Thursday 25 May 2023

CHELSEA COMES HOME HOW EVERYONE CAN LEARN FROM THE FLOWER SPECTACULAR P20

CITY BETS ON HIGHER RATE BY AUTUMN

FORECAST-BUSTING INFLATION PUTS BANK IN TIGHT SPOT

THE BANK of England will have to hike interest rates to a peak of 5.5 per cent to tame steaming inflation, markets bet yesterday, after fresh numbers showed price pressures are withstanding rate rises.

Inflation dropped to 8.7 per cent in April, down from March’s shock rise to 10.1 per cent, the Office for National Statistics said.

Last month’s fall meant the rate of price increases slumped out of the double digits for the first time since last summer.

But the figure smashed market expectations of a drop to 8.2 per cent and the Bank of England’s projected fall to 8.4 per cent.

Core inflation – which strips out volatile food and energy price changes – leapt unexpectedly to 6.8 per cent, the highest level since March 1992.

THE CITY PAGES ANNA MOLONEY’S PICK OF THE BEST NEW BOOKS P19

Food prices rose nearly a fifth, the quickest pace in around four decades. Markets wobbled in response to the inflation overshoot, with the yield on the two-year gilt surging as much as 25 basis points and the FTSE 100 slumping around two per cent.

Sterling picked up gains before weakening around 0.15 per cent against the US dollar.

Bank governor Andrew Bailey yesterday claimed a “substantial amount” of the price surge is being driven by “imported inflation”.

But the shock core inflation jump and services prices climbing 6.9 per cent over the last year suggests domestic factors are now running the show.

Bailey said the Bank’s forthcoming interest rate decisions will be “driven by how the evidence shapes up”.

The governor and the rest of the Mone-

tary Policy Committee have been slammed for failing to forecast the strength of inflation accurately.

Economists yesterday judged the upside inflation surprise as nailing on a 13th straight rate rise on 22 June.

Analysts at investment bank Nomura said they no “longer feel the data allow the Bank of England to stop after just one more hike”, adding they “see a terminal rate of 5.25 per cent being reached by September”.

Experts at consultancy Capital Economics agreed with that assessment, warning such a move by Bailey and co would make “a recession at some point more likely”.

Earlier this week, the International Monetary Fund ditched its recession call for the UK and raised 2023 GDP growth to 0.4 per cent from a 0.3 per cent contraction.

Hiking the rate to as much as 5.5 per cent –from its current 4.5 per cent –raises the possibility that the UK could still see a contraction, with the higher cost of borrowing choking off growth prospects and the flow of credit.

OPPORTUNITY KNOCKS Kyiv minister on investment lookout

A SENIOR figure in Ukraine’s government has called on the City of London to back the reconstruction of the country, days before heading to the capital to meet representatives of the tech sector here.

Speaking exclusively to City A.M., economy minister Oleksandr Gryban said that the country provides a “huge amount of opportunities” to international investors, with a World Bank insurance system in place to prevent significant war losses.

Gryban acknowledged that persuading investors to back projects in the country with war still raging was a difficult prospect but said the country’s “inevitable” membership of the European Union and a skilled workforce should be seen as attractive to those willing to take a risk.

Ukrainian president Vlodomyr Zelensky has described Ukraine’s postwar growth as “the greatest opportunity in Europe since World War II.”

£ INTERVIEW: PAGE 12

Regulator: Taxpayers could have been ripped off by chatting bank traders

CHRIS DORRELL AND STAFF

TRADERS at five of the world’s biggest banks shared “commercially sensitive” data related to the purchase and sale of UK government bonds in Bloomberg terminal chats, the UK’s competition watchdog has provisionally found.

A “small number” of staff at Citi, Deutsche Bank, HSBC, Morgan Stanley and Royal Bank of Canada shared information which, the competition watchdog says, could have “denied the full benefits of competition” to sellers of UK gilts.

Deutsche Bank reported its involvement to the Competition and

Markets Authority (CMA), with the activity occurring between 2009 and 2013. Citi then also applied for leniency as part of the CMA’s investigation, effectively admitting to wrongdoing.

As such Deutsche will not be fined and Citi’s fine will be mitigated, if the CMA makes a final decision.

HSBC, Morgan Stanley and Royal Bank of Canada have not admitted any wrongdoing. No assumption should be made that any of the banks have broken the law.

A HSBC spokesperson said it “refutes the CMA’s allegations” and “will continue to make our case to the CMA as appropriate whilst we

await a final decision.”

The contract is said to relate to the sale of gilts by the UK Debt Management Office via auctions on behalf of HM Treasury, the subsequent buying and selling of gilts and gilt asset swaps, and buyback auctions of gilts by the Bank of England.

CHARLIE CONCHIE

JACK BARNETT

Bank governor Andrew Bailey

STANDING UP FOR THE CITY

Immigration stats will kick off another tired political firestorm

TODAY will see the publication of immigration stats which, most likely, will show that the UK’s net migration level has hit a new record. Yes, despite Brexit. The figures will kick off yet another political firestorm. The issue with immigration is that the downsides are felt locally, and the advantages felt nationally. It is all well and good those of us who believe in the value of new arrivals telling

THE CITY VIEW

people in communities being changed in front of their eyes that it’s all for the common good, or saying that the pressure on public services in certain areas when the population increases quickly is just a price we must pay. So the question is which of

our political parties is going to show the intestinal fortitude to make a compelling argument in favour of immigration, and mitigate the downsides of it. So far the conclusion we can reach is, effectively, neither. Despite Britain’s demographic timebomb and chronic labour shortages across the economy, nobody in senior office seems willing to make the case that without new arrivals Britain simply will not function in the

way it does today. The end result of that, as ever, is nativism; by refusing to make the case that immigration is a good thing, the field is open to those who would take the argument in a different direction altogether. There are enough reasons, funnily enough, not to come to the UK at the moment. In London, it is hard to look at our housing market and suggest that anybody arriving here would find it a welcoming environment in which to set

DOG OF THE WEEK It’s not just commuters heading into work this week, with this office pooch enjoying his journey into the office as the temperature finally turns for the better

Every week, we choose a dog of the week to celebrate one of the few good things about the pandemic... the normalisation of dogs in City offices. We want to see your dog in the Square Mile, at your desk or even on your tube on the way into work. The only rules is, sadly, these can’t be remote working pups. While we support the leisurely attitude of these home-office dogs, this is a weekly competition in honour of what was once a novelty.

To enter, all you have to do is send a picture of your dog hard at work to pictures@cityam.co m alongside a sentence or two on why your dog is the best good boy or girl in the Square Mile. We’ll keep our eyes peeled for any other potential entrants strolling through the streets.

Braverman escapes ethics probe into speeding row

JESSICA FRANK-KEYES

SUELLA Braverman has escaped an ethics investigation over claims she asked civil servants whether they could arrange her a private speeding awareness course.

PM Rishi Sunak yesterday confirmed no “further investigation” will take place into the row and said he was “reassured [Braverman] takes these matters seriously”.

In a letter to the home secretary, the PM said he had spoken to his independent ethics advisor, Sir Laurie Magnus, who had advised “no

further investigation is necessary”.

Sunak did however note “a better course of action could have been taken to avoid giving rise to the perception of impropriety”.

The PM’s decision comes after Braverman was accused of fresh ministerial code breaches over a failure to formally disclose years of work with the Rwandan government despite the UK’s £140m deal to send asylum seekers to the African nation.

Critics decried Sunak as weak, with Lib Dem chief whip Wendy Chamberlain saying: “He may be in office but he is barely in power.”

down roots, for instance. Allowing nasty anti-immigration rhetoric to win the battle of ideas will only weaken the UK’s standing internationally. London’s leaders are doing their bit, but national politicians need to do more. Perhaps it is naive to hope that, when Britain is proving incapable of stopping illegal immigration, anybody would stick their head above the parapet for legal immigration –especially before an election. But somebody has to.

YOUR ENTRIES IN OUR ECONOMICS FOR DUMMIES COMPETITION

Yesterday we invited readers to send in their suggestions for improving the economic forecasting of the Bank of England and the IMF, amongst others, after they horribly botched their recession predictions.

We received plenty of suggestions, with the winner receiving a copy of Economics for Dummies and something bottled to enjoy it with. Our winner was Max Edwards in Stratford, who made us laugh if nothing else.

“My idea to improve IMF and BoE forecasting would be to do it in the style of wheel of fortune. A series of giant wheels with various economic scenarios relating to inflation and GDP growth set out in a line which are spun and when the wheel stops spinning the forecast with the pin in it becomes the prediction,” he suggested. “With Philip Schofield free these days perhaps he could host it for the television.”

PMQs: Keir Starmer, future fruit picker for Britain

KEIR STARMER is not a man known for his quick wit. Today’s Prime Minister’s Questions were a keen reminder of this as the leader of the opposition, so eager to get out his gags about Suella Braverman, was unable to effectively counter the PM. It’s a truism in politics that an open goal is the hardest one, and the combination of Braverman’s attempt to evade points on her licence for speeding by attending a “private” speed awareness course and the sky-high immigration numbers forecast to come out tomorrow, was a goal post larger than Rishi Sunak’s 40-foot swimming pool. Starmer’s heart wasn’t really in it when he opened with a dig at the home secretary’s need for a refresher on “points-based systems” and continued with jokes about her “speeding through the void”.

SKETCH Sascha O’Sullivan

Sunak, however, had a decent attack line after the International Monetary Fund (IMF) revised its forecasts for the UK economy.

“I am very surprised,” said Sunak, a man who is often surprised whenever he stops reading a spreadsheet. “I’ve stood here week after week, when he’s been so keen to quote the IMF, he seemed to have missed their press conference yesterday...”

A rattled Starmer raged: “Is he seriously suggesting that breaking the economy and public services, and losing control of

immigration is all a carefully crafted plan?” Quickly, he pivoted: “[There is] no plan for skills growth, or wages. [Braverman’s] big idea for British workers is for them to become fruit pickers... Does the PM support this ‘let them pick fruit’ ambition? Or does he wish he had the strength to give her a career change of her own?”

When Sunak returned to his new best friend, the IMF, Starmer threw out another Suella quip: “[She] may need a speed awareness course, he needs a reality check.” And, just when Rishi thought he couldn’t have a better go of it, Stephen Flynn, head shining in the dimly lit Commons chamber, presented himself as evidence of the PM’s boast that Britain has some of the “best young readers” in the world, by reading the prices of groceries from his local Sainsbury’s.

‘Toxic’: Union suspends Royal Mail pay deal

BEN LUCAS

9.5%

A PAY DEAL that helped end months of strike action at Royal Mail is at risk of falling apart after the Communication Workers Union (CWU) yesterday said it would suspend its upcoming vote on the agreement over concerns with the company’s “toxic” working environment.

The agreement, struck last month, included a 10 per cent salary increase and a one-off lump sum of £500. The union, which represents 115,000 postal workers, had previously recommended its members approve the deal.

But the CWU said yesterday “the environment we are attempting to deliver this agreement in remains toxic”.

The union warned unless Royal Mail dropped a “culture of imposition” then “the integrity of the negotiators agreement will be irreparably damaged”.

As a result, the union said it has

agreed to suspend the vote on the deal.

“This must be the wake-up call that senior management need to change the culture” and “show the humility required” the union said.

A spokesperson for Royal Mail said approving the deal would help the company move forward.

“The need to change is critical so we can improve our quality of service, deliver for our customers and get back to profitability,” the spokesperson said. “The sooner we can get a positive ballot result the sooner we can give our people the agreed pay rise and provide greater job security.”

Royal Mail’s owner, International Distributions Services, last week blamed strike action on a full-year loss of more than £1bn, which it reported last week.

Ofcom is investigating Royal Mail’s failure to meet its annual delivery targets for first and second class mail and deliveries – and could issue a fine.

Private health boom boosts

Aviva as Brits lose faith in NHS

CHRIS DORRELL

SHARES in Aviva fell even after it recorded a strong start to the year, with sales rising 11 per cent thanks to a boom in private healthcare.

Private healthcare sales grew by a quarter to £33m as more customers were attracted to “the benefits of private cover,” likely boosted by Brits

Ex-John Lewis boss speaks out on CBI scandal

JESSICA FRANK-KEYES

THE FORMER boss of John Lewis has spoken out on the scandals engulfing the Confederation of British Industry (CBI) and Tesco. Asked about the allegations surrounding the two organisations yesterday, Andy Street, Conservative mayor of the West Midlands and former John Lewis managing director, said: “How can it be that incredibly reputable organisations haven’t known about this?

“Tesco is probably one of the best governed organisations in Britain, as was the CBI, I thought,” Street said.

“I just don’t believe somewhere at the senior level somebody didn’t know. There must be a case of turning a blind eye.”

looking for alternatives to the NHS.

Chief Amanda Blanc said “whilst the NHS does a great job there are people who would like to accelerate their treatment”.

Aviva’s UK division recorded 13 per cent growth, while its wealth business was down 15 per cent.

Despite the boom, shares were trading 5.26 per cent lower yesterday.

Allegations of sexual harassment and a toxic work culture plunged the CBI into crisis when published by the Guardian earlier this year; police are investigating claims of rape by staff.

Former CBI president John Allan subsequently resigned from his role as Tesco chairman following complaints about his time at the helm of the business body. Allan denies the claims made against him.

Aviva boss Amanda Blanc said the insurer was “going from strength to strength”

Blackrock shrugs off climate activists at shareholder meeting

CHARLIE CONCHIE

THE WORLD’s biggest fund manager Blackrock comfortably saw off a potential rebellion over its environmental, social and governance (ESG) policies yesterday as the firm looks to take a passive role on climate issues.

The New York-based firm, which manages some $9.1 trillion in assets,

said two shareholder resolutions raising climate concerns won less than 10 per cent of support from shareholders, while a third resolution from a conservative group that targeted Blackrock’s diversity policies won less than one per cent support. Blackrock boss Larry Fink, who has insisted previously that pushing for specific climate outcomes is not the firm’s role, doubled down and said it

was Blackrock’s job to act in its clients’ interests.

Blackrock has faced criticism from both conservative and liberal politicians on climate issues. Blackrock said each of its director nominees also received “well over a majority” of votes cast at the meeting, held online, and that 92 per cent supported the pay of chief exec Larry Fink and other leaders.

London snatches tech city crown from New York

JESSICA FRANK-KEYES

LONDON has been ranked as the world’s most high-tech city snatching the top spot from New York, according to new research shared exclusively with City A.M.

The capital scored top marks for its world-leading financial services and deep talent pool as well as the quality of its business environment and international reputation, according to Z/Yen Group’s seventh edition of the Smart Centres Index.

Climbing one point on last year’s score, London was joined in the top five by NYC, San Francisco, Zurich and Lugano. Oxford came in seventh place, after climbing three places in the ranks, while Los Angeles, Tel Aviv and Hong Kong ranked in the top 10.

“We will only solve our global problems by harnessing technology to the task,” executive chairman of Z/Yen Group Michael Mainelli said.

“Our expectations of technology will only be realised if we can deploy it,

which is the job of commercial centres.”

“It’s an exciting, and dangerous, time, and more than ever we must improve our assessments of new technologies ranging from AI to materials, space, graphene, carbon capture, or quantum computing.”

The Smart Centres Index (SCI) assesses the power of top global cities to create and deploy new technologies.

