Wednesday 16 August 2023

SYDNEY SEMI SHOWDOWN

ENGLAND TAKE ON HOSTS FOR SPOT IN FINAL P19

PAY GROWTH WILL FORCE RATES HIGHER

WAGES TO PUSH RATES UP EVEN IF INFLATION FALLS TODAY

JACK

UK WAGES grew at their fastest pace since records began in 2001, new figures out yesterday revealed, raising the prospect of a further rate hike from the Bank of England next month.

Wage growth, excluding bonuses, topped 7.8 per cent in April to June, the Office for National Statistics reported. Once inflation is taken into account, however, real wages were down by 0.6 per cent.

But the rapid increase in wage growth will likely cause concern for the Bank of England, which has previously warned about the inflationary impact of wage increases.

Earlier this month, the Bank hiked interest rates for the 14th time in a row to 5.25 per cent, as Bank governor Andrew Bailey (right) and co work to bring inflation down –it currently sits at 7.9 per cent.

SAY CHEESE OUR PHOTO EDITOR REVIEWS LEICA’S £5,000 SNAPPER P16

Experts said the rise in wage growth will likely lead to another rate hike when the Bank’s Monetary Policy Committee next meet on 21 September.

“With wage growth still accelerating, this supports our view that the Bank of England will deliver one more 25 basis point rate hike before it brings its tightening cycle to a close,” Ruth Gregory, deputy chief UK economist at Capital Economics, said.

The governor received criticism last year for telling employees not to lobby for pay rises, and his deputy Huw Pill, the Bank’s chief economist, was also slammed for saying Brits had to accept they would be poorer.

However, a wage price spiral –in which salaries are forced to keep pace with higher costs, itself resulting in cost increases –appears to have now

bedded in to the UK economy.

Fresh inflation data out today is expected to show that the rate of price rises is falling, dropping to around 6.7 per cent for July, according to consensus among economists.

Grocery price inflation saw its second sharpest fall since 2008 yesterday, according to research firm Kantar, falling 2.2 percentage points to 12.7 per cent for the four weeks to 6 August.

While the inflation print will likely be lower today, all eyes will be on core inflation, which removes volatile food and energy price movements. It currently sits at 6.9 per cent.

However, a fall in inflation might not be enough to persuade the Bank to press pause on its rate hike campaign.

“Even if inflation falls as expected… the inflationary pressure of still rising wage growth means the Bank is unlikely to put a halt on further rate rises just yet,” Richard Carter, head of fixed interest research at Quilter Cheviot, said.

NOT JUST A TRADING UPDATE M&S raises full-year profit outlook

LAURA MCGUIRE

SHARES in Marks & Spencer closed up over eight per cent yesterday after the supermarket raised its profit outlook for the year.

The retailer reported an 11 per cent increase in sales in its food business in the first 19 weeks of the year, while sales jumped six per cent in its clothing and homeware division.

While the firm warned that there are “considerable uncertainties” on the

economic outlook and a risk that consumer spending will “tighten” going forward, it still expects profit to grow more than last year.

“We now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations,” M&S said.  It comes after M&S reported a successful year in May, with the group posting annual revenues of £11.93bn, up 9.6 per cent on the year before.

Wilko rumour mill: B&M shares up as takeover whispers gather volume

LAURA MCGUIRE

DISCOUNTERS led by B&M and Poundland-owner Pepco Group saw their shares jump yesterday following reports that they may be considering a takeover of troubled retailer Wilko. Home Bargains and The Range have also been named as potential buyers

for the family-owned business, according to a report in The Sun, with all parties showing interest in parts of the business.

B&M’s share price rose 2.27 per cent yesterday while Pepco closed up 0.43 per cent on the Warsaw Stock Exchange where it is listed.

“Everyone loves a bargain and

investors could be thinking that B&M has a chance to grab market share, and knock out a distressed rival by taking over Wilko at what is likely to be a low price, given the chain’s financial woes,” Russ Mould, investment director at

AJ Bell, told CityA.M.

A sale would provide a slither of hope for the 12,000 employees across its 400 strong estate who face redundancy if a deal does not come to play.

But the clock is ticking for potential buyers as its administrators at PwC have given a deadline of today to place offers for the business.  Even during the height of the cost of living crisis, which drove customers back to cheaper stores in search of deals, it underperformed compared to its rumoured suitors.

MENDEL AND STAFF

STANDING UP FOR THE CITY

He could work on the delivery, but Bailey’s warnings were right

SO WAS he right? Bank of England governor Andrew Bailey’s comments that Brits shouldn’t ask for a pay rise looked tin-eared at the time, and it didn’t help when the Bank then upped its bonus pool. But his warnings of a wage price spiral appear to be coming to fruition.

Now, what brought on the wave of criticism was the context: specifically, the fact that the man

once nicknamed the “Sexy Turtle” lived up to his moniker by moving at prehistoric pace when inflation red flags began waving at the end of the second lengthy lockdown. He was not helped by the Bank’s forecasters, whose

Panglossian predictions for the economy have proven catastrophically off-beam. What happens now? Well, rate rises.

growth UK PLC is currently able to generate.

Monetary policy is a balance, and a full autumn of rate hikes is too much for the economy to bear. Growth is flat. Prospects for growth are minimal. Bailey and the Bank’s errors have got us into a position where they must choose between stagflation and an economy running too hot. Regrettably, the latter is preferable.

SUNAK SELFIE The Prime Minister visited Milton Keynes University Hospital yesterday after announcing plans to pump £250m into the NHS in a bid to tackle record waiting lists

JOE MCDONALD

CHINA’s government has stopped giving an update on a politically sensitive spike in unemployment among young people as official data showed an economic slump deepened in July.

Meanwhile, the central bank unexpectedly cut a key interest rate in a sign of growing official urgency about shoring up economic growth that fell sharply in the three months ending in June.

Youth unemployment is sensitive after a survey in June found a record 21.3 per cent of potential urban workers

No Bank of England governor worth his salt could look at record wage growth –in a low growth economy –and not think something’s up. One more hike seems nailed on. But more than that would risk throttling what little economic

China stops publishing data on youth unemployment as economic woes mount

aged 16 to 24 could not find work after an economic rebound following the end of coronavirus controls fizzled out.

Publication of unemployment by age group has been suspended while the National Bureau of Statistics considers how it measures data, according to bureau spokesperson Fu Linghui. He said a survey found overall unemployment among urban workers was 5.3 per cent, up 0.1 percentage points from June.

“A decision to discontinue the youth unemployment figures just after they hit a record high doesn’t inspire confidence,” Capital Economics wrote.

Yesterday the People’s Bank of China

cut the interest rate on a one-week loan to banks to 1.8 per cent from 1.9 per cent.

“[The] cuts suggest that the authorities’ concern about the state of the macroeconomy is mounting,” said Robert Carnell of ING. “But that doesn’t mean that they are about to undertake unorthodox policy measures.”

Economic growth slid to 0.8 per cent over the previous quarter in the three months ending in June from 2.2 per cent in the January-March period. That is equivalent to 3.2 per cent annual growth, which would be among China’s weakest in decades.

THE FINANCIAL TIMES

THE CITY VIEW TPG APPROACHES EY ABOUT BUYING STAKE IN CONSULTING ARM

DECAYING OXFORD ST RISKS BECOMING BLUEPRINT FOR BRITAIN’S HIGH STREET, RETAIL CHIEFS WARN

Oxford Street’s decline risks becoming the blueprint for many of Britain’s high streets if ministers fail to support regeneration efforts to save local hubs, retail chiefs have warned.

THE GUARDIAN RUSSIA’S CENTRAL BANK HIKES INTEREST RATES AS ROUBLE FALLS

Russia’s central bank has hiked interest rates by 3.5 percentage points in an emergency move aimed at halting the rouble’s recent slide, after it fell to its weakest point in almost 17 months.

WHAT THE OTHER PAPERS SAY THIS MORNING

Private equity group TPG Capital has approached EY about buying a stake in its consulting arm in a deal that would herald a second attempt at breaking up the Big Four firm.

Worrying data from China has caused market jitters around the world

THE

L&G reveal profit despite hit from accounting rules

CHARLIE CONCHIE

LEGAL & GENERAL (L&G) beat market expectations yesterday as it posted profits of £941m for the first six months of the year despite new accounting rules putting a dent in its accounts.

In its half year results, the accounting giant said it had delivered operating profits ahead of the £834m analysts had been expecting, but down from £958m in the same period last year.

The numbers reveal the scale of the hit from new accounting IFRS rules introduced from January, which are expected to hamper reported profits across the industry.

Outgoing chief Sir Nigel Wilson, however, shrugged off the dip and said the firm “remain[s] on track to achieve our five-year ambitions and deliver attractive returns for our shareholders”.

L&G hiked its dividend five per cent to 5.71p, in line with its long-term targets

and said it had delivered capital generation of £5.9bn in line with its target of achieving capital generation of £8bn9bn by 2024.

The firm has committed to delivering a five per cent boost in its dividend until 2024 to ease investor jitters.

L&G’s retirement business bolstered its performance in the first six months of the year with profits swelling 19 per cent £471m. The bump was offset by a hefty contraction in its asset management and retail divisions, however.

The retail arm saw profits fall 22 per cent to £230m, while L&G Investment Management profits fell sharply from £200m last year to £142m on the back of a volatile period for money managers, it confirmed in a statement.

Investors appeared unconvinced by the update in London yesterday morning, as shares in L&G tumbled beyond four per cent in early trading. They closed down 2.66 per cent.

store recovers from its pandemic lull

Affordable home progress stats spark row

JESSICA FRANK-KEYES

A ROW has broken out over why London has built just one affordable home a month, amid warnings the capital’s housing crisis is fast becoming an emergency situation. New figures reveal just three affordable homes were started by City Hall during April, May and June 2023 – while stats for previous years extend upwards of 25,000.

