Thursday 17 November

JEREMY HUNT will launch a vicious round of tax hikes and spending cuts later today as he vows to “deliver strong public finances”.

The Chancellor and former health secretary last night said “families across Britain make sacrifices every day to live within their means” and that “so too must governments” as he prepared to lay the ground for a second round of austerity.

combination of tax hikes and spending cuts in his fiscal statement to raise up to £60bn and get government borrowing under control.

This is expected to include hikes to council tax, stealth income tax increases and an extension of the windfall tax on energy producers.

It has also been speculated the Chancellor will lift dividends and capital gains tax rates.

Hunt has argued fiscal consolidation

and a series of energy packages drastically increased the UK’s debt pile and September’s mini-budget drove up the government’s borrowing costs.

He is expected to say that a period of belt tightening is also needed to help control inflation.

Hunt’s statement comes against a bleak economic backdrop in which historically high inflation risks tipping the UK into a two year recession, the longest recession on record.

Figures out yesterday revealed prices climbed 11.1 per cent over the last year, the fastest acceleration in 41 years and much higher than the Bank of England’s estimates.

The Office for Budget Responsibility today is likely to signal that anaemic growth will burn a massive hole in the public finances.

Analysts warned the Chancellor risks worsening the country’s economic woes by bombarding it with too many tax hikes and spending cuts.

“There’s a trade-off between announcing immediate tax rises/spending cuts, which would help win back credibility but would also risk amplifying the incoming recession,” James Smith, developed markets economist at ING, told City A.M.

And the National Institute of Economic and Social Research said over tightening could “extend the low growth trap”.

WHEN YOU believe, you should get it All At Once: that seems to be the philosophy for Brookfield Asset Management, which yesterday alongside publisher Primary Wave snapped up Whitney Houston’s back catalogue in a deal believed to

be worth as much as $100m.

The Canadian asset management firm has inked a deal with songwriters Shannon Rubicam and George Merrill for around sixty songs, including a series of iconic Whitney favourites.

It comes after Brookfield agreed a $2bn strategic partnership deal

with Primary Wave Music, the private music publishing and talent management company, in a bid to grow its catalogue.

“The new funding from Brookfield, as well as their assistance on future growth

initiatives and transaction structuring, will strengthen

Primary Wave’s financial positioning as brand manager of legendary and iconic songs,” Primary Wave said in a statement.

The news comes as a number of vehicles continue

to snap up music rights.

Music investment firm Hipgnosis owns hundreds of catalogues, with over 64,000 songs, from the likes of Fleetwood Mac, Neil Young, Shakira and 50 Cent. The firm’s CEO, Merck Mercuriadis, is the former manager to Sir Elton John and Beyoncé.

The FT first reported the deal.

LEAH MONTEBELLO

STANDING UP FOR THE CITY

Jeremy Hunt’s bitter medicine may well do more harm than good

Rules, as they say, are made to be broken. The so-called black hole from which only tax hikes and spending cuts can save us is, of course, created only by Jeremy Hunt’s golden fiscal rule –that the debt to GDP ratio must fall within five years, according to the (existing) Office for Budget Responsibility forecasts. Hunt may be wise to approach these rules more as general outlines than taking them as gospel.

For one thing, our various forecasters have a pretty miserable record of forecasting. The Bank’s failings on inflation are well-documented but the OBR has not covered itself in glory either. Using those projections as tablets of stone –and inflicting

real damage to the economy as a result –is unwise.

The secondary issue is the static nature of British policymaking.

OVER ten million people in fuel poverty could be excluded from support packages for their energy bills, if they are restricted to just people in the benefits and pension systems, according to new research from a cross-party think tank.

The Social Market Foundation calculated 4.5m households spending more than 10 per cent on their income on energy bills will miss out on help if government support is limited to those two groups from April.

With an average of 2.4 people per

household, that equates to 10.8m people.

The SMF described this group as the potential “missing middle” of any future energy bill policies unveiled by the government, It also warned five million people – a significant proportion of them pensioner households – would receive government handouts even though their energy bills will be less than that 10 per cent threshold.

Meanwhile, not everyone who would receive help via the welfare or pensions system is in dire financial

Around 784,000 households – nearly

The famed Treasury scorecard, which Chancellors use in the runup to statements the like of which we’ll see today, has always been lacking in genuine dynamic analysis of changes to tax and spending. One calculation by the think tank CEBR earlier this year reckoned the Treasury’s book analysis of the mini-budget was

off by a cool £20bn, which puts the market reaction –now completely reversed, by the way –in some context. In simple terms, the Treasury is very good at putting a price on things, but not very good at assessing the effect of them on the wider economy. And that wider picture is an ugly one. It is high streets already struggling, wallets looking less than full, and our infrastructure turning into a national joke. It is not clear why, with markets once

again convinced that Britain is unlikely to go full low-taxmujahideen, this is the time for a growth-sapping high-tax, lowspend fiscal policy. The fear inside the City is no longer that Britain might not pay its debts, but that it’ll be stuck in recession for months longer than necessary and find itself with continued low growth in the longer term. The medicine required, then, may not need to be as vicious as the former health secretary thinks.

THE CITY VIEW EUROZONE FACES THREAT TO FINANCIAL STABILITY

two million people – who would get energy bill support with a social security-based package are in the richest tenth of the population.

The SMF analysis was carried out as a joint project with consumer body Citizens Advice and Public First, a policy consultancy.

Amy Norman, senior researcher at the SMF said: “The social security system is a very blunt instrument for delivering energy bill support – it risks missing out millions of households in clear need of help while also handing out money to those who are in less need of financial support.”

THE DAILY TELEGRAPH

The Eurozone is facing multiple threats to its financial stability, the European Central Bank has warned, as a recession approaches and inflation continues to surge across the continent.

THE FINANCIAL TIMES

UK HEALTH SPENDING OVER PAST DECADE LAGS EUROPE BY £40BN A YEAR

The UK has spent around 20 per cent less per person on health each year than similar European countries over the past decade, according to new research.

THE TIMES

LADY HALE SUGGESTS BRITISH JUDGES SHOULD QUIT HONG KONG COURT

British judges will be “asked to enforce unacceptable laws” if they remain in Hong Kong, former president of the Supreme Court Lady Hale has warned.

Bailey says

CONTINUED FROM PAGE ONE

Bank governor Andrew Bailey said yesterday the country had been hit by a “sequence” of shocks –the pandemic and Russia’s invasion of Ukraine –that have made it poorer, further setting the grim climate for Hunt’s statement today.

global standing

for UK to

whether the UK’s finances are heading on a more sustainable path. After the mini-budget, gilt yields fired to a more than 20 year high and the pound reached a record low against the US dollar.

The UK’s reputation on the international stage had been “damaged” by former Prime Minister Liz Truss’ calamitous minibudget in September, Bailey added.

Markets will be scrutinising Hunt’s statement closely to judge

“We are taking a balanced path to stability –tackling the inflation that eats away at a pensioner’s savings and increases the cost of mortgages to families, at the same time supporting the economy to recover,” Hunt will say in his statement later today.

NICHOLAS EARL

will take years

restore

MAKE AMERICA DRAMATIC AGAIN Former President Donald Trump will stand again in 2024, despite a host of legal troubles and questions over role in January 6 Capitol riots

SSE profits soar as windfall tax expansion looms

NICHOLAS EARL AND CHARLIE CONCHIE

ENERGY giant SSE yesterday reported a three-fold bump in its profits for the first six months of trading this year.

This was powered by soaring gas and electricity prices this year, alongside robust performance across its thermal power plants and gas storage businesses.

The FTSE 100-listed power generation specialist unveiled monster pre-tax earnings yesterday of £559m in its halfyear report, up from £174.2m over the same period last year.

This follows a surge in wholesale prices, following Russia’s invasion of Ukraine, which has driven up electricity costs and put the squeeze on household budgets.

Chancellor Jeremy Hunt is widely expected to beef up the windfall tax to cover electricity generators, going further than the revenue limit proposed under the former Truss government.

SSE is one of the largest renewable energy and network operators in the UK.

Group chief Alistair Phillips-Davies said despite “unprecedented volatility” the firm had also doubled down on do-

mestic green investments in line with both the UK’s energy security strategy and its own net zero programme.

He said: “We are investing around £12.5bn in the five years to March 2026, with further opportunities that could take the total to over £25bn this decade in the UK and Ireland alone.

“This direct investment primarily in offshore wind, UK electricity networks and flexible thermal will create the technologies to support long-term energy security.”

SSE also confirmed its adjusted earnings targets of at least 120p remained unchanged.

Despite the strong update, shares were down 1.27 per cent at close of play yesterday on the London Stock Exchange, ahead of the expected tax hike today.

Earlier this month, energy analysts Cornwall Insight argued it would be disproportionate to expand the windfall tax to electricity generators.

It suggested generators had proved more vulnerable to rising interest rates and easing commodity prices than oil and gas operators, and were less internationally diverse.

Chinese-backed Nexperia ordered to sell stake in Newport Wafer Fab

CITY A.M. REPORTER

THE GOVERNMENT has ordered the Chinese-backed firm which owns Britain’s largest semiconductor factory to sell most of its stake in the business on national security grounds .

An order from the business secretary last night means the Dutch company Nexperia, a

subsidiary of Chinese outfit Wingtech, will now need to sell 86 per cent of what was previously called Newport Wafer Fab.

The government said the Chinesebacked firm’s role could lead to “know-how” that could “undermine UK capabilities”.

The move is the latest in a line of interventions by the government regarding Chinese involvement in

the UK economy.

Most notably the UK decided to effectively boot out Huawei from the country’s 5G network.

Semiconductors are an increasingly vital part of the global economy and advocates of the government’s move have long argued that Chinese firms’ involvement in critical technology could leave back-doors in the UK’s defences.

Clifford Chance to leave Canary Wharf for new City headquarters

LOUIS GOSS

CLIFFORD Chance is set to return to the City after striking a deal to leave its Canary Wharf headquarters in 2028, bringing to an end its east London adventure which began in 2003.

The exit to the Docklands, where it took up 700,000 sq ft of space in a 30story tower. saw it become the first major law firm to leave the City.