Researchers noted Asian and Pacific cities had dropped in the rankings amid concerns over Chinese conflict with Taiwan, while western Europe and the US maintained a strong performance.

The news that London has clinched the top spot will likely be welcomed by Rishi Sunak, who has set out to develop the UK as a whole into a science and tech superpower since becoming prime minister late last year.

The ranking will also be seen as another welcome boost for the City.

Last week, London was crowned the ‘best city brand’ in the world, according to a new international league table.

Abercrombie & Fitch jumps on surprise profit and raised guidance

GRANTH VANAIK

ABERCROMBIE & Fitch yesterday posted a surprise quarterly profit and lifted its full-year sales forecast, as the clothing retailer banks on its efforts to fill shelves with in-demand goods, sending its shares up as much as 29 per cent.

The apparel retailer has worked to increase its stock across all its labels and lure affluent Americans to purchase a variety of clothing items as people return to social gatherings and

office work.

Consumers have been diversifying somewhat out of denims, said CEO Fran Horowitz, adding “this non-denim bottom trend that we’re seeing is really terrific”.

The company’s eponymous Abercrombie label posted a 14 per cent increase in sales in the quarter, while the Hollister brand dropped seven per cent.

The company now expects 2023 net sales to increase two to four per cent.

The US clothing retailer said consumers had been diversifying their wardrobes

GPE: London ‘busier and busier’ as return to office gathers momentum

LAURA MCGUIRE

GREAT Portland Estates (GPE), a leading landlord in office space, said London has got “busier and busier,” but noted it does not expect the recovery of offices in the capital to be “uniform”.

Throughout the year, the property firm recorded £55.5m of leasing, as it was bolstered by the

UK house price growth slows but figures still high

LAURA MCGUIRE

HOUSE prices in the UK rose 4.1 per cent in the 12 months to March, adding £11,000 to the average value of a property, according to new data.

However, the figures are down from February’s 5.8 per cent hike and £8,000 below the recent housing peak in November 2022, data out yesterday from the Office for National Statistics (ONS) shows.

Across England, the South West saw the highest annual percentage change of all English regions in the 12 months to March 2023, up 5.4 per cent, while London saw the lowest, up just 1.5 per cent.

The average UK house price was £285,000 in March 2023. However, figures from Rightmove show that in the capital the price tag is much higher, usually ranging between £600,000 to 700,000.

The results come amid a confusing time for prospective house buyers. While inflation fell sharply to 8.7 per cent yesterday and mortgage rate approvals are increasing, it’s still uncer-

LIDL HIKES STAFF PAY FOR THIRD TIME IN A YEAR

Supermarket chain Lidl has announced its third pay increase in a year, affecting all of its 24,500 hourly-paid workers. Store and warehouse staff working outside the M25 will see hourly pay increase to £11.40 from £11.00, rising to £12.30 with length of service. Hourly pay for those inside the M25 will increase to £12.85 from £11.95, rising to £13.15. Lidl said the move represented an overall investment of £8m and a total investment of over £60m into staff pay in the past year. Chief executive Ryan McDonnell said: “These new rates of pay will ensure that Lidl maintains its position as the UK’s highest-paying supermarket. Lidl also recently announced it was looking to recruit more than 1,500 warehouse workers.

tain if these improvements are filtering down to the general market just yet.

This is especially true for first-time buyers, who continue to struggle to secure deposits for mortgages on homes.

Despite this, experts say that yesterday’s forecast from the ONS reflects a solid but “not spectacular” year for the UK’s housing market, following on from the peak pandemic sales boom and subsequent mini budget crash.

“The impact of a recov-

Annual house price growth dropped to 4.1 per cent in March

ering economy, strong jobs market and record levels of housing equity are kept in check by mortgage rates that are notably higher than eight months ago,” Tom Bill, head of UK residential research at Knight Frank, said.

“If stubbornly high inflation keeps interest rates higher for longer, it will increase downwards pressure on prices, which we expect to fall by a few per cent this year,” he added.

NETFLIX, NO CHILL: PASSWORD CRACKDOWN BEGINS

Netflix has begun its crackdown on UK and US subscribers who are sharing their password with people who live outside of their household, in a bid to stop account sharing. The streaming giant said a Netflix account was “for use by one household” and those wanting to share accounts “with someone who doesn’t live with you” must pay an extra £4.99 for the extra member in the UK, or $8 a month in the US. It comes after the company, which has lost subscribers amid stiffer competition and rising inflation, began clamping down on account sharing last year in South America, before rolling out the crackdown more widely. Netflix said it has begun sending emails to customers in the UK about sharing between households.

completion of a new headquarters for law firm Clifford Chance at Aldermanbury Square.

As shoppers returned to the high street, GPE also secured £10.2m of rent via 35 new retail leases including units at 70/88 Oxford Street, W1.

As the capital fully reopened postpandemic, the group noted that vacancy was also down to 2.5 per cent this March, compared to 10.8 per cent

in March 2022.

“Whilst macro-economic challenges are likely to persist, we do not expect the recovery to be uniform,” Toby Courtauld, chief executive, said.

The news comes amid calls for workers to return to the office, with the think tank Centre for Cities this week calling on mayor of London Sadiq Khan to reduce cost barriers for commuters.

Leading landlord GPE has seen leasing jump as London comes back to life

MPs demand action over new Libor evidence

BEN LUCAS

MPS ARE demanding an inquiry into claims that central banks and authorities misled parliament during their investigations into the rigging of the London Interbank Offered Rate, known as Libor.

The new claims come from a new book on the Libor scandal by BBC economics correspondent Andy Verity called ‘Rigged’, which The Times is publishing extracts from this week. Speaking in parliament late last night, David Davis (pictured) repeated his calls for the Treasury Committee to investigate new evidence that suggests the authorities had misled parliament.

“In British courts, critical evidence was concealed. In America, the DOJ used tactics that amounted to judicial blackmail. The result was a serial miscar-

riage of justice,” he said.

Former shadow chancellor, Labour MP John McDonnell, agreed an inquiry should take place into what he called a “scandalous” miscarriage of justice.

City minister Andrew Griffith said it would be a matter for the Treasury Committee to respond to.

“I look forward to hearing the response of the Committee’s chair,” Griffith said.

The UK’s Serious Fraud Office (SFO) convicted a total of nine traders for their role in rigging Libor. The SFO pointed City A.M. to a previous statement, where it said: “All either pleaded guilty or were found guilty by a jury. A number of those convictions have been reviewed by the Court of Appeal and all have been upheld.”

The Bank of England declined to comment.

EU remains firm on post-Brexit clearing plans despite pressure

THE EU is set to reject calls to rethink its approach to the clearing business despite mounting pressure on both sides of the Channel.

The EU’s financial services commissioner Mairead McGuinness said the plans were vital to the EU’s “financial resilience”.

“I want to underline that this

Close Brothers recovers from bruising start to the year as Arbuthnot also gains

CHRIS DORRELL

MERCHANT banking group Close Brothers yesterday delivered a battling update as it attempts to calm investor nerves after a poor start to the year. In a trading update for its third quarter, Close Brothers reported that its loan book increased by two per cent to £9.2bn. This was driven by a strong new business in commercial lending

Experts call for more scrutiny of regulators

CHRIS DORRELL

NEW PLANS to boost oversight of financial regulators have been criticised by experts, as the government responds to concerns watchdogs face too little scrutiny.

Earlier this week, it was reported that the Treasury is planning to beef up the Financial Regulators Complaints Commissioner (FRCC) in order to more robustly hold regulators to account.

According to the reports, the Treasury will be able to appoint the FRCC’s chief and direct the FRCC to look at specific issues.

matter is actually not so much about Brexit. The EU needs, for its own sake, safe, robust and attractive clearing for a well-functioning [capital markets union],” McGuinness told the FT, The comments come after two days of meetings in London between McGuinness and senior figures in the UK, including the Chancellor, Bank of England and the City of London corporation.

Macfarlanes’s public policy lead David Gauke told City A.M. the proposals “may be welcomed by the industry… [but they] do not address the fundamental lack of accountability inherent in the postBrexit regulatory system”.

Head of Withers UK Financial Services Regulatory Group Harvey Knight said the current complaints commission is “toothless” and so the proposals do represent an “improvement”. But he argued that improving regulatory scrutiny would be difficult without enabling the FRCC to order regulators to pay damages.

as well as a slowdown in repayments in property finance.

Its year-to-date net interest margin remained at 7.8 per cent.

The update comes after a bruising start to the year. At its half year results in March, the firm set aside £100m to cover bad loans from legal-finance specialist Novitas, dragging its adjusted operating profits down 90 per cent to £12.6m.

Close Brothers gave no new update on the Novitas loans, but reaffirmed its belief the provisions “adequately reflect the remaining risk”.

Fellow merchant bank Arbuthnot also delivered a trading statement for the four months of the year, confirming that it was continuing to benefit from the Bank of England’s interest rate hikes. Deposits grew £165m “despite the turbulence”.

EU commissioner Mairead McGuinness met senior UK figures in London on Monday

CHRIS DORRELL

The bank needs to reassure investors after a turbulent start to the year

Excel boss: Elizabeth Line has been transformational for events industry

GUY TAYLOR

THE CHIEF executive of London’s largest events venue, the Excel, yesterday hailed the Elizabeth Line as “transformational for the city’s events industry” as the high-speed route marked its first anniversary.

Jeremy Rees, the boss of the Royal Docks site, said the rail route has led to a boom in visitor numbers, with the Excel currently on track to smash the previous 2019 record for busiest year.

“The introduction of the Elizabeth

Line has... removed the friction of travel across London [and] been transformational for the city’s events industry. In-person events are booming and firmly in the driving seat to reviving the city’s business tourism economy,” Rees said.

Visitor footfall to the Excel has increased 10 per cent in the year since its launch, according to data from Explori, shared to City A.M. by Excel.

Nearly half (49 per cent) of visitors to the Excel Centre now use the Elizabeth Line to access the venue.

Success: M&S reap rewards of new strategy

LAURA MCGUIRE

MARKS & SPENCER (M&S) yesterday said it was starting to see the fruits of a refreshed strategy as the British retailer revealed a 9.6 per cent hike in revenues thanks to selling trendy clothes and a wider range of food.

M&S said revenues for the year reached £11.93bn compared to £10.88bn in the previous year, as the grocery and department store turned its focus to more modern clothing and wares targetting a new customer base.

The retailer’s share price is up some 20 per cent over the past year and the share price shot up a further 11 per cent yesterday on the back of the numbers.

Despite the brand being known for more luxury food items, M&S said that sales in its supermarket also rose 8.7 per cent during the year as shoppers turned to the retailer for “trust” and the wide selection of food it sells.

However, the group said sales in its joint venture with Ocado were down 1.2 per cent, – with its share of Ocado Retail making a net loss of £29.5m compared with a net profit of £13.9m last year.

“The reduction was driven by the effects of higher fixed costs from new and underutilised capacity, increased mar-

keting to drive new customer growth and energy-related cost pressures,” M&S said.

As part of its growth strategy, M&S revealed plans earlier this year to expand its physical store offering –investing half a billion in the opening of 180 fullline stores and opening more than 100 new food stores.

The company has outperformed rivals such as John Lewis.

“In a difficult trading environment M&S has delivered solid results, with notable progress in clothing and home,” said Charlie Huggins of the Wealth Club. “With the new year having got off to a good start and plans to reinstate dividends, the turnaround plan to revitalise the brand and reignite growth appears on track.”

“The clothing and home division has been a problem child for M&S for many years. The new strategy, launched last year, aims to improve brand perception and designs, reduce discounting and improve the online offering, while taking a knife to costs and instilling a more entrepreneurial culture,” Huggins said.

“Early signs are this plan is resonating with consumers with M&S increasing its market share in clothing and footwear during the year,” he added.

The Excel sees up to 4m visitors every year, with 1m of these hailing from overseas. It accounts for 25 per cent of all inbound business tourism to London, according to Rees. Over the year since its opening, 150m journeys have been made and it accounts for one in six of all journeys made on Britain’s transport network.

The 15-year Crossrail project, which officially finished this week, now sees 24 trains run per hour at peak times and connects passengers all the way from Shenfield to Heathrow.

IN BRIEF SSE PROFIT SOARS AS IT RAMPS UP GREEN SPEND

FTSE 100 energy giant SSE yesterday reported an 89 per cent jump in its adjusted pretax profit after benefitting from higher energy prices. The firm’s annual profit rose from £1.16bn in 2022 to £2.18bn for the year ending in March. It also said it would accelerate its five-year net zero plan to 2027, increasing its investment in green projects by 40 per cent to £18bn. Chief executive Alistair Phillips-Davies said the spending bump “raises the bar” on its green ambitions “and provides a solid platform for growth that could see us invest up to £40bn over the next decade”. However, the firm cut its dividend for 2023/24 by 38 per cent to 60p per share to help fund the investment. The firm’s share price closed up 1.61 per cent to 1,900p.

SEVERN TRENT PROFITS AND FORECAST LIFTED

Has M&S’ much-talked-about turnaround now simply become a success story? There have certainly been plenty of attempts, from ditching the famed St Michael brand in favour of Autograph and somewhat unwisely using celebrities to flog its lingerie. Who knew the turnaround strategy that would work would be doubling down on what it’s known for, with a slightly modern twist?

Analysts were certainly chirpy, with Peel Hunt’s analysts titling their note to the City this morning “Get set, GO!” Shares responded accordingly too. Much of the credit will rightly go to new CEO Stuart Machin, but not forgotten should be the work of former boss Steve Rowe who set the business

ANALYSIS

on the right path.

Rowe was an old-school CEO, joining the company straight out of school and sticking around for 40-odd years. His focus on what the business was good at and known for, rather than reinventing the wheel and trying to compete directly with younger and cooler brands, is paying off now for Machin –another retail lifer, beginning his career as a shelf-stacker in a Sainsbury’s outside of Gillingham. Between them the two men appear to have finally given one of Britain’s best-loved brands the gift of a few more years’ relevance, and a lot more besides.

Severn Trent yesterday reported booming full-year profits and forecast strong earnings for the upcoming year. It said it anticipates the “biggest investment period the sector has ever seen”. The company said it is planning “increased capital investment of between £850m and £1bn for 2023/24,” and saw turnover hit £2.1bn, up 11.4 per cent on the previous year. Severn Trent’s profits before interest and tax also saw a rise of 0.5 per cent to £508.2m for the year ending March. Liv Garfield, Severn Trent chief, said: “We are expecting the biggest investment period the sector has ever seen, with a focus on water resources, improving environmental standards.” The sector has seen intense scrutiny with water companies coming under fire for dumping excessive amounts of raw sewage into seas and rivers. Shares closed down around two per cent yesterday.

Europe capitalising on Britain’s decision to scrap VAT-free shopping

JESSICA FRANK-KEYES AND LAURA MCGUIRE

INTERNATIONAL tourists are spending more in Europe than in the UK as Britain’s retail sector continues to be hamstrung by the government’s decision to scrap VAT-free shopping, members of the House of Lords warned yesterday.

VAT-free shopping for tourists was removed when the UK officially left the EU under then-Chancellor Rishi Sunak, but the retail industry has become increasingly vocal with calls to reinstate it.

“US tourists who are going to France, Spain and Italy are spending at the rate of three times what they did in 2019… our retailers are really

struggling and they need and deserve a level playing field,” Baroness Elizabeth Doocey said.

