the finest people and businesses in cryptocurrency and blockchain were honoured at the Crypto AM Summit and Awards 2022. Hosted by Crypto AM's editor-atlarge James Bowater, it was the third annual awards event, and the second to be staged at the Royal Leonardo St Paul’s.

Today, we can announce the Crypto AM Spring Awakening will be held in March, the Crypto AM Fifth Birthday will be in June, and the Summit and Awards 2023 will return for September.

THE WINNERS WERE…

INFLUENCER OF THE YEAR with MinimaWinner: Jonny Fry. Runners-up: Jannah Patchay and Peter McCormack.

START-UP OF THE YEAR with World Mobile - Winner: Zebu Digital. Runners-up: Swash and Digital Pound Foundation.

DIGITAL ASSET EXCHANGE OF THE YEAR with Coinweb - Winner: Gemini. Runnersup: LMAX Digital and Coinpass.

ACCELERATOR OR VC OF THE YEAR with FMFW - Winner: Fabric Ventures. Runnersup: Outlier Ventures and LeadBlock Partners.

OUTSTANDING CONTRIBUTION TO EDUCATION with Luno - Winner: CryptoCompare. Runners-up: UK Cryptoasset Business Council and Digital Pound Foundation.

REGULATION & COMPLIANCE AWARD with Binance Academy - Winner: Innovate Finance. Runners-up: Gunnercooke LLP and GMEX.

BEST DEVELOPMENT IN FINTECH with Sardine - Winner: GMEX. Runners-up: Block and Revolut.

ENTERPRISE BLOCKCHAIN OF THE

YEAR with CMS Law - Winner: R3. Runners-up Hedera and Onyx by JPMorgan.

INDUSTRY PERSONALITY OF 2022 with Archax - Winner: Nicole Sandler, Barclays. Runners-up: David Carlisle, Elliptic; Helen Disney, The Realization Group.

MOST INNOVATIVE NFT PROJECT 2022 with Cudos - Winner: SuperRare. Runnersup: Cornucopias and Niftyz.

BEST APPLICATION OF ESG 2022 with Cardano Foundation - Winner: Zumo. Runners-up: Aniseed, Rebalance Earth.

METAVERSE PROJECT OF THE YEAR with Tingo - Winner: The Sandbox.

Runners-up: Pavia and VOMA Labs.

OUTSTANDING CONTRIBUTION TO DEFI with Jade City - Winner: Swarm. Runnersup: Coinbase and Aave.

BEST STAKING PRODUCT 2022 with City of London Corporation - Winner: Figment. Runners-up: Coinbase and Blockdaemon. PAYMENT SERVICES PROVIDER with Drunken Monkey Members Club - Winner: WorldPay. Runners-up: BCB Group and Checkout.com.

MOST NOTABLE CAMPAIGN OF 2022 with Clay Nation - Winner: State Street Digital. Runners-up: OneOf NFT, Aniseed. MOST INSPIRATIONAL WOMEN IN

BLOCKCHAIN with Astraea - Winner: Loretta Joseph. Runners-up: Jillian Godsil and Nikita Sachdev.

INSTITUTIONAL CONTRIBUTION OF THE YEAR 2022 with Matrixport - Winner: Coinbase. Runners-up: Copper and SIX Digital Exchange.

OUTSTANDING INDUSTRY CONTRIBUTION with City AM - Winner: Chainalysis. Runners-up: Coinbase and Fidelity Digital Assets.

DIGITAL ASSET CUSTODIAN OF THE YEAR with Inspira Wealth - Winner: Copper. Runners-up: Gemini and Komainu.

Crypto space will be glad to see back of November

SO it’s goodbye to November 2022, a month to forget for many in the crypto space. As the year enters its final throes, we can reflect on one of its worst months for some time, with the collapse of crypto exchange FTX sending shockwaves through the industry. What solace will December bring?

While it’s goodbye to FTX, there’s always a silver lining and the fresh push towards regulation and transparency that the industry has seen since FTX’s downfall will only benefit consumers. We’ve seen a rush

to proof-of-reserves and other ways to stop bad actors that should ultimately prove a good thing.

Furthermore, despite the sea of negative headlines that has followed the demise of Sam Bankman-Friedman’s cesspit of incompetence, the markets have actually held up fairly well over the past two weeks all things considered. The price of Bitcoin has been mostly flat at around $16,500, climbing to nudge $17k on Wednesday. Ethereum has had a slightly better week, seeing an increase in price of around

seven per cent over the last seven days.  That’s not to say sentiment is looking any jollier just yet. The Bitcoin trading volume has fallen further this week to the lowest 7-day average level in BTC spot markets since February 2021. The reduced volumes illustrate the muted activity in the market at the moment, which can also be seen in the Fear and Greed Index, which continues to languish in “Fear” territory. The last month has also been unusual in that correlations between BTC and US equities have declined with Bitcoin failing

to absorb the positive equity response to the lower-than-expected CPI release of November 10 as contagion occupied Bitcoin traders’ mindshare and, since then, the economic calendar has been quiet. Will December’s figures bring any festive cheer?