The firm is now set to slash its floor space in leasing 321,000 sq ft in

property developer GPE’s planned 2 Aldermanbury Square project, which is set to be finished in 2025.

Clifford Chance’s move follows reports of a partner revolt within the firm over its efforts to get staff back into the office, and a review which suggested it could look at downsizing due to the rise of hybrid working amongst the workforce.

A Clifford Chance spokesperson confirmed the new building will be smaller than its current Docklands HQ.

NICK JONES, who founded the New York-listed private members’ club and hotel group Soho House, said he would step away from daily operations having recovered from treatment for prostate cancer. The Brit said the treatment and his recovery “changed my perspective and focus”.

STEPPING DOWN Nick Jones, the founder of Soho House, is stepping down after 27 years

Rate rises hit British Land’s portfolio value

MILLIE TURNER

PROPERTY owner British Land reported a slight fall in the value of its portfolio yesterday as higher interest rates dragged on demand for commerical property.

However the owner of London’s Broadgate and Regent’s Place said that there continued to be a “gravitational pull towards modern, high quality and sustainable space” as underlying profit growth shot up 13 per cent year on year to £136m.

“Higher interest rates have increased property yields, but the impact on valuations was partially cushioned by rental growth,” CEO Simon Carter (right) said in a statement.

The firm said that it expected new, competing developments in London to be put on ice due to “economic un-

certainty” and said that it would likely benefit from higher rates on its remaining space in its London sites.

The last half-year saw renewals to firms including Meta and further leasing at the Regent’s Place life sciences hub.

The property boss remained hopeful for what the next six months has in store for British real estate.

“We go into the second half with a strong leasing pipeline, but mindful of the weaker macro environment in which we are operating,”

On Tuesday, rival Landsec also revealed the wounds that rising interest rates had left, with the company having booked a nearly £200m loss over the past six months.

British Land’s shares fell just more than 2 per cent yesterday on the half-year results.

Government in danger of missing nuclear targets

NICHOLAS EARL

THE GOVERNMENT is in danger of missing pledged targets to ramp up nuclear power and ensure the country’s supply security if it fails to greenlight new projects this month, the boss of a leading industry body has warned.

Tom Greatrex, chief executive of the Nuclear Industry Association (NIA), told MPs at the Welsh Affairs Committee yesterday he expected to see progress made in the

coming weeks.

He said: “Frankly, if we don’t, we are putting in jeopardy the ability to get in anywhere close to the energy security strategy prognosis of 24GW by 2050. I know 2050 sounds a long time away, but it really isn’t if you are looking to develop a secure, reliable decarbonised power supply.”

The government announced plans to more than treble the UK’s nuclear capacity as part of its energy security strategy launched in April, with Boris Johnson pledging eight new reactors

by the end of the decade while committing £700m of state funding in one of his final acts as Prime Minister.

While the energy security strategy remains intact, it is unclear whether the new administration overseen by Prime Minister Rishi Sunak will be equally supportive of the power source – with Downing Street having to deny reports as recently as last week that Sizewell C’s funding could be reduced.

The government did not respond to requests for comment last night.

The Sizewell C nuclear plant is expected to be online by the 2030s and could help the UK switch to zero-carbon power

Hunt confronts Tory backlash in tax hike budget

STEFAN BOSCIA

JEREMY HUNT will have to stare down a potential Tory backbench rebellion as he delivers his tax-hiking fiscal statement today.

The Chancellor has warned that the mixture of spending cuts and tax rises is necessary to restore economic credibility, however they may well dent his own credibility in the Tory party.

There are already rumblings that the right of the parliamentary Tory party will strike out against Hunt and Rishi Sunak if the tax hikes are too onerous.

Almost one third of Conservative MPs voted for Liz Truss’ promises of swingeing tax cuts in the summer.

They are now being asked to get behind tax hikes for all, which Hunt has said will hit the wealthiest hardest.

Former cabinet minister Esther McVey yesterday told the House of Commons she won’t “support any tax

rises unless” HS2 is scrapped.

Truss supporters Simon Clarke and Sir Iain Duncan Smith recently said hiking taxes would choke off growth just as the UK is about to enter a twoyear recession.

The National Institute of Economic and Social Research think tank agrees, calling Hunt’s plans a “low growth trap”.

One Tory backbencher told City A.M. that he thought “the tax hikes will be softer” than expected, which would dull any backlash.

“Tomorrow won’t be ideal, but not doomsday,” he said.

Dissenters in the party are being warned that the party is staring into electoral oblivion and must unite if they are to win the next election.

Sunak came into office promising to fix the “mistakes” made by the Truss administration and to unite the party, after months of Tory psychodramas.

WHAT WE KNOW... AND WHAT WE DON’T

£Income tax will rise for everyone as thresholds are frozen again as part of a stealth tax raid. The 45p rate threshold may also come down.

£Council tax will rise –allowing authorities to hike locally set taxes by five per cent without a referendum.

£Benefits and pension payments will be uprated by inflation, quelling potential Tory rebellions.

£Banks will enjoy a reduction in the bank surcharge from eight to three per cent, in a rare burst of good news.

£Energy support beyond April remains unclear –though whatever replaces the universal price guarantee will have to be less costly.

£Nobody knows which departments will be worst hit by spending cuts –but tens of billions are expected to be on their way. Hunt may look for local government to bear the brunt, just as his friend and confidant George Osborne did during Austerity 1.0.

£High Street businesses are facing an inflation-linked rates hike in April –and many are hoping for a delay or support.

THE BOTTOM LINE

There’s little question that the most challenging political questions that need answering today are going to be flying in at Jeremy Hunt. But his opponents on the Labour benches also have to define themselves –we know they’ll bemoan spending cuts, but will they also slam tax increases?

Keir Starmer et al backed the reversal of the National Insurance tax hike to fund social care –so if Hunt keeps income tax thresholds frozen to do the same thing, will Labour instead call for taxes to fall? It’s still an enviable position for Starmer to be in –leading in the polls, he may think the Tories getting the public finances in order through a tough round of cuts will make his life easier if he wins next time. But the problem with being the presumptive government is that people start treating you like one, and Starmer has never really shaken off the public perception that his political philosophy has a touch of the Groucho Marx about it: these are my principles, and if you don’t like ‘em, I have others. So all eyes on Hunt –but don’t underestimate the work Labour have to do to persuade the public their wallets are safe. AS

Dominic Raab stood in for Rishi Sunak yesterday at Prime Minister’s Questions, as he faced down accusations of being too tough in the office

©UK Parliament/Jessica Taylor

OKX reveals £84m ‘recovery fund’ after rejecting FTX rescue attempt

CHARLIE CONCHIE

CRYPTO exchange OKX yesterday launched a $100m (£84m) ‘market recovery fund’ designed to support ailing crypto firms on the verge of collapse.

The Seychelles-based company –which scandal-hit crypto exchange FTX begged for a bailout last week –said the new fund would be

targeted at “high-quality projects” in the sector that have been hit by sudden liquidity crises.

“Having been in the industry for almost a decade, healthy development for all projects and ecosystems is of utmost importance to OKX. The company will therefore provide resources and integration support to high-quality projects, alongside provision of technical,

liquidity, and other necessary support,” the firm said in a statement.

It marks the latest effort to protect crypto firms as the fallout of the FTX collapse continues to reverberate across the industry.

The biggest crypto bourse Binance announced a similar “industry recovery fund” earlier this week to shield firms from potential collapse.

PLAY BALL Major League Baseball readies takeover of London Stadium in market push

FTX claims $9bn assets as collapse shocks market

rently has a total market cap of $80 after collapsing in value.

FTX FOUNDER Sam Bankman-Fried yesterday claimed that the firm still had $9bn (£7.6bn) in largely illiquid assets as it scrambled to raise cash to pay back creditors following its collapse.

The 30-year-old former billionaire and the firm’s few remaining employees have been ringing round in last ditch efforts to raise cash even as the firm’s new chief, who oversaw the downfall of Enron, takes over the reins.

The FTX founder said the exchange was handling around “$10bn a day of volume and billions of transfers” and he was trying to use assets to raise cash to meet $8bn-worth of liabilities.

He said, with “lots of caveats”, the firm had $5.5bn of “semi” liquid assets and $3.5bn of illiquid, before acknowledging that “maybe that $9bn illiquid” is no longer “worth $9bn”.

The comments suggest that Bankman-Fried is doubling down on claims reported by the Financial Times that FTX’s holdings of Serum – a token controlled by FTX – are worth $2bn, despite the fact the coin cur-

IN BRIEF

CMC MARKETS PROFITS RISE AMID VOLATILITY BUT SHARES PUSHED DOWN

Trading firm CMC Markets yesterday reported a boost in profits as market volatility helped propel income by 21 per cent to £153.5m. The online brokerage, founded by Tory peer Lord Peter Cruddas, said pre-tax profits came in at £36.6m in the first half of the year, in line with analysts’ expectations and up one per cent on last year. Trading levels were boosted in August and September as investors looked to profits from market turmoil globally.

Lord Cruddas said the firm had recorded an “acceleration in activity” across its FX and commodities offering amid wild swings in the market. Despite the uptick in profits, increased investment costs revealed by the firm sent shares down 12.69 per cent.

FTX also holds major illiquid stakes in start-ups like Mysten Labs and Celestia after making splashy bets via its venture capital arm FTX Ventures.

While his efforts to raise cash from rescue investors have so far failed, BankmanFried said he has not given up yet.

“So what can I try to do? Raise liquidity, make customers whole, and restart. Maybe I’ll fail. Maybe I won’t get anything more for customers than what’s already there. I’ve certainly failed before. You all know that now, all too well.”

FTX’s collapse continues to send shockwaves across the crypto industry. Crypto broker Genesis was yesterday the latest firm to reveal it had been caught up in the turmoil as it halted withdrawals from its lending busi-

“FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity,” Genesis said.

Bitcoin prices tumbled again yesterday, reaching lows of $16,408 (£13,840).