Conservative City Hall housing spokesperson Lord Shaun Bailey said: “Khan has fallen years behind the latest housing targets and is failing to deliver the affordable, family homes that Londoners need.”

But the mayor’s team insisted their lack of progress was down to the government not signing off the funding until July – three months after that quarter’s programme should have begun. A spokesperson for the mayor said “building genuinely affordable homes” had hit their highest level since records began under Khan’s mayoralty. A government spokesperson said: “Low delivery in a particular quarter does not mean there is a risk of missing overall targets.”

HARRODS, Knightsbridge’s world famous department store, recorded a profit for the year ending January 2023, as the iconic London shop fully rebounded from a Covid lull. Luxury shoppers helped boost operating profits to £202m, up from £71m.

FANCY THAT Harrods hails rise in profit as iconic

Harvey Nichols boss Manju Malhotra exits but group denies any dispute

LAURA MCGUIRE

THE BOSS of Harvey Nichols, Manju Malhotra, will step down from her role as head of the luxury retailer, the firm confirmed yesterday.

Malhotra, who led the business for three years, will temporarily be replaced by Pearson Poon, the son of Chinese business magnate Sir Dickson Poon, who has owned Harvey Nicholls since the 1990s.

Poon, who currently serves as executive director, has been bumped

up to the role of vice president until a permanent replacement is found.

Harvey Nichols told City A.M. the chief’s departure was not due to a previously speculated disagreement between her and Dickson Poon.

A spokesperson said: “Harvey Nichols notes the recent press coverage alleging to a dispute between CEO Manju Malhotra and Harvey Nichols’s shareholder.

“The group would like to reiterate that this is incorrect, the departure is on amicable terms with Manju

Energy firms split after Ofgem slams price cap

NICHOLAS EARL

ENERGY bosses are split over the role of the price cap in the UK’s retail market –with a seeming rift emerging between challenger suppliers and Big Six companies over its role in protecting households from high bills.

Ofgem’s chief executive Jonathan Brearley has urged ministers to reconsider whether the “very broad and crude” price cap is still fit for purpose following the domestic energy crisis –which saw the collapse of 30 suppliers, including the year-long de-facto nationalisation of Bulb.

The price cap prevented suppliers passing on soaring wholesale costs to customers, contributing to the industry volatility which saw dozens of small energy firms exit the market, costing households an estimated £2.7bn in the winter of 2021 before the price of the cap was updated the following April.

But the watchdog boss is uncertain the mechanism is functioning as intended –to prevent long-standing customers being exposed to higher bills.

“The price cap was designed for a market that was much more stable,” Brearley told The Guardian.

Nigel Pocklington, CEO of challenger

supplier Good Energy, welcomed Brearley’s “support for a wider debate on the future of energy price regulation”.

He told City A.M.: “[The price cap is] beginning to actually harm consumers...

I think it has failed in its actual objective because it helped drive competition out of the marketplace and impose extra costs on consumers.”

The energy boss instead wanted to see “greater consideration” for the idea of a social tariff –targeted support for vulnerable customers –with the government not expected to provide new packages of support for households in the coldest months of the year with energy bills still historically elevated.

This position is shared by Bill Bullen, CEO of Utilita, who told City A.M. last month the price cap was the “biggest single risk to supplier profitability”.

However, Octopus Energy boss Greg Jackson, which is home to nearly 5m customers, told City A.M. in June that a social tariff –which Octopus does not support –would fail to be a viable substitute to the price cap.

“We really cannot afford to see the world return to when bloated companies passed on massively swollen costs to bamboozled customers, it’s just not right,” he said.

working her notice period to ensure a smooth transition. It is also incorrect that Harvey Nichols is owned by Dickson Concepts which is a listed company in Hong Kong.” Malhotra joined the firm 25 years ago as a newly qualified accountant, quickly rising the ranks to become group finance director in 2010. She was promoted to the role of cochief operating officer in 2018, and with joint responsibility for leading the business before she was promoted to CEO in January 2020.

Blingy results see Pandora raise guidance

LAURA MCGUIRE

PANDORA has raised its full year revenue guidance following a strong performance in the second quarter of this year.

The Danish jewellery maker, best known for its charm bracelets, said it expects organic sales growth for the year to be in the range of two to five per cent, up from a range of a contraction of two per cent to growth of three per cent.

CHALLENGER suppliers collapsed under the weight of higher wholesale costs during the energy crisis, and will suffer more from capital requirements for long-term hedging than incumbent energy firms with larger revenue streams and bigger customer bases. The debate over the price cap is part of a wider struggle over the future state of the energy market, with Ofgem seeking to strike a balance between financial discipline and allowing for new entrants. The Big Six now have a 90 per cent market share after 30 suppliers collapsed – this will only grow when one of the big players

THE BOTTOM LINE

eventually buys Shell’s retail arm –raising concerns over a closed shop.

Questions over the price cap are legitimate: Ofgem CEO Jonathan Brearley rightly pointed out the cap was intended to stop long-term customers being ripped off by suppliers hoping to lure in new business with ultra-cheap bills. Instead, it has now become a new minimum price for customers –which is expected to remain near £2,000 per year over winter, nearly double pre crisis levels.

NICHOLAS EARL

The updated forecast followed the group’s second quarter results, where it reported revenue of DKK 5.89bn (£6.8m) – a five per cent increase on the same period last year. However operating profit declined to DKK 1.18bn, down from DKK 1.24bn for the same quarter last year. But Pandora said this was expected due to planned investments.

In its UK market, where it has 241 stores, revenue growth during the quarter remained unchanged sitting at DKK 656m. Demand in Germany proved strongest with revenues rising 11 per cent.

In Asia, Pandora said it was making its first steps to re-launch the brand in China following three years of lockdown disruption.

“We will continue to push ahead with our strategic initiatives for the second half of 2023 and beyond, including the expansion of our assortment in diamonds and the ongoing roll-out of our new store concept,” CEO Alexander Lacik said.

NEWS BROKE this week that buyout giant CVC Capital Partners has revived its shelved listing plans and is lining up a blockbuster float on Amsterdam’s Euronext bourse.

While CVC has declined to publicly comment on the reports, City A.M. understands it is indeed dusting off its plans for a float, but no formal decisions have been made.

The Six Nations and PG Tips owner, fresh off the back of a record-breaking and downturn-defying €26bn (£22.3bn) fundraise, shelved its float plans last year

among wild volatility that largely shuttered the IPO market globally.

While Amsterdam has long been the intended destination and fits as a home for the firm, given the euro denomina-

tion of its funds and its EU HQ in Luxembourg, the revival triggers questions over whether London could tempt in the IPO of a similar buyout behemoth.

London’s public markets are not known for their public private equity pedigree. FTSE 100 member 3i has proved a hit with investors but CVC rival Bridgepoint, which floated in 2021 in the first London private equity IPO since 1994, has faced a torrid time.

Bridgepoint shares are trading at a 62 per cent discount to their IPO price.

Analysts say Bridgepoint’s performance is a sign London might struggle to attract

another major private equity float –and point to why it would never really have been considered a serious option by CVC.

“If you look at the share price performance of other listed PE firms [listed in New York] over the same horizon, they are not down by this much,” Pitchbook’s Nicolas Moura said.

“If I were in CVC’s shoes [I’d consider] more regulation, more transparency,

and higher costs to list in London,” he City A.M.

EY reported global IPOs plunged 36 per cent in the first half of the year, and investors are still skittish on the private equity industry amid a period of rising rates and stillsubdued deals.

Susannah Streeter of Hargreaves Lansdown said the recent travails of Bridgepoint would be a nail in the coffin to any faint and flickering hope that CVC would consider the capital.

The price cap, intended to protect consumers, contributed to 30 suppliers collapsing

The retail emporium, founded in the 1800s, is owned by Sir Dickson Poon

ANALYSIS

London calling: Would CVC consider a listing in the Big Smoke?

Fintech banks triumph to top customer ratings

CHARLIE CONCHIE

BRITAIN’s digital lenders have steamed ahead of their high street rivals on customer satisfaction this year, with Monzo and Starling topping the rankings and Virgin and HSBC languishing in last place.

In its official ranking of banking account satisfaction yesterday, the Competition and Markets Authority (CMA) found that challenger fintech banks had ranked at the top in provision of both retail and current accounts. Monzo and Starling Bank came out in first and second place respectively in both retail and business account provision. First Direct was rated as the third best personal current account provider while Handelsbanken was rated in third for business accounts.

The ranking cast a stark light on the performance of the UK’s incumbent lenders who have lagged well behind

their uppity fintech peers on innovation.

Virgin Money, Royal Bank of Scotland and TSB were judged to be the worst three current account providers, while HSBC UK, the Co-operative Bank and Virgin Money came in as the lacklustre trio at the bottom of the business ranks.

Adam Land, the CMA’s senior director of business and financial analysis, said the rankings were especially important during a cost of living crunch.

“How banks treat their customers can make an enormous difference to their daily lives, particularly when people and small businesses are feeling the pinch,” he added.

The CMA’s banking ranking is rolled out annually as part of the Retail Banking Order designed to boost competition in the UK’s retail banking space. Personal and small business current account holders are asked how likely they would be to recommend their provider to a friend, relative or other business.

AND SHAMED: CMA CALLS OUT BANKING STRAGGLERS

Natwest and Co-op get slap on the wrist

CHARLIE CONCHIE

NATWEST and the Co-Operative Bank have been given a slap on the wrist by the competition watchdog after potentially misleading customers over the quality of service they were receiving.

In letters to the two banks yesterday, the Competition and Markets Authority (CMA) said Natwest and Co-Op Bank had both breached part three of the Retail Banking Order, which requires lenders to fully inform customers how their services and current accounts stack up against rivals.