HUOBI AND POLONIEX TO MERGE

CRYPTOCURRENCY exchanges Huobi and Poloniex have said they are to merge.

The move comes only days after the companies both denied rumours they were planning to join forces."The two exchanges will progressively cooperate in multiple business aspects including HT ecosystem development, project connectivity, liquidity sharing and global compliance –committing to build the world's top trading platform and gaining the trust of users," a statement released by Huobi said.

It is understood that several of the leading projects on Poloniex will be evaluated by Huobi’s board before being considered for a listing.

AAX UNLIKELY TO REOPEN

BELEAGURED cryptocurrency exchange AAX is unlikely to be revived, and the brand “is no more”, according to its former Vice President who resigned earlier this week.

Ben Caselin took to Twitter yesterday to explain what he believed was going on at the Seychelles-based company which suddenly shut down on November 13, claiming it had been subjected to a ‘malicious attack’.Last week, AAX claimed it believed it would resume operations, but Caselin yesterday confirmed that was not his belief.“Everyone is waiting on actions. I still believe things will be handled without evil intentions, but the damage is done. The brand is no more and trust is broken,” he said.

IOG INVESTS $4.5M INTO EDINBURGH HUB

Input Output Group has ploughed $4.5 million into a research hub at the University of Edinburgh to fund new projects aimed at accelerating the development of blockchain technology. The donation from Input Output Global (IOG) – the main developers behind Cardano – forms part of IOG’s extensive academic program, designed to foster continued research to set industry standards and best practices for emerging technologies. The hub is the collaborative effort of the University of Edinburgh and IOG to deepen the well of scientific knowledge and set new standards for research within the blockchain and distributed ledger industry.

BINANCE ACCELERATES DRIVE FOR TRANSPARENCY

BINANCE has taken the next step in its latest drive to provide transparency of user funds, following the recent disclosure of its hot and cold wallet addresses. The update shows the proof-of-reserves for Bitcoin (BTC) and an update using the Merkle Tree data structure for users to verify BTC holdings. It is the first iteration of the feature, with verification for ETH, USDT, USDC, BUSD and BNB in the pipeline.The exchange is also working to bring in an independent third-party auditor to validate the Merkle Tree data.

Crypto AM editor-at-large James Bowater

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YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

LONDON REPORT BEST OF THE BROKERS

FTSE 100 marks best day in two years after commodities boost

THE FTSE 100 index closed with sharp gains yesterday and marked its best monthly performance in two years, lifted by commodity-linked and consumer stocks on hopes of Chinese demand recovery and easing domestic political concerns.

The blue-chip index jumped 0.8 per cent, to log its best month since Nov 2020. The domestically focused FTSE 250 midcap index closed 0.1 per cent down. The indexes gained 6.7 per cent and 7.1 per cent, respectively, this month.

Energy stocks along with precious and base metal miners were up between 1.6 per cent and 1.9 per cent.

Mining companies like Glencore, Rio Tinto and Anglo American led the gains on the commodity-heavy FTSE 100 helped by Jefferies’ optimism about the sector.

The FTSE 100 has climbed 12.9 per cent since its 13 October lows, when a bungled mini-budget sent markets into a tailspin, as new government leadership tries to restore investor confidence in the economy amid surging inflation and a severe cost-of-living crisis.

Hani Redha, portfolio manager at Pinebridge Investments cites decreasing risk of energy rationing aiding views for cooling inflation.

“There is a lot of room for inflation to come down, and that's what the market is picking up on and that has positive implications for consumer discretionary.”

Flutter Entertainment was among the biggest gainers in the consumer discretionary sector, up 2.2 per cent, after JP Morgan raised the stock’s price target, while Pennon Group lost 2.4 per cent posting a lower half-year profit.

CITY MOVES WHO’S SWITCHING JOBS

TITAN ASSET MANAGEMENT

Titan Asset Management has bolstered its board with a new non-executive director.

Alex Robinson will be responsible for monitoring processes within the business and will also take on the role of Titan Asset Management Consumer Duty Champion.

The incoming board member is currently chair of Earl Shilton Building Society and was previously group commercial

Peel Hunt gave Petra Diamonds a ‘buy’ rating yesterday after the independent diamond miner said that it expects its Williamson mine in Tanzania to resume next year, following a breach in the weal of a tailings dam earlier this month. Although this is longer than initially expected, the broker gave the stock a target price of 160p as it focuses on understanding the cause of the breach.

THARISA

Broker Peel Hunt bets on Tharisa as a ‘buy’ stock after the London-listed firm refreshed its estimates following its healthy earnings. This week the City broker said that headline EPS was coming in well ahead of estimates and shows the underlying strength of the mining firm. Tharisa is due to report its full year results next week. Peel Hunt have the company a target price of 240p.

director for Skipton Building Society for a decade and headed a portfolio of 11 companies.

“The breadth of experience Alex has lent itself perfectly to support our plans and we all look forward to working with him to deliver them,” chief operating officer Damian Sharp said.

IMPAX

Impax Asset Management has found a successor to fill the boots of its outgoing chief financial officer (CFO).