BRIDGEPOINT DODGES INFLATIONARY PRESSURE WITH DIVERSE PORTFOLIO

Bridgepoint yesterday said that investment portfolios were trading largely in line with expectations despite current macro volatility. The international alternative asset fund management group said equity portfolios were comprised of mainly high margin, cash generative, growth companies, whilst portfolios had currency hedging covering some 78 per cent of non-Euro exposures. Whilst exits across the market have been more challenging during the second half of the year, Bridgepoint said it remained on track to hit budgeted realisations for 2022. Though Bridgepoint shares had rallied nearly 30 per cent in the last month, shares dropped 8.72 per cent after the update yesterday.

CHARLIE CONCHIE

WEST HAM’s London Stadium looked a little different yesterday, as former baseball star Chase Utley started the countdown to next year’s games between the Chicago Cubs and the St Louis Cardinals. The multibillion-dollar league sees London as a key emerging market.

Business travel is back, but not as we knew it

After the challenges of recent years, business travel continues to bounce back. American Express’ latest research finds that over four in 10 (42%) UK businesses are looking to increase the amount of business travel they undertake over the coming year.1 The research proves that travel and the value of in-person connections go hand-inhand in driving growth, with eight in 10 (82%) businesses saying it plays a key role in increasing revenue. Against the context of a challenging economic landscape, it’s important that business leaders continue to explore the vital opportunities travel presents to boost growth, and to motivate and engage employees. However, the new era of business travel is, as our research highlights, being shaped by many factors.

WELLBEING AND LEISURE TIME IN THE SPOTLIGHT

With travel often involving significant time away from home, unsociable flight times and juggling work around travel plans, over half (55%) of travellers agree that their overall wellbeing suffers when they travel too frequently. But, as a result of advances in technology and changes in working practices fostered during the pandemic, expectations around travelling for work have changed. Business travel is morphing into a blend of business and leisure, one which prioritises people’s wellbeing, offers opportunities for greater cultural experiences and encourages better productivity.

Instead of squeezing in work around the edges, the rise of remote working means it’s now perfectly normal to be at your productive best while on the move. In our research, three quarters (74%) of travellers agree that perks such as flying business class and access to lounges allow them to get more done whilst on trips.

Here, American Express’ refreshed Business Platinum Card is perfect for business owners seeking an elevated experience. The Card provides the largest rewards package within our Business Card portfolio, featuring a suite of tools to improve business efficiency such as AmexExpense, an integrated business expense solution. Alongside this, the Card offers exclusive benefits that support a productive and valuable trip like global airport lounge access and hotel upgrades.

BOOSTING TEAM

COLLABORATION

Building and nurturing face-to-face relationships with customers, suppliers and new prospects is clearly important for driving growth. But it’s important to remember that business travel can also offers more for colleagues and employees. Whilst during the pandemic businesses had no choice but to lean on virtual alternatives to build relationships, the removal of restrictions has allowed teams and colleagues to come together. This enables greater collaboration, creativity and strengthens company culture.

vides, successful business owners are seeking ways to remove the stress and inconvenience that can sometimes be involved when travelling, all while adding a premium twist to the experience, such as airport lounge access, hotel benefits including upgrades and world class customer service.

This is where the refreshed American Express® Business Platinum Card can help. The Card is the perfect travel companion, unlocking a range of valuable benefits that enable entrepreneurs to drive their business forward and enjoy their success. Here’s to more mindful and better business travel, and the many benefits it delivers next year and beyond.

To find out more, search ‘Amex Business Platinum’

£Business Platinum Cardmembers receive a £200 Annual Travel Credit each year when they book through American Express Travel online

£Cardmembers also benefit from the largest rewards package within American Express’ Business Card portfolio, with the ability to earn an additional 10,000 Membership Rewards® points when they spend over £10,000 on their Card, every month – up to an additional 120,000 points per year.

When converted to Avios, this is enough for one off peak Business Class return flight to New York on British Airways.

enhanced loyalty points, Wi-Fi and much more

£Other travel benefits include: Access to more than 1,400 airport lounges globally; comprehensive worldwide travel insurance and the ability to use Membership Rewards points for hotel stays, flights, car hire, dining and more – all of which help and fuel business success.

Annual fees apply. 18+, subject to status. For full terms and conditions of the American Express Business Platinum Card, Basic charge card with no fee, rewards or other features available.

Visit: wwww.americanexpress.com/engb/business/charge-cards/

AMERICAN EXPRESS

BETTER BUSINESS TRAVEL WITH

It’s clear that the way we travel for work is changing. To make the most out of the opportunities business travel pro-

AMERICAN EXPRESS CAN SUPPORT WITH YOUR BUSINESS TRAVEL NEEDS

Here are some of the ways the American Express® Business Platinum Card supports travellers to do business ‘the Platinum way:

This is on top of continuing to earn 1 point for every 1 pound spent. These points give business leaders flexibility to make the most of their rewards in a way that best suits them – from making a dent in monthly expenses to taking a well-earned break abroad

£With our hotel partners you and your Business Platinum Employee Cardmember can receive benefits including complimentary upgrades, early check-in and late check-out,

American Express Services Europe Limited is authorised and regulated by the Financial Conduct Authority.

Business travel is morphing into a blend of business and leisure, one which priorities people’s wellbeing, offering opportunities for greater cutural experiences and encourages better productivity

Zurich Insurance ups financial goals on strong results

ZURICH Insurance yesterday vowed to “build a clear leadership position in the insurance industry” after pledging to pursue more ambitious financial targets over the next three years.

In setting out new goals, the Swiss insurer said it was now aiming to grow its annual earnings per share at a compound rate of eight per cent each year over the period 2023-25.

This is expected to see the insurance giant generate a return on equity in excess of 20 per cent, Zurich said, as it set out plans to pay £13.5bn to shareholders over the next three years.

The insurer said it would aim to

achieve its new financial goals while retaining its current capital position, in aiming for a Swiss Solvency Test ratio of at least 160 per cent.

Zurich’s decision to set out new financial goals came as the insurer said it was on track to exceed the aims it had previously set itself for the period 2023-25.

The Swiss giant’s strong performance comes as rising insurance premiums have benefited the company in driving double-digit revenue growth.

Zurich in August posted a 25 per cent increase in its first-half operating profit, that saw the firm record its second highest business operating profit ever and its highest since 2008.

City of London update

City f irms: become a Living Wage employer

THE City of London Corporation is proud to be a Living Wage employer – something that is more important than ever given the current cost of living pressures.

The Living Wage is calculated based on the real cost of everyday goods and services, and is paid voluntarily by over 11,000 employers across the country.

Delivering a Living Wage and secure, reliable working hours is vital for workers and families, but it also brings huge benefits to businesses and the wider economy.

It’s also key to delivering a high-wage, high-growth economy that is sustainable. If you’re not already signed up, find out more and make the commitment:

livingwage.org.uk

Lights on at Leadenhall Mar ke t

HEAD for Leadenhall Market tonight for a festive sing-a-long with the London Youth Choir South East - followed by the big switch-on and unveiling of the giant real Christmas Tree.

The Christmas Lights Switch On will be performed by the new Lord Mayor Nicholas Lyons as part of the muchloved annual ceremony. This will take place at 6pm, accompanied by firework fountains to kick-start Christmas.

The festivities will continue from 17 November throughout the month of December with a series of Christmas

workshops – from beautiful crafts and wreathmaking with Floral Merchant London to ‘A taste of Leadenhall’ winetasting – with a mix of guest traders and Leadenhall Market’s talented tenants hosting the sessions.

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

Beazley pockets £350m capital boost from directors and investors

MILLIE TURNER

BEAZLEY has raised £350m in a recent share placing, as directors including the CEO build up their stakes in the insurance group.

The placing, organised by JP Morgan and British broker Numis, has seen 9.99 per cent of the company’s share capital sold off to directors and investors.

Buyers took advantage of an around eight per cent discount on Beazley’s share price, bagging shares for 575p a piece instead of the group’s 625p closing price yesterday.

CEO Adrian Cox acquired over 26,000 shares in the capital raise.

Meanwhile, chair of the group’s audit and risk committee John Reizenstein and co-chair Nicola Hodson snapped up around 6,000

collectively.

Just last week, Beazley reported that its premiums rose more than 20 per cent to $3.9bn (£3.3bn) in the nine months to the end of September, as a result of significant growth in all of its divisions.

However, its premium rates on renewal business slowed. Activity increased 17 per cent – lagging slightly behind last year’s levels.

LOUIS GOSS

GETTING THE CARE YOU NEED

Seeking help for your health concern in the right place within the NHS is critical to ensuring you receive the appropriate care at the right time. Practical support and resources are accessible via .nhs.uk to help you find the right first step towards getting the care you need. The online service offers A-Z guides on what to do and when to get help in response to a broad range of symptoms and in-depth information on medicines.

After recognising your symptoms, you can seek the right help for your health concern from three essential services: community pharmacies, GP surgeries and NHS 111 online. Knowing how and when to use these three services will ensure an improved experience seeking help from the right medical professionals. Seek the right care for your health concern as

early as possible, and don't wait for it to worsen.

COMMUNITY PHARMACISTS  ARE THERE FOR YOU

We’ve all been to pharmacies to pick up prescriptions. Still, many don’t know that qualified community pharmacists can offer clinical advice for various minor health concerns.

A community pharmacy is an ideal place to go if you’re feeling under the weather, perhaps with aches and pains or a stomach ache. Reena Barai has been running her family pharmacy in Sutton, South London, for some 18 years, and she is pleased to see the number of people coming to her pharmacy with more minor illness concerns. “Pharmacists are the experts in minor illnesses and recognising what we call ‘red

flags’ or more serious symptoms,” she tells City A.M. “All our team are trained to respond to symptoms, and they all know how to ask the right questions and refer to GP surgeries if necessary.”

But often, a pharmacist can look after a patient presenting with minor symptoms. “We spend a lot of time talking to our patients about self-care because often you don’t need to see a doctor, and you can just look after yourself by doing simple measures at home, such as drinking lots of fluids, resting and taking paracetamol.”