“The UK needs to clearly show it is open for businesses, as other countries are capitalising on this failure,” Nicholas Trench, Earl of Clancarty, said. Baroness Joanna Penn said the Treasury “continues to monitor the evidence”.

More retailers are calling on the government to end the ‘tourism tax’

The Elizabeth line was part of the Crossrail project, which officially finished this week

Jaguar expected to pick Somerset for battery plant

GUY TAYLOR

THE UK is set to win a battle with Spain for production of a multibillion pound Jaguar Land Rover (JLR) electric vehicle battery plant.

The reports, revealed by the BBC yesterday, say that although a deal has yet to be signed, sources have said that the engagement has moved from negotiations to drafting.

The flagship gigafactory would produce electric car batteries for Jaguar Land Rover (JLR) and has been touted as critical for the UK in staying competitive in the EV race, while the automotive sector said it will be essential in keeping it competitive in the market.

Tata Steel – JLR’s parent company –had been contemplating a site in Spain for the deal, but according to the BBC, is now expected to choose Somerset for its location.

It comes after the UK government

faced warnings from Vauxhall-owner Stellantis last week that, unless postBrexit trade deals are re-negotiated, the company could face closure of some of its factories due to high tariffs. The automotive sector has repeatedly warned that the UK is at risk of falling further behind in the EV race if it does not improve its local electric battery making capacity.

Chancellor Jeremy Hunt was pressed on the UK’s EV strategy at the London Chamber of Commerce last week and insisted that the government remained “very focused” on ensuring Britain improves its electric car production capacity.

“All I would say is watch this space, because we are very focused on making sure the UK gets that EV manufacturing capacity,” he said. Jaguar, Tata Steel and the Department for Business and Trade were contacted for comment.

SAY CHEESE World’s biggest open-top bus tour operator gears up for potential £600m sale as tourism enjoys pandemic rebound

BIG BUS Tours, which operates open-top bus tours in London, Hong Kong and New York amongst other cities, is being put up for sale in a deal that could be worth £600m, as first reported by Sky News’ Mark Kleinman. Exponent Private Equity, which owns the operator, has hired Bank of America to advise on the sale, sources told the outlet. The company has enjoyed strong demand post pandemic.

Londonmetric swoops on smaller rival

CHARLIE CONCHIE

SHARES in listed investment vehicle CT Property Trust yesterday rocketed after the firm announced it had struck a £200m deal to sell itself to bigger rival Londonmetric.

B&Q owner Kingfisher blames rainy weather for dip in sales

B&Q OWNER Kingfisher saw its sales dip in the first quarter to £3.3bn, down 3.3 per cent on a like-for-like basis, as the home improvement company saw performance dampened by grim April weather and ongoing inflation.

Despite this, the retail giant said the

results showed “resilience” to the economic climate, and kept its full year guidance unchanged.

Thierry Garnier, chief executive officer, said: “As we move through our key trading season, we are pleased to see that sales in our core and ‘big-ticket’ categories, which make up over 80 per cent of our total sales, are showing continued resilience.”

“The unusually poor spring weather in the UK and France affected our seasonal sales in the quarter, impacting demand for items such as garden and outdoor products.”

It comes after a turbulent start to the year saw profits slump in March to £611m, down 39 per cent on the previous year, with crippling inflation causing

BT gets thumbs up to roll out new broadband pricing with competition concerns cleared

HOLLY WILLIAMS

BT HAS been given the all-clear to roll out its discounted wholesale full-fibre offer to broadband providers after the telecoms watchdog found the proposals were not anti-competitive.

BT’s network arm Openreach, which runs the UK’s only national broadband network, put forward plans for a pricing deal that would give lower prices to wholesale customers, such as Sky, Talktalk and Vodafone.

But this was only if they agreed to use mainly Openreach’s full-fibre products for new orders instead of

its legacy copper products. The plans – called Equinox 2 – were criticised by BT’s competitors, such as Virgin Media O2.

This comes after Altice, the French telecoms firm, said it will up its stake in BT to 24.5 per cent, but it “does not intend” to make a takeover bid.

An Ofcom spokesman said “based on the evidence available to us, we don’t consider Openreach’s new pricing discounts to be anti-competitive”.

Openreach has also pledged not

to change its pricing under the plans until at least 31 March 2026, according to Ofcom.

Openreach CEO Katie Milligan, said: “This is good news for customers as it means lower prices and longterm certainty –encouraging the switch to faster, more reliable broadband connections. It’s also good news for the UK, as it supports our continued multibillion-pound investment in upgrading the country’s broadband infrastructure.”

shoppers to scale back on home improvement products.

Russ Mould, investment director at AJ Bell, said that B&Q blaming poor weather for the drop in sales “won’t draw much sympathy”, though strong sales of big ticket items would provide some solace that consumer spending is holding up. Shares closed down 2.55 per cent.

Londonmetric, a FTSE 250 real estate investment trust (REIT), yesterday said it had agreed an all share offer for CTPT at a value of 85.5p per share. The offer marks a 34 per cent premium on CTPT’s share price before the offer period began. Shares in CTPT surged to close up 25 per cent yesterday.

Bosses at the firm have now recommended the offer to shareholders and said the deal had a “compelling strategic and financial rationale for shareholders in both Londonmetric and CTPT”. A tie-up between the two firms would create an organisation with some £3.3bn in combined assets.

City of London update

Have your say on City Plan and Tr anspor t Str ategy

THE City of London is currently reviewing its main planning and transport document – known as ‘City Plan 2040 and the Transport Strategy.’

It will provide a framework for future development in the Square Mile up to 2040, setting out what type of development should take place, and where, and setting out the priorities for our people, businesses, places and spaces.

To help shape the City’s future planning and transport policies, workers, residents and students are being invited to sign up for details of the engagement

programme, including forthcoming public consultation workshops. These will be taking place throughout June on key topics, transport issues and areas in the City Plan likely to experience significant change over this period.

To find out more and to sign up go to: cityplan2040.commonplace.is

New home for the London Centre

THE London Centre is now open in its new location as a key hub for the built environment profession.

Home of New London Architecture and located in the West Wing of the Guildhall complex, the Centre highlights the people, places and buildings that make London a world class city.

The Centre brings together the public, politicians, and young people as well as London’s stakeholders, senior decision makers, and civic leaders from all over the world.

It has opened in partnership with the City of London Corporation in support of its Destination City strategy to attract more people into the Square Mile. thelondoncentre.org

GUY TAYLOR

FLOWER POWER Participants dress the part as they celebrate the pinnacle of floral design at this year’s Chelsea Flower Show

JAPANESE landscape artist Kazuyuki Ishihara was yesterday in high spirits as he promoted his acer garden at the Chelsea Flower Show. The horticultural celebration, which has been running since 1913, has seen visitors flock to London, not least the Princess of Wales, who made a surprise visit this week. The show runs until Saturday.

THE GOVERNMENT HAS HELPED HOUSEHOLDS WITH ENERGY COSTSAND TIPS AND TRICKS CAN HELP EVEN MORE

Everyone knows life is more expensive than it used to be, with inflation putting strain on everybody’s pockets. A lot of that increase comes from energy bills, which have gone up as a result of Russia’s invasion of Ukraine. The good news is that there’s plenty of government support available, and helpful tips which can bring down bills around the house.

A TYPICAL HOUSEHOLD WILL HAVE HAD £1,500 WORTH OF SUPPORT BY THE END OF JUNE

There have been a host of schemes which have helped keep bills downboth cost of living support and protection to keep energy bills down. For instance, the Energy Bills Support Scheme provided most households with a £400 discount automatically from their electricity supplier. If you’re on a pre-payment meter user don’t forget to redeem your EBSS vouchers, which expire

on June 30. There’s also an alternative fund available for the 900,000 households who were not able to receive the Energy Bills Support Scheme, including partially or wholly self funded care residents and others. There are other schemes including means tested cost of living support, which can help with the financial stresses and strains this year.

As well as all of this financial support from the government, there are several simple, quick actions you can take which could add up to serious savings on your energy bills.

There are also smaller investments you can make to reduce your bills in the longer term.

EVERY LITTLE HELPS

To borrow a phrase from a wellknown advertising campaign, it’s true that even these small changes over time can add up to a big saving on your bills - reducing the pressure on your household budget and

THE ALTERNATIVE FUND

1. BLEED YOUR RADIATORS - THERE'S PLENTY OF ADVICE ONLINE ON HOW TO DO THIS AT HOME

2. FIND AND FIX DRAUGHTS - CURTAINS AND DRAUGHT EXCLUDERS CAN MAKE A BIG DIFFERENCE

3. REDUCE YOUR BOILER FLOW TEMPERATURE TO 60 DEGREES C -THIS COULD SAVE YOU UP TO £100 PER YEAR

leaving more money in your pocket. There are more tips and advice available on the government’s website, as well as information about the methods that are available to you, depending on your circumstances and your income.

Tofindoutmore:

gov.uk/helpforhouse holds

Most households have received a £400 discount automatically from their electricity supplier between October 2022 and March 2023 to support them with their energy bills. Those households who did not receive the support automatically, as they do not have a domestic electricity supply, may be eligible to apply for the Energy Bills Support Scheme Alternative Funding until 31 May 2023. This includes partially or wholly self-funded care home residents, park home residents, and some residents in housing associations.

Search ‘energy bills alternative fund’ on GOV.UK or call 0808 175 3287 to check your eligibility.

IT'S IMPORTANT TO MAINTAIN YOUR HEATING SYSTEM - IT CAN KEEP COSTS DOWN BY MAKING YOUR SYSTEM MORE EFFICIENT, BUT KEEPING IT HEALTHY MAKES IT LESS LIKELY YOU'LL BE STUCK WITH ANY SURPRISE BIG BILLS.

TRICKS AND TIPS TO KEEP YOUR ENERGY BILLS DOWN

Energy bills going up means it’s more sensible than ever to keep your energy usage down - for cost, as well as environmental reasons. Simple measures can ensure that your bill stays lower.

£90 A YEAR:

TAKING SHORTER SHOWERS

Reducing the time you spend in the shower to four minutes can save plenty over the course of the year - so perhaps find yourself a four minute pop song to sing in the shower to keep you on time!

£55 A YEAR:

INVESTING IN AN ENERGY EFFICIENT SHOWER HEAD

IT’S EASY ONCE YOU START

Children’s writer Ellie Jackson, 43, lives in Cornwall with her husband Ian and their four children. She says that once her family made energy saving fun, it’s been an easy transition.

Ellie has received the government support, from an automatic saving on bills via the Energy Bills Support Scheme to the Energy Price Guarantee. But she wanted to see if she could save more around the house.

“Once you’re aware of how easy it is to change one thing, you start thinking, ‘Oh, let’s do the next.’

“We’ve got a draughty Victorian terraced house, but we didn’t realise how much air was leaking out until we sealed up the skirting boards and under the doors. We dry our washing in a patch of sun on airers rather than using a tumble dryer, and we don’t wash clothes if they’ve only been worn for a few hours.

“We have a four-minute timer on the shower, and have learned to cook more efficiently – we’ll cook snacks for the week and a Sunday roast at the same time. We’ve also got LED lights, turnoff appliances when they’re not being used.

“I write kids’ books about animals and climate change, so I’ll say, ‘Remember Hunter the polar bear?’. Children care about animals, so it helps them to understand why we’re doing it.

“I was really pleased when I realised we’ve saved £90 a month on our bills. It means we can splash out on a trip to a theme park on our summer holiday. It’ll be something to look forward to.”

Visit gov.uk/helpforhouseholds for more advice

MORE TIPS TO SAVE ON YOUR BILLS

£40 A YEAR: WASH YOUR CLOTHES AT A LOWER TEMPERATURE

Getting the right shower headwhich regulates the flow or aerates water - can make a big difference to your bill. You can get them from any home improvement store and fit it yourself, though note they don’t work on electric showers.

£70 A YEAR: TURN THE PLUGS OFF AT THE WALL

Almost all of the electric appliances in your home, such as computers, TVs, and video game consoles, draw power continuously unless they’re unplugged or the power is turned off at the wall. So make sure you spend that extra couple of seconds to save.

Heating up water uses energy, so keeping the temperature dial lower saves you money. Modern washing machines can clean clothes effectively at lower temperatures - and switching from 40 to 30 could give you three washes for the price of 2.

£70 A YEAR: REDUCE THE USE OF THE TUMBLE DRYER

Using a clothes dryer can save plenty over the course of the year. Even making sure your tumble dryer is full - with the drum about three quarters

packed - is also a much more sensible way of using what is one of the most energy intensive appliances in the home.

£55 A YEAR: USING ENERGY SAVING LIGHTBULBS

Standard lightbulbs are very inefficient, but by switching to energy efficient bulbs such as LEDs you can save money on your energy bills while keeping your rooms well lit. LED lightbulbs also last longerreducing your bill to replace them when they go. Contrary to popular wisdom, it doesn’t matter what wattage your lightbulbs are - they all use the same amount of energy.

PRIVATE INVESTMENT WILL BE KEY TO REBUILDING UKRAINE

ANNOUNCEMENTS

LEGAL AND PUBLIC NOTICES

CITY of LONDON

Bishopsgate – Amendments to the ‘no right turn’ restrictions into Camomile Street and Cornhill

The City of London (Prescribed Routes) (No. 1) Order 2023

1. NOTICE IS HEREBY GIVEN that the Common Council of the City of London, in agreement with Transport for London, on 16th May 2023 made the above Order under sections 6 and 124

2. The effect of the Order would be in Bishopsgate to amend the ‘no right turn’ restrictions into:-

(a) Camomile Street to introduce an exemption for buses between 11 pm and 6.30 am; and

(b) Cornhill to introduce an exemption for buses and pedal cycles.

3. The Order also revokes and re-enacts the ‘no right turn’ restriction from Gracechurch Street into Leadenhall Street while making no change on-street so as to include this restriction in the new Order.

4. Copies of the Order, which will come into operation on, 5th of June 2023 of the statement of reasons for making the Order and of a plan showing the affected streets scan be inspected a period of six weeks from the date on which the Order was made at the Planning Enquiry Desk, North Wing, Guildhall, London, EC2V 7HH.

5. Any person desiring to question the validity of the Orders or of any provision contained therein on the grounds that it is not relevant regulations made thereunder have not been complied with in relation to the Orders may, within six weeks from the date on which the Orders were made, make application for the purpose to the High Court.

Dated 25th May 2023

Ian Hughes Director, City Operations

MIDWAY through last year, Ukrainian president Volodomyr Zelenskyy tabled a proposal to his finance lieutenants. Government support, both domestic and international, was flowing into the economy but the scale of economic damage wrought by Russia’s invasion needed a bigger remedy. The country needed an initiative to trigger the interest of the private sector: Advantage Ukraine was born.

President Zelenksyy launched the campaign with a speech to the New York Stock Exchange in September, and the push has since been shepherded by deputy minister for the economy, Oleksandr Gryban, who has been lobbying investors across Europe, Asia and the US to get private capital flowing into Ukrainian projects.

The Advantage Ukraine platform, which aims to connect investors with potential opportunities, currently has some 60 investment projects with a total pipeline worth more than $9bn (£7.3bn).

“While the country is transforming, it is providing a huge amount of opportunities,” Gryban tells City A.M. in an interview.