Karen Cockburn, Virgin Money’s former CFO, will take on the role from January, when current CFO Charlie Ridge is set to step down after more than fourteen years

at the specialist asset manager. Having joined as CFO designate in October for a phased handover with Charlie, Cockburn will lead the finance division, including investor relations, have oversight of governance arrangements and the legal arm. Ridge will continue to support Impax as special adviser from January until December 2023.

MIZUHO

Mizuho International, the London based securities and investment banking arm of Mizuho Financial Group, has appointed a new lead to head its rates derivatives trading division.

MOULD,

Tico Hakobian will lead Mizuho efforts across Europe, the Middle East and Africa (EMEA), working with the firm’s trading hubs in Tokyo, Hong Kong and New York.

Reporting to head of global markets for EMEA, Asif Godall, Hakobian brings over 20 years of experience to the firm, having previously held senior interest rate trading roles with Credit Agricole and Citigroup.

“I am delighted Tico has joined us,” Godall said. “He has the tenacity and expertise to drive the growth we aspire to as part of our ongoing efforts to build out our derivatives business for our corporate and institutional clients.”

PATIENCE IS A VIRTUE “Despite all the doom and gloom bestowed upon investors this year, there has been a Christmas miracle for patient individuals holding large UK stocks. The FTSE 100 last night managed to claw back all its year-todate losses and now it’s managed to nudge ahead again, meaning the blue-chip index is now in positive territory.”

RUSS

AJ BELL

EDITED BY SASCHA O’SULLIVAN

Our anxiety of talking about money is hampering our philanthropic efforts

YOU don’t make the poor richer by making the rich poorer is a sixth form thought-starter to stimulate debate about the benefits, or otherwise, of inequality. Unarguably though, some of London’s rich are enthusiastically making themselves poorer by giving their wealth to good causes.

It’s obvious that the UK has issues that aren’t being solved by government alone. The welfare state is creaking, the NHS is challenged, and most people’s financials are under pressure. So it’s not a surprise that some of the wealthier are becoming philanthropists. But what might encourage more of this generosity?

When we believe others in our social circle are giving money, we are more likely to as well. This cultural norm exists in the US, with a long and uninterrupted tradition of philanthropy that expects those who can, to be generous. There, philanthropy is public, with projects funded with naming rights and recognition. It is hard to avoid the message in Los Angeles, Miami or Boston that charity is expected of you, if you are wealthy.

In the UK, it is more secretive. Beth Breeze, author of In defence of Philanthropy, describes the “philanthropy paradox”. 84 per cent of the public

agree that large donations are good but only 69 per cent agree that the people who give them are. In short, people like philanthropy more than they like philanthropists.

In the UK, we have a stronger history of suspicion towards paternalist wealth, and the idea of the state’s role in our lives, as opposed to the impact individuals can have, is embedded in our political and cultural psyche. What’s lauded in New York may be scoffed at in London. As a result, many benefactors do so anonymously. But this hampers the possibility for more philanthropy and support for targeted

causes. For example, if one person donates to a charity for a very specific cause, say a refuge for minority ethnic and black victims of domestic violence, and mentions it to their friend who then donates, the first act is compounded. And the ultimate winner is the people who benefit from that service.

It sounds like the ultimate “first world problem”, but it is hard to give away money. And the people with significant wealth tend to be driven individuals, such as entrepreneurs and business leaders. They have succeeded by excelling at their “thing”, whether

making mixers, selling software or marketing make-up. They are brilliant within a niche, controlling major decisions and using skills honed over many years. These people like to act with mastery. The same is true in how they donate to causes, and they will be wary of giving away their money inexpertly. The taboo around talking about money means they are losing out on the experiences of their friends.

In other words, they’re not happy to just dole out their money to any old charity. They want to know where it ends up, and how it will help. The Beacon Collaborative introduces new phi-

lanthropists to more experienced “social investors” to share insights and encouragement; their aim is to attract over £2bn extra annually to good causes. Some pioneering advisors also help; Victoria Papworth, Coutts Philanthropy Advisor, reports that their clients often want advice on giving, as well as protecting and growing wealth. She has seen a trend of clients who want to be “giving whilst living”, so they can see their philanthropy in action. Advice and networks drive philanthropy.

But wealthy people, like everyone else, are busy and only have 24 hours in their day. So one crucial step is to carve out time to actively consider giving.

Founders Pledge achieve this by asking young entrepreneurs, at the start of their journey, to commit to giving a chunk of their future worth. Coutts invite clients with a recent windfall to discuss philanthropy as a topic. Consideration can start with inspiration. For Beacon Collaborative co-founder Cath Dovey, she asks people to identify something they want to change, and then choose the cause to champion.

Philanthropy is worth £182bn worldwide. In the UK, people gave away more than £11bn in 2020. The discomfort we feel when we talk about money - making it and giving it away - is doing charities and social causes out of funds. It needs to become a social norm, we can help philanthropists network and learn, and we need to take the time, maybe this Christmas, to consider the questions that will encourage us down that path.

Britain needs more safe and energy efficient homes, but targets miss the point

LAST week, we saw Conservative party backbenchers oppose Michael Gove’s target to deliver 300,000 homes a year in England. The scale of the rebellion meant the vote on planning reforms, enshrined in the levelling up bill, was pulled.