Although many people are reluctant to consult their GP team on a minor problem, consulting your community pharmacy can offer much-needed expert advice and reassurance for minor illnesses, such as “coughs, colds and eye infections,” and even better, "you don't need an appointment"

Reena affirms. Find your nearest pharmacy at:www.nhs.uk/find-a-pharmacy

GET HELP

Your local pharmacist is trained in evaluating symptoms and curating a treatment plan for minor aches and pains. If necessary, they can also help direct you to a variety of healthcare professionals if the ailement you are experiencing is outside of their area of expertise.

GP SURGERIES

Accessing a GP surgery can help you find the right care you require for your health concern. Reception teams are trained to ask a series of questions so they can direct

you to see the right member of their team. Whether that’s a nurse, GP or physio, these trained professionals on reception teams can assess your symptoms and ensure you are directed towards the healthcare professional who is best suited to providing the care and treatment you need.

NHS 111

For urgent but not life-threatening conditions, the NHS 111 online service can offer you practical guidance on what to do next if you are unsure. They will provide the appropriate advice for your particular health concern and, if neces-

sary, direct you towards the care you need from the right medical professional.

The service will ask a series of questions about your health concern to get all the information together and then direct you to the proper care. Depending on the situation, the NHS 111 online service will refer you to a local service that can assist you: connect you to a nurse, pharmacist or GP surgery, tell you how to get any medicine you need, provide self-care advice or, if severe, ask you to head to in-person urgent care such as A&E.

When using NHS 111, remember that it was developed by the same medical professionals you might see if you attend a hospital or GP surgery. In using the service, you may find that you don’t need urgent care and that you’d be better off using a different NHS service. Whatever happens, and whatever

symptoms you’re experiencing, NHS 111 will help you find the right next step towards receiving the proper care for the health issue you are experiencing. The service is also available via a link on the NHS app or NHS 111 online: Go to 111.nhs.uk.

READY TO HELP YOU

The NHS is there to ensure that everybody receives the care that they need and with a plethora of health care options, help is always available . Contacting the NHS as early as possible is the best way to help you to stay healthy and well. So whatever your health concern is, remember the breadth of NHS Services available, from your community pharmacist to GP Surgery, and help us help you get the best possible care.

NHS 111 will help direct you towards the proper care you need

Reena Barai, who runs SG Barai Pharmacy in Sutton board member of the NPA.

Tiktok calms US data concerns and takes swipe at Twitter

LEAH MONTEBELLO

THE CHIEF of Tiktok yesterday said the video-sharing giant was pumping heavy investment into US data security in a bid to allay fears from across the Atlantic.

Speaking at the Bloomberg New Economy Forum in Singapore yesterday, Tiktok boss Shou Zi Chew said the company was working on ‘Project Texas’, which would isolate sensitive data from American users, meaning it would only be accessible by tech staff in the States.

Chew said that the app, which has over a billion users across the world, was working with software firm Oracle to address Washington’s ongoing national security concerns about Tiktok and the data access it gives.

Buzzfeed reported in June that, based on leaked recordings of Tiktok meetings, China-based staff had access to

ANNOUNCEMENTS

confidential US data.

Just this week, FBI director Christopher Wray said the bureau was concerned about the Chinese government’s influence on users’ data.

The top dog said the changes were “extremely difficult and expensive” to build.

This side of the pond, the social media titan, which is owned by Bytedance, told European users last month that their data can be accessed by employees in China.

The social media platform said under the new privacy update staff are allowed to access this data to ensure that the platform is “consistent, enjoyable and safe”.

However, crucially, it means European user data could be accessed from China, Brazil, Canada, Israel, the US and Singapore.

The Information Commissioner’s Office (ICO) recently found that Tiktok

LEGAL AND PUBLIC NOTICES

CITY of LONDON

Hart Street, Mark Lane, Northumberland Alley and Pepys Street – Amendments to the waiting and loading restrictions

The City of London (Waiting and Loading Restriction) (Amendment No. *) Order 202*

The City of London (Parking Places) (Amendment No. *) Order 202*

1. NOTICE IS HEREBY GIVEN that the Common Council of the City of London propose to make the

2. The effect of the Orders would be in:

(a) Hart Street to:-

(1) extend the existing ‘at any time’ waiting restrictions on the north side westward across the junction with New London Street;

(2) introduce ‘at any time’ waiting restrictions on the south side opposite New London Street;

(b) Mark Lane on:-

(1) the west side:-

(A) to introduce ‘at any time’ loading restrictions from opposite London Street to opposite No. 61; and

(B) to extend the existing ‘at any time’ waiting restrictions opposite Nos. 61 to 63;

(2) the east side:-

(A) to introduce ‘at any time’ waiting restrictions on the south side of the junction with London Street;

(B) to introduce ‘at any time’ loading restrictions outside Nos. 61 to 63;

(C) to revoke the four payment parking places outside No. 70 and revert this to ‘no waiting 7am – 7pm Monday to Friday and 7am – 11pm Saturday, any such day not being Christmas Day, Good Friday or a Bank Holiday’.

(c) Northumberland Alley to introduce ‘at any time’ waiting restrictions at the junction with Crutched Friars.

(d) Pepys Street to introduce ‘at any time’ waiting restrictions at the junction with Cooper’s Row.

3. The City of London also gives notice that it proposes to introduce raised entry tables at three

(a) Cooper’s Row and Pepys Street – a raised junction table with a maximum height of 100 mm

(b) Cooper’s Row – an extension to the existing raised entry table at the junction with Crosswall and

(c) Crosswall – a raised entry table at the junction with Crutched Friars with a maximum height metres and a width of 6.3 metres;

(d) Crutched Friars - a raised entry table at the junction with Cooper’s Row and Crosswall with a

(e) Hart Street

(f) Northumberland Alley - a raised entry table at the junction with Crutched Friars with a length of 5 metres and a width of 2.1 metres.

4. Copies of the proposed Orders, of the statement of reasons for proposing to make the Orders and inclusive at the Planning Enquiry Desk, North Wing, Guildhall, London, EC2V 7HH.

5. Further information may be obtained from Policy & Projects, City of London,

6. Persons desiring to object to the proposed measures should send a statement of their objection and

could have processed personal data of children under the age of 13 without parental permission between May 2018 and July 2020.

The findings meant that the Chinese firm could be forced to pay out a fine of £27m after the ICO issued a “notice of intent”.

Despite heavy criticisms of Tiktok, the social media boss seized the opportunity to take a swipe at Twitter.

Discussing the firm’s mass layoffs, Chew said: “The way we are organised is one where we don’t need to lay off half the workforce to achieve the efficiency levels we want to achieve.”

Since taking over the firm in October, new ‘Chief Twit’ Musk has laid off half of the workforce, with more than 3,700 people losing their jobs.

Nonetheless, Chew did tell the Bloomberg forum that it was “a bit too early to tell” when it came to the Tesla founder’s leadership style for Twitter.

Musk defends $56bn pay saying Tesla was his focus

ELON MUSK yesterday appeared in court to defend his $56bn (£48bn) Tesla pay package from 2018, saying the electric carmaker was his sole focus at the time.

“I was entirely focused on the execution of the company,” he told a US tribunal yesterday.

Musk was taken to court by a company shareholder who accused the serial entrepreneur of imposing himself on Tesla’s board to dictate the terms of his pay package, which only required him to work part time.

To that, the billionaire replied: “I pretty much work all the time. I don’t know what a punch clock would achieve.”

The complainant –who is seeking to re-

scind the nine-figure salary –also accused Musk and Tesla of setting easy performance targets, Reuters first reported.

The billionaire’s pay is currently tied to how well Tesla performs, despite calls for his salary to be linked to the company’s environmental, social and governance performance.

Musk’s legal team argued the package –which was bound to Tesla increasing its growth tenfold to $600bn –was developed by independent board members.

The court case comes as Tesla investors have also accused the billionaire of dropping the ball and focusing solely on Twitter’s $44bn takeover.

Taking place following a tug of war between Musk and the plat-

Tech firms may need to share algorithms in plurality push

LEAH MONTEBELLO

OFCOM has suggested that US big tech firms could be forced to share their algorithms in a bid to provide more “media plurality”.

In a report published yesterday, the media regulator found that social media could have a “polarising effect” –finding that people who mainly use social media to access news are more likely to be less tolerant of opposing political views.

Ofcom said that early analysis suggested that new regulations may be needed to address the impact of online gatekeepers, like

Facebook, Tiktok and Youtube.

The body’s recommendations are not expected until 2024.

In an interview with the Financial Times, Ofcom chief executive Dame Melanie Dawes said she was concerned at the division seen on social media, as well as the lack of public scrutiny of algorithms.

The watchdog is eagerly awaiting the arrival of the online safety bill, which has been slowly but surely making its way through parliament. It will potentially give Ofcom the power to whack Silicon Valley giants with hefty fines if they do not comply.

form’s board, Twitter’s chaotic buyout led to mass layoffs, a boom in fake yet verified accounts and advertisers dropping like flies.

Earlier this week, Musk tweeted he would remain in San Francisco until the company was fixed.

However, he said yesterday in court he would eventually pivot away from the social media platform, finding a new boss to run it.

“There’s an initial burst of activity needed post-acquisition to reorganise the company,” Musk said in his testimony. “But then I expect to reduce my time at Twitter.”

As part of the restructuring, Musk reportedly told employees to either stay at the company and work “long hours at high intensity” or take a threemonth severance package.

In the message, reported by the Washington Post, the new chief executive warned staff that anyone who didn’t state their willingness to “be part of the new Twitter” would receive the package. Both Tesla and Twitter were approached for comment.

Tencent

TENCENT has vowed to give its shareholders $20.3bn (£17.1bn) worth of shares in Chinese food delivery firm Meituan as it seeks to reduce its holdings in China’s tech sector.

The Shenzhen firm’s “special dividend” comes as its sales dropped two per cent year-on-year, to £16.6bn, after sales from its advertising business fell five per cent, to £2.6bn.

The Wechat owner’s plans to divest from its 17 per cent stake in Meituan comes as the tech giant seeks to appease Chinese regulators amid a Beijing led crackdown on tech.