“We are well positioned to have skilled labour, big territories, a very developed electricity grid. We have Europe as a huge market, with whom we have trading preferences already, and we’re inevitably becoming members of the European Union –where these trading preferences can be preserved.”

The push to get private cash into the country delivered a major boost in November last year, as the world’s biggest asset manager, Blackrock, signed a separate deal to coordinate investors “in the reconstruction of [Ukraine]” and “channel “investment into the most relevant and impactful sectors of the Ukrainian economy” via a Ukraine Development Fund. Blackrock has been providing “advisory support for designing an investment framework” with the aim of “creating opportunities for both public and private investors to partici-

pate in the future reconstruction and recovery of the Ukrainian economy.”

Zelenskyy says the reconstruction of Ukraine represents the “greatest opportunity in Europe since World War II” but Gryban admits that the direct appeal to investors via Advantage Ukraine has not been an entirely easy sell.

“We do track some interest. It’s not enormous, I'll be honest with you,” he says. “We understand why the war does not really give, you know, extra benefits for investors.”

The Ukrainian government has worked with big multilateral organisations to try to offset some of those risks, however, rolling out tax

The opportunities presented by the campaign sit across the broad range of Ukraine’s historically dominant industries like agriculture and energy, as well as those it would like to dictate its future: tech, green energy, sustainable transport and green metallurgy.

Ukraine’s sheer size and space give it a unique position in many of those industries. Energy storage and the conversion of some of its agricultural land into space for green energy projects are particularly priorities, Gryban says, so too is utilising its critical minerals resources for the supply of materials toward a green energy transition.

One of Ukraine’s most emergent sectors –defence –has in some part been forced upon it. The country has already attracted investment and partnerships with firms like Lockheed Martin and French firm Thales, and it has launched an initiative called Brave One to quickly bring new defence ideas and start-ups to fruition.

Gryban and his team are looking to London specifically to help fund the tech sector too. A Ukrainian delegation led by Gryban will head to UK tech week next month to try to court venture capital firms and get cash flowing back to the country’s start-ups.

tweaks and introducing tailored insurance facilities.

“There is a big investment guarantee from the World Bank that is ready to cover the war risks for international investors and now they’re looking for a way to do this for Ukrainian investors as well,” Gryban says.

“Essentially you buy the insurance policy and if anything bad happens, you just get up to 90 per cent of your damages compensated.”

The assurances are yielding some results. Advantage Ukraine’s team, largely based in Kyiv and made up of former investment bankers, analysts and consultants, notched interest from about 500 potential investors in its first six months.

Even with that optimism for Ukraine’s industrial future, Gryban is realistic about the present.

Interest rates have been held at 25 per cent since June last year and the economy has been rocked by what he calls “galloping inflation”, creeping down to 17.9 per cent in April from 21.3 per cent in March.

Investors are understandably cautious about backing Ukrainian projects for the time being, he says, but Advantage Ukraine will keep campaigning regardless.

“[We knew] the interest would not be like a spark. If it was, then it would go away,” he says.

“We really need to burn. We will need to set up the fire and see how we convert it into the real deals.”

Charlie Conchie interviews the biggest movers and shakers in tech, fintech and financial services

We knew the interest would not be like a spark. If it was, then it goes away. We really need to burn.

Deputy minister of economy Oleksandr Gryban tells City A.M. how Ukraine is looking ahead

THE NOTE BOOK

Talking down the City? Not a bit of it in this newspaper

ONE OF the delights of this job is the ability to sit down with people from across the Square Mile and ask them very simple questions.

One of the perennials is “what keeps you up at night?” The CEOs you’d really want to work for say “people”. That one who said: “The fact we’re going to have to give pay rises” seems like less of a dream boss.

But perhaps the simplest question is just “how’s business?”

Across the City I keep hearing variations on a theme: the response, invariably, is something along the lines of “it’s tough out there, but we’re doing pretty well.” Is the City doing pretty well?

Individual businesses seem to think so. It’s hardly in a CEO’s interest to tell me it’s all going to pot –and for clarity’s sake, I can confirm I haven’t spoken to anybody senior at Vodafone for a while –but the mood remains one of cautious optimism.

Last week, the City minister

VODA’S CODA FOR CHANGE

opined that one of London’s problems was the meedja –specifically, our temptation to talk the City down in some form.

I’m not sure I buy that; the three principles we live by here at City A.M. Towers are pro-business, promarkets and pro-London. Should that preclude us from reporting that firms are looking elsewhere to list, or that there are concerns about the resilience of the fintech sector? Surely it’s our job to tell government that it needs to get its act together to ensure clearing stays in the capital, rather than being picked up wholesale to the continent, beyond the current 2025 agreement with the EU? There is a difference between talking down the City and being honest about its problems, a distinction the City minister of all people should understand. But, lest we not say it enough, perhaps this will do for a confidence boost: from all my conversations, I think it’s tough out there –but the Square Mile is still doing OK.

Margherita Della Valle’s introduction to the City as Vodafone CEO –a 7am announcement of 11,000 job cuts and a brutal assessment of the quality of the business –was quite something last week. The follow-up from BT, floating as many as 55,000 job losses, was another marmaladedropper. The key conclusion seems to be that telecoms giants need to find a new purpose before their dial tone drops out.

£ Speaking of City success stories, I had the pleasure of a good waffle with Richard Watson and Stuart Bridges, two of the three founders of successful insurance upstart Inigo, recently. Quite apart from the fact that business is booming, based on an offering with premium service and specialised work at its heart, it was abundantly obvious just how much fun the two of them were having steering a new ship through the Square Mile. Perhaps fun is the key to business success.

£ Sports teams are supposed to be constants in one’s life, but I am peculiarly afflicted by my favourite teams leaving me. As a Wimbledon football fan, I saw my club uprooted to Milton Keynes. And my adopted US NFL team, the Oakland Raiders –a product of some time spent at university in the Bay Area –then moved to Las Vegas two years ago. Now the baseball side I had a season ticket for, the Oakland A’s, also appear set for Sin City. Fingers crossed Surrey doesn’t leave the Oval anytime soon.

NO BULLSH*T, IT’S WELL WORTH A

“I’ve seen countless business leaders with fantastic pedigrees make career-defining mistakes when managing change in a business.

CAN I QUOTE YOU ON THAT?

Very big lessons to learn

The governor, who last week inexplicably visited a food bank in Exeter for an absurd PR stunt, on the Bank of England’s inflation mistakes

Chris’s book provides the sort of leadership lessons and actionable advice that will prove invaluable to the next generation of business leaders.” So said yours truly of Chris Hirst’s new book, No Bullsh*t Change. You’ll find my quotes on the inside page –I was booted off the front in favour of Sir Clive Woodward, who to be fair has won one more Rugby World Cup than I have. Despite the imagined slight, I stand by my words –it’s well worth a read, and I’m delighted that Chris is writing his first column for us in our opinion pages today, sharing the –apparently controversial –view that if you want people in the office, you just need to tell them.

THE SQUARE MILE AND ME

WHAT WAS YOUR FIRST JOB?

Filling jam doughnuts at the local bakery. I started at 5am!

WHAT WAS YOUR FIRST JOB IN FINANCIAL SERVICES?

Technically, I was a bank teller at the local branch of Barclays during my university vacations. After law school, my first job in financial services was working at the Financial Services Authority. I was a manager in enforcement, where I investigated and brought regulatory and criminal cases during the Great Financial Crisis. Amongst other things, I prosecuted JP Morgan, Goldman Sachs (the same case that was in the movie “The Big Short”) and UBS. One of my UBS cases became the foundation of today’s SMCR regime.

WHEN DID YOU FIRST KNOW YOU WERE IN THE RIGHT JOB?

The first time I questioned a witness in court. I loved it – the preparation, the need to think on your feet, and the interaction with the witness, judge and the jury. I get the same rush now when I win a new client or help a client with a big problem.

WHO IS THE BUSINESS FIGURE YOU MOST ADMIRE?

Financial services is still a maledominated profession, I am in awe of the smart, resourceful and strategic women who have made it to the top in these kinds of companies, including Amanda Blanc, Alison Rose and Anne Richards. They are fantastic role models for all of us!

WHAT’S ONE THING YOU LOVE ABOUT THE CITY OF LONDON...

The way it draws in talented people of all kinds – from different countries and backgrounds. On any given day, I can be at a meeting with an international tax expert from Italy, a banker from South Africa and a tech entrepreneur who left school without any formal qualifications. This doesn’t happen anywhere else in the world.

...AND ONE THING YOU WOULD CHANGE?

The weather. It has rained every day for the last few months, and I am dying to eat outside!

WHAT’S BEEN YOUR PROUDEST ACHIEVEMENT?

Being a mum to three fantastic kids while succeeding in business.

WHAT’S YOUR MOST MEMORABLE LUNCH?

My most memorable lunch involves a memorial service. When I was at Willis Towers Watson, our legendary UK compliance officer, Richard Hampton, sadly died. I hosted a memorial service for the team and his family at Lloyds. We invited everyone to the Broker afterwards. Word got out, and by the time we arrived, there was a queue going down the stairs and well into Leadenhall Market. Everyone showed up – our business teams, the regulator, rival brokers and clients. There was

even a ukulele band. We had “lunch” until they threw us out around 1 am.

Richard would have loved it.

WE’RE GOING FOR LUNCH AND YOU’RE PICKING –WHERE ARE WE GOING?

Ristorante Belvedere, with amazing views over the Amalfi coast.

AND DO YOU HAVE A FAVOURITE POST-WORK WATERING HOLE?

We have a brilliant bar at Howden, called Boki. It has a terrace, with views over the city.

ARE YOU OPTIMISTIC FOR THE

QUICKFIRE ROUND

FAVOURITE...

FILM: STAR WARS

BOOK:

GULLIVER’S TRAVELS

MUSICIAN / ARTIST: COLDPLAY (OR LUDOVICO EINAUDI, AS I PLAY PIANO. HE IS THE MASTER)

TEA OR COFFEE?: TEA. I HAVE GONE NATIVE.

REST OF 2023?

The City of London thrives on change and volatility. Current market conditions as well as the change of regulations after Brexit will give UK financial services a chance to do what it does best – innovate, grow and create new opportunities.

GIVE US ONE BOLD PREDICTION FOR THE CITY THIS YEAR?

We are going to see more growth and innovation in the insurance sector than at any time since the 1600s. The opportunities in terms of capital, ESG, cyber and to use insurance to solve the world’s problems have never been greater. London is at the centre of these developments.

WHERE’S HOME DURING THE WEEK?

I have a farm in the Essex countryside and commute to Liverpool Street Station.

AND WHERE WOULD WE FIND YOU ON A SATURDAY AFTERNOON?

Riding my event pony, Jasper. He is old now, but he still loves to go out and jump fences.

YOU’VE A WELL-DESERVED TWO WEEKS OFF –WHERE ARE YOU GOING, AND WHO WITH?

Skiing with my husband and 3 kids. They are all much better than me but I pay so they put up with me. (I also have a very good sense of humour...)

We dig into the memory bank of the City’s great and good: this week, Howden CAP’s Mary O’Connor tells us about the financial crisis, her role models and the perfect skiing break

CITY DASHBOARD

FTSE drags as housebuilders sent tumbling

LONDON’s FTSE 100 tanked yesterday amid a sell-off in companies that are poised to come under pressure from the Bank of England continuing to hike interest rates to tame inflation.

The capital’s premier index slid 1.75 per cent to 7,615.22 points, while the domestically-focused mid-cap FTSE 250 index, more aligned with the health of the UK economy, collapsed 1.44 per cent to 18,931.16 points.

Traders stepped up their bets on how high Bank governor Andrew Bailey and the rest of the Monetary Policy Committee will raise interest rates after new inflation numbers smashed forecasts.

The rate of price increases slipped to its lowest level in a year and out of the double digits for the first time since last summer, down to 8.7 per cent from 10.1 per cent.

However, that was far above the City’s estimate of a drop to 8.2 per cent and the Bank’s projection to 8.4 per cent.

Core inflation – which was tipped to hold steady at 6.2 per cent – climbed to 6.8 per cent, suggesting a greater share of price pressures are being driven by domestic factors.

Those upside shocks prompted mar-

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kets to raise the chances of the Bank sending borrowing costs to a peak of 5.5 per cent, which would be their highest level since December 2007.

Stocks sensitive to interest rate changes dragged the FTSE 100 lower.

Housebuilders tumbled on fears over whether demand for property can hold up after further interest rate increases.

Persimmon shed 5.52 per cent, Taylor Wimpey lost 4.55 per cent, Berkeley fell 4.28 per cent and Barratt Developments dropped 3.56 per cent.

Michael Hewson of CMC Markets UK said:

“Housebuilders have been hammered on the back of today’s hotter-than-expected inflation numbers for April. The sharp rise in core CPI has prompted markets to project the prospect of another 100bps of rate rises from the Bank of England, sending gilt yields to their highest levels since October last year.”

The pound initially gained ground on the US dollar on higher rate expectations, but then dropped sharply by around 0.35 per cent.

Gilt yields soared, with the rate on the two-year government bond up as much as 35 basis points. Yields and prices move inversely.

Oil prices were up two per cent.

Close Brothers’ trading update yesterday showed that its performance was stabilising after a poor start to the year. Analysts at Peel Hunt said “whilst overall current momentum remains sluggish, we think the share price reflects some issues which are now largely historic”. It kept its ‘hold’ rating with a target price of 977p.

Gambling software development company Playtech reported continued strong trading and that it now expects ebitda to be ahead of consensus. “While growth rates are indicated to slow during the year, there is a lot to like about Playtech,” analysts at Peel Hunt said. It reiterated its ‘buy’ rating and set a target price of 800p.

FTSE FALLS “If concerns about the global outlook weren’t sufficient with the China recovery story looking increasingly flaky, we now have the increasingly loud sound of the debt ceiling deadline clock, and the continuing impasse between US policymakers finally attracting the attention of financial markets. We’ve seen weakness across the board with heavy falls in the DAX, FTSE 100 and CAC 40, with the FTSE 100 falling below its April low and to its lowest levels in six weeks.”

FTSE 250 oil and gas firm Tullow Oil maintained its 2023 production forecast at its AGM yesterday as its key oil field continues to deliver. Analysts at Peel Hunt held the firm’s 80p target share price and ‘buy’ rating.

MICHAEL HEWSON, CMC MARKETS

OPINION

EDITED BY SASCHA O’SULLIVAN

Why are the Conservatives still so unimaginative on immigration figures?

AS WE seemingly drift ever closer to today’s-tired Tories being swept aside by Sir Keir Starmer, it has become fashionable to marvel at how little they have achieved. But this confuses incoherence for inactivity as on issue after issue the people who replaced David Cameron and George Osborne have been raging against the legacy of the very men who brought the Tories back into office.

There is, however, one missed target, a throughline throughout these thirteen wasted years: to get net immigration back into the tens of thousands. It was a rare sop to cultural conservatives at the height of Cameron’s attempts to detoxify his party, one he tellingly justified by noting the party had achieved this goal during its last period in office. In doing so he ignored the fact that EU enlargement had made such a policy impossible to achieve given the hundreds of millions of people who had gained unfettered access to the British labour market. As displacement activity, he allowed the Home Office to treat people arriving from outside Europe in ever more punitive ways.