The government’s levelling up strategy has the potential to make a positive difference, but its focus on numbers and short-term targets may lead to a missed opportunity to enact long-term change if it prioritises quantity over quality.

Decision-makers adopt a broader, more holistic approach to housing and planning, which takes a view over decades, not just years.

Even with the focus on creating affordable housing and the immediate need to control energy costs, there remain questions around resilience, longevity and futureproofing of our housing stock.

Without reforming policy and promoting a more collaborative culture across the sector, the UK could be ex-

Claudio Genial

these complexities and focus on supporting consumers, businesses and industry to buy into the sustainability agenda. Any new measures should also be developed in partnership with the built environment sector through a Sustainable Buildings taskforce.

posed to a host of economic and social costs, including higher-than-average energy bills, lower home resale value, and increased vulnerability to extreme weather events.

While the government’s recent insulation support package will improve energy efficiency and tackle some of these costs, its approach to retrofitting needs to take a long view. To date, incentives have targeted consumers rather than the construction industry and failed to address the complexities surrounding the materials and the invasive installation process which are part of making buildings more sustainable.

Future incentives must account for

The government must also turn its attention towards the bigger role the built environment can play in mitigating emerging risks and creating positive outcomes for communities.

The introduction of smart technologies within homes would be another way to drive continuous improvements in building efficiency, sustainability and performance. The government should incentivise industry to quickly adopt new technologies and approach construction in a more innovative way. Fully connected homes can cut energy use by 30 per cent, self-report flood and fire risks, and request repairs based on data from hundreds of sensors evaluated through artificial intelligence.

When smart homes live together, they become smart communities or

cities where facilities such as water supply, power grid management and waste disposal are streamlined, and risks are more easily identified and dealt with. The potential benefits are huge – from improved energy efficiency to overall resilience in the face of unexpected risks.

Creating safer, more sustainable buildings will benefit everyone –from central and local government to businesses and people. It has the potential to protect the environment, and boost productivity.

Industry and the public sector must work together to help communities reap the benefits associated with a well-planned, energy-efficient and more resilient built environment. Failure to do so risks jeopardising our transition to net zero and leaving the door open to the continuing economic and social costs associated with unsafe and inefficient buildings.

£ Claudio Genial is the UK and Ireland chief executive officer of AXA

SEXIST STORM

£ Alex Cheatle is co-founder and chief executive officer of Ten lifestyle group

Alex Cheatle

Philanthropy in the

UK

contributes £11bn to charity

New Zealand PM

Jacinda Ardern is no stranger to controversy, but she had no time for a question asking if she was meeting her Finnish counterpart because they were ‘similar in age’ as if it was an afterschool play date. She said: ‘I wonder if anyone asked Obama that?’

[Re: Terrible at times tables? Our reliance on fintechs doing our maths dents our income, Nov 28]

Maths used to be seen as something for boys; young women boasted of being “bad at maths”.

However, arithmetic, the stuff of primary school, is what is needed in every day life. Mathematics can be daunting and abstract for many, but it provides a life-long practical skill. Addition, subtraction, multiplication,

percentages. Price comparison exercises for children would inspire productive competitiveness in the classroom. Although I suspect many teachers would have to bring themselves up to the mark.

It seems to me the downturn came with the introduction of calculators, which were the equivalent of the smartphone today - designed by boys and coveted by boys in their early stages. A young cashier in Sainsbury’s expressed surprise when I had the money ready for two or three items; nothing to do with me, but it had not occurred to him that someone could do this without pressing a button.

J M Castles

BAGUETTE ME NOT Famous French bread given Unesco protection status

Let’s be honest, MPs should be allowed to expense Christmas parties for staff

Lesh

IT HAS been a gruelling year for politicians. From partygate to the cost of living crisis, toxicity about Members of Parliament is on its way up. A YouGov poll earlier this month found that over two-thirds of Brits believe that politicians are “merely out for themselves”. This is an increase of 9 percentage points in just 18 months and the highest since the question was first asked by Gallup in 1944.

This deep unpopularity helps explain the visceral negative response to the prospect of MPs putting office Christmas parties on expenses. The Independent Parliamentary Standards Authority (Ipsa) announced last week that MPs would be able to claim food, decorations and non-alcoholic drinks (how puritanical!) on expenses. Cue outrage. It has been called “tone deaf” and MPs across parties have been told by their leaders to not take up the opportunity.

But should we really begrudge politi-

Baguettes, loved by the French, imported by pretty much everyone else, are now part of Unesco’s cultural heritage list. More specifically, ‘artisanal knowhow and culture of baguette bread’ has made the cut. It joins kimchi and yoga.

EXPLAINER-IN-BRIEF: BRITAIN IS THE PIGGY IN THE MIDDLE OF EU-US TRADE TENSIONS

Emmanuel Macron is in the US this week to meet President Joe Biden and try to avoid a potential trade war. The subject is green subsidies, part of the colossal Inflation Reduction Act passed by Biden over summer. Biden wants to inject billions of dollars into US-made green technologies, and the EU is worried about the impact, particularly on the electric cars industry. The bloc is considering whether to fight back with its own subsidies, which would

effectively start a trade war. The UK is, depending on how you see it, safely out of the fight or squeezed right in the middle of it. It is not entangled in the bloc’s fights anymore (perhaps finally a “Brexit dividend”?), but a trade war between two big partners could mean uncertainty on our shores.