ILARIA GRASSO MACOLA

LOUIS GOSS

pledges £17.1bn dividend as revenues drop

Musk’s Twitter deal has also raised eyebrows

Premier Foods lifted by consumers eating at home amid rising inflation

MILLIE TURNER

PREMIER Foods’ revenues have continued to rise despite inflation, as the cost of living crisis pushes consumers towards cheaper brands.

The London-listed food group, which owns Batchelors, Bisto and Lloyd Grossman brands, yesterday revealed it has continued to perform well despite the current UK economic climate.

Group revenue rose more than six per cent to £418.6m in the six

months to the start of October, up from £394.1m in the same period last year. International revenue jumped 11 per cent, which chief executive Alex Whitehouse put down to consumers eating out less.

“The current economic climate is undoubtedly challenging for consumers, and our broad range of affordable brands have always played a key role for families when times are tough,” he said.

“With people starting to eat out less, they often find the best

restaurant in town is at home, where you can make nutritious and tasty meals more affordably. In this environment, our portfolio of brands continues to display strong momentum and are well-placed to deliver further growth.”

Whitehouse added that while the firm continues to see further input cost inflation, it expects to recover through “a combination of cost savings and our annual price increase” in the fourth quarter of this year.

LEAVING THE LAND DOWN UNDER Deliveroo pulls out of Australian market

DELIVEROO yesterday said it would be exiting the Australian market because of the ‘challenging economic conditions’, with fierce competition from Uber Eats. From yesterday, customers were no longer able to order food from the delivery app.

Ambl raises £2m for last minute reservations app

“on the fly” once more.

A PAIR of childhood best friends are hoping to become the Uber or Gorillas of London nights out, after cinching £2.3m in funding.

Tech start-up Ambl, which was founded by Essex entrepreneurs Aaron Solomon and Jed Hackling, helps diners find an eleventh hour reservation.

The app has secured £2.3m in seed capital, with investors including Jon Spiteri of Sessions Arts Club and celebrity chef Marcus Wareing.

The cash injection will see the app launch in 100 restaurants in the City of London, with a wider roll-out to include 1,300 venues across the UK.

Restaurants haemorrhage £17.6bn a year to last minute cancellations and no-shows, while the pandemic has given rise to a pre-booking culture in the UK.

“It has got progressively harder to go to places [at the] last minute and you end up going to the same places all the time,” Hackling said.

Co-founders of the app, which currently employs 13 staff, told City A.M. the app’s vision is to unlock nights out

Ambl enables hungry Londoners to send out a “broadcast” to nearby restaurants, who only have to pay a £1 per head fee if they secure a new booking via the app.

For former City-worker Solomon, the lightbulb moment for the app came amid a panic after being asked by a boss to book a table for six.

It comes as apps like Uber and Getir have focused on “click a button and what you want arrives,” he said, describing what he called “the generation of convenience”.

“The apps working well right now are anything that saves you time,” Solomon said.

Are the pair –who kickstarted their business careers selling ice-creams to classmates at secondary school in Southend –at all daunted by launching an app amid an economic downturn?

With no charges for consumers and a pay-as-you-go charge for venues, the duo remain positive.

In fact, the crunch may deter diners from booking far in advance and putting down deposits. “It’s going to be a feeling thing, but going out is an affordable luxury,” Solomon said.

Estee

LEAH MONTEBELLO

ESTEE Lauder announced late on Tuesday that it would be buying designer fashion house Tom Ford for a whopping $2.8bn (£2.4bn) –making it the luxury cosmetics brand’s biggest acquisition to date.

Under the agreement, founder and CEO of Tom Ford International, Tom Ford, will continue to serve as the brand’s creative visionary, and said he “could not be happier” with the buy-out.

“They have been an extraordinary

partner from the first day of my creation of the company and I am thrilled to see them become the luxury stewards in this next chapter of the Tom Ford brand,” Ford said.

The Tom Ford brand makes luxury fragrance and makeup, whilst Estee Lauder owns brands like Jo Malone and Clinique.

The news comes as the luxury goods firm is expected to get a muchneeded uplift from Chinese shoppers as the country begins to gradually ease some of its tight Covid-19 restrictions.

EXPERIAN PROFITS RISE AS CUSTOMERS LEAN ON CREDIT CHECKS

Experian yesterday reported a rise in underlying profits in the first half of the year as customers lean on credit checks as they turn to borrowing to cope with the rising cost of living.

The London-listed firm, which allows consumers and firms to track their credit data, said total benchmark operating profit came in at $873m for the six months to the end of September, compared with $806m a year ago, as revenues at the firm jumped eight per cent to $3.23bn. CEO Brian Cassin said he expected the operating environment to remain difficult for the period ahead, but retained the group’s expectations for the full year. Investors welcomed the news, with shares closing up around 2.5 per cent.

SAGE ON CLOUD NINE AS IT FLOATS TO TOP OF FTSE

Sage Group shot to the top of the FTSE 100 yesterday as its cloud business bolstered full year results. The London-listed software company posted organic recurring revenue growth of nine per cent to £1.82bn, underpinned by Sage Business Cloud growth of 24 per cent. Northern Europe (UK & Ireland) achieved organic recurring revenue growth of seven per cent to £419m. Its cloud business penetration is now at 90 per cent, up from 86 per cent in the prior year. “While we are mindful of macroeconomic uncertainties, I am confident that our resilient business model together with our strategy for delivering efficient growth... will enable us to create further long-term value for all our stakeholders,” chief exec Steve Hare said. Following the results, shares in Sage closed up over seven per cent and JP Morgan raised its price target on the stock.

Sparkle yet to fade for Beaverbrooks amid ‘catch-up’ wedding rebound

EMILY HAWKINS

A WEDDINGS and engagements “catch-up” post-pandemic has driven momentum for jeweller Beaverbrooks, its top boss told City A.M.

As the Covid-19 lockdowns saw many couples’ plans to get hitched put on hold, the easing of restrictions has seen a boom in engagements, driving

ring sales, Anna Blackburn said.

The pandemic spurred some couples to get engaged on the mentality that “if you can get through Covid together, you can get through anything,” Blackburn said.

Despite rising inflation making things “increasingly difficult” for some shoppers, Blackburn was optimistic that Brits post-pandemic

desire to mark their big life milestones would protect the firm.

Ahead of today’s budget, Blackburn called for a review of business rates to create a “fairer system” between online and brick-and-mortar retailers. She also called on the Chancellor not to hike corporation tax, which could dampen Beaverbrooks’ hopes to “expand and grow”.

EXCLUSIVE EMILY HAWKINS

Tom Ford said that he ‘could not be happier’ with the deal

The jeweller said a post-pandemic boom in engagements had driven ring sales

Lauder snaps up Tom Ford in £2.4bn luxury takeover deal

IN BRIEF

China: Light at the end of the Covid tunnel?

China was ground zero for the Covid19 pandemic three years ago. The complex web of restrictions have choked off growth. Their end has been a long time in coming and eagerly anticipated by the China markets. A shift in the tone of policymakers at the start of November prompted speculation of an easing of restrictions, immediately sending China-related equities higher.

Those rumours were quashed, but then at the end of last week the government issued a 20-point playbook aimed at easing domestic virus mitigation measures and reducing the country’s position of global isolation. Among other things, quarantine has been cut for travellers into China and the local contact tracing regime has been overhauled. Chinese equities listed on the Shanghai (A-share) and Hong Kong (H-share) markets have posted strong gains as a result, also supported by a raft of directives aimed at supporting the country’s beleaguered property sector.

Finally, the issues faced by the US and Europe – including high energy prices, rampant inflation and quantitative tightening – are less acute in China.

For those turning positive on China, there are a number of implementation options.

WHAT ARE THE OPTIONS:

£For A-shares: HSBC MSCI China A UCITS ETF (LSE:HMCA) tracks China A-Shares that are also included in the MSCI Emerging Markets index. Physical replication, 0.30% TER, largest holding of 500 is Moutai (6.15%).

£ For H-shares: iShares China Large Cap UCITS ETF (LSE:FXC) tracks the FTSE China 50 index which represents the 50 largest and most liquid Chinese companies listed on the Hong Kong Stock Exchange (H-Shares, Red Chips and P Chips). Physical replication, 0.74% TER, largest holding of 50 is Meituan Dianping (9.2%).

£ For A&H shares combined: Xtrackers MSCI China UCITS ETF 1C (LSE: XCX6) tracks the largest and most liquid Chinese stocks (A shares, H shares, B shares, Red chips, P chips). Physical replication, 0.65% TER, largest holding of 667 is Tencent Holdings Ltd (12.4%).

China’s zero-Covid strategy has been a policy cornerstone since the pandemic began and is therefore likely to be dismantled slowly. Political power is concentrated and policymaking is guarded but for an economy as large and influential as China’s, even these small steps can have a significant effect.

ABOUT IG

IG was established in 1974 and offers UK investors the opportunity to buy and sell shares, investment trusts and exchange traded funds (ETFs) at low commission

Spaceport Cornwall wins licence and takes UK one step closer to space nation

MILLIE TURNER

THE UK came another step closer to becoming a space nation yesterday, with a spaceport in Cornwall securing the country’s first ever licence.

Richard Branson’s rocket company

Virgin Orbit will take the title as the first business to launch from British soil before the end of the year –as part of a mission titled Start Me Up, inspired by the band The Rolling Stones.

Virgin Orbit’s Launcherone rocket travelled from California to the spaceport last week ahead of the launch. The rocket will be carried in a repurposed Boeing 747 before flying solo. The rocket will carry the first satellites to enter orbit from Europe.

“Obtaining this license marks a point of distinction for Spaceport Cornwall, and is a key preparatory milestone for

this first orbital launch from the UK,” Virgin Orbit chief executive Dan Hart said. “We appreciate the efforts of the British regulatory agencies with the support of the US Federal Aviation Administration in this first-time licensing process, as we strive... to ensure a safe and successful mission in the coming weeks.”

The company completed its full wet dress rehearsal on 2 October.

The license means the spaceport, based in Newquay, has met all safety, security and environmental markers, as well as hosting the infra-

structure, equipment and services needed for horizontal space launches.

Ian Annett, deputy chief executive at the UK Space Agency, added: “The first ever spaceport licence granted by the UK Civil Aviation Authority is another major milestone.