In theory such games should have ended when we voted for Brexit, and indeed the Tory party responded by

electing the woman in Theresa May who, during her long stint as Home Secretary, had established herself as the party’s foremost immigration restrictionist. The Brexit psychodrama would not only engulf her premiership but would create the mistaken impression that people with far more liberal attitudes towards immigration such as Boris Johnson or Dominic Cummings were to be trusted in finally fulfilling Cameron’s pledge.

One of their first actions upon taking office was to scrap May’s planned system of work permits and visas, for one where any skilled worker from overseas would have complete freedom to come work in the UK, provided they

scored enough points against a transparent set of criteria. As May warned, and as Australia discovered when it implemented such a system, this led to a surge in people moving over to the UK. It is important to remember that the current system has met two key promises made about immigration during the referendum campaign. Firstly, it has significantly reduced the ability of most employers to recruit overseas workers to fill low paid roles, thereby addressing concerns that immigration was increasingly being used to undercut working class wages. Secondly, it has ended the practice of treating the overwhelmingly white population of the European Union differently to the

rest of the world, something that particularly attracted criticism from Black and Asian Britons.

Suella Braverman really want to reduce immigration, they have the power to tighten the criteria for entry under the current points-based system. Better yet, they could go back to the system that Theresa May suggested, where skilled workers from overseas apply for work visas in the same way unskilled ones do, with the number of visas available based on an assessment of Britain’s need.

Of course, the problem is that such an assessment would almost certainly show that Britain needs to maintain high levels of immigration if it isn’t to suffer key worker shortages, even higher inflation and ultimately a painful recession. Which takes us back to David Cameron’s justifying his target by highlighting the achievements of Margaret Thatcher. Because one of the many reasons why immigration was unusually low throughout the 1980s was that her governments managed to significantly increase the productivity of the people already working in Britain, thereby freeing up people to do jobs that would otherwise have been done by immigrants.

Just as today’s Tories have failed to reduce immigration, they have also failed to increase productivity. Indeed, there has been barely any increase in British productivity over the past thirteen years despite unemployment staying low. Only when that low productivity changes can the government get serious about reducing immigration without harming living standards for everyone who lives here.

Rishi Sunak and

But the new system has not given Britain a sense of control over immigration. Indeed, in many ways we are back to square one, when we were still members of the European Union, with the government desperately hoping that headline grabbing moves on illegal immigrants or international students will distract from the broader picture. But such gimmicks are unnecessary. We are no longer bound by international treaty to maintain a system that our own government thinks is overly liberal. If

Khan hasn’t used his powers to help the City, so he begs for more and blames SW1

EVERYONE knows a child who has been given everything, hasn’t made the most of it and now wants something else.

That is what I thought of when I read Sadiq Khan’s plea for more powers to help the City.

The distance between the City and City Hall has never been greater than under Sadiq Khan. For nearly eight years the Mayor has paid scant attention to the financial sector, done little to back technology innovators, and gone on few trade missions.

More than 10 years ago, I came up with Innovate Finance, the body now representing many of the City’s fintech startups. In the meantime Sadiq Khan has shown up to none of its annual events. Not a single one.

This isn’t just a problem for London and the many jobs in the financial services industry. When the City succeeds, the capital and the country succeed. When it fails, failure follows everyone. So the stakes are high. And the table is closing.

According to a report by EY, London

Daniel Korski

lost over 7,000 jobs in financial services. London's share of euro-denominated derivatives trading dropped from 40 per cent in 2016 to around 10 per cent in 2021, with trading volumes shifting to other European cities, as well as New York. And while London is still the most significant hub for fintech, investment into the sector dropped sharply compared to the last year.

The Mayor has to lead the way, not shirk blame. As Mayor, I would campaign hard for key reforms, like the scrapping of stamp duty on trades in the shares of all but the 100 largest companies. This move would exempt a vast majority of companies from this

burden while still preserving revenue for Treasury. By reducing transaction costs, London can foster liquidity and strengthen its appeal to investors.

London should also actively pursue "follow the sun" financial services mutual recognition agreements with leading global financial centres such as Sydney, Singapore, the UAE, and Switzerland. Such agreements would allow firms to raise capital in multiple markets, including London, using a single set of documents.

Staying ahead of the curve in the evolving financial landscape, London should strive to become the world's leading centre for the adoption of cashless payment systems. By investing in cutting-edge technology, promoting digital payment solutions, and encouraging innovation in fintech, London can enhance its appeal to global businesses and consumers alike. We have led with cashless payment on the Tube and now need to go further; maybe the whole square mile could be cashless.

Open banking has helped create startups like TrueLayer, Keebo and

Credit Kudos and new services for customers but it’s time to look afresh at whether the systems to share data are fast and easy enough and how to drive better adoption.

Then comes the work to reform London’s listings regime to keep the City an attractive place for great companies to go public. Too many firms are choosing to list elsewhere; too few analysts understand technology stocks.

As Mayor I would push hard for further reform and personally help persuade companies to list here. And will lead and support trade delegations of fintech - and other - startups to overseas markets.

I know that leadership is about taking responsibility. It’s about having a plan, championing success, and relentlessly selling your products and services. It’s not about complaining. It’s not about blaming others. As Mayor of London I would back the City, not bleat about my own powers.

£ Daniel Korski is standing to be the Conservative candidate for London Mayor

£ Will Cooling writes about politics and pop culture for the It Could be Said substack

Suella Braverman will ban dependents of foreign students coming to the UK in a bid to slash net migration

NAP TIME While the UK has the youngest PM in our political history, Rachel Reeves is taking her cues from the geriatric over the pond. The Shadow Chancellor said she wanted to adopt ‘Bidenomics’, suggesting she would embrace the kind of mass subsidies for green energy the US President has rolled out

WE WANT TO HEAR YOUR

LETTERS TO THE EDITOR

Keep hold of your employees

[Re: Amount of time it takes to hire workers drops to seven year low of just over a month, May 23]

The CEO of Adzuna is right to point out that the jobs market is swinging back into employers’ favour, after years of an employee led market.

But even if the tide is turning towards an employers’ market, it’s imperative that businesses do not take their foot off the pedal when it comes to prioritising their employees.

In reality, many sectors are still facing serious staff shortages and are battling for talent - giving candidates the luxury

of choice when choosing an employer. This means employers will still have to fight hard to attract and retain employees.

But there is a broader point to make here - businesses must not flip flop between de-prioritising staff when they have the upper hand, and prioritising them when they do. Doing so can have huge impacts on a businesses’ employer brand and the quality of their talent pipeline.

The bottom line is that employees are the most valuable asset in a company. Whether talent is more or less in demand must not impact on how much organisations value and prioritise their people. Here, consistency is key.

Pete Cooper Personio

BEST OF FRIENDS President Xi calls for closer China-Russia relationships

The only way to get staff back to the office? Tell them to turn up and do it yourself

Chris Hirst

RECENTLY I spoke at the annual leadership conference of a well known pharmaceutical company. They were a sparky, charismatic and ambitious crowd. Afterwards over coffees, a senior executive collared me. “This stuff about culture is great,” he said, “but the problem I’ve got is I cannot get people back into the office to make any of it happen. What do you suggest?”

I am essentially an optimist: the seismic changes to how we work over the past three years have on balance been a good thing. Though the technology was already in place, it is impossible to imagine such a revolution without the pandemic. Much of how we worked were habits so ingrained they went unquestioned. And lo and behold, we discovered many could be dispensed with overnight. What has become known as hybrid working has the potential to be a win-win for both employers and employees.

Yet many employers are still strug-

If everyone turns your back on you, find an equally hated ally. That certainly seemed to be the strategy of Xi Jinping when he met with Russian PM Mikhail Mishustin in Beijing yesterday. He said he supported Moscow’s ‘core interests’.

EXPLAINER-IN-BRIEF: SOLAR POWER LOOKS TO FLEE BRITAIN

The UK is hardly known for its sunny climes, but Rishi Sunak’s government has consistently touted a “green revolution” with “green jobs”. Much of this relies on industries setting up shop here. Yesterday, solar power developer Oxford PV said the UK was the ‘least attractive’ market to have a factory in. The photovoltaics company, which converts sunlight into energy, should be a UK success story: they started at Oxford University and have, since 2010, been based in the city. But as other countries

such as the US offer significant subsidies for green firms, the draw to the UK has become weaker.

Earlier this year, Britishvolt, the biggest electric battery maker in the UK went into administration, in a blow to the UK’s ambitions to make a dent in China’s battery success.

Other types of clean energy, such as wind, have also struggled to gain a foothold in the UK as a result of planning rules that mean it takes a decade to start producing energy.

gling to find the right balance. Last week Jeremy Hunt, speaking at the British Chambers of Commerce said he believed the default should be to work from the office. Just the fact that he feels the need to say it is a sign of how much has changed. Presentee-ism is a draining waste of time and energy - getting promoted because you stayed late is not the meritocracy effective organisations should aspire to. However, being in the office with your team the majority of the time is crucial to building a strong and enduring culture –even if people’s days and hours are more flexible than they ever were before. Allowing many more people to interweave work and personal time together in a pattern that suits them and their employer has the potential to

lead to better outcomes for both.

Culture is not some soft squishy thing; it’s not pilates at lunchtime and free fruit, it is the environment a leader creates in order for their team to out-perform. It often goes unacknowledged, but everybody feels its power –for good or bad. An effective culture enables people to achieve things that would not otherwise have been possible. However, cultures are only as strong as their weakest link and the sustenance and development of an effective culture is all but impossible via screens alone.

The easiest way to understand culture is that it is the behaviour of the leader. Not what they say, but what they do. Though it is common for bosses to complain about absent staff, in my experience many of those with the fanciest job titles are privately among the most keen on working from home. Not least because they are more likely to have nicer houses and live in nicer areas. I remember well the battles I had with CEOs who were extremely reluctant to return to the office and who were very good at manufacturing spurious excuses. The situation was even more ex-

treme in New York – many having decamped from the city altogether.

Great cultures are carefully constructed over long periods of time, founded upon clarity of ambition and shared behaviours. This cannot be done by Zoom. Some people, senior and junior may fail to appreciate this, but for an ambitious team or organisation all of the people at least some of the time must be together. Failure to ensure this is the case is a mistake – one that will be felt in staff retention, development, team cohesion and ultimately the bottom line.

Well-run organisations should aim to find ways of working that allow an alignment of individual and collective ambitions. Ultimately, my answer to the coffee time question was you have to lead by example, but also, at a certain point, you just have to tell your staff what the expectations are, rather than tip-toeing around with promises of free lunches. It might make some leaders uncomfortable to insist, but that ultimately may be the only way.

£ Chris Hirst is a CEO and author. His latest book, No Bullsh*t Change, is out June 1

Culture is not some soft squishy thing; it’s not pilates at lunch or free fruit in the office

Jeremy Hunt has said he believes the default should be the office

EDITED BY ANNA MOLONEY

CITYPAGES WORMS AND VIRUSES AND BEARS, OH MY

From Russian hackers to Paris Hilton, Scott Shapiro’s new book is a tour de force of the information age, writes Anna Moloney

It’s Russia! It’s Russia!”, my friend insisted as our connection to the BBC flickered during Finland’s performance in this year’s Eurovision final. I was quick to back them up, Finland had just joined Nato, after all, and the BBC had warned the risk of a cyberattack was their main worry in the lead up to the competition. “Maybe too many people are on the wifi,” someone else, lacking imagination, suggested. They were correct: Eurovision resumed, the UK finished second to last, and order was restored.

It is this kind of agitation Scott Shapiro aims to combat in his new book Fancy Bear Goes Phishing, which examines the history of hacking and cyberattacks in the brave new world we now inhabit.

Told in five hacks, which range from Russian interference in the 2016 US election to the teenage boy who hacked Paris Hilton’s phone, Shapiro by no means underplays the legitimate dangers and threats that cyberattacks and hackers present, but he is also keen to emphasise that panic is unproductive.

Often, Shapiro shows, powerful cyber attacks assumed to be the work of malicious nationstates turn out to be little more than the activities of teenage boys, looking for fame, friends, or just a way to pass the time. Whether or not this represents a comfort is open to debate, but what Shapiro makes clear is that sensationalism will not get us any closer to tackling the problem.

Indeed, one of our most prevalent

vulnerabilities to cyberattacks is ignorance, and this is what Fancy Bear Goes Phishing sets out to amend.

A professor of law and philosophy at Yale Law School, Shapiro also leads Yale’s Cybersecurity Lab, where he teaches students how to hack. An impressive range in expertise, and one that leaves Shapiro in a unique position to skillfully guide the reader through the history of hacking, with all the tech nitty gritty included.

Shapiro distinguishes between “downcode”, technical computer code, and “upcode”, the social, cultural, legal and moral codes which govern how we use computers. One of the overarching takeaways is that downcode is only ever as good as its upcode. In short, computer software is only as smart as the humans who make and use it, and humans can be pretty dumb.

One of the key factors that enabled the hacking of the 2016 Democratic election campaign, Shapiro writes, was not a technical fault nor a sophisticated attack, it was a typo. When emailing Hilary Clinton’s campaign chair John Podesta to alert him to a suspicious email he had received asking him to change his password, an IT employee wrote “this is a legitimate email”, leaving out the crucial “not”. The moral of the story is clear: cybersecurity is a human problem.

As such, Fancy Bear Goes Phishing is a fundamentally human tale. Shapiro gives an insightful discussion into the psychology of hacking, but also dips into the semantics,

arguing that the language of ‘viruses’, ‘worms’ and ‘infection’ has perpetuated our fear rather than improved our understanding of computers. Indeed, a flair for the dramatics proves an unlikely must for many high-profile hackers, with the Dark Avenger and Guccifer (a portmanteau of Gucci and Lucifer) among the characters featured. Shapiro devotes significant attention to the legitimate threats behind many of these –‘Fancy Bear’ is the hacking unit of the Russian state, for instance –but he also shows how in the majority of cases hacking is not a branch of the dark arts. Sensationalising the dangers of hacking not only obscures the matter further, but it can also lead us to ignore or villainise the humans that lie behind these hacks, who are often more bored than they are malicious.

These teenage boys can do substantial damage, make no mistake –destroying important pieces of work, stealing data, leaking intimate photos –but Shapiro shows that a disconnection between the physical and cyber worlds is often at the root of these crimes. When faced with the reality of their crimes in court, hackers are usually remorseful, with many admitting they had never considered their real-life implications. Equally, in tackling cybercrime we mustn’t lean into its science-fictionalised depiction, but root ourselves in reality, which Shapiro shows is often mundane. Computers are not invincible, hackers are human, and the UK’s just not that good at Eurovision.

NEW IN BUSINESS: THREE TOP READS TO GET YOU THINKING

OUR LIVES IN THEIR PORTFOLIOS

BY BRETT CHRISTOPHERS

Asset managers own the world, just look around you.

In the post-financial crisis world of low interest rates and stricter bank regulation, asset managers have increasingly come to own the physical infrastructure that we all rely on whether it be roads, houses or water.

Brett Christophers’ new book incisively dissects –and criticises –the landscape of this novel stage of capitalism. As he writes, “whether by long-term contract or outright ownership… asset managers increasingly control the basic physical building blocks of global society and economy”.

Why does this matter? After all, asset managers argue they provide investment the public sector is either unwilling or unable to make. But Christophers shows how asset managers are institutionally set up to seek short term gains, much too short term to prioritise long-term investment.

With the looming threat of climate change and its implications for core infrastructure, more attention must be paid to our new financial overlords.