Regulators ushered in the rules in 2017 in a bid to boost competition and standards in banking, with lenders required to prominently display posters in branch and publish notes on their websites.

However, both Natwest and Co-Op Bank have been found to have failed to properly do so, the CMA said. Both lenders had taken steps to remedy the issues and no formal action was required, the CMA added.

Natwest and Co-Op Bank were contacted for comment.

Torrent of interest rate hikes rain on private equity’s dealmaking parade

CHARLIE CONCHIE

PRIVATE equity dealmaking has cooled in the first six months of the year as rapid interest rate hikes and unsettled markets rained on the parade of a predicted deal frenzy, new figures have revealed.

The number of private equity deals in the UK fell to 689 from 909 last year, with just 327 deals worth £32bn done in the smaller mid-market, where transactions were expected to recover more sharply, according to

the latest deal tracker from KPMG.

The figures show a slower than expected six months after a wave of deals had been predicted following a torrid year.

Rising interest rates in the UK have ramped up the cost of debt and made big takeovers harder to finance, while volatile markets have posed pricing challenges to prospective suitors.

“While there were high hopes of a return to stability as we entered 2023, it soon became clear that rising inflation and interest rates, together

Watchdog looks to crack down on ‘finfluencers’

JESS JONES

YOUNG people are increasingly turning to social media for investment ideas even as the Financial Conduct Authority (FCA) looks to crack down on the field of finance influencers –or ‘finfluencers’.

Over a fifth of investors aged between 18 and 34 are taking investment advice such as stock tips and market forecasts from Instagram gurus and influencers, according to a new Opinium survey of 2,000 people commissioned by Hargreaves Lansdown.

Other social media forms are also popular with young investors, with 16 per cent browsing Facebook for ideas, 14 per cent sourcing inspiration from Reddit and eight per cent scrolling through Tiktok for guidance.

These figures are up since September 2021, when only 17 per cent of this age group said they consulted social media for investment advice.

Emma Wall, head of investment analysis and research at Hargreaves Lansdown, said: “While engagement with investing should be applauded at any age, taking tips from unregulated or unverified sources, such as social media, should be done with caution.”

Responding to the study, an FCA

spokesperson said that although social media has helped firms communicate with consumers more effectively, the regulator wants to “ensure that consumers can access high quality marketing information that enables them to make informed financial decisions”.

“We are updating our social media guidance to firms to clarify what we expect when marketing financial products online,” the spokesperson said.

Just last month, the FCA said it was set to roll out new social media guidance to “modernise the information firms should use when promoting financial products or services online”.

The social media clampdown aims to target ‘finfluencers’ and firms flogging crypto schemes and financial products online with misleading adverts.

“Among the guidance is a reminder that some of these promotions can actually constitute a criminal offence,” said Sarah Coles, head of personal finance at Hargreaves Lansdown.

Finfluencers are a growing cohort.

Last August, it was estimated that finfluencers saw an average of eight per cent annual growth in followers in 2021 – double the growth rate of all other influencers – according to a report from Performance Marketing World.

with geopolitical uncertainty, continued to erode confidence and impact deal volumes,” said Alex Hartley, head of private equity within corporate finance at KPMG UK.

Listed firms in the UK had widely been predicted to be at risk of a flurry of takeover swoops as buyers took advantage of low prices in the UK.

While dealmaking has slumped dramatically from a blockbuster year in 2021, Hartley added that the number of private equity deals was still on a par with pre-Covid levels.

FCA warns on ‘overly optimistic’ mortgagors

AUGUST GRAHAM

ONE IN 10 interest-only mortgage holders might be “overly optimistic” about paying off their debt when the time comes, the City watchdog has suggested.

The Financial Conduct Authority (FCA) urged those with interest-only mortgages to discuss options with their banks.

People with those loans pay only the interest on their loan every month, rather than paying the interest and also paying down their

loan. However, by the time the period comes to an end they need to pay off the loan.

It means that their monthly payments are smaller, but as a whole the mortgage will be more expensive as they pay interest on the full amount they borrowed for the full term of the mortgage.

Research commissioned by the FCA showed that 82 per cent of borrowers were confident that they could repay what is left on their loan at the end of the mortgage term.

“However, the research suggests

this may be overly optimistic – while 36 per cent of borrowers expected some shortfall, modelling suggests this could be closer to 46 per cent,” the FCA said yesterday.

“Borrowers without a repayment plan are encouraged to speak to their lender to discuss their options,” it added.

Data crunched by the FCA showed that there were 774,000 purely interest-only mortgages at the end of June last year. This is around half the number that existed in 2015, the FCA said.

FCA looks to update banking rules around ‘politically exposed persons’

ANNA WISE

BRITISH politicians are to be asked to reveal whether they have encountered problems or faced being “debanked”, as part of an inquiry by the UK’s financial watchdog.

The Financial Conduct Authority (FCA) said it is looking into the rules surrounding politically exposed

persons (PEPs), which includes MPs.

The regime was thrust into the spotlight after former UKIP leader Nigel Farage revealed Coutts, which is owned by Natwest Group, had moved to shut down his bank account.

FCA guidance stipulates financial firms should treat accounts of PEPs with extra due diligence. But the watchdog is now looking into whether

PA

banks apply the rules too rigorously. As part of its review, the FCA has sent a letter to British MPs.

An FCA spokesperson said: “We are reviewing how financial services firms have applied the politically exposed persons regime and whether any changes are needed for UK PEPs.

The FCA is expected to publish the full terms of its review in September.

The FCA said that holders of interest-only mortgages may be overly optimistic about their ability to repay their loans

Coutt’s debanking of Farage saw Natwest chief Alison Rose forced to step down

Data from KPMG shows the expected dealmaking frenzy has failed to materialise

Liberty Global inks €1.5bn deal to scale up entertainment platform

JESS JONES

INTERNATIONAL telecoms firm Liberty Global (LG) has struck a €1.5bn (£1.3bn) deal to outsource its Horizon entertainment platform to Indian IT consultancy Infosys.

The two corporate giants are poised to collaborate over a five-year period, with Infosys helping Liberty Global expand its Horizon entertainment platform, a TV and video streaming service used by over 10m.

The collaboration will license

Horizon to Infosys, while allowing it to keep control over the intellectual property for the Horizon platform and save it more than €100m every year.

In addition to helping the company save cash, Liberty Global boss Mike Fries said the partnership will also reach more markets and improve the customer experience.

Through the partnership, Liberty Global aims to make its entertainment “even more powerful and engaging as new generations of digital-first customers continue to

Netflix slides into the cloud gaming market

JESS JONES

NETFLIX has this week made its first major move into the cloud gaming industry, with the streaming giant beginning the rollout of new games to subscribers in the UK and Canada.

Cloud gaming – sometimes known as gaming on demand or game streaming – allows users to play video games remotely using just a wifi connection. It removes the need for expensive hardware, as the game processing is done via a super computer elsewhere.

“Netflix Games is more than a trial –it’s on track to become a major games platform,” wrote a report published in February by leading media research firm Enders Analysis.

Gareth Sutcliffe, senior games analyst at Enders, explained to City A.M. that Netflix’s foray into game streaming is “a natural progression for them”.

“They need to address the TV audience and they intend to do that without requiring an expensive console which is an enormous barrier to entry for many.”

The streamer is rolling out two games to a “small number” of subscribers in the UK and Canada, according to an announcement made on Monday by Mike

Verdu, a vice president at Netflix.

As of yesterday, users can play the games on televisions, using their phone as a controller, with the games running on PCs and Macs soon.

“This limited beta is meant to test our game streaming technology and controller, and to improve the member experience over time,” said Verdu. Sutcliffe pointed out cloud gaming relies on a strong network connection and Netflix “will have to work more closely with all providers in the value chain to avoid latency, buffering and deliver the best games experience at scale”.

With Microsoft’s potential acquisition of Activision Blizzard driving the gaming sector towards subscription services, Netflix is in a great position to leverage the subscribers it already has and attract external game developers.

Although Microsoft is looking to gobble up gaming giant Activision Blizzard, it has to get past the UK’s competition watchdog first who worry the acquisition could give Microsoft an unfair advantage in cloud gaming.

The rapidly growing cloud gaming sector is forecast to be worth up to $13.6bn (£10.7bn) globally.

demand more”.

The two companies are no strangers, having worked together since February 2020. Since then, Infosys has developed and supported Horizon, transitioning it to a cloud-based platform.

Salil Parekh, chief executive and managing director of Infosys, said it is a “new chapter” for Infosys and Liberty Global.

If the companies choose to extend the deal for another three years, it could be worth up to €2.3bn.

All eyes on

ITM

as green tech under spotlight

NICHOLAS EARL

ITM POWER will finally unveil its results tomorrow, with the troubled hydrogen specialist having delayed the announcement amid growing expectations of plunging revenues and swelling losses.

The London-listed company told investors last month that its auditors Grant Thornton needed more time to look at the company’s books, with shareholders still awaiting a trading update to April this year – following a series of profit warnings over the past 12 months.

Its share price has suffered from the uncertainty, plummeting from 402p per share last October to a nadir of just 67p per share last month – a more than 80 per cent slide in its share price. The group has suffered a series of steep drops in tandem with successively gloomy announcements,

Based in Sheffield, ITM Power specialises in making electrolysers, devices which use electricity to split, a fundamental part of green hydrogen generation.

The government is targeting 10GW of hydrogen generation by the end of the decade and the company hoped to ride the wave of demand but has struggled to scale its business.

It is far from alone in new tech groups reporting troubles this year –with AMTE Power, the homegrown battery cell maker, scrambling for cash to avoid administration.

Gambling giant 888 slips to loss despite William Hill revenue boost

JESS JONES

BETTING giant 888 yesterday thanked its acquisition of William Hill for helping to more than double the group’s revenues.