“Establishing orbital launch capabilities in the UK is already bringing investment and jobs into Cornwall and other communities across the UK and inspiring a new generation.”

Transport secretary Mark Harper gave the final go-ahead for the licence application to be accepted.

The government has outlined space as a business avenue in recent years, forecasting the sector to already be worth £16.5bn with new jobs on the horizon.

Going cold: Mercedes follows in Tesla’s footsteps

ILARIA GRASSO MACOLA

MERCEDES has followed in Tesla’s footsteps and cut the price of its electric vehicle (EV) models in China due to a slowing demand.

The luxury carmaker announced late on Tuesday that the price of the EQE electric SUV would be cut by nine per cent while the EQS model would be between 11 and 22

per cent less expensive.

“Mercedes-Benz continually observes and analyses dynamic market developments, including the current positioning of other manufacturers in the luxury segment,” a company spokesperson said.

According to data from the China Association of Automobile Manufacturers, October recorded the slowest pace of EV

growth since April, even though the number of EVs sold has jumped 81.7 per cent yearon-year to 714,000.

Mercedes is not the first automotive maker to make adjustments in the Chinese market. Tesla announced in October it was cutting down the price of its Model 3 and Model Y vehicles by up to nine per cent.

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Elston Consulting was established in 2012 and provides portfolio, fund and index research and investment solutions to wealth managers and financial advisers

NOTICES

All ETFs mentioned are London-listed ETFs and available on the IG share dealing platform.

Your capital is at risk. The value of shares, ETFs and ETCs can fall as well as rise, which could mean getting back less than you originally put in.

Slimming down: Novartis mulls billion-dollar sales of two units

MILLIE TURNER

NOVARTIS is reportedly mulling the sales of two of its divisions, which could flood the pharma giant with billions in new capital.

The Swiss-American pharma giant is engaged in early discussions for the sale of its ophthalmology and respiratory units, Bloomberg first reported yesterday, citing people familiar with the matter.

The divisions, non-core assets for the firm, have caught the eyes of private equity firms, according to the report.

The ophthalmology business

alone could fetch about $5bn, they said, asking not to be identified discussing confidential information.

The sale process is expected to begin next year.

Shares in Novartis sank 0.7 per cent yesterday, building on a 1.4 per cent dip into the red so far this year.

Novartis declined to comment on market rumours.

The company in August said it was planning on a split from its generics business Sandoz to channel efforts towards patented prescription medicines.

Novartis spun off its Alcon eye care business in 2019.

Air France shares drop after issue of €300m bonds

THE SHARES of Air France-KLM yesterday sunk as low as 12 per cent after the carrier issued €300m (£262.5m) worth of bonds convertible into shares.

Air France-KLM yesterday said the move would help it strengthen its capital and pay back the financial aid it received from the French government to stay afloat during the pandemic.

Funding – which was provided also by the Dutch government – amounted to a total of €10.4bn. The bond issuance is part of Air France’s decision to repay €4bn worth of pandemic aid. The move sent shares down by eight per cent when it was announced in February.

ILARIA GRASSO MACOLA

Virgin Orbit will carry out the UK’s first space launch

Hoshang Daroga CFA Director Research at Elston Consulting, looks at the ease of Covid restrictions in China

Even the most incremental of policy-shifts in China can be positive news for local equity markets outperformed their cap-weighted versions

REVOLUT AND THE RACE TO SUPERAPP STATUS

TWO WEEKS ago, digital banking firm Revolut rolled out a new and rather innocuous seeming feature that allowed its users to swap messages while sending and requesting cash. On the face of it, innocent enough: Revolut customers can now “share fun gifs and stickers” as they badger reluctant friends into coughing up wifi payments and dinner bills. But Revolut’s chief Nikolay Storonsky was unashamed in his framing of the new tool. This was not just a messaging feature but a “step closer” to giving his users a hub to address “all their financial needs in one place”, marking a major move towards the firm’s ultimate goal of becoming a “global financial superapp”, he said.

Despite Elon Musk’s desire to turn Twitter into an everything app in the mould of Wechat, it is Revolut that has emerged as the frontrunner and most nakedly ambitious contender in the race to reach so-called superapp status in the West.

WECHAT LEADS THE WAY

The idea of a superapp largely takes its definition from East Asian behemoths that squat across the whole gamut of consumer demand, from retail to ride hailing, social media to banking. For example, Chinese digital monolith Wechat, owned by Tencent, allows users to do everything from send messages to friends and buy insurance.

Malaysia-founded Grab, which started its life as a ride-hailing firm, has now spread into food delivery and payments across South East Asia, and Indonesian giant Goto has scooped up 170m customers with 20 different services from food delivery to ride hailing and payments.

Revolut, payments firm Klarna and

ride-hailing app Bolt are most often touted as the runners and riders in the race to create a Western equivalent.

But even as Revolut announced today that it had sailed past the 25m user mark globally, the more crucial question is whether consumers are really ready for its sprawling superapp ambitions.

REVOLUT’S SUPERAPP PLAN

In the weeks prior to the roll-out of its chat feature, Revolut struck out on one of its most bold superapp gambits yet as it introduced Revolut Homes –a feature that would sit within its growing travel offering and essentially offer a direct competitorproduct to Airbnb.

Storonsky has long been open about his ambition to achieve the status of ‘financial superapp’, under which insurance, credit and even mortgages would seem to comfortably sit. But the Homes feature raised some eyebrows in its sharp departure from Revolut’s bread and butter financial services.

And as expected, some investors are now questioning whether it is really fulfilling a user demand.

“I don’t think consumers want that,” says Dr Ricardo Schaefer, a partner at venture capital firm Target Global and early investor in Revolut, in an interview with City A.M. “In the Western world I don’t see synergies between ride hailing, an insurance product and having your mortgage and your food delivery in one app necessarily.”

Although a push into new verticals may be unpalatable, he argues, consumers are certainly comfortable with the concept of an app for all their financial services needs.

“I definitely see synergies between asset management, payments, day-today banking –services within a

specific product group,” Schaeffer adds.

Consumer sentiment too seems to back Schaeffer’s assessment.

Research from Paypal and PYMNTS over the summer found that 41 per cent of consumers surveyed across Germany, Australia, the US and UK would increase their banking activities if they had access to a superapp encompassing all their banking and payments needs.

But aside from the consumer demand and utility, the push to become a superapp fundamentally comes from a commercial need to boost revenue streams and bring in more cash.

In the example of Revolut Homes, David Barton-Grimley, global strategy director at fintech consultancy 11:FS argues the move essentially comes back to making itself more useful to customers with additional features and monetising their attention.

A Revolut source echoed that, telling City A.M. that now it has built a strong proposition in payments, the next logical step is to branch out into verticals, utilise its customer data and cross-sell.

Taking travel as an example, the more data the firm has on where people are spending their cash when on holiday, the better deals on hotel bookings and car rental they can offer in return. Travellers already use Revolut for cheap currency exchange, so why not homes, holiday and hotel bookings as well?

STAYING IN YOUR LANE

Revolut’s superapp ambitions have been more wide-reaching in this regard than other company that may be mentioned in the same breath.

Bolt for instance has been cited as a superapp contender, but its offer of ride hailing, car sharing, scooter rental and food delivery might all be grouped within the same ‘mobility’ wheelhouse.

Klarna, too, while rolling out new features and leaning more heavily on its direct payments product, has stayed more or less within the retail aisle. The brand has even ramped up its move this week with a new search and compare tool to compare prices, which global CMO David Sandstrom told City A.M. is a step towards being “your assistant for each and every step of your shopping journey”.

The width of Revolut’s efforts interestingly marks a rebound from the hyper-specialisation that has defined the rise of fintech for the past decade, one in which small tech firms have divided and conquered the individual services provided by banks.

For example, payments firm Wise has honed in on remittance and creating a superior money transfer product.

But as Ian McLennan, partner at investment manager Triple Point Ventures, told City A.M., the Asian giants that spawned the concept also

started from more humble, specialised beginnings.

However, the speed and proliferation of specialised fintech firms in the West over the past 15 years has led many to the conclusion that consumers are too accustomed to choice and separation.

Tim Mills, managing partner at venture capital firm ACF Investors tells City A.M. we may just enjoy messaging on Whatsapp, paying with Monzo and don’t see the need to mash them together.

“Unless you’re able to capture most of the incumbent services people already use, the value of a superapp becomes heavily diluted,” Mills argues. “Think of a shopping mall which lacks your favourite stores.”

REGULATORY HURDLES

A fragmented regulatory landscape in the West is only likely to hobble ambitions further.

Revolut may find itself hampered in this regard, as its efforts to win a banking licence in the UK remain unsuccessful some 18 months after application. Payments approval in all its other jurisdictions, however, mean a significant hurdle has been cleared.

Even Musk –who has already reportedly filed paperwork with US regulators that would allow him to process payments –might find his superapp mission caught in red tape before it leaves the launch pad, after Thierry Breton, the European commissioner for the internal market, quote-tweeted Musk saying: “In Europe, the bird will fly by our rules.”

While questions remain about the strength of demand for an everything app in the West, Revolut remains laser-focused on its superapp dreams.

superapp and do we really want one, asks Charlie Conchie

Unless you’re able to capture most of the services people already use, the value of a superapp is quickly diluted

CATEGORY

KOMAINU

Komainu is the first regulated digital asset custody solution built by institutions for institutions. Komainu was launched as a Joint Venture between investment bank Nomura, technology firm Ledger and digital asset manager CoinShares. Regulated in Jersey in 2019 and launched to the public in 2020, Komainu has been established to fill a gap in the marketplace and to provide institutions with a secure and compliant custody service for digital assets, leveraging leading technology and institutional-grade controls, supported by a transparent regulatory framework.

Komainu has raised $25m in Series A fundraising and reached over $8bn in Assets under Custody. Over the past year, Komainu has expanded significantly to provide staking services for institutions and has launched offices in London, Singapore and Dubai.

COPPER

Founded in 2018, Copper provides a gateway into the crypto asset space for institutional investors by offering custody, trading, and settlement solutions across 500 crypto-assets and more than 45 exchanges. It is committed to providing flexible solutions for institutional investors that can adapt to the changing crypto asset space, while enabling far greater transparency and control for asset managers.