Macron will be the European envoy tasked with avoiding a subsidy race. But if Biden doesn’t concede, the future will look uncertain - for the UK too.

cians throwing a Christmas party for their staff on the public dime?

There is nothing intrinsically wrong or unusual for an employer to organise and fund a Christmas gathering. They are important opportunities to thank people for their hard work and build up team cohesion. Pretty much every organisation, public, private and charity, has one. Nor do they entail a large financial burden – it may be a “bad look” but a few hundred quid per MP is hardly breaking the bank.

This all speaks to the broader tendency of blowing MP’s expenses out of proportion. These expenses cost taxpayers £139.5 million in 2021-22 – fourfifths of which is related to staffing costs for their offices. This makes up just 0.01 per cent of total government

expenditure. If you are a small government radical looking for big savings in public spending they will have to come from elsewhere. Furthermore, in the aftermath of the expenses scandal the system was dramatically improved through extensive independent oversight and transparency. The days of duck houses on the taxpayer are in the past.

If anything, the UK probably underspends on politicians. Their pay is above average, with an annual average salary of £84,000, but the expectations and responsibilities are extraordinary. MPs work gruelling hours in a bizarre workplace under constant public scrutiny.

They are expected to somehow solve wicked national policy problems, many of them outside of their control, while also being a social worker in their local community. They must work pretty much every day of the week, shuffling between Parliament and their constituency, with little time

left for families. This is before their formal job of holding ministers to account, scrutinising legislation and watching over government departments.

There may be plenty of other good altruistic reasons for becoming an MP, like representing your community and achieving policy change. But with such high responsibility and low pay relative to other senior positions in law, finance and medicine, it is perhaps no surprise that many of Britain’s best and brightest are eschewing entering politics. There is no way a top corporate executive, whose decisions have far less impact, would do so much for so little money. If you pay peanuts you get monkeys.

Perhaps, rather than playing the Grinch at Christmas time, we should pay MPs and their staff more to attract the best and brightest.

£ Matthew Lesh is head of public policy at the Institute for Economic Affairs

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Matthew

If anything, the UK probably underspends on our politicians

WE

MPs have been told not to use expenses of staff Christmas parties

LIFE&STYLE

All the festive fun in London

ing in the capital, with chalkboard menus and friendly waiters who know the answer to the pub quiz questions scrawled on beer mats. As for the beer, there’s special drafts up from Sussex. No hipster London breweries here - this is the countryside don’t you know.

£ the-berkeley.co.uk

FESTIVE FLEET STREET QUARTER

CHRISTMAS CAROLS AT ST PAUL’S

Short of getting a ride in Santa’s sleigh, there can be little more festive than singing Christmas carols in the stunning surrounds of St Paul’s Cathedral. This year there are a number of ticketed concerts, including an event raising funds for WaterAid on 6 December. The evening will include festive readings from actors Sir Tony Robinson, Amanda Mealing and David Morrissey. It promises to be a crowd-pleaser, with the set-list including time-honoured bangers Once in Royal David’s City and Hark! The Herald Angels Sing. Tickets are still available but get in quick as these concerts tend to sell out.

£ stpauls.co.uk

COVENT GARDEN CHRISTMAS SANDWICH FESTIVAL

Once a hellscape of jugglers and bewildered tourists, Covent Garden has slowly but surely become a part of London a Londoner might actually want to visit. The Christmas Sandwich Festival is a case in point: a delicious excuse to brave the crowds and check out the Christmas lights and big old tree. Some top restaurants are taking part in the festival, including Blondies Kitchen, which is creating a cookie dough sandwich; Lilly’s Cafe, which is serving smoked salmon on dark rye, and Frenchie, which has created a BrillatSavarin, ham and black truffle sandwich. Especially delicious when washed down with a mulled wine.

£ coventgarden.london

LONDON CHRISTMAS BEER FESTIVAL

The real spirit of Christmas is, of course, alcohol, and if you’re hoping to get nicely sozzled in the lead-up to the big day, consider crossing the river to Tobacco Dock, where there will be a Christmas Beer Festival in full swing on 16 and 17 December. Breweries from Budvar to Brixton will be taking part, with 50 beer-makers lining up alongside cider, wine and spirits companies showing off their festive wares. Also on offer will be a host of top chefs selling seasonally appropriate grub, and entertainment from a roster of DJs and live singers and musicians.

£ londonchristmasbeerfestival.com

FESTIVE FOOD AT SKY GARDEN

If you’re after a taste of Christmas in the heart of the City, simply look up –Sky Garden atop the Walkie Talkie has festive menus at both of its restaurants. In Darwin Brasserie you can get three courses and a glass of fizz for £59.50, with roast turkey taking centre stage alongside the likes of prawn

cocktail and mince pies. Over at Fenchurch you can enjoy a special festive tasting menu, with six courses celebrating traditional British winter fare, including beef tartare, scallops and spiced duck.