The firm said in the six months ended 30 June, group revenue flew up 165 per cent, with adjusted earnings before interest, tax, depreciation and

amortisation up 211 per cent thanks to its purchase of the world’s biggest bookmaker, William Hill.

However, despite the boost, the bookie slipped to a £32.5m loss –compared to a £12m profit in the first half of 2022. The firm blamed higher interest costs and “certain one-off costs” from the acquisition.

The firm also reported a nine per

cent slip in revenues in its UK division, due in part to tighter betting regulations introduced in April in the government’s gambling white paper.

888 bought William Hill last July for £2bn, taking on its 1,400 betting shops and online gaming brands in addition to a hefty amount of debt to finance the deal, causing investors to fret.

Shares closed up 0.36 per cent.

IT giant Infosys will help Liberty Global expand its streaming platform Horizon

THE BRASS MENAGERIE A collection of British sculptures to go up for auction

SILKE LOHMANN prepares a collection of animal sculptures during a photo call in West Sussex for Summers Place Auction’s sale of an exceptional private collection of contemporary British sculpture set to take place on 26 September

THE NOTE BOOK

Economic news, jobs, jobs and more jobs.

WAKING up yesterday, the big news is from the US as former president Donald Trump was charged with intentionally interfering with the US election result in 2020.

Grim news indeed but the more immediate and important story for us over here was the release of economic data which shows UK wages in the last quarter grew at their fastest pace in over two decades. Surely good news?

Not necessarily.

Senior economists suggested it almost certainly means the Bank of England will raise interest rates again. And factor in the latest ONS employment figures –unemployment is up, people out of work because of ill health continues to be a huge problem, and the number of job vacancies fell for the 13th consecutive period – it’s fair to say the British economy is not out of the woods yet.

It’s one of the reasons I have

NOT EVERYONE IS MR BURNS

joined the team at a new charity called the Jobs Foundation. After almost three years working as an adviser at the Department for Education, arguing with the Treasury to invest more money in children and families, I decided to leave government and argue for Treasury to do more for the business community. The Jobs Foundation was set up to help tackle poverty in the UK. But, somewhat uniquely, we believe that businesses are the heart of the solution. Businesses create the vast majority of jobs in Britain, and a job can be the difference for someone really struggling. Time and again during my career in government and the wider policy world, you would come across disadvantaged people in disadvantaged communities that had good schools, a strong local NHS offer and council initiatives to tackle gangs and anti-social behaviour but no good local jobs locally.

It’s worth noting that we can be culturally quite down on businesses and businesspeople. We asked ourselves the other day, how often the ‘villain’ in a film is a suited-and-booted business type. The answer is more often than you realise –Lexcorp in Superman, Skynet in the Terminator, Erin Brockovich takes on superpolluter PG&E, You’ve Got Mail is actually the story of a big corporation taking over an independent bookstore, and of course the Simpsons, where the pantomime villain is Mr Burns.

ARE BUSINESS PEOPLE REALLY VILLAINS?

We’ve been doing some research at the Jobs Foundation on the perception of business in Britain. Frustratingly it’s not a straightforward picture. The British public react positively to words like ‘entrepreneur’ or ‘small

Airlines object to Italy’s ‘illegal’ flight price cap

GUY TAYLOR

EUROPEAN airlines have called on the European Commission to intervene in a feud with Italian Prime Minister Georgia Meloni, over proposals to cap air fares on certain routes.

Last week, Meloni’s populist government announced plans to cap the price of tickets between the mainland and Sardinia and Sicily during peak periods at 200 per cent of the average annual price.

In a letter seen by the Financial Times, trade body Airlines for Europe (A4E) said that Brussels must “clarify with Italy that this intervention impacts the free and deregulated air transport market in Europe”.

A4E’s managing director Ourania Georgoutsakou said airlines were “strongly concerned” that should the law be adopted, “it could set a precedent and lead to a domino effect resulting in similar regulations being adopted in other EU member states”.

The changes, he argued, would “violate” the right of airlines “to compete wherever possible, set prices and define services as they see fit”.

Major European carriers have strongly objected to the proposals, with A4E representing the likes of Easyjet and Ryanair.

Ryanair’s CEO Eddie Wilson slammed the decision to “unlawfully interfere on

WHAT I’VE BEEN DOING

business’, but less positively towards ‘CEOs’, ‘shareholders’, and ‘corporates’. Most won’t find that surprising, but its concerning when you consider that one in five people in Britain think all businesses are ‘greedy’ and one in six think businesses ‘don’t care about people like me’. I do not want to mention the two C’s – the CBI or Coutts – but businesses in Britain need to think

about how they project their social and economic purpose. Because whatever they are doing now, it is not working. Of course my answer is simple, stick to your core purpose – providing great products and services, at affordable prices, and creating jobs in the process. Human society has benefitted hugely from businesses that create incredible products and services that genuinely change our lives.

I have two small children under the age of three so it’s been a while since I have been blessed with time to read or watch what I want when I want. But I would recommend reading US economist Noah Smith’s Substack (Noahpinion) or listening to his podcast (Econ 102). I did enjoy Paul Johnson’s book Follow the Money (although I accept a non-fiction about fiscal policy is an acquired taste), and the wife and I loved Blue Lights on BBC iPlayer. The kids are in to PAW Patrol at the moment, so I watch a lot of that too.

how airlines set prices for airfares”, arguing it would “reduce capacity, halt route development, take winter connectivity away and will raise prices for all passengers flying from the Islands to the Italian mainland”.

The Dublin-based carrier claims the plans are “illegal” under current European Union law and could cause future air fare hikes as a result of a reduction in the number of flights.

Wizz Air, which is not a member of A4E, confirmed to City A.M. that they had also raised concerns with the European Commission yesterday.

“Our strong view is that the proposed plan is contrary to the principle of pricing freedom, which is entrenched in EU law,” a spokesperson said.

“Ultimately, we don’t believe that the decree will achieve what the Italian government intends – which is the reduction of high fares.”

Amid booming post-pandemic demand this year, the sector has faced criticism over rising ticket prices. Industry body IATA said it expects fares to keep rising for the next 10 to 15 years/

The European Commission was contacted for comment.

It came just days after a proposed windfall tax on banks’ bumper profits sent shares in a host of European lenders plummeting, in a separate row between the Italian premier and the business world.

The rundown: Donald Trump’s Georgia indictment

Former US president Donald Trump has been indicted for the fourth time on charges relating to his attempts to overturn the result of the 2020 election in the state of Georgia. Trump now faces a total of 91 charges across four criminal cases. He denies all the charges in each of the four cases.

But here’s everything you need to know about the latest charges.

WHAT HAPPENED IN GEORGIA?

Following the US election result in November 2020, which saw Joe Biden win the presidency, Trump refused to concede.

In January 2021, in a telephone call to Republican Brad Raffensperger, Georgia’s top

election official, Trump asked him to overturn the state’s result.

WHAT ARE THE CHARGES?

Trump and 18 others are accused of an expansive list of charges in the Superior Court indictment document, including racketeering and conspiracy charges.

The charge list also includes forgery, filing

false documents, witness intimidation and perjury.

WHAT ABOUT THE 2024 RACE?

The US constitution does not bar anyone from running for or holding office if they are accused of or convicted of a crime. It will be up to the Republican Party whether they select Trump as their candidate.

According to poll results out on Monday, prior to the latest indictment, the majority of Republicans want to see Trump selected to the party’s nomination.

However, as the charges are at state level, even if Trump is elected president, he will be unable to overturn the convictions.

Today, Patrick Spencer, former government advisor and director of the Jobs Foundation, takes the pen

HOW TO KEEP THE UK’S FLEET SPINNING

IT’s easy to think of wind turbines as an energy source of the future. But the basic technology has been around for more than a century: the first was hoisted in 1887 by a pioneering Scottish engineer wanting to light up his holiday home.

Some of those installed rather more recently, however, are approaching the end of their shelf life. More than 500 turbines installed in the 1990s will soon be spun out. And what happens then?

OLD WIND TURBINES PRESENT EARLY CHALLENGES

Some, naturally, are pulled down. Just under 150 turbines have been decommissioned since the start of the last decade. Up to 90 per cent of a wind turbine can be recycled –including valuable materials such as steel, copper and iron.

But the number decommissioned is growing; 26 have been torn down this year alone.

And with a de facto ban on new onshore wind –England managed to bring only two wind turbines online last year, fewer than in war-torn Ukraine –the focus is now on finding ways to give existing turbines new life, not least with challenging green energy production targets hovering over the industry.

It represents a huge investment opportunity and nascent business, with blade recycling now common across the sector, alongside a thriving global market for second-hand wind turbines, espe-

cially in Europe, Asia and Latin America – with some of the first turbines installed in the UK now enjoying a second, if less efficient, life generating in Eastern Europe.

PLAYERS CIRCLE ONSHORE WIND OPPORTUNITIES

One player to benefit from this is energy specialist Full Circle Wind, which uses drones and pulleys to maintain wind

turbines across the UK from tip replacements to full-scale blade removals. Like a car, a well-maintained turbine will run for longer.

Billy Stevenson, chief executive of Full Circle Wind, told City A.M. wind turbines remain a highly regulated industry, with stable returns meaning investors opt to keep their wind turbines running with renovations –milking an investment long ago paid off.

Another option is ‘repowering’ onshore wind projects – replacing turbines with more modern and more powerful models such as at Hagshaw Hill.

Zoisa North-Bond, chief executive of Octopus Energy Generation, told City A.M. it had identified up to 1,000 onshore wind turbines that could benefit from repowering.

“It’s essential we deliver more cheap green energy to customers and repowering presents a great opportunity to do this, especially because it still remains difficult to build new onshore wind

from scratch,” she said.

“It therefore makes sense to explore putting more technologically advanced and powerful machines in place of old ones, to bring cheap green energy to more people and meet this growing movement for onshore wind.”