Copper’s fully integrated products are unique in the crypto-asset space. Underpinned by multi-award-winning custody, Copper has built the comprehensive and secure suite of tools and services required to safely acquire, trade, and store cryptocurrencies.

At the core of Copper’s infrastructure is ClearLoop, a framework that connects the universe of exchanges in one secure trading loop — with real-time settlement across multiple networks.

GEMINI

Founded by Tyler and Cameron Winkelvoss in 2014, Gemini is a regulated crypto exchange and "Qualified Custodian", which has built an institutional grade platform with a security-first mentality. Despite the fact that crypto has not necessarily been subject to the same regulations as traditional financial assets, Gemini has approached the market with the upmost respect for regulation believing that is is better to "ask for permission rather than forgiveness" and has positioned itself as a peer to established toptier regulated traditional financial institutions as well as crypto-native firms.

STATE STREET DIGITAL

In 2021, we launched State Street Digital to empower institutional investors and their clients to transition and thrive in the new digital economy. Our mission is to offer and operate a fully digital and frictionless enterprise outsourcing platform in the industry. To realize that goal, we are working to develop the digital landscape of the future — including digital cash, central bank digital currency, smart contracts, distributed ledger technology and tokenization. We strive each day to build the most innovative financial markets of the 21st century by leading the digital revolution in our industry – and we believe that effort begins with education. We launched our Digital Digest as a compendium of our best, most recent, and noteworthy thinking on all things digital with the intention to close the gap between enthusiasm and understanding as all of our stakeholders look toward the future.

ONEOF NFT

OneOf is the Green Web3 Company and NFT marketplace for Iconic Brands, Artists and Athletes. American Express enlisted OneOf to develop and mint an NFT campaign to compliment their Amex "Color Oasis" pop up experience at the Mandarin Oriental in Bodrum, Turkey. OneOf's concept was to curate renowned regional Turkish digital artist, Selay Karasu, to design the inaugural Amex Experiences NFT collection and attend the dinner party to share her inspiration and process in creating the art using satellite data of Bodrum. Multiple token offerings included a free digital collectible POAP for attendees, a One-of-one LaSarte Dining Experience NFT for sale and three Amex Platinum Passport NFTs which gave owners VIP access to premier festivals, concerts and dining experiences. These experience NFTs could only be purchased exclusively by card members.

ANISEED

FAniseed is the world's first benefit driven conservation crowdfunding platform. supporting all biodiversity projects, with a focus on rewilding, peatland restoration and replanting of seagrass. In addition, we will support local communities with a focus on rangers and their families. Aniseed will also fund the protection of individual endangered animals either at existing parks or those that have been licensed for hunting. We will use the platform to buy or licence these animals and then rewild them somewhere else. Each project will also be able to launch their own unique NFT collections that depict real life flora, fauna, and biodiversity. Project pages on Aniseed will contain biodiversity benefits, location, assets, name, picture, and relevant targets.

Crypto AM Summit and Awards: shortlist of finalists

WITH only one week left before the winners are crowned at the Crypto AM Summit and Awards, the shortlist of the finalists has been revealed.

There are 20 categories covering all aspects of the blockchain and cryptocurrency industry, with honours going to the very best candidate in their field.

It’s been a difficult process, but thanks to our expert panel of judges, headed up by Stefania Barbaglio, the finalists are ready to by honoured. Joining Steffy on the panel are Rob Gaskell, Gocke Gizer, Dr Jane Thomason, Amelie Arras, Alissa Ostrove, Lawrence Wintermeyer, On Yavin, Dotun Rominiyi and Darren Rebeiro.

“We have been overwhelmed by submissions this year,” Steffy said.

“We have had many strong entries, so many in fact that it was hard for us to make a decision.

“It is, though, a great indicator of what a vibrant and fast-growing crypto community we here in the UK.

THE SHORTLIST:

INFLUENCER OF THE YEAR with Minima: Jannah Patchay, Jonny Fry, Peter McCormack.

START-UP OF THE YEAR with World Mobile: Swash, Digital Pound Foundation, Zebu Digital.

DIGITAL ASSET EXCHANGE OF THE YEAR with Coinweb: LMAX Digital, Gemini, Coinpass.

ACCELERATOR OR VC OF THE YEAR with FMFW: Outlier Ventures, LeadBlock Partners, Fabric Ventures.

OUTSTANDING CONTRIBUTION TO EDUCATION with Luno: UK Cryptoasset Business Council, Digital Pound

Foundation, CryptoCompare. REGULATION & COMPLIANCE AWARD with Binance Academy: Gunnercooke LLP, GMEX, Innovate Finance.

BEST DEVELOPMENT IN FINTECH with Sardine: GMEX, Block, Revolut.

ENTERPRISE BLOCKCHAIN OF THE YEAR with CMS law: R3, Hedera, Onyx by JPMorgan.

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

MOST INNOVATIVE NFT PROJECT 2022 with Cudos: Cornucopias, SuperRare, Niftyz.

BEST APPLICATION OF ESG 2022 with Cardano Foundation: Zumo, Aniseed, Rebalance Earth.

METAVERSE PROJECT OF THE YEAR with Tingo: Pavia, The Sandbox, VOMA Labs.

OUTSTANDING CONTRIBUTION TO DEFI with Jade City: Coinbase, Swarm, Aave.

BEST STAKING PRODUCT 2022 with City of London Corporation: Coinbase, Figment, Blockdaemon.

PAYMENT SERVICES PROVIDER with Drunken Monkey Members Club: BCB Group, Checkout.com, WorldPay.

MOST NOTABLE CAMPAIGN OF 2022 with Clay Nation: State Street Digital, OneOf NFT, Aniseed.

MOST INSPIRATIONAL WOMEN IN BLOCKCHAIN with Astraea: Jillian Godsil, Loretta Joseph, Nikita Sachdev.

INSTITUTIONAL CONTRIBUTION OF THE YEAR 2022 with Matrixport: Copper, SIX Digital Exchange, Coinbase.

OUTSTANDING INDUSTRY CONTRIBUTION with City AM: Coinbase, Chainalysis, Fidelity Digital Assets.

DIGITAL ASSET CUSTODIAN OF THE YEAR: Gemini, Komainu, Copper.

Markets continue to feel the heat from FTX collapse

IT’S BEENa tough week in the crypto markets, with almost all major cryptocurrencies down over the past seven days. The price of Bitcoin has slipped by four per cent over the past seven days to around $16,420 last night, while Ethereum is down by a similar amount. Will they recover as sharply as they fell, or is a longer wait on the cards?

The impact of crypto exchange FTX’s collapse last week continues to be felt by the industry and market as a whole. The Wall Street Journal reported on

Tuesday that crypto lender BlockFi was preparing a potential bankruptcy filing because of its "significant exposure" to FTX. Will they be the last?

The move has at least pushed many cryptocurrency exchanges to make more efforts around transparency, with Coinbase and Luno among those to release proof-of-reserve reports to show their customers that their investments are held on a 1:1 basis. Will they be enough to bring trust back to the industry?

Despite the negative attention, there

was some good news for investors. The Consumer Price Index (CPI), a major driver of price movements so far this year, increased by only 0.4 per cent in October – lower than experts had been expecting. “All the trend lines suggest that it will continue to moderate going forward, assuming that nothing goes off the rails,” Mark Zandi, chief economist at Moody’s Analytics, told CNBC.

There is still a lot of development going on. Twitter registered with the Financial Crimes Enforcement Network

- a step the experts say may lay the foundations for payments on the platform. With Musk a known lover of Dogecoin, will the move pave the way for a Doge-driven payment revolution on the social media platform? Is memecoin payment the big move that’ll drive trust to the industry?

CRYPTO NEWS IN BRIEF

TICKETS FOR CRYPTO AM SUMMIT

TICKETS are still available for the annual Crypto AM Summit and Awards next week.

The two-day gathering of discussion and debate, coupled with workshops and world-class networking, will culminate in one of the industry’s most glamorous and prestigious occasions – the Crypto AM Awards 2022.

Binance Academy, Cardano Foundation, City of London Corporation and Jade City spearhead the partnership programme for the event which takes place at the Leonardo Royal St Pauls, London, from November 22 to 24.

You can purchase tickets by visiting www.cityam.com/camsa22.

MAJOR CREDITORS WITH FTX TO BE REVEALED

THE 50 largest creditors caught up in the collapse of cryptocurrency exchange FTX will be announced before the end of the week, administrators have revealed. The directors charged with picking up the pieces of the financial disaster have, according to filings, also said it is likely there are more than a million creditors affected.

The ominous entry in the latest filing document states: “As set forth in the Debtors’ petitions, there are over one hundred thousand creditors in these Chapter 11 Cases. In fact, there could be more than one million creditors in these Chapter 11 Cases.”

RONALDO SCORES NFTS

CRISTIANO Ronaldo’s first NFT collection will become available tomorrow as part of a multi-year partnership with crypto exchange Binance.

The launch is supported by a global marketing campaign featuring Ronaldo, aiming to give his fans an introduction to Web3 through the world of NFTs.

“It was important to me that we created something memorable and unique for my fans as they are such a big part of my success,” said the former Real Madrid star.

“With Binance, I was able to make something that not only captures the passion of the game but rewards fans for all the years of support.”

COVAL ERUPTS INTO LIFE

LITTLE-known token Circuits of Value (COVAL) has been the attention-grabber in this week’s market after an uplift of more than 60 per cent over the last seven days.

Against the backdrop of a sliding market in the wake of the FTX scandal, COVAL peaked on Wednesday at $0.0224 before coming to rest last night around $0.015.

CITY DASHBOARD

YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

LONDON REPORT BEST OF THE BROKERS

Bad day for retailers after inflation reading sends FTSE 100 lower

ANOTHER bad day for middleclass favourite and online supermarket Ocado led London’s FTSE 100 lower yesterday. The capital’s premier index dropped 0.25 per cent to 7,351.19 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, tumbled 1.77 per cent to 19,112.40 points.