£ skygarden.london

CHRISTMAS GOSPEL CHOIR BRUNCH @ M RESTAURANT

M Restaurant is almost as well known for its special events as it is for its world-beating steak. To get you in the festive mood, M Victoria is hosting a Christmas Gospel Choir Brunch, com-

bining seasonal food, cocktails and live music. The price (from £78.75) will include two courses and bottomless cocktails while you listen to a combination of Christmas classics and funk and soul hits, performed by BASSnote Collective. The festivities start at 12.30pm.

£ mrestaurants.co.uk

LODGE D’ARGENT

Tis the season when London restaurants pretend like they’re in the Alps by inviting guests to freeze in outdoor areas decked out with faux fur and tinsel. (Only joking, there’s heaters really.)

And the City of London destination to book is Coq D’Argent - temporarily called Lodge D’Argent - with festive foliage, Rémy Martin cocktails and alpine food.

£ coqdargent.co.uk

THE BISHOP AT THE BERKELEY

Gorgeous Knitsbridge hotel The Berkeley has literally built its own pub for the festive season, it’s so keen to celebrate in style. It’s cosy as anything and all about winter warmers, with pies and puddings of the savoury and sweet varieties. It’s a slice of countryside liv-

Adding the word ‘quarter’ in front of parts of London where people don’t traditionally hang out has been 2022’s way of making unexciting areas exciting, and who are we to argue? Fleet Street is the latest part of town to have its own vibe as it launches a festive makers’ market this Christmas from 1 to 15 December. Choirs, spoken word events, festive workshops and the opportunity to mull over Christmas presents with mulled wine. See what we did there? A short walk from the City.

£ fleetstreetquarter.co.uk

DECK THE HALLS AT PERGOLA PADDINGTON

If you can’t get to the Alps this season then don’t worry, eating, drinking and gaming mecca Pergola Paddington have you sorted. The deck that is traditionally reserved for sunshine drinks has morphed into a mountainside ski destination, with secluded chairlift, Alpine chalets, ski equipment and demi-peche, just how the French like it. There’s baked camembert too, perfect after nine or ten demi-peches. Already booked up until Christmas? The pop-up will serve ski culture until the spring so pop to Pagola for a January pick-me-up.

£ pergolapaddington.com

GO ON A MINCE PIE HUNT

London’s rich culinary diversity is finally useful for something: going on a mince pie hunt! Ottolenghi has “enriched” egg yolks in his recipe as well as mincemeat made in August for extra maceration time. Imagine all those delicious dried fruits and spices swimming in rum and brandy. Go brilliantly British with St John, whose mince pies are as straightforward as you’d imagine and three times as addictive. Also see Toklas bakery on Surrey Street in Westminster for a cracking pie.

£ ottolenghi.co.uk; stjohnrestaurant.com; toklaslondon.com

BAVARIAN HALL AT WINTER WONDERLAND

Bear with us: for the most part it’s true that Winter Wonderland is chaos to be avoided. But run through the crowds of children hurling candy floss at one another and look out for the Bavarian Hall and you’ll find another side to the tourist destination. One that serves great beer, with great DJs, in one of the most energetic rooms in the capital. Sure, it is full with work Christmas parties, but if there’s one place to succumb to the intensity of the Christmas piss up, it’s here, in a building purposefully built for Tracey from accounts to have a sing-a-long (and perhaps even a snog) with Steve from sales. You always knew they had eyes for one another.

Whether you’re after carols in a cathedral or a knees-up in a brewery, we have the Christmas present for you

Clockwise from top left: Carol singers at the Festive Fleet Street Quarter; A sarnie at the Covent Garden Christmas Sandwich Festival; A cosy den at Lodge D’Argent; St Paul’s, where you can sing carols; The festive dinner at Sky Garden; The London Christmas Beer Festival

SPORT

Argentina overcame an early Lionel

match, Argentina

the PSG

to win last night

the

WORLD CUP BRIEFING

LATE SAUDI GOAL ENDS MEXICO’S WORLD CUP

£Mexico were dumped out of the World Cup last night despite beating Saudi Arabia 2-1. Mexico were set to be heading home due to a inferior disciplinary record in comparison to Poland but a late Salem Al-Dawsari goal handed Mexico a worse goal difference.

AUSSIES THROUGH FOR FIRST TIME SINCE 2006

£Australia progressed to the World Cup last 16 for just the second time yesterday with a 1-0 victory over Denmark. In a match where the Danes didn’t offer too much, it was Mathew Leckie who broke the deadlock in the 60th minute. They will play Argentina.

TUNISIA END CAMPAIGN WITH WIN OVER FRANCE

£Tunisia finished their campaign with a victory over France but it it wasn’t enough to send them into the last 16 in Qatar. France will play Poland in the last 16.

TODAY’S MATCHES AND HOW TO WATCH THEM

£Canada vs Morocco, 3pm, BBC

If Morocco win, they’re through. If they draw or lose, it goes down to the other Group F match.

£Croatia vs Belgium, 3pm, BBC Croatia will definately go through as long as they don’t lose to Belgium. Belgium need to win to have any, albeit outside, chance.