INDUSTRY URGES FOR GOVERNMENT SUPPORT

Energy wonks are keen on government support to breathe new life into old kit. “Maintaining our current fleet of onshore wind in the UK is almost as important as building new wind farms. Repowering wind farms at the end of their life is crucial and provides the opportunity in some sites to use modern, more powerful, and ultimately better turbines to increase the electricity output, often with fewer turbines than before,” said James Robottom, head of onshore at Renewables UK. Onshore wind’s future, then, may lean quite heavily on its past.

Vauxhall warns UK is ‘well behind’ on electric vehicle charger rollout

GUY TAYLOR

THE UK government is facing renewed pressure to resolve ongoing delays in the rollout of electric vehicle (EV) charging infrastructure after Vauxhall warned most local authorities have yet to install any public chargers.

The carmaker’s findings show out of 414 councils across the UK, 69 per cent

of local authorities have yet to install any public chargers.

Moreover, only 14,188 new charge points are planned for installation this year, a figure that falls “well behind” the run rate required to hit the government’s target of 300,000 by the end of 2030, Vauxhall warned.

Managing director James Taylor said accessibility to charge points for UK

households would be “critical in the transition to EV ownership”.

The government is facing significant pressure to rethink the 2030 petrol and diesel car ban, amid concerns over the UK’s lagging electric transition. A Department for Transport spokesperson said the number of public chargers had risen “by 38 per cent over the last year”.

Experts have warned an absence of chargers is putting drivers off buying electric cars

England brought only two wind turbines online last year, fewer than in Ukraine

With more turbines being torn down, Nicholas Earl asks what can be done to sustain numbers

CITY DASHBOARD

YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

LONDON REPORT BEST OF THE BROKERS

FTSE 100: High wage growth fuels further interest rate hike fears

LONDON’s FTSE 100 ended yesterday in the red, as record-breaking wage growth fuelled speculation of a 15th straight Bank of England rate hike.

The capital’s blue-chip index was down 1.63 per cent by close of play to 7,384.94, weighed down by Phoenix, down 3.56, alongside HSBC and Glencore.

Investment firm Legal and General also dragged down the index, closing down three per cent despite beating profit expectations.

AJ Bell analysts warned that while the firm “may be on track from its own perspective”, the material drop in assets under management had caused the disquiet.

Meanwhile the FTSE 250 index, which is more aligned with the UK domestic market, also nudged down half a per cent to close at 18,659.75.

London was weighed down by fresh

figures released by the Office for National statistics yesterday, with higherthan-expected wage growth increasing expectations of further bank rates.

Inflation figures out today will also be closely watched by the market, with the rate expected to drop again.

Grocery price inflation data out yesterday recorded its second sharpest fall since 2008, down 2.2 percentage points to 12.7 per cent for the four weeks to 6 August.

“Alarm bells are ringing on UK inflation once more as the latest figures from the Office for National Statistics show record wage growth,” AJ Bell analyst Russ Mould said.

“This builds pressure on the Bank of England and has prompted an increase in sterling and gilt yields, as well as a big fall in UK stocks, as it suggests inflation is becoming increasingly entrenched in the economy.

Peel Hunt analysts have rated 888 Holdings a ‘buy’ after the gambling giant reduced its debt by £68m. It also hit £66m in cash synergies and is expecting the full £150m in 2024, a year ahead of schedule. “No noise from the nursery,” said analysts, “it is slightly disconcerting that 888 has managed an announcement without any shocks, but we will take it at face value and are reassured that leverage is descending from nosebleed territory”.

RATE HIKES ON THE CARDS

Analysts at Peel Hunt have rated Just Group a ‘buy’ after it saw strong results in the first half of the year, with underlying profits rising 151 per cent to £173m. New business sales showed momentum and more than doubled to £1.9bn, six per cent ahead of estimates. “We remain positive,” said analysts, adding that they see longterm value in the company.

“There hasn’t been much to cheer about with yesterday’s UK economic data pointing to the idea that interest rates may well have to stay higher for longer, as well as go even higher from where they are now.”

MICHAEL HEWSON, CMC MARKETS

Powerful real-time thought leadership, insights and news delivery mechanism fuelling the most up-to date reporting, adding critical context for decisions that require consciousness, education and thought leadership.

OPINION

EDITED BY SASCHA O’SULLIVAN

Biden’s $370bn green subsides are only a threat if we continue ignoring them

Gideon Salutin

IT HAS been a year since Joe Biden signed the Inflation Reduction Act (IRA), and still British policy hasn’t caught up. The act poured hundreds of billions of US dollars into clean energy, manufacturing, transport, and other net zero industries, mostly in the form of tax credits for corporations willing to invest in American businesses.

Early on, this ignited panic among British policymakers who predicted businesses would flee to the U.S. As Trade Secretary Kemi Badenoch said: “The EU is very worried…Japan is worried. South Korea is worried. Switzerland is worried.”

Most of these fears proved premature, as each of these foreign actors developed their own incentives in key sectors. These include new funding pots, more efficient regulations, and renegotiated trade strategies that maximise mutual potential. This allowed countries around the world to mitigate differences between the US and themselves while spurring new investment in industries needed to avoid a climate breakdown.

But in the year since, panic among British policymakers has given way to a conspicuous silence. Funding has stagnated, trade deals are minimal, and regulations related to our net zero targets are now under threat as politicians claim they are incompatible with eco-

nomic growth.

The experiences of global countries point in the opposite direction. Rather than a threat, the IRA is an opportunity for British businesses to increase their output, attract private investment, and develop high quality jobs.

New funding commitments, outlined in a new Social Market Foundation briefing, have generated high returns for participating countries. We don’t yet know the full cost of the IRA, but with a ten year estimate at US $391bn, the U.S. treasury likely spent approximately US $40bn over the first twelve months. In that time, the American Clean Power Association estimates $270bn has been invested in clean energy by utilities and private power pro-

ducers – an amount equivalent to the last eight years’ worth of private investments in the sector. Half (49 per cent) comes from corporations headquartered outside the U.S. Public expenditure may represent a net cost for the Treasury, but it appears to be a net benefit for the wider economy.

The EU, Canada, Japan, South Korea, Australia, and New Zealand are following suit, establishing public funds for strategic industries which last approximately ten years, and come either in the form of subsidies or tax credits. These policies have seen or are projected to see similar success, stimulating private investments worth four to ten times the public expense. Subsidies generally cost between 1.7 per cent and

3.5 per cent of each country’s annual GDP, meaning the UK would need to budget at least £54bn to match their average commitment. Although the Exchequer often claims money for new projects is unavailable, public expenditure on strategic industries is clearly paying dividends where it’s been tried. There are also cheaper methods the government has at its disposal to encourage growth in strategic sectors. When asked to identify the greatest challenge to decarbonising their industry, 37 per cent of British businesses select political uncertainty, second only to funding at 40 per cent. But rather than an obstacle, regulations can be used as an efficient and cost-effective tool to reassure investors.

House prices will eventually start to fall, as long as owners accept their new reality

ECONOMIC news has had few moments of optimism lately: living standards are being squeezed and the overall level of economic activity, as measured by GDP, remains lower than it was in the second half of 2019.

Yet house prices are holding up well. In the year to May 2023 average house prices are estimated to have risen by 1.9 per cent, and fresh data for June from the Land Registry, out today, is expected to reflect this.

The apparent puzzle – rising house prices in a period of economic stagnation – is readily resolved once we factor in inflation. Taking this into account, prices are down by around 8 per cent. This fall in real house prices, to use the jargon phrase, is exactly what has happened in previous economic slowdowns.

Between the first quarter of 1975 and the second quarter of 1977, actual house prices rose. But inflation was so high there was a fall in real terms of 19 per cent. In the next recession, from

Paul Ormerod

the end of 1979 into early 1982, the reduction in real house prices was 17 per cent.

The most dramatic fall was 1990-92, which was modest in terms of the reduction in GDP. But real house prices collapsed by 31 per cent. The final example is of course the financial crisis of the late 2000s, when there was a 20 per cent fall.

By the standards of these four previous episodes, the current reduction is of course modest. A plausible reason could be that we are not currently experiencing a recession. Output may be more or less flatlining, but it has not actually fallen.

But information at ground level suggests we're in for further substantial falls. A Royal Institution of Chartered Surveyors poll of estate agents and surveyors shows that the number of sales taking place is down sharply. In July a net 44 per cent said sales had fallen. This is in fact a pretty dramatic figure; the same as it was in April 2020 when the country was under its most restrictive lockdown and uncertainty about Covid-19 was pervasive.

It is not just that there is a lack of interest from buyers. Fewer people are putting their homes up for sale. Again, this is exactly what happened in previous periods of house price reductions. People continue to think that their own property has preserved its value, so even if they put the house on the market, they are reluctant to accept lower offers. And most buyers will not come in unless prices are reduced - especially as higher interest rates means the eventual cost is much higher.

As a result, fewer and fewer sales take

place, and the market dries up. It takes time, but sellers do eventually realise what is going on. They reduce their prices and the market gets going again to clear the backlog, but at considerably lower prices.

Your private view is that your house is worth a certain amount. The market, which gives the public information, says it is not. The longer the market contradicts it, the more likely you are to switch beliefs; once a few people in your area give in and start selling at lower prices, it creates a chain reaction.

We see a similar sort of process at work in stock markets. Cascades develop in which the players suddenly reassess the weights they place on public versus private opinion.

They are inherently difficult to predict. But both the state of the economy and the condition of the housing market suggest that there is still a long way to go for house prices.

£ Paul Ormerod is an author and economist at Volterra Partners LLP

The EU has introduced certain domestic content requirements and benchmarks in key sectors to help industries plan their investments in the long term. At the same time, it is introducing fast track options for projects in strategic industries to approve applications within 18 months. In some cases this means introducing a streamlined system with the goal of “one project, one assessment” to save businesses from the bureaucratic maze which can impede investment.