Chris Dorrell

THE EVERYTHING BLUEPRINT

BY JAMES ASHTON

Hailed as the new oil, microchips have quickly earned their buzz. Located in almost every piece of tech you use, and nuclear weapons to boot, it may be time to swot up on the companies responsible for them.

James Ashton’s The Everything Blueprint is here to help, giving a detailed guide on the rise of one of the biggest players on the field: Arm. At the centre of a tug of war between London and New York for much of the last year, Ashton helps explain why everyone wanted a piece of this semiconductor powerhouse.

The size of around 14 billionths of a meter (i.e. pretty small), semiconductors now dominate the global stage and provide a fable-like message of how thinking small can win big. “We have a first-world problem in that we can almost play in any market,” said Arm CEO Rene Haas.

With Arm recently confirming its decision to list in New York, Ashton’s book is a timely release showing how Arm got from a former-turkey plucking barn in Cambridgeshire (its first office) to the Big Apple.

Anna Moloney

WE NEED TO TALK ABOUT INFLATION

BY STEPHEN KING

A rich biography of inflation has never been more important at a time when the Bank of England is grappling with the toughest price surge since it was made independent in 1997.

HSBC senior economic adviser Stephen King’s recently published fourth book, We Need To Talk About Inflation, is an informative account of where policymakers have failed (and sometimes succeeded) in taming inflation over the past two millenniums.

He draws on some of history’s most notorious bouts of inflation to yield 14 lessons designed for money managers and politicians to bear in mind when making decisions on interest rates, taxes and spending, creating a sort of playbook on how to keep prices stable. Highly recommended reading for anyone working in the City or with a passing interest in economics (and members of the monetary policy committee).

Jack Barnett

BOOK CLUB

WHIPS

BY CLEO WATSON

Pitched as House of Cards meets 50 Shades of Grey, Cleo Watson’s debut novel Whips was a promising choice for City A.M. Book Club’s first literary foray.

And it did not disappoint. Written by Boris Johnson’s former aide, Whips is a tale of the sex and scandals that run rife through Westminster’s halls, showing how transport select committees may be more exciting than you once imagined. Shenanigans pressed up against Notting Hill Smeg fridges and romps through Chequers, this is smut in flesh-coloured M&S tights.

Whips is undoubtedly a page turner, but at the heart of it is also a genuinely heartwarming story of female friendship and the power of politics to do good, believe it or not. Whips revels in its own ridiculousness and is a riot because of it.

...AND THE PUB

The City A.M. Book Club this month took to The Banker for its important literary discussions. Located riverside just by Cannon Street Station, this fine establishment provided a perfect backdrop to our discussion on feminism, politics and salacious literature. Doggy friendly too.

HOTPROPERTY

THIS GREEN AND PLEASANT LAND

Chelsea Flower Show 2023 is all about rewilding the city. Why not give it a go, asks Steve Irish

The arrival of the Chelsea Flower Show has coincided with the first sustained spell of nice weather in a hithertomiserable 2023. Now Londoners can finally open their garden sheds and channel their inner Alan Titchmarsh, attempting to turn their outdoor spaces into something bright and spectacular.

The Chelsea Flower Show this year is themed around a return to Britain’s natural meadows and bee friendly wildflowers. And while central London seems like a far cry from a prelapsarian state of nature, many of the displays prove that even the smallest space can provide a little oasis for both humans and insects.

One such exhibit is the ‘Alight Here’ Balcony Garden created by Emma Tipping. This Gold-winning display, built by Topoforma and sponsored by Berkeley Group’s St George, was created with working Londoners in mind, creating a place for reflection in a space small enough to fit on one of the bal-

conies that have come to typify London’s modern apartment blocks.

“Inspired by daily city life, the garden is designed for a young professional in London, providing somewhere to sit with an after-work drink or a morning cup of coffee,” Tipping told the Royal Horticultural Society.

“The garden aims to create a relaxing but playful atmosphere, reminiscent of a good local pub – familiar, comforting, characterful.

“The space is divided into different areas to sit, surrounded by plants that are multi-functional, being fragrant, edible or good for cutting. The colour scheme includes citrusy tones of green and orange, contrasting with rich dark pinks and pale blue – making the space feel fresh and uplifting.

“The garden promotes a message of waste reduction, using repurposed rubbish bins as containers and benches made from reclaimed railway sleepers. The wall tiles, made from recycled Welsh slate, are installed using a silicone adhesive to ensure they can be removed and reused after the show.”

When the Chelsea Flower Show closes after this weekend, the Balcony Garden will move to the nearby Chelsea Creek development, a collection of one- to three-bedroom apartments by the Design Centre Chelsea Harbour.

Chelsea Creek aims to be one of the most biodiverse modern developments in the city, with its numerous green spaces and winding waterways designed to make a genuine impact on

biodiversity.

“St George is passionate about sustainability,” says St George West London regional managing director Stephen Kirwan. “To be truly sustainable each and every aspect of a project must be reviewed. [Design studio] Thirteen ID adopted a suite of sustainable principles, through use of FSC certified wood, responsibility sourced materials, non-toxic paint, and a considered supply chain.”

Flats in Chelsea Creek’s 31-storey Imperial Tower will feature balconies that are ripe for wilding by potential occupants. Residents can also enjoy the onsite cinema room, gym, indoor pool and spa, which includes a rain shower and a Scandi-sauna and steam room.

Prices for an apartment in The Imperial start from £715,000.

London’s salubrious neighbourhoods are, of course, not short of rooftop spaces where residents can exercise their green fingers. Harrods Estates is currently marketing Knightsbridge penthouse Trevor Square for a cool £16m. Here residents can enjoy a sprawling pair of roof terraces totalling more than 1,300sqft. These gardens in the sky offer semi enclosed spaces for entertaining and plenty of room to create the kind of biodiverse space seen in Balcony Garden on a far bigger scale.

Another vast rooftop terrace can be found at South Kensington’s Harrington Road penthouse, a seventh-floor oasis on the market for £8m. With panoramic views of London, outdoor

From top: The’Alight Here’ Balcony Garden that won Gold at the Chelsea Flower Show; Emma Tipping, who designed the winning garden; The vast rooftop terrace at South Kensington’s Harrington Road penthouse

rooms and a jacuzzi, this is the kind of space residents will be spending a lot of time in, making it the ideal canvas for a wild garden in the sky.

“London’s property market has witnessed a significant trend: the surging popularity of homes with roof gardens,” says Simon Barry, head of new developments at Harrods Estates. “These urban sanctuaries perched high above the bustling streets have become highly coveted among homeowners and property investors alike.

“London, known for its towering skyscrapers and bustling cityscape, has often been associated with limited green spaces. However, the introduction of roof gardens has revolutionised the way residents interact with nature in the urban jungle. These elevated green oases provide a much-needed respite from the concrete and can offer breathtaking panoramic views of the city’s iconic landmarks. In a city where space is at a premium, the allure of having a private garden sanctuary atop one’s residence cannot be overstated.”

And creating a city-garden that Charlie Dimmock would be proud of can have benefits for your pocket as well as the local fauna. “A tidy garden can be a valuable asset to any property and can significantly increase its value,” says Matt Johnson, area director at Johns & Co. “As the saying goes, ‘you only get one chance to make a first impression,’ and a well-maintained garden can make a great first impression on potential buyers.

“A tidy garden can create a sense of order and tranquillity, and can also

provide additional living space for entertaining, relaxing or even growing fresh produce.

“Aesthetically, a tidy garden can have a positive impact on the curb appeal of a property and can make it more attractive to potential buyers. A garden that is well-kept, with trimmed hedges, mowed lawns, and neat flower beds, can create a sense of pride and ownership for the homeowner, and can leave a lasting impression on buyers.

“Additionally, a tidy garden can provide additional value through its practicality. A garden that is well-designed, with proper drainage and irrigation, can be a valuable asset for buyers who want to make use of outdoor space for recreation, gardening, or entertaining. A well-placed deck or patio, for example, can create a perfect outdoor living space for relaxing and entertaining.

“Overall, the value of a tidy garden is undeniable when it comes to the sale of a property. A well-kept garden can boost a property’s value by as much as 10-15 per cent, making it a wise investment for any homeowner looking to sell. Whether you are looking to sell your property soon or not, a tidy garden can provide years of enjoyment and relaxation and is a valuable addition to any home.”

So there you have it: good for the planet, good for your health and good for your wallet. Time to get out in the garden.

£ For Chelsea Creek call 0203 944 9034 or visit chelseacreek.co.uk; for Trevor Square visit harrodsestates.com; for Harrington Road visit rokstone.com.

ELEVATED LIVING IN THE HEART OF WESTMINSTER

The Broadway, SW1 offers a collection of contemporary apartments that seamlessly blend distinctive architecture with design-led visionary interiors. Discover the epitome of luxury living, complete with exclusive residential amenities and skyline vistas showcasing the city’s historic landmarks.

• Panoramic views of the iconic London skyline

• World-class amenities include a fully-equipped gym, personal training rooms and a 25-metre pool, with vitality pool and steam room

• At the heart of The Broadway is Orchard Place, a vibrant lifestyle destination comprising shops, restaurants and workspaces

• A short walk from the renowned shopping and restaurant districts of St James’s and Mayfair

• Walking distance to St James’s and Victoria stations

• A selection of two-bedroom apartments available to rent furnished or unfurnished

from £1,800 pw to £2,650 pw*

The roof garden at Knightsbridge penthouse Trevor Square

GOING OUT

EDITED BY STEVE DINNEEN @steve_dinneen

BROKEBACK MOUNTAIN PLAY REVIEW: WHERE’S ALL THE GAY SEX?

THEATRE

RECOMMENDED

BY ADAM BLOODWORTH

Where was all the spine-tingling intimacy? The kissing scenes that show what two men together can be like? The caressing of a shoulder with the tuft of hair, the chin nuzzling into the armpit, the gazes of adoration?

Brokeback Mountain, originally a 1997 short story published in the New Yorker, became a big screen masterpiece in 2005 when Heath Ledger and Jake Gyllenhaal played two closeted gay lovers who worked on a ranch and fell hopelessly in love. The film retains its crown as the most prolific piece of LGBTQ cinema of the modern era. Its first ever theatre staging tackles such an intimate and profound story with mixed success.

There is much to like about director Jonathan Butterell’s vision. He has got the atmosphere absolutely right: it’s hard not to compare this stage version

to the film, in which the silences speak louder than the words. In the film, the wide angle shots of the Texan ranches, beautiful in their desolation, spoke more about the isolation and removal the two men felt than they could do in a thousand words.

In-the-round at Soho Place, the stage is an ode to the film, with the recognisable shrubs and camp fire set amid the wilderness. With a live band serenading the actors, and a wonderful country music soundtrack by Dan Gillespie Sells, there are plenty of moments to lose yourself. And it’s a place we’d all like to get lost, to fall in love.

The show is powered by two compelling lead performers in Mike Faist, of Spielberg’s West Side Story, and Lucas Hedges, from Manchester by the Sea. Faist conveys an adorable, doting Jack, whose passion for Ennis, played by Hedges, pops off the stage. Hedges is brooding as the traumatised Ennis, the tragic figure who can’t quite love himself enough to let him love another man.

Given the criticisms shows like Disney’s Love, Victor have received for casting straight men in gay roles, it’s a surprise there’s been so little pick up in the media about the fact that Faist identifies as straight. Regardless of what you think about straight actors

playing gay, it wasn’t this that hampered proceedings.

The duo just don’t have the right chemistry to bring the two lovers to life. Laying arm in arm, it all feels choreographed: I just didn’t buy that these two men were deeply in love. There’s a coldness to the pairing that is neither actor’s fault.

The bizarre decision to leave all the moments of passion and intimacy off stage leaves them little to work with.

The key scene in the story –in which the men first kiss, with all of its tempestuousness –isn’t shown; instead we see the outside of a tent as the two get down and dirty inside. How much we all craved to see the tantalising passions of that first kiss.

ON

PLAY HOPE HAS A HAPPY MEAL

HOW ARE YOU FEELING ABOUT OPENING NIGHT?

Surprisingly calm, actually. Because the process of writing this play took such a long time, I feel confident I’ve written what I wanted to write and trust the brilliant cast and creative team to deliver it. Then again, I’m sure I’ll be bricking it on the actual night.

WHAT’S IT ABOUT?

It’s a sort of magical realist fairy tale about a woman called Hope travelling to the People’s Republic of Koka Kola to find the family she left behind 24 years ago. So, in other words, it’s about ‘hope’ trying to come back. It’s definitely political and very dark at times but there’s also lots of light and love.

WHAT DOES MCDONALD’S HAVE TO DO WITH IT?

Around the time I was thinking about writing a play about hope I read that during the Spanish Civil War abandoned churches, which

were seen as symbols of the Right, were used as bases by the Left. That got me thinking about what would be the equivalent now and I landed on the idea of McDonald’s. It’s this thought that gave me the title and final image of the play.

WHY THE FICTIONAL COUNTRY?

In early drafts I was actually trying to do the Sarah Kane thing of creating an unspecified world, like in Cleansed, but I could never get it to work. Then when Shaun Bailey was running for London mayor I read that, at the same time that he opposed the taking down of statues of slave traders in order to ‘preserve history’, he supported allowing the corporate sponsorship of London underground stations, meaning you could feasibly have stations named after companies. This gave me the idea to set the play in the People’s Republic of Koka Kola, which ultimately gives the world of the play more specificity and allows the tone to be more versatile.

WHAT QUESTIONS DOES HOPE HAS A HAPPY MEAL ASK?

It asks questions about the necessity of hope, about its power but also about its cost. It also asks questions about the way the world is currently run and the need to change this.

HOW DID YOU CREATE THE CHARACTER OF HOPE?

At the beginning Hope was less of a character in her own right and more of a cypher. Lucy Morrison (associate director at the Royal Court) and I joke that early drafts of the play were just Hope walking into different places and being hopeful. I think what made it come alive was when she became a more flawed character –that’s a more accurate representation of hope.

It’s beautiful and powerful but unreliable. It can lift you up but it can tear you down just as easily.

£ Hope has a Happy Meal is on at the Royal Court from 3 June

Making the intimacy disappear is more than just bad for the feels, it’s also problematic given a major purpose of LGBTQ drama is to platform intimacy and break taboos around seeing people of the same sex together.

Elsewhere, there’s a comedic tone that sometimes works, but most often doesn’t. In the only scene where we see the couple in bed having sex, the tone is promptly lightened by Jack cracking a bad joke, which rips away the tension, and the chemistry, from beneath our feet.

It feels as though Butterell has tried to mimic the film version with much of the staging but added humour in place intimacy.

The production reminds me of the

Young Vic’s adaptation of Oklahoma! from last year, where the musicians on stage, who occasionally join in with the storytelling, add a meta element to the story.

But where Oklahoma made time for deep dives into the characters’ emotions, with scenes that lingered over conversations in real time, Brokeback Mountain feels like it was unable to work out how to stage the essential intimacy, so it just got rid of it.

There are some commendable efforts to reinvent this story for the stage:

Paul Hickey is compelling as Older Ennis, forever sitting on the side lines and nostalgically gazing at his younger self. But overall this queer coupling feels starved of queer romance.