£Costa Rica vs Germany, 7pm, ITV Germany must win and rely on other results while a Costa Rica win guarentees their last 16 place.

£Japan vs Spain, 7pm, ITV If Germany beat Costa Rica, a draw between these two sides is enough. The winner will go through.

SHOULD STICK, NOT TWIST

with a free-kick that opened the scoring and settled any nerves.

Southgate also deserves some of the credit for asking Rashford and Phil Foden to switch flanks at half-time, which changed the game.

The inclusion of Jordan Henderson in central midfield offered Jude Bellingham more freedom to make forward runs and gave the team an extra dynamic.

ENGLAND’S progress from Group B to a World Cup last-16 tie with Senegal on Sunday has ticked a lot of boxes. They finished top, had six different goalscorers, avoided injuries and were able to give minutes to players who needed them, like Kyle Walker and Kalvin Phillips.

It has put Gareth Southgate’s team up there with Brazil and France as the nations with an eye on the trophy heading into the knockout rounds.

England’s overall performance in the 3-0 win over Wales on Tuesday was a very good response to the flat display against the USA a few days earlier.

World Cups are all about moments and Marcus Rashford provided ours

Harry Maguire continued to look the part in a system that offers him more protection than he gets at club level, improving his form and fitness.

And although he hasn’t scored, Harry Kane has provided two brilliant crosses to set up goals for Foden and Raheem Sterling. It’s now clear that this isn’t going to be a World Cup where Kane wins the Golden Boot but he still has a vital role to play as the glue in England’s attack.

If there is a gripe it is that we need to start games with more authority and being more aggressive in possession. This means attacking players taking a risk or two and dragging opposition defenders out of their comfort zone, as

Foden did in the second half against Wales. He committed them and got them out of position, which creates space for others and is what good forward play is about.

Group B wasn’t the hardest at this World Cup but it was an ideal level for England to start the tournament. There is always angst in the early games so it was good that they didn’t come under too much extra pressure. Southgate wouldn’t have swapped it.

The difficulty level is about to increase, however. Senegal will be England’s toughest opposition yet in Qatar, without a doubt.

Southgate now has a selection headache over whether to stick with Rashford and Foden or recall Sterling and Bukayo Saka, and whether to

Southgate’s England will meet Senegal in the World Cup last 16 on Sunday

keep Henderson alongside Bellingham and Declan Rice in midfield or pick a more attacking option. I’d stick with Rashford, Foden and Henderson, but either way England have plenty of options from the bench.

Based on what we’ve seen at this World Cup, Senegal are skilful, strong, cover ground well, and won’t be shy about running at our players. Watford winger Ismaila Sarr has made a good start to the tournament and is capable of those match-winning moments I mentioned.

Chelsea defender Kalidou Koulibaly, whose goal against Ecuador sent them into the last 16, is always going to be a threat from set-pieces. Man for man, England are better and, although they are African champions, this will feel like a bigger game for Senegal. But as we have already seen in Qatar – including against the USA –teams are more dangerous than in the past because they aren’t playing with an inferiority complex.

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

Southgate now has a selection headache over whether to keep Rashford and Foden or recall Sterling and Saka

RECOVERY COMPLETE Argentina find form to top Group C as Poland sneak through at

Messi penalty miss to beat Poland 2-0, top Group C and book a last 16 World Cup tie against Australia last night. Having lost to Saudi Arabia in their opening

had

to guarantee their spot in

last 16. The Albicelestes had a chance to take the lead in the first half when Messi was handed a chance from the spot but

striker missed. Brighton’s Alexis Mac Allister put Argentina ahead, however, in the 46th minute before Manchester City’s Julian Alvarez doubled his side’s lead. The result meant Argentina topped Group C while Poland finished level on points with Mexico –Poland progressed through to the last 16 on goal difference.

Trevor Steven

GIANNI Infantino. Moonbeam or clown? Flibbertigibbet? Certainly. Problem-solver, or problem to be solved? It all depends on where you are coming from – quite literally. Just don’t expect Fifa’s demon/angel (delete according to taste) president to go anywhere soon. Most likely not until 2031.

Football’s Swiss-Italian head honcho has been front and centre of the offfield dramas at Qatar 2022. We even know now that the follicly-challenged one was bullied as a child for being ginger haired and freckly. All thanks to an eve-of-tournament press conference in which he railed against the hypocrisy and racism of Western critics of the World Cup’s host nation.

Infantino may be feeling the heat directed at his organisation, but he will rest easy in the knowledge that any amount of criticism won’t undermine his job security. Denmark’s football association has declared that it will abstain in the upcoming presidential election to be held in March. He, though, is the only candidate. Such is the norm in international sporting federations. You only have to fight for power once. Win and successive elections are usually uncontested. You have to be seriously corrupt (and blase with it) – or unlucky in your contest with the Grim Reaper – not to see out your maximum terms of office.

Fifa’s last president fell short of the bare minimum standards of behaviour required of this powerful sinecure.

Sepp Blatter’s fall from grace was precipitous. He was suspended when facing a criminal investigation, only months after being re-elected for the fifth time. He served for 17 years.