Finally, new trade deals are increasing partnerships around the world. After initially being barred from American EV tax credits, Canadian and Mexican auto-manufacturers agreed a deal that would permit their goods the full benefit. This secured American supply chains and will likely generate high returns for the American economy as these factories will require cathodes, anodes, and other battery components manufactured in the U.S. Similar thinking encouraged further eligibility extensions to include Australia, Japan, South Korea, and other allies. With the benefits clear, it’s time Britain’s policymakers look to our closest regional neighbours for trade deals that boost mutual growth and encourage investment in British industries.

We have a range of options available to improve the business climate by providing the money, regulations, and trade opportunities that can maximise British potential. But by doing nothing, the government is encouraging businesses to invest in foreign countries where they see more secure and attractive investments.

UNDER

£ Gideon Salutin is a researcher at the Social Market Foundation

Joe Biden introduced the landmark Inflation Reduction Act last year

WHATEVER GOES UP, MUST NOT GO DOWN

German Foreign minister Annalena Boerbock has abandoned a trip to Australia after the 23year-old Airbus she was travelling in was forced to land in Abu Dhabi with technical failures.

Baerbock said it is ‘more than annoying’

LETTERS TO THE EDITOR

Murder on the dance floor

[Re: Clubbers scaling back makes for a ‘challenging’ year ahead, July 26]

It is unsurprising that nightclubs are having a tough time. Our population is getting older and in lots of towns and cities we simply haven’t got enough younger people to sustain big nightclubs for the whole week.

Older consumers are responsible for half of all high street spending and leisure is one of the big growth areas for this group of the population.

Grasping the opportunity doesn’t (necessarily) mean night clubs for older people. The demand for live music driven by Beyonce, Taylor Swift, Queen, Elton John and Paul McCartney shows that people of all ages want a nighttime economy that works for them. To deliver the potential of the

nighttime economy, we need to move from the assumption that only 18 year olds want to go out into towns and cities after 5pm. For younger and older people we also need public transport that continues late into the night and we need toilets that don’t close at 4pm.

David Sinclair

[Re: We were never going to have a great British bonfire of the tax system after Brexit, yesterday]

Tim Sarson May have forgotten there used to be no VAT on high value purchases by tourists so there was never any reason for Sunak to remove it. All the government needed to do was nothing. By fiddling with VAT we have damaged our retail sector and the economy. Sarson’s account of policy since 2016 is a report of Remainer and Rejoiner stupidity and not a comment on what Brexit could have given us.

Andrew Smith

AMERICANS FLOCK TO RICHMOND US tourists go on Ted Lasso pilgrimage

India remains an untapped source of wealth for future UK trade and tech prosperity

Constantin Cotzias

INDIA is developing into a global economic powerhouse and it can only be in the UK’s best interests to continue strengthening the political, economic and cultural ties that date back centuries. As London continually works to protect its status as a leading technology capital, with our financial services sector, deep talent pool and investment in innovation, technology can be the centre of a budding relationship.

The government’s 2030 roadmap for India - UK relations - a practical plan to strengthen our bilateral relationshipis the right vehicle to ensure that we continue to share advances being made, whether that be in manufacturing, pharmaceutical, fintech, or emerging and green technologies.

EXPLAINER-IN-BRIEF: PARENTS TO BE PENALISED FOR KIDS’ TIKTOK CHALLENGES

It’s the call you dread to receive: your kids have been in a stunt that has gone wrong. But now parents won’t just be fearing for their children’s safety, but the long arm of the law as well.

According to Donna Jones, the new chairwoman of the Association of Police and Crime Commissioners, parents could be fined if their offspring take part in social media crazes that cause damage either to themselves or to property.

Last week, a “flash mob”,

believed to have been organised via TikTok, on Oxford Street led to the mass looting of JD Sports by hundreds of young Londoners.

Another, even more sinister fad, involved TikTok influencers encouraging people to see how long they can wind up in hospital if they overdose on paracetamol.

Jones told BBC Radio 4’s Today programme that it is up to parents to intervene and steer them away from acts she saw as a symptom of “societal breakdown”.

Prime Minister Rishi Sunak clearly recognises the opportunities for future investments, and it was encouraging to see him invite a host of India’s most prominent business leaders into Downing Street earlier this summer to mark India Global Forum’s UK-India Week.

Ever closer relations with India is a no-brainer for the UK and the City of London - but the challenge remains how to take it to the next level. I’ve had the pleasure of meeting with a number of Indian business and government leaders in recent months – both in London and in India – and the sense of opportunity is palpable.

A central pillar of the 2030 roadmap will be around financial cooperation, and specifically securing a free trade agreement, which if negotiated, would hugely boost our current trading relationship - already worth an estimated £34bn.

There are clear economic benefits which can be seen through bilateral

trade with India that registered £11.3bn in services and £13.15bn in goods during 2021-2022. These existing ties also support over half a million jobs and a record number of Indianowned companies that do business in London and the UK.

Not only will a closer relationship help boost foreign direct investment, but it will also enable city investors to allocate more capital to India’s growing stock market. In 2021-2022, the UK became India’s sixth largest inward investor accounting for 5.3 per cent of foreign direct investment while India was the second largest foreign direct investor for the UK after the US. Over the past five years, India’s two largest stock market indexes, the Nifty 50 and BSE Sensex, have grown, with the Nifty 50 up around 70 per cent and the BSE Sensex up 76 per cent.

There are also huge technological opportunities. India has a thriving startup ecosystem - the third largest in the world, and like the UK, it is already carving out its own path in developing frontier technologies like AI. London can capitalise on this by using its status as a technology powerhouse to attract the brightest Indian companies and talent interested in exploiting advancements, whether that be in medi-

cine, space or information technology.

The UK’s AI Safety Summit in autumn - the first major global event of its kind on AI - will be an opportune moment to work closely with our Indian counterparts to ensure we can unlock the global growth opportunities that come with artificial intelligence, while at the same time ensuring it is used safely and responsibly.

Cementing UK-India ties matters from an environmental perspective too. As the UK charts its path to netzero, we must continue working hand in glove with our partners around the world, including India - the world’s third largest emitter of CO2 - to help bring down emissions. Here, cross-government, public-private collaborations to mobilise private capital - things like the India Chapter of the Climate Finance Leadership Initiative - will be key to driving down emissions. With a trade deal on the horizon, and as attention turns to the G20 in Delhi this autumn, the Prime Minister is right to be ramping up relations with India. If we get it right, and realise the 2030 vision, London and the UK will be able to reap the benefits.

£ Constantin Cotzias is European Director of Bloomberg

Ever closer relations with India are a no-brainer for the UK and the City of London

Rishi Sunak with his Indian counterpart Narendra Modi

The hugely popular TV series Ted Lasso has undoubtedly been a boon for Apple TV, but it has also helped boost tourism to the area, according to the local visitor centre. To make it more quaint, Americans flocking to the Ted Lasso pub even refer to Richmond as a ‘town’ rather than a London borough.

THE BEST TRAVEL CAMERA EVER

umph. The files just pop, zing and sing with the precision of a close harmony quartet. The colours are precise yet natural and come as close to perfection as any digital camera I’ve used. Frankly, this kind of image quality would once have only been the stuff of cheese dreams.

How I agonised as I ummed and ahhed over how to say this. Worrying whether to pull my punches, or give it to you straight? But enough of this torture. Let’s just cut to the chase. This camera is a masterpiece. Come on, a Leica with autofocus! You’ve got to get breathless. Believe me, there was once a time when I would have considered such wizardry heresy, but that was before I got my hands on the new Leica Q3. Since my love affair with Leica is now an open secret, I was ready to be impressed. Admittedly, I was unprepared for just how mind bogglingly impressive it would turn out to be.

While this is my first encounter with an autofocus Leica, the Q series project began in 2015 with the introduction of the eponymous Leica Q. The idea was simple; they would create a compact camera that would combine extraordinary full-frame image quality with an instinctive control system.

The core of this system would be Leica’s utterly mind blowing fixed Summilux 28mm f/1.7 ASPH lens. In my opinion, this is one of their finest lenses to date. Leica improved this winning combination in 2019, with the introduction of the Leica Q2 with improved usability, a higher resolution sensor, and weather sealing.

Leica has now returned the third incarnation of the Q series, the logically named Leica Q3.

Leica has taken note of everything it learnt in the creation of those previous iterations and simply built back better. What first impresses me with the Q3 is the way it feels so natural in the hand;

balanced and poised, ready to capture the action.

Its second virtue is more difficult to quantify, for in some ways it’s intangible. Its indulgent luxury invokes a certain je ne sais quoi that emanates within, rather like a well-fitted bespoke suit that can make you seem ten

feet taller, a boost to one’s confidence comes from simply knowing you look a million dollars. The Leica Q3 has that secret sauce in ladles. And whilst that may not make you a better photographer, it will make you want to be one. Intangibles aside, the build quality of the German-made body is simply sub-

lime, and ergonomically speaking it’s a home run. The camera incorporates Leica’s new back-illuminated CMOS sensor with Triple-Resolution-Technology, providing users with three resolution options: 60, 36, or 18 megapixels, all utilising the full sensor width. Suffice it to say; the new sensor is a tri-

The user interface is child’s play, minimalist yet both intuitive and easy to fathom, and aside from the Shutterspeed dial, all achieved using just a few buttons and a toggle (directional pad). Although I tended to use that same toggle to precisely place the autofocus cross, improvements to the autofocus system include a hybrid system with phase detection for precise focus and fast object tracking. The Q3’s intelligent subject recognition detects human bodies, faces, and eyes, as well as animals for subject tracking.