BROKEBACK MOUNTAIN SOHO PLACE THEATRE

We caught up with the creator of this new Royal Court play, about the dangers of hope, ahead of opening night

THE LOWDOWN: TOM FOWLER

HIS

FINNISH WAR MOVIE IS A BLOODY GREAT SUCCESS FILM

Once on this Island review: Gorgeous show, problematic story

BY ADAM BLOODWORTH

There’s nothing that signals the start of summer so brightly as the Regent’s Park Open Air Theatre, which has kicked off its 2023 season with an adaptation of the musical Once on this Island. It’s a beautiful production, with some brilliantly catchy songs, but it’s hard to ignore that the story carries an outdated message that numbs the impact of the performances.

Once on this Island is the nineties stage adaptation of Rosa Guy’s 1985 novel My Love, My Love; or, The Peasant Girl. It’s the story of an underprivileged Caribbean girl called Ti Moune, who helps a wealthy man called Daniel, the son of a Colonial French invader who came to the Caribbean in the 19th century. He takes her into his gated mansion and the two get together, until societal barriers get in their way.

It’s important to acknowledge that

I’m a white critic writing about the black experience of colonised Caribbean islands, but for me, the play ends up stranding Ti Moune narratively, her character becoming a sad symbol of the oppression and injustice of colonialism. She isn’t given a reprieve, and the story ties up her tale of vengeance against the FrenchCaribbean aristocracy in a way that feels like it would instigate trauma for her rather than help her move through the injustices.

I can’t help but feel more progressive stories that centralise the black experience, rather than its place within white colonial history, could be given such important stages. But nevertheless, it’s tremendously done. The songs slap, including One Small Girl and Waiting for Life, the boldly minimal collection of props leaving the actors to fill the stage, which they do confidently. Gabrielle Brooks is charming and heart-breaking as Ti Moune; Stephenson Ardern-Sodje ripe with a toxic mix of privilege and charisma as Daniel.

It’s a brilliant watch, but one that leaves you pondering.

Taxi Driver writer Paul Schrader returns with Master Gardener, another simmering drama starring Joel Egerton

RECOMMENDED

MASTER GARDENER

DIR. PAUL SCHRADER

BY VICTORIA LUXFORD

Paul Schrader, the writer of Martin Scorsese classics Taxi Driver and Raging Bull, has had a spotty history as a director. For every American Gigolo or Affliction there have been several The Canyons or Dominion: Prequel to the Exorcists.

This seemed to be behind him following the success of 2017’s nail-biting First Reformed and 2021’s divisive The Card Counter. He returns with what feels like the latest in a thematic trilogy, Master Gardener.

Joel Egerton plays Narvel Roth, a groundskeeper for the estate of wealthy Southern widower Norma Haverhill (Sigourney Weaver). Obsessed by the precision and order of horticulture, his routine is disrupted when Haverhill asks him to take on her great niece Mata (Quintessa Swindell) as his apprentice.

Schrader once again tells the story of a quiet man desperately suppressing

his past.

That’s no bad thing, given that this formula has produced some great cinema, but the lack of deviation is beginning to feel restrictive. Bringing the subject of race into the story is also tricky. Maya is Black, and Narvel has past links with a hate group, although this conflict is brought in for tension rather than social discourse, which seems like a shame given the religious dialogue that rages in First Reformed.

Nevertheless, it’s a tale bedded in fine dialogue, with a cast who all bring their best to the screen. With slicked back hair and a monotone voice, Egerton is the latest in Schrader’s long line of intriguing male leads. He works wonderfully with Weaver, who thrives in a different type of role, while Swindell ensures there’s a simmering chemistry that flies in the face of the discomfort generated by the difference between her and Egerton’s age.

Master Gardener is unlikely to be as fondly remembered as its immediate predecessors, but like Narvel himself it maintains the high standard expected of it.

UNMISSABLE SISU

DIR. JALMARI HELANDER

BY VICTORIA LUXFORD

Abig success on its premiere at last year’s Toronto Film Festival, indie war movie Sisu arrives in cinemas with a lot of hype. Set in Finnish Lapland (with dialogue in English), the film is set towards the end of World War 2.

A company of retreating Nazi soldiers cross paths with an unassuming old prospector carrying a lot of gold. When they try to take it, violence ensues, and they find themselves in a battle for survival when that old man turns out to be former commando Aatami Korpi (Jorma Tommila), a ruthless survivalist nicknamed “The Immortal”.

The film wears its influence on its sleeve proudly. The film is divided into Quentin Tarantino-like chapters (despite the film being barely ninety minutes), and there are similarities to First Blood, with the director Jalmari Helander repeatedly claiming the Rambo classic was an inspiration.

Despite all of this, it feels fresh and exciting. The simplicity of the storytelling makes for a thrilling chase that will delight fans of Sylvester Stallone’s war franchise, and films like John Wick. There’s a glee with which Helander zooms in on the in-

jury detail, with body parts flying all over the Finnish landscape. It’s made palatable with such simple morality: it’s not hard to root for an old man and his dog fighting literal Nazis. Despite barely opening his mouth, lead Tommila tells a whole film’s worth of backstory with his eyes. Covered in blood and scars, he’s the kind of grizzled, mythical figure that makes you believe he can survive the many assaults he endures. On the other side, Aksel Hennie is superb as

the Nazi general on his tail. A great character actor in films like Headhunters and The Martian, with a bigger platform he shines as the leader of a cartoonish group of villains, aware the war is lost and intent on taking what he can get.

The gory action and threadbare characterisation won’t be for everyone, but Sisu does what it sets out to do. This One-Man Army spectacular is sure to become a cult hit, and a sequel wouldn’t be unwelcome either.

Sarah Cox: My life with dogs

The Radio 2 presenter on putting her naughty dog on probation and supporting the Dog’s Trust, by Adam Bloodworth

The popular Radio 2 show is just one facet of Sara Cox: she’s also absolutely mad about animals. The former

Radio 1 Breakfast Show presenter and Big Breakfast host has three dogs, two cats and a horse, and recently rode to Parliament on horseback to promote the Kept Animals Bill, which aims to give imported and exported animals better lives.

Through her work with animal charities Cox has become something of an expert, and she starts every morning by walking her trio of furry friends up to her horse stables.

“No more pets now for a while,” she says through laughter. “I even wrote that in my husband’s birthday card in April. ‘Happy birthday! No more pets, I promise. Sorry, have a lovely day!’”

Cox is speaking to City A.M. as a spokesperson for the charity Dogs Trust, which has launched a new survey for Londoners to participate in about their dogs. The idea is for dog owners to let the organisation know about their dogs’ behaviour so experts can build knowledge about issues people are currently facing. Then the charity will run behaviour workshops and offer advice based on the demand.

The survey was commissioned in response to a sharp rise in the amount of young dogs that have been handed over to the Dogs Trust since the pandemic. The organisation has had 18,000 handover requests this year, 30 per cent of which are down to behaviour-related issues, including aggression, which could have been prevented with the correct intervention and support. The issue is that a lot of new dog owners adopted puppies during the pandemic, when they had plenty of time at home, but failed to give them the correct training.

“Any pups that were bought and rehomed during the pandemic may have spent twenty-four hours a day with their humans, they wouldn’t know that at some point their human would have to go back to the office and life would get busy again,” Cox says. “So I think it’s great that Dogs Trust are trying to help ease that.”

One issue is that puppies are always in high demand but require extra training and are a longer-term commitment than an older dog. “Pip, my

new from Dogs Trust, is an absolute little cracker but it’s laborious and it’s repetitive and it takes time and it takes patience to house train a puppy so you don’t end up with a little nightmare on your hands. You’ve got to put the work in,” says Cox. The 47-year-old grew up on a farm in Bolton surrounded by big guard dogs as well as little terriers –working dogs with “brilliant characters”. But one lesson she learned was the value of adopting older dogs because her mum always chose them

over puppies.

“My mum was ahead of her time really,” says Cox. “We never got a puppy, we’d always get a rescue dog. I always wanted a puppy but when our dog would pass away, we’d get them at an average age of seven or eight so we didn’t have that long with them and they’d die of old age or illness.”

Cox isn’t aware of the push for pet bereavement services that some employees and organisations are rallying for; instead she says she did “the opposite” of grieving when she lost her Maltese called Beano a few years ago.

“I kind of threw myself into work because I kind of have to, there were a lot of people relying on me,” says Cox. “I’m quite good at compartmentalising my brain but make no mistake I’m sure a lot of people aren’t able to do that and

that must be really tough.”

Cox’s other animals helped too: “You can’t stay under your duvet all day if you’ve got dogs to walk, and a horse as well, so I’ve got to get up the yard.”

At home in London, she currently has Pip, a 19-week-old poodle bichon frise cross, Dolly, a seven-year-old maltese, and Daisy, a two-year-old flat coated retriever, as well as two cats and a horse.

Where does Cox stand on the contentious issue of kissing your dog on the mouth, which some owners seem to think is totally normal? “They can have my chin,” she says. “I think that’s quite enough. “You just have to be quick. You offer them the chin because you’re trying to get your mouth away from them, they’re trying to give you little kisses which are obviously cute. But we all know how animals clean themselves…”

Cox certainly wasn’t quick enough earlier this year when her terrier Dolly bit through a cable in the BBC Radio 2 studio, prompting the BBC to ban all pets from coming in with presenters.

Cox laughs at the mention of the incident. “She was very naughty,” she admits, although she denies she’s been campaigning to get dogs back in the building again, as some newspapers have suggested.

“The bloody dog chewed through something. Dolly had a moment of madness, she’s such a mild mannered fluffy little maltese, it was just a rebellious streak. She regrets it, she regrets her actions,” laughs Cox. “I’ll put her on probation for a bit. Put her on community service…”

£ For more information and to do your bit, complete the National Dog Survey online at nationaldogsurvey.co.uk. Survey closes 7 June.

THREE THINGS TO DO THIS BANK HOLIDAY WEEKEND

It’s set to be a real scorcher this bank holiday, so get planning now to avoid disappointment. Here are some ideas to inspire you, by Adam Bloodworth

GO TO A FESTIVAL

The Gala festival returns to Peckham Rye Park this weekend. The independent festival is a celebration of dance music, with incredibly high quality sound across the site. It’s not all music: there’s an array of talks

and street food and drinks, too.

GO TO A NEW ROOFTOP BAR

The Cavo Mediterranean rooftop bar is freshly opened in that new development at the junction where Oxford Street meets Tottenham

Court Road. The design is pleasingly smart, and they say the cooking combines “rustic charm with fearless modernity.”

GET TO KNOW A LONDON PARK

It’s (finally) set to be a scorcher this weekend, with temperatures reaching 20 Celsius and clear blue skies on Friday and Saturday. If you want to try something new, there’s a Walking Book Club in Greenwich Park at 11.45am on Saturday morning, no prep required. Hear extracts read out while you watch and split into small groups to discuss.

Do I kiss my dogs? No. They can have my chin but we all know how animals clean themselves…

Ed Warner

IF YOU stick a betting company logo on a young man’s shirt, beam his image around the world for 90 minutes every week and prop up the media coverage for his sport with a welter of gambling ads, then be prepared to shoulder your share of the blame if he can’t resist the temptation to break the rules and have a flutter himself. Whichever side of the gambling debate you sit on, you can still view Ivan Toney’s eight-month ban from football as excessive.

Brentford FC’s owner, Matthew Benham, made his fortune in trading sporting odds. He has rightly been lauded for doing things differently – on and off the pitch – in building a community-focused club. His team even retained its kit from last season to this, a rarity in an era of rotating temptation for kids wanting to mirror their idols.

Young Bees fans can’t exactly replicate the Premier League look however, as Brentford sport Hollywoodbets as their front-of-shirt sponsor. The South African betting company was said by the club to be aiming to bring “a personalised entertainment experience to its international customers” when the shirt deal was struck two years ago. How’s that going now? Just ask the kids to look away, as per the regulations.

We don’t yet know what matches Toney bet on in his 232 agreed breaches of the non-gambling rules between 2017 and 2021. Were they games he participated in, or in competitions his teams played in? Could they have been contests he had special insight into through his network of contacts in football?

Or were they simply matches he put his feet up to watch while relaxing at home – midweek European footy or international fixtures, perhaps? Or like Kieran Trippier and Daniel Sturridge before him, was “inside information” such as player transfers at stake?

Context will be all in judging the severity of the punishment dished out by the independent commission on behalf of the Football Association. If the Brentford striker was betting on matches he played in then, for me, eight months wouldn’t be long enough.

But if at least some of the education given by Toney’s nine professional clubs sunk in, and he is guilty of simply behaving like any fan who adds financial jeopardy to their experience of a game on TV, then preventing him training with his club until mid-September carries more than a hint of vindictiveness. Do we need him to be a pariah?

HANDS UP, PUNTERS

When the commission publishes its findings, and depending on the facts, Toney would do well to consider a statement such as that made by Joey Barton on his own 18-month ban back in 2017.

In it he called out the FA for football’s dependence on the gambling industry’s money. It is worth reading in full.

“I am not alone in football in having a problem with gambling,” wrote Barton. “I grew up in an environment where betting was and still is part of the culture. From as early as I can remember my family let me have my own pools coupon, and older members of the family would place bets for me on big races like the Grand National.

“To this day, I rarely compete at anything without there being something at stake. Whether that’s a round of golf with friends for a few pounds, or a game of darts in the training ground for who makes the tea, I love compet-

AMNESTY? DON’T BET ON IT

The Paris 2024 ticket bands for the athletics at the Stade de France show a considerable proportion of the tickets are described as Category A. London 2012 had a much wider spread of ticket bands for fans.

tion. Cricket or tennis are obvious examples. A dot ball or a double fault. The prevalence of such “spot fixing” is unknown.

Are we only seeing the tip of the iceberg when it is revealed, usually by suspicious betting patterns rather than by direct observation of action on the field of play?

needed. He won’t be alone.

WALK ON BY

ing. I love winning. I am also addicted to that.”

Hands up, who hasn’t put a few quid on a horse or two in the Grand National for their kids?

Barton had his ban reduced by five months on appeal.

A couple of decades ago, I was CEO of a group that included a financial spread betting business.

A pair of clients, a married couple, featured in a Sunday newspaper article trumpeting the million pounds they had made on our trading platform.

Great publicity for the firm.

Not much more than a year later we were embroiled in litigation with them after they had lost all of that and much more.

No headlines this time, but a valuable human insight into the parallel

Outcomes in football, a fluid game involving 22 on-pitch players, are by contrast much harder to corrupt. Did Toney wilfully seek to influence the outcome of matches? Or is he simply as addicted to betting as Barton claimed to be? Has he foolishly fallen victim to football’s financial compact with the gambling industry? Place your bet.

Solutions? There is already a trend towards greater restrictions on football’s relationship with the gambling industry. This process needs to be accelerated and the controls screwed even tighter. Outright exclusions are unrealistic, and wouldn’t square with a generally libertarian attitude to betting across society.

And what of footballers themselves?

It would probably be beyond the reserves of courage and imagination at the FA, but an amnesty on all previous betting by players – provided they declared any history confidentially to the

The strangest headhunter call I had was a couple of years back. A leading search firm was looking for a chair for a new organisation being set up to tackle the harm caused by gambling addiction. Turned out its principal funding source was the betting industry itself. A different variety of sports washing. Not for me, thanks.