Infantino succeeded Blatter in 2016, seeing off three rivals for the presidency. He was first re-elected unopposed in 2019. Post-Blatter reforms limit him to three terms of four years in office, but the clock only started for him in 2019 because he came to power at a mid-term extraordinary congress triggered by Blatter’s demise.

It’s worth reminding ourselves of Infantino’s initial campaign. The central plank in his manifesto was a promise to bump up the quadrennial development grants for each member nation of Fifa from $2m to $5m. The organisation at the time had reserves of $1.3bn, even after the exceptional legal costs it had incurred in dealing with the Blatter mess.

Infantino was effectively pledging an additional $600m in payments to his electorate. England’s share might barely touch the sides, but just

IN BRIEF

WHITE OUT OF WORLD CUP FOR PERSONAL REASONS

Arsenal and England defender Ben White has left his side’s World Cup squad and is not expected to make a return to Qatar over personal issues. “[White] is not expected to return to the squad for the remainder of the tournament,” a statement said. “We ask that the player’s privacy is respected at this moment in time.” The 25-year-old has four caps for his country but did not play for England in the group stages –he missed the win against Wales with illness.

The Untouchables

Fifa boss Infantino and why sport’s top jobs only rarely change hands

think what the grant means in a small

cent years, with very different out-

jeopardy involved in challenging the

of possible opponents bear testimony to the addictive qualities of their roles. What is extraordinary is that Infantino’s now infamous rant came after the announcement that he would be unopposed.

Occasionally bitter presidential contests do break out. Two Britons have been embroiled in them in re-

saw Bill Beaumont see off Argentinian challenger Agustin Pichot by 28 votes to 23. Unlike Fifa and many other international federations, rugby’s isn’t a “one member, one vote” system, which clearly played in Beaumont’s favour.

It is exceptions such as these that keep sporting presidents on their mettle, at least once every four years as their clock runs down towards the final whistle.

However, with the Qatar 2022 World Cup currently delivering in sporting terms, Fifa in rude financial health, the vast majority of its members content with the largesse delivered from its Zurich HQ, and the personal career

Private equity players like to pride themselves on being patient investors, but on a number of occasions I’ve seen just the opposite. Firms differ of course in their style and investment horizons, but all PE practitioners hunt restlessly for ways to add value to their holdings.

CVC has burrowed into the heart of rugby and will be seeking ways to augment all of its various stakes, including the 14 per cent it holds in the Six Nations at a cost that may reach £365m.

Would you rather watch Italy striving to hold their own against the other five teams in the annual northern hemisphere tournament, or those

LET THE GAMES COMMENCE

On the subject of private equity, reports that Bridgepoint has offered £400m for a controlling stake in The Hundred can only be the beginning of a delicate process with the potential to kill or cure county cricket in England and Wales.

A nice problem for the sport’s new leaders to have, but much earlier than they would have liked I suspect. And no way will they countenance a majority sale. Won’t they?

Ed Warner is chair of GB Wheelchair Rugby and writes at sportinc.substack.com

ECB CONFIRMS SCHEDULE FOR DOMESTIC CRICKET

The English domestic cricket season was confirmed yesterday, with counties playing 14 fixtures in the season and teams set to face non-division level opponents ahead of the One-Day Cup.

Champions Surrey will travel to Lancashire in the opening county fixture of the season, while newly promoted Middlesex are due to host Essex. In Division Two, relegated Yorkshire will start at home to Leicestershire on Thursday 6 April.

LIV GOLF ADDS THREE MORE COURSES TO CALENDAR

The Saudi Arabia-backed LIV Golf league have added three further destinations to the calendar ahead of next year’s second season. Having already announced the tour will go to Adelaide, the Greg Normanfronted league will see events take place at Mayakoba in Mexico, Singapore and Valderrama, Spain. Mexico will host its leg in February with Singapore hosting in April and Spain in June. Last year’s inaugural season was won by Dustin Johnson with the team competition going to 4 Aces.

ENGLAND’S SINCKLER OUT OF ACTION FOR FOUR WEEKS

England rugby international prop Kyle Sinckler will be out of action for up to a month having suffered a leg injury against South Africa at Twickenham last Saturday.

The Bristol Bears front row was replaced at half-time during England’s 27-13 loss to the Springboks. “He took a knock in that first 40 minutes,” Bristol director of rugby Pat Lam said. “Unfortunately it looks like he’s come back injured so [will] probably miss three, potentially four weeks. It’s disappointing, but that’s the way it is.”

WOLFF CONSCIOUS MERCEDES CANNOT SLUMP LIKE OTHERS

Mercedes F1 team principal Toto Wolff has said his Silver Arrows need to be “careful” to ensure they do not fall into a period of bad years after a spell of dominance like Red Bull and Ferrari did. Ferrari haven’t won a title since 2008 and Red Bull went through a rut after four consecutive titles. “We are looking at that and thinking... we better be careful,” said Wolff. “A season has gone by in a heartbeat and we can’t let it happen to look back at the end of next season and the one after, saying ‘that’s bitter’.”

same five striving to best South Africa

South Africa: Could Boks be Six Nations bound?

Ed Warner