Large and clear, the new 5.76 MP OLED electronic viewfinder provides a superb user experience, while the 3-inch highresolution touchscreen on the rear of the camera is equally excellent; super sharp and precise. It even tilts! Now you can use it to frame and shoot those tricky shots; lovely for low-angle images. I must also point out that the Q3 will also shoot video; not being a massive shooter of video in the day job, I’ve not really touched on these capabilities. Still, rest assured it will shoot 8K video, should you so desire.

Having said so many nice things, the time has come to bring out the blunderbuss and shoot myself in the foot.

The Leica Q3 may be a brilliant creation; but, boy is it expensive; eye-wateringly so. If you can afford one, good luck to you. But perhaps I should also underline this once more - while it is an amazing, fixed lens, it is a fixed lens camera.

All things considered – and believe me, I’ve considered them – this is probably the best travel camera ever made. What’s more, were I ever lucky enough to own one, I’m sure that its combination of peerless Summilux 28mm lens and unrivalled autofocus would make the Leica Q3 the best tool for street photography there has ever been, too.

£ £5,300, leica-camera.com

REVIEW: THIS IS THE NUMBER ONE iPHONE GAME OF 2023

Laya’s Horizon sees you take to the skies in a zen-like adventure that’s the ideal escape from a busy commute

LAYA’S HORIZON

iOS, ANDROID

(VIA

NETFLIX GAMES)

hhhhh | BY STEVE DINNEEN

Some games demand exacting care and utmost concentration.

Let your mind wander when you’re playing Elden Ring or Hollow Knight or Overwatch and you’re likely to receive a message telling you you’ve been killed in some horrible way.

Other games benefit from a disconnect between the player and the game, inducing a “flow state” in which your conscious mind takes a back seat and your primitive lizard brain takes the reins, a sensation not unlike meditation.

Few games have nailed this quite like 2015’s Alto’s Adventure and its sequel Alto’s Odyssey; in these mobile-first titles (they were available on other platforms but designed with an iPhone in mind) you controlled a snowboarder on an endlessly scrolling 2D adventure, tearing down mountains, grinding on strings of bunting and bouncing off balloons.

Now developer Snowman has taken this idea into the third dimension with the quasi open-world Laya’s Horizon, in which you play a wing-suited woman gliding from a mountaintop across a beautiful and diverse island.

You control her by moving your thumbs to adjust her arms, tilting left or right, pulling up or entering a joyous

nosedive. Gravity means your journeys inevitably lead downwards, past cellshaded mining towns and canyons and fishing villages. Each run lasts a matter of minutes, at which point your momentum wanes and you parachute to the ground (or crash into a cliff). Exploring the skies of this surprisingly large place is both relaxing and thrilling, tapping into the same satisfying momentum as Alto’s Adventure but introducing limitless choice over your direction of travel. As you mooch about you’ll meet islanders who challenge you to beat them in races or follow them through a series of rings or chase some local wildlife, and a stream of mini-challenges (“fly close to the ground for 200m”, for instance) will reward you with new capes with special abilities or trinkets that give you a minor boost. But Laya’s Horizon is really all about the zen-like sensation of soaring through clear blue skies, making it the perfect antidote to a morning commute.

Leica is known for making incredibly desirable, incredibly expensive cameras.

The Q3 is both of those, and much more, says Andy Blackmore

Main: The stunning Leica Q3 Above: Shots taken on the camera by reviewer (and City A.M. picture editor) Andy Blackmore

COCKTAILS IN THE CITY: LONDON’S BIG CELEBRATION OF BOOZE IS BACK AGAIN!

Words by Adam Bloodworth

Raise a glass, or five: Cocktails in the City returns this week, which is your chance to drink unusual and high quality mixes from some of the best bars in London, all outdoors in Bedford Square Gardens.

There’s a festival-like atmosphere as bar tenders and mixologists set up stands in the Square. Some of the drinks are classics they sell at their bars, while others are made up especially for the festival. So you could end up trying the next big thing.

Cocktails in the City say the event is “celebrating London’s global reputation as a leading cocktail destination and the people that make it such an exciting place to be”. So how does it work? “Guests can enjoy world-class drinks from some of the city’s most renowned, internationally recognised establishments. Visitors can participate in workshops, tasting sessions and games supported with award-winning street food and music to deliver a delectable festival of drinks.”

Tickets cost £22 and that includes a welcome cocktail. Like Taste of London, guests are invited to an afternoon or an evening session, and drinks are bought individually from

the traders. Each trader has a nonalcoholic option, and this month some of the London bars appearing include Bourne & Hollingsworth, 0° Sky Bar, 8 at The Londoner, Alma Bar London, Baccarat Bar, Black Parrot and TT Liquor.

Tickets are available for Thursday between 5-10pm, Friday from 4-10pm, and Saturday from 12-4pm and 510pm.

Learn about the latest cocktail making trends, flavours and approaches, then cast your vote for your favourite, as well as your top bar; awards are given out each month the event runs throughout summer (Cocktails in the City returns again in September).

To whet your appetite, we asked some of the participants to give us a

WORKING LUNCH: THE TAMIL PRINCE

The Tamil Prince is the sort of London boozer-cum-restaurant that’s so achingly cool it could do with being taken down a peg or two. It’s a shame I can’t be the one to do that.

If you’ve been to The Marksman, another hipster pub-turned-restaurant, you’ll know the vibe The Tamil Prince is going for. If you haven’t, book both immediately.

The South Indian menu is served in the innards of a former pub where Britney Spears blares from the speakers, a f*** you to the idea that lauded restau-

rants need to take themselves seriously. (If Clare Smyth can play The Ramones from her thrice-Michelinstarred dining room then I don’t see why Britney can’t work in Islington.)

The tea, here gets that we’re all busy and has devised a menu that allows you to relax rather than have to do any thinking, God forbid.

The menu has been updated for the first time since opening in June 2022 and everything still sings. In the open kitchen chefs throw ingredients around with the suggestion that they could do this from their deepest sleep.

preview of what they will be serving.

CAFE PACIFICO

Cocktail: One In A Melon

Ingredients : Lanique, Gin, Nectarine liqueur, aperitivo, prosecco, lemon sorbet, homemade citrus mist Tasting notes: Watermelon and blanco tequila combined with fresh fruits and mint, perfect for a summer cocktail festival.

What they say: Carlos Londono of Cafe Pacifico: “We broke the record for cocktails served at the CitC Series in July and our twist on the watermelon margarita is always really popular. This time guests will also receive an additional complementary pipette of Vivir Reposado they can add to the drink, or simply enjoy it straight up.”

BACCARAT BAR

Cocktail: Well baked highball

Ingredients: The Singleton of Glendullan 12 Year Old, fresh cherry soda, yoghurt whey, salted cherry ferment, plum kernel distillate Tasting notes: A delicate combination of full-bodied sweetness with the refreshing swigability of a highball

What they say: Michal Maziarz: “We were happy to win best cocktail in September 2022 and to be returning this August. The style of our drinks offers familiar tasting notes but a lot of complexity resulting from the way that we prepare a lot of our homemade ingredients. At the event guests will be able to enjoy their drinks in our crystal glassware, which really adds to the sense of occasion.”

BOURNE & HOLLINGSWORTH

Cocktail: A Rose a Day

Ingredients: Lanique, Gin, Nectarine liqueur, aperitivo, prosecco, lemon sorbet

Tasting notes: A delightful, fruity, floral twist on sgroppino

What they say: Richard Lopes from Bourne & Hollingsworth: “We wanted to create the perfect summer garden party cocktail with a refreshing citrus sorbet, lengthened with bubbles and a balance of floral and fruit notes coming from the lanique and nectarine with a very light bitter note to finish it all off from the aperitivo. A lot of guests enjoyed our oyster and cocktail sessions in July and we are looking forward to bringing them back this month.”

From the small plates, the new masala dosa is a fragile, neat little folded pancake filled with comfortingly spiced potato and served with an array of chutneys. My expert analysis?

It has a brilliant crunch to goo ratio.

The king prawn and curry leaf varuval is spicier, punchier, and comes with enormous, meaty prawns. It’s big enough that it could be a main, but that’s kind of the point: you mix and match as you go.

Of the new large plates, my Indian friend points to the vegetable moilee as the most authentic. It is a simple, creamy coconut stew and is great spread on the springy charred roti. It’s also a signifier of Tamil Prince’s significant vegetarian and vegan range. The lamb chops remain and are what everyone’s writing home about. Cooked robata style over hot charcoal, the lamb is marinated for 18 hours; exquisite.

The Tamil Prince manages to be that rare thing in London restaurants: fun. There are even espresso martinis pepped up with Indian ingredients. What more could you want?

If swigging lovely cocktails in the sun is your jam, you’re in the right place. Here’s everything you need to know.

This Islington gastropub is about as cool as it gets, says Adam Bloodworth

SPORT

Lionesses eye historic victory over Australia

Women’s World Cup final today.

The Matildas recorded a surprise 2-0 win over the European Champions in London four months ago and it remains the only defeat of Wiegman’s 37-game England reign.

But she believes that match – and further study of Australia at this tournament – have left them well equipped to upset the co-hosts in Sydney this morning.

“That game gave us a lot of information so we learnt from that. It is good to have that experience and take that with us tomorrow,” said Wiegman. “We have analysed Australia during the tournament so we are very well prepared for what they want to do. We are ready for it.”

Australia have never reached this far at a Women’s World Cup, while this is England’s third consecutive semi-final appearance at the quadrennial event.

But the Matildas have already beaten Olympic champions Canada and heavyweights France and can rely on fullthroated backing at the 81,000-capacity Stadium Australia.

“I don’t think they are the underdog. They are playing at home, the stadium will be really full,” added Wiegman.

“There are two teams that are very strong and have grown into the tournament, so I think it is going to be

brink of World Cup glory in 2019 and won the last two European Championships, with the Dutch in 2017 and the Lionesses last summer.

“It’s special to go so far in the tournament but when you are there, you really want to go to the final,” she said. “I feel privileged that we got this far and I really want to take the next step too.”