LET THEM EAT CAKE

A mate got lucky in the draw to buy Paris 2024 Olympics tickets, so I’m now long of a pair for a couple of nights of athletics – at eye-watering cost. Prices are very similar to those for London 2012 if you adjust for inflation. The big difference is that whereas London had a fair spread of tickets across all price bands for all sports, one look at the Paris venue maps shows the vast majority are in the highest brackets.

No wonder the locals are revolting. But the laws of supply and demand apply, so still expect all bar a few football group stage matches and a chunk of hospitality places to sell out.

£

Ed Warner is chair of GB Wheelchair Rugby

There should be an amnesty on all previous betting for players –provided they declared any history confidentially to the authorities

Koepka: Trump told me I would love his LIV Golf course

US PGA Champion Brooks Koepka has been backed to thrive at the “bomber’s paradise” hosting this week’s LIV Golf League event by none other than President Trump.

Koepka heads to Washington DC for the $25m tournament fresh from winning his fifth major on Sunday.

It will be his first time playing the course but big-hitting Koepka has already been told that the 7,700-yard course should suit his game by its owner, the 45th president of the USA.

“All of Trump’s golf courses are phenomenal and fun to play, and I think they’re also quite tough. I play tough golf courses quite well,” he said.

“When I played with Trump a couple of months ago we were talking about it and he told me I’d love it. [It’s a] bigboy golf course. It’s going to be long.

“I don’t think we’ve really played too

US PGA

many long golf courses yet [in LIV Golf] – they’ve been a lot of thinker golf courses and position golf courses, where this might be more of a bomber’s paradise. It’ll be exciting.” If long hitting is the order of the day at Trump National then Bryson DeChambeau could well be in the conversation too. Like Koepka, the former

US Open winner also takes good form to DC, having followed up his seventhplaced finish at LIV Tulsa with a share of fourth place at the US PGA. “I think my game is progressing positively,” said DeChambeau. “It’s been a nice, condensed time frame for us to really get our games going.” The same could be said of Dustin Johnson, who is seeking

back-to-back wins on the LIV circuit, having won two weeks ago.

“I’ve never played Trump DC, but I like all his golf courses,” said Johnson. “I haven’t played one I don’t like yet.”

Stamina may come into play for all three of Koepka, DeChambeau and Johnson as they prepare to play their third tournament in as many weeks. Reflecting on his whistlestop schedule wich includes ice hockey and basketball, Koepka conceded: “I don’t know how well that LIV event is going to go.”

Why the £170m

‘richest game in football’ faces an uncertain future

WHEN Luton Town and Coventry City collide in Saturday’s Championship play-off final there will be more than just glory at stake; both teams stand to make a minimum of £170m if they achieve promotion to the Premier League.

It is a prize that has earned the traditional end-of-season fixture the tag of the world’s richest game; the winnertakes-all contest catapults the victors into another financial dimension and leaves the losers empty-handed as well as crestfallen.

But how long the stakes remain this high is uncertain, with the future of controversial parachute payments and other mechanisms for redistributing the Premier League’s vast wealth down the English football pyramid the subject of ongoing debate.

“It’s a key topic that needs to be addressed,” Zal Udwadia, assistant director in Deloitte’s Sports Business Group, told City A.M.

“The redistribution of money is really uncertain and the approach that will be taken going forward is uncertain. The future of parachute payments is fascinating and requires stakeholders to come together for football.”

Parachute payments are central to the talks between the Premier League and the EFL, which runs the Championship and the two divisions below it, because they are worth so much.

Either Luton or Coventry are assured of at least £80m in parachute payments if they achieve promotion at Wembley this weekend. That sum increases to £200m if they survive their first season in the top flight, taking their total uplift from going up to £290m.

While the EFL was keen to scrap parachute payments, arguing that they distort competition, the Premier League has insisted on retaining them in the socalled “new deal for football”. Haggling is therefore partly about the proportions of Premier League riches reserved for parachute payments and those shared indiscriminately.

If “solidarity payments”, which go to all EFL clubs, become a bigger slice of the pie – and the broadcast contracts that determine Premier League revenue remain flat – then the play-off final could become less important.

And this could come as soon as next year, when the government-appointed independent regulator for English football is due to take office and will mandate the new deal if no agreement has been reached already.

“The redistribution was a key recommendation of the fan-led review and to reduce the gap between the top two divisions is one of the game’s biggest challenges,” said Udwadia.

“We know the gap is growing, we know that parachute payments probably offer a slightly unfair advantage. We certainly know the money on offer is the reason so many Championship clubs take that gamble and are almost blinded by their ambition to reach the Premier League.

“The game’s stakeholders really need to come together and promote probably a more financially sustainable model.”

Forest won the Wembley play-off last season

FOOTBALL

President’s long golf course could suit

champ, while Johnson looks for two in a row, writes Frank Dalleres

Play-off final’s value rests on contentious parachute payments.

By Frank Dalleres

It’s great to see Sale back but Sarries should win sixth title

ISHOULD preface this column by saying that I am really happy Sale are in the Premiership final this Saturday.

It’s not only good for the area but it’s good for rugby to see a new face at the showpiece Twickenham event – one that has not been there since 2006, when I was playing at Newcastle.

Alex Sanderson has clearly built on the foundations laid in Salford by Steve Diamond and their growth has been brilliant to see.

I do, however, think that Saturday might just be one step too far for them against Saracens. The Londoners have been here and done it, and are chasing a sixth win in what is their 10th final.

And they’ve developed, too. Last year they were beaten by a Leicester Tigers drop goal in the dying minutes, a moment which led to criticism about how the club were able to be so dominant but not dent the scoreboard with much effect. The difference has been stark this season. They have been winning up front but also out back, throwing the ball around like the Globetrotters and really entertaining the crowds – while still winning.

And what of the one, obvious, time they reverted to their old selves? Against La Rochelle where they came off second best to the eventual double European champions.

There are so many storylines in this match Mark McCall, Saracens’ head honcho, against one of his many apprentices Sanderson – England head coach Steve Borthwick and Ireland head coach Andy Farrell are among the other proteges.

But it’s also London versus the north, George Ford versus Owen Farrell, largely established Premiership winners versus largely trophyless individuals.

Sale brought in Sir Alex Ferguson this week to talk to the squad about what it means to win, and he reiterated how you should only enjoy finals if you win them.

And the Sharks know exactly what they’ve got to do. They’ve got to batter Saracens up front, stay in the game and cause the Londoners problems at the ruck. Once they’re on top of the physicality of the encounter, they will be able to try and make the most of their opportunities.

I think it will be close for the opening 60 minutes but then I fear Saracens

RUGBY COMMENT

Ollie Phillips

could just pull away.

The north London club were in fine form against Northampton Saints having rested a number of players prior to that semi-final and there’s no doubt they know exactly how to prepare for a final like this one.

I cannot wait to watch Sale throw everything at this match –and it would be good to see a different club to the ones who have recently lifted the trophy triumph –but I just think the Londoners will grab their sixth title.

CHAMPIONS CUP

What a show La Rochelle and Leinster put on for us last weekend in Dublin.

Champions Cup finals are always great events but this one will go down in history as one of the best. The way La Rochelle clawed it back after falling far behind is testament to the belief Ronan O’Gara has instilled in his side.

It was good to see Sergio Parisse bow out of European rugby in style, too, with victory for Toulon in the Challenge Cup. It’s what he deserves.

URC

This weekend sees not the only English rugby’s domestic showdoen –the URC grand finale also takes place on Saturday evening in Cape Town.

The Stormers have been leading the South African charge in the URC and are on course to win two titles in two years. Munster will give it their all, and it is amazing to hear 5,000 Irish fans are going down, but they might fall short.

South African sides have challenged the status quo but have also exposed some of the league’s issues – I am all for their inclusion though.

£ Former England Sevens captain Ollie Phillips is the founder of Optimist Performance, experts in leadership development and behavioural change.

Follow Ollie on Twitter and on LinkedIn.

PREMIERSHIP FINAL: THREE TO WATCH

OWEN FARRELL VS GEORGE FORD

It is the match up we’ve all been looking forward to. Owen Farrell re-established himself as England’s No10 in the Six Nations and George Ford will be keen to steal that shirt off his opposite number when the World Cup comes around.

ALEX GOODE VS JOE CARPENTER

We’re expecting to see a number of kicks throughout the final for both territory and

2023 RUGBY WORLD CUP BAROMETER

PLAYER OF THE WEEK La Rochelle’s Will Skelton

field position. Veteran Alex Goode and season sensation Joe Carpenter will be key in gathering any high balls and launching attack plays.

BEN EARL VS TOM CURRY

With Sale captain Ben Curry out injured due to an issue sustained in the semi-final, his brother Tom is likely to go up against the mighty Ben Earl. The battle for the ball will be a key factor in gaining possession.

In the biggest ever Champions Cup final comeback, one man stood out for winners La Rochelle. Will Skelton yet again was one of the best players on the pitch, but that is nothing new for the 31-year-old New Zealand-born Australian international. Saturday’s final was his fifth – two with Saracens and three with current club La Rochelle – and the lock has won four. He is a workhorse for the big occasion, and someone Australia head coach Eddie Jones will be keeping an eye on. Australia are rebuilding before the Rugby World Cup, but 19-cap Skelton must be part of that side.

WHO’S HOT WHO’S NOT

Jaco Peyper was the man in the middle last Saturday and received stern criticism for his performance. Eyes will be on him in France.

Cheslin Kolbe is usually the one scoring tries, but his defence on Friday for Toulon was exceptional. Almost undroppable for South Africa.

Michel Ala’alatoa was sent off in the Champions Cup for a clear out. His hopes of playing for Samoa could be dented.

UJ Seuteni caused Leinster chaos and the classy centre was such a threat for the eventual champions. He scored La Rochelle’s second.

IN FREEFALL

Have parachute payments in football had their day? PAGE 26

Spanish footie’s racism problem ‘disgusting’, says Southgate

GARETH Southgate has branded Spanish football’s racism problem “disgusting” as the fallout from the abuse of Real Madrid and Brazil star Vinicius Jr continues.

The 22-year-old’s future in LaLiga has been plunged into doubt after becoming the centre of a furious row that has highlighted a toxic element in one of Europe’s top competitions.

Vinicius was barracked with monkey chants for the latest time this season at Valencia on Sunday, prompting him to declare that LaLiga “now belongs to racists”.

Real Madrid reported the incident as a hate crime, while the head of Spain’s football federation, the RFEF, conceded that the country had a racism problem.

But LaLiga president Javier Tebas has been panned for his response, which included accusing Vinicius of “slander”, while Valencia have protested against sanctions that they have incurred.

“It is a disgusting situation. It is so bad that it looks like it is going to force change. I am hoping there will be something positive to come from it,” said Southgate.

The England manager has been a vocal advocate for more anti-discrimination initiatives and supported his

players’ desire to take the knee before games, despite hostility.

He has also seen how racism manifests in English football, notably through social media trolling targeted at Three Lions players such as Bukayo Saka and Marcus Rashford.

“If anyone suggests to me we don’t have a problem in society with racism then there is another example of what we are dealing with, and more examples of people burying their heads in the sand, quite frankly,” he added.

“Hopefully it is a story that doesn’t just disappear in 2448 hours without there being some significant change.”

Eze does it: Palace No10 called up by England

FRANK DALLERES

Vinicius has called for LaLiga to issue sporting sanctions to clubs for instances of racism, while the league’s bosses have asked for more powers to take action.

The RFEF on Tuesday overturned the red card shown to Vinicius in stoppage time of his side’s 1-0 defeat at Valencia, and punished Valencia with a fivegame partial stadium closure and fine.

The club were quick to hit back and voice their “total disagreement and indignation at the unfair and disproportionate penalty”.

Valencia coach Ruben Baraja backed that stance on Wednesday.

No Brit women in French Open draw for first time since 2008

MATT HARDY

GREAT Britain will be without a woman in the French Open main draw for the first time since 2008 after Katie Boulter became the final hopeful to lose in qualifying for the Grand Slam.

Britain had three representatives on the clay of Roland Garros last year but that number has been slashed to zero due to a lack of seeds, withdrawals and defeats in qualifying.

Emma Raducanu pulled out of the season’s second Grand Slam to undergo three surgeries –one on each wrist and a third on her ankle.

Elsewhere Harriet Dart, Ryan Peniston and Jan Choinski were among the six British hopefuls to lose yesterday.

The unsavoury statistic will be disappointing to the Lawn Tennis Association [LTA], who yesterday confirmed a loss of £16.4m in 2022.

Part of the loss was put down to fines slapped on the LTA by the men’s and women’s tours the WTA and ATP over the decision to ban Russians and Belarusians from playing events in Britain in 2022 –Wimbledon also banned athletes from these countries, leading to the Grand Slam not being allowed to award ranking points.

CRYSTAL Palace forward Eberechi

Eze has been handed a first call-up to the senior England squad for next month’s Euro 2024 qualifying matches.

Eze was the only uncapped player in Gareth Southgate’s 25-man party, while there were recalls for Brighton defender Lewis Dunk, Newcastle striker Callum Wilson, Liverpool defender Trent AlexanderArnold, Aston Villa defender Tyrone Mings and Palace goalkeeper Sam Johnstone.

The 24-year-old has taken a circuitous route to England

recognition, having been released by Arsenal and Millwall as a teenager before breaking through at QPR and earning a Premier League chance at Palace, where he has thrived.

Eze can play as a No10 or as a wide forward and may benefit from the decision to rest Raheem Sterling or the fixtures against Malta and North Macedonia.

“We have liked him for a long time. I think he has finished the season really strongly. He can play in a couple of positions across the attacking line,” said Southgate.

“He is a goal threat, he’s got nice ability and speed to go past people and can take people out of the game

with his dribbling skills. We are looking forward to seeing him.” Sterling’s omission was a result of concerns about his condition following conversations between Southgate and the Chelsea forward, who has just six league goals this season. “He’s not happy physically with his condition, having been carrying a hamstring problem,” said the manager. “He really wasn’t in consideration. We didn’t get to the point of whether he should be in or out. He doesn’t think he is operating at the level he needs.” England visit Malta on 16 June and host North Macedonia three days later at Old Trafford.

Starc rubbishes Broad ‘void’ claims as Ashes talk heats up

MATT HARDY

AUSTRALIAN bowler Mitchell Starc has rubbished claims from pacer Stuart Broad that England’s 4-0 defeat in the Ashes series was “void” over Covid-19.

Broad, recently named in the squad to take on Ireland in England’s preAshes Test, last month said: “I don’t class that as a real Ashes.

“The definition of Ashes cricket is elite sport with lots of passion and players at the top of their game.

“Nothing about that series was highlevel performance because of the Covid-19 restrictions.

“The training facilities, the travel, not being able to socialise. I’ve written

it off as a void Series.”

Australia will be playing India in the second World Test Championship final at the Oval from 7 June before heading into the Ashes series.

Starc responded to Broad this week, stating: “They has the pool, the gym, they were in a resort on the Gold Coast, they trained at Metricon [stadium], weren’t confined to their rooms and had their families there.

“The funniest thing out of that was they called it quarantine on the Gold Coast.

“I did seven of them. That was the easiest by a country mile.”

The first Ashes test gets underway on 16 June in Birmingham.

CRICKET TENNIS

FRANK DALLERES

Vinicius Jr this week stated that LaLiga “belongs to racists”

Eze is the only uncapped player in Gareth Southgate’s 25-man squad for Euro 2024 qualifiers versus Malta and North Macedonia