Australian media have attempted to draw on a long-standing enmity with England that runs deep in some sports, but Wiegman insists her team “don’t feel that rivalry that much”.

“There is a lot of rivalry in rugby and cricket – we just know it’s going to be a very competitive game. Lots of players from Australia also play in the Women’s Super League, so they know each other really well. Of course they want to beat us and we want to beat them.”

Chief among Australia’s threats will be striker Sam Kerr, who has terrorised English defences in three free-scoring and trophy-laden years at Chelsea.

“Of course she’s a threat. She’s a very good player. There’s lot of respect. But there is more than Sam Kerr, because at the end it is always a team performance,” said Wiegman.

“Australia is not just Sam Kerr. Yes, we have a plan if she starts. She can play and she can start on the bench, so that’s the situation.”

England survive scare as Farrell gets shock red card reprieve

FRANK DALLERES

ENGLAND have received a major boost ahead of the Rugby World Cup after captain Owen Farrell avoided a potential multi-match ban for a high tackle.

Farrell was sent off in Saturday’s win over Wales for a challenge on Taine Basham and was summoned to appear at a disciplinary hearing yesterday morning.

But the committee cleared the Saracens fly-half of wrongdoing after it was ruled that Jamie George’s contact with Basham made it harder for Farrell to adjust his body position. A “late change in

WHERE TO WATCH THIS MORNING’S WORLD CUP SEMI

REDWOOD

The London Bridge sports bar based next to The Shard has indoor and outdoor screens across two floors to watch the Lionesses’ semi-final clash with Australia.

WINDSOR FENCHURCH

Fenchurch Street haunt Windsor has long been a favoured spot for those in need of a midday pint. They too will be showing the football this morning on their screens.

BEECHWOOD

A short walk from Shoreditch High Street Station, Beechwood offers a sports bar feel throughout the day. Booking is recommended here but there’s plenty of space to stand.

RIALTO CASINO

Fancy something different? Take a trip into central London and head to The Rialto Casino and Backstage Bar in Leicester Square. There are allocated seating booths in front of a huge sports screen and even Black Jack tables to mess around with at half-time.

FLYING HORSE

A traditional boozer in the Square Mile, the Flying Horse is perfect for a lunchtime pint and some footie. The Matildas and England clash at 11am, when the Flying Horse opens this morning, so you’ll need to make sure you’re in position outside as doors open.

CYCLING

GB cycling golden era doc slapped with four-year ban

dynamics” due to England hooker George “brought about a sudden and significant change in direction from the ball carrier”, the committee said.

It means Farrell is free to play in England’s Rugby World Cup opener against Argentina on 9 September as well as their remaining warm-up matches, this weekend against Ireland and then against Fiji.

The overturning of Farrell’s red card will also raise questions about rugby union’s new “bunker” system in which players shown yellows are removed, as he was, while TMOs rule on whether the offence is worth upgrading.

FORMER British Cycling and Team Sky doctor Richard Freeman has been banned for four years for breaching anti-doping rules.

He was found to have been in possession of a banned substance and for lying to UK anti-doping authorities.

The former British Cycling doctor was struck off in 2021 and Freeman becomes the first staff member to be banned from an era of cycling in the United Kingdom which saw the team showered in gold medals and victories.

The doping violations concern 30 Testogel sachets sent to British Cycling’s headquarters in 2011. Freeman

said in 2017 that he’d ordered the sachets for a non-riding member of staff.

“This case sends a strong message to all athlete support personnel that the rules apply equally to them, just as they do to athletes, and that they have a clear responsibility to uphold the values of integrity in sport,” Jane Rumble, UK anti-doping chief executive, said after the hearing.

“We have stated previously that Richard Freeman’s conduct during his employment by British Cycling bore no resemblance to the high ethical and professional standards which we, our members and our partners rightly expect,” a statement from British Cycling chairman Frank Slevin read.

RUGBY UNION

MATT HARDY

Could Man City be subject of state aid probe?

FOOTBALL is accustomed to firebrand Spanish chief Javier Tebas taking shots at Paris Saint-Germain but his latest challenge to the French champions may have piqued additional interest in Premier League boardrooms.

Tebas’s LaLiga on Saturday announced it had complained to the European Commission that PSG received state funding from Qatar which distorted the European market.

PSG are not the only club Tebas has denounced, however. Abu Dhabibacked Manchester City have found themselves in his crosshairs, while Newcastle United’s ownership by Saudi Arabia’s Public Investment Fund puts them in the same bracket. So could they be next to be investigated?

WHAT IS LALIGA’S

COMPLAINT?

They claim that the Qatar-owned

club’s signing of stars such as Kylian Mbappe, Lionel Messi and Neymar has been funded by what are in effect state subsidies from the Gulf state, such as inflated sponsorship deals with other Qatari entities. PSG chiefs have consistently denied this and accused Tebas of waging a campaign against them.

WHAT DOES THIS HAVE TO DO WITH CITY AND NEWCASTLE?

The funding of English champions City, owned by Abu Dhabi’s Sheikh Mansour and sponsored by the emirate’s Etihad Airways, has also been regularly decried by Tebas. Competition lawyer Alexander Rose, a partner at DWF, said UK clubs could be the sub-

ject of similar complaints to the EU as PSG. Newcastle, majority owned by PIF and now sponsored by Saudi company Sela, could also attract scrutiny.

WHY IS THIS HAPPENING NOW?

It is down to the introduction of the new EU Foreign Subsidies Regulation, which means the EC is no longer restricted to probing state aid that originates from within the EU. “This new EU law provides a legal basis for football clubs in Europe that are concerned about the state financing of rivals to complain to the EC,” said Rose. “As a result, there’s likely to be lots of complaints and the EC will need to be clear about the situations when it will

and won’t intervene.”

ANY PRECEDENTS?

The EC has previously shown a willingness to tackle state aid in football, most notably when Barcelona and Real Madrid were among four Spanish clubs ordered to pay millions of euros in extra tax in 2021 after a long-running legal dispute. Indeed, that has led to claims of hypocrisy from Tebas.

SO ARE CITY LIKELY

TO FACE ACTION?

Firstly, City would be expected

to robustly defend themselves, as they have against existing charges from the Premier League and previously from Uefa. Newcastle, whose spending has increased under Saudi ownership but drawn less criticism, would likely do likewise.

The bigger picture, legal sources say, is that moves such as LaLiga’s are typically designed to engineer regulatory changes. Club owners from the US and Europe in particular are thought to be keen to tighten financial regulation, and any complaints about state aid should probably be viewed in that light.

SONS following in their father’s footsteps in rugby is nothing new. Owen Farrell and his dad Andy are both in the sport. Then there are Michael Lynagh’s sons Louis and Tom. And now we have the Brackens.

Dad Kyran collected 51 caps for England between 1993 and 2003 and won the World Cup 20 years ago in Australia. His three sons – Charlie (Saracens and England U20s), Jack (Saracens and England U18s) and youngest Lachlan – all play rugby, though Jack is the only non scrum-half out of the trio.

We’ve seen Samoa’s Pisi siblings and the All Black Barrett brothers previously named in the same international 23, so why not three Bracken brothers?

ROLE MODELS

“I play rugby because I love it and I don’t think I’ll actually stop loving it,” middle child Jack, 17, tells City A.M.

“I don’t think I don’t feel the pressure, I am just doing everything I can to make myself the best player possible and if I get any opportunities then I'll make the most of them.

“I see my brother [Charlie] as a bit of a role model so to play in the same team would be pretty cool.

“I’ve also got a younger brother, he’s a few years younger than me, so if we get the whole three going that’d be pretty cool

“My dad obviously has a massive influence on me and my brothers off the pitch and I think for [him and my mum] to see us where we are now is all really exciting.”

Jack is currently on tour with England U18s in South Africa, where they beat France 41-0 last week and toppled Western Province 76-15 yesterday.

The senior men’s team have been strug-

BRACK TO THE FUTURE

volved as much as I can.”

to settle.

The U18s, though, look to be a side of flair and attacking vigour unseen anywhere else in the English pathway. But that’s intentional.

“Both France and South Africa have big boys,” Bracken adds. “I don’t mind the physical side of it, I quite enjoy it actually. I wouldn’t say that’s what makes me stand out and it’s

after a few games we might be able to get a bit more in depth on how they play. But also keeping to our roots, keep playing with speed regardless, as quick as we can with a ball in hand, and in defence get the ball back as quick as possible. We will stick to that.

MAKING A NAME

“There is the desire to make a name for myself but also to take all of the learning from my brother and my dad who both played No9. I’ve learned a lot from them, playing No9 growing up has really helped me to become better but obviously it is a very different game at 15. I am still learning.

“I think my best attribute is my speed so maybe similar to Henry’s [Arundell]

power and strength – something that I’d love to be like.

“I want to be more of a playmaker as well get my hands on the ball more because obviously a 15 can have quite a lonely game. I want to be getting in-

Bracken speaks like an established club player, and the St Albans and Saracens squad member credits his team for instilling the values that make successful prospects.

“Saracens has been great for me and my brother and my dad, they’ve nurtured us really well,” he added. “I’d say both as athletes and as rugby players but they’ve put me in the best place possible for this tour.”

Jack oozes the character that’s seemingly needed to be successful, and his older brother and father will have undoubtedly had something to do with that. But in a break from the family trademark scrum-half position, Jack has the chance to forge a new trail for the Bracken name. And on current form there’s no reason why that cannot happen.

Jack is like his dad and two brothers, all rugby players, but this Bracken is forging his own path, writes Matt Hardy

I play because I love it. But if me and my brothers all played together, that would be cool

RUGBY UNION

Bracken Sr (left) and Jack (main)

A complaint to the European Commission about PSG has raised the prospect for other clubs, writes Frank Dalleres