Fresh inflation figures out yesterday came in much hotter than expected, battering investor sentiment toward retailers over fears consumers will tighten their belts as their finances are squeezed.

The damage most heavily centred on Ocado, which shed 5.74 per cent and finished bottom of the FTSE 100.

High street fashion chain and trainer specialist JD Sports lost a shade over four per cent, while Next hopped 2.69

per cent lower.

Consumer-facing stocks have been battered by forecasts that the UK’s longest recession on record will be primarily driven by consumers cutting spending in response to high inflation.

Prices rose 11.1 per cent over the last year, the quickest acceleration in 41 years and above the City and Bank of England’s forecasts.

Analysts said the reading will pile more pressure on the Bank to keep hiking rates, which it has done so eight times in a row.

“It’s also not good news in the context of [today’s] budget with the Chancellor expected to tighten the vice further with a host of tax rises, as well as spending cuts,”

Michael Hewson, chief market analyst CMC Markets UK, said.

The pound strengthened 0.3 per cent against the US dollar.

Wall Street opened lower.

CITY MOVES WHO’S SWITCHING JOBS

HERO LABS Waterloo-headquartered Hero Labs, a manufacturer of water management devices, has appointment a new CEO.

Adam Williams brings experience from scale-ups and large tech firms, including Samsung and Sony.

He will succeed Steve Moore when he retires at the end of the year.

“Adam’s background makes him ideally suited for the

CEO role,” said founder Krystian Zajac.

Bridgepoint Group is taking longer than usual to raise funds and is not expected to complete its £700m revenue raise until halfway through next year, causing its shares to plummet 20 per cent in yesterday’s trading. Nevertheless, Peel Hunt has maintained its bullish ‘buy’ stance with a target price of 340p per share, valuing the investment firm’s focus on growing mid-market companies and European stocks.

UP UP AND AWAY

Serco Group has won a £200m follow-on contract to provide marine services for the Royal Navy, keeping its head above water in challenging marketing conditions. The deal is a 27-month contract, with the MoD having an option to extend it six months. Serco helps the Royal Navy navigate ships in and out of harbour. Peel Hunt has kept its optimistic estimates, with a ‘buy’ stance at a target price of 217p per share.

“We are delighted to welcome Adam to the team.”

VINSON & ELKINS

US law firm Vinson & Elkins has built out its London office with a fresh partner.

Ben Higson, joining from Hogan Lovells, will head up the corporate practice in the capital.

The incoming partner brings experience from across M&A, joint ventures and commercial transactions in Europe and Japan.

“Ben is recognised as one of the leading M&A lawyers in London,” chair Keith Fullenweider said.

“He has an exceptionally strong client following across industries, and the experience in recruiting and team building that we believe will position us for growth and continued success.”

AGILITAS

Private equity firm Agilitas has bolstered its team with six new appointments.

The new joiners include four investment professionals, Alex Brebbia, Hamza Ben Abderahmen, Marcus Risland and Matteo Recchia, who bring experience from the likes of JP Morgan and Morgan Stanley.

Two finance specialists, Mia Sendlbeck and ex-PwC Sam Berry have also joined.

“We are pleased to welcome Alex, Hamza, Marcus and Matteo with their wealth of experience to our growing team of investment professionals, and to welcome Mia and Sam to our talented finance team,” managing partner Martin Calderbank said.

The company last month added two senior appointments to its ESG and investment teams.

Philip Krinks, who stepped into the role of ESG consultant, joined from Boston Consulting Group.

While Arnaud Moreels, who joined the investment team, brings over a decade of experience to the firm.

A higher-thanexpected UK inflation number was a reminder if any were needed that continued sticky inflation is likely to be a significant drag on future earnings potential, not only in the UK, but also in Europe where it is just as high, and in a lot of cases much higher.

MICHAEL HEWSON, CMC MARKETS

Cheatle

no sugar for spending cuts,

LATER today, the UK’s chief financial officer, Jeremy Hunt, will share his plans to balance the books and keep the UK solvent or, at least, investable. Managers everywhere will find this relatable. Most of us have needed to reduce costs, whilst keeping the show on the road, during recent years of pandemic, followed by this current period of rising costs and dampened demand. And just this past week Amazon, Disney, Vodafone and Facebook have all announced big cuts.

So, what wise words might there be for Mr Hunt, or any executive faced with cutting costs?

I’ve been meeting fellow entrepreneurs and chief executives regularly for 25 years to give and receive advice.

In that time, my company grew from a bedroom start-up to over 100 staff during the dotcom boom, back to a core team of 33 in the ensuing crash. We survived, and are now a listed company with well over a thousand colleagues, across 20 global offices. I’ve been listening hard, for a long time, to the most valuable advice about managing cost reduction programmes. Most successful leaders start by setting an example to let their people know they are both serious and fair. One founder of a creative agency reluc-

tantly made sure that the first role cut in a 40 per cent cost reduction programme was his own beloved PA.

Culling pet projects also sends a message that decisions will be just. The Bavarian chief executive officer of a pan-European parts manufacturer demonstrated this by announcing the closure of their last plant in Germany – a decision seen to be based on data alone.

Once your organisation knows you are serious, an effective cost reduction programme should involve the people closest to the detail. Share the numbers transparently, provide stretching targets, and ask the teams who run the business day-to-day to suggest actions.

This is an opportunity for those teams to point out what might be invisible to management. Operational teams, when involved properly, tend not to

mount a Sir Humphrey-style resistance. They can, in contrast, be overzealous. More than one chief executive has commented on the “red mist” that can descend on middle managers, such that they plan extreme cost reductions that are more brutal than the business performance demands.

In 1986, Ronald Reagan memorably explained that the nine most terrifying words for a business person to hear are "I'm from the government, and I'm here to help." But it was a senior civil servant who told me that the most effective cost cutters look to eliminate entire activities. His advice was to fight the tendency to “salami slice”, cutting all costs by a thin amount. This can

make the remaining cost-base even less productive, given that the residual activity will still absorb time and resource. Instead, look at which cost centres can be taken out entirely. Rather than trimming, say, the socialmedia budget, or your office in France, by 50 per cent, consider cutting them 100 per cent. I imagine this was Elon Musk’s motivation this week when he announced the absolute end of free lunches at Twitter.

The most important advice is to demonstrate your commitment to the company’s vision even as you cut costs. Reducing projects, investment and jobs can be a miserable and soul-destroying process – successful leaders need to be able to explain, to themselves and their people, what it’s all for. How will these changes create a better business or workplace? Counter-intuitively, this can mean creating some sacred cows. If your company’s future vision depends on marketing, then show that operational cost-savings allow for an increased advertising budget. If your future depends on digital transformation, then show that reduced office costs and a travel ban can allow a sustained tech spend.

After the real pain of cost saving, many businesses have come through stronger and healthier. But only if they have a visible plan for a brighter future.

Let’s hope that the budget later today will not be an untargeted “red mist” exercise, but a coherent set of actions, framed by a credible vision for a better Britain.

£ Alex Cheatle is chief executive officer and founder of Ten Lifestyle Group

Let’s be honest, we can’t blame today’s financial pain on Liz Truss’s mini budget

CHANCELLOR Jeremy Hunt’s Autumn Statement is expected to contain a gloomy mixture of tax hikes and spending cuts. We will be told this is absolutely necessary to plug the fiscal hole left by the Truss government.

The latest estimate is that the government is looking for up to £60bn a year by 2027-28. Last weekend the Observer reported the “cost” of “Liz Truss’s disastrous mini-budget” is responsible for half that amount, at £30bn. This may appeal to their antiTory readers but it is a highly disingenuous claim.

To start it is worth noting that the “fiscal hole” does not represent the current budgetary deficit or public debt level. Instead, it is the gap between the projected public finances and the chancellor’s goal – in this case, debt falling as a share of GDP within five years. The figure is dependent on the uncertain, and often inaccurate, growth and revenue model from the

Matthew Lesh

Office for Budget Responsibility (OBR).

The single biggest driver of the expected hole is the gloomier-than-expected economic situation driven by spiralling inflation and energy costs.

The OBR, in their last forecast in March, thought that economic growth would be 1.8 per cent next year, while more recent forecasts have the economy contracting by up to 0.6 per cent. A smaller economy means tens of billions of pounds less tax revenue.

The UK’s lacklustre growth cannot be blamed on Truss – whose supplyside reform policies had the explicit goal of reversing the UK’s woeful tra-

jectory. In fact, Hunt’s decision to maintain the corporate tax hike is a key reason for less growth, at least according to analysts at Goldman Sachs. The other reason for the hole is that the government is facing higher-thanexpected outlays. Some of this is effectively automatic – like welfare payments increasing as people lose their jobs during a recession. There are also Hunt’s expected costly policy decisions, such as increasing pensions and welfare payments in line with inflation, that is running much higher than the OBR forecast in March (having reached 11 per cent versus the forecast 7 per cent). Again, none of this can be blamed on Truss.

There are only two plausible ways that the mini-budget can be blamed for the fiscal hole. The first is the cancellation of the national insurance hike and stamp duty cut. This will have a budgetary impact and will ultimately need to be funded. But it is also widely supported across Parliament, including by Labour, and the public. It is

hardly a “disastrous” policy to not put up taxes on workers.

The other “cost” of Truss is, we have been told, higher interest payments on government borrowing. In the immediate aftermath of the mini-budget and the fire sale dynamic in pension funds yields jumped. But, after most of the measures were reversed, gilt yields have now fallen back to similar levels as before the mini-budget at around 3.5 per cent. This is higher than the OBR forecast in March (at around 1.5 per cent) but that has nothing to do with the mini-budget. It reflects higher inflation and interest rates across the US, Eurozone and UK.

It may be tempting to blame Truss’ premiership for our current predicament. But this distracts from the need to address the much deeper structural issues. Whether rushing to put up taxes and cut spending is the right answer, however, is much less clear.

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

NOT MCLOVIN IT

Esther

a former

minister, warned

EDITED BY SASCHA O’SULLIVAN

There’s

but we must avoid the salami slicer

Alex

Jeremy Hunt will deliver his Autumn Statement today

McVey,

government

the Chancellor yesterday she wouldn’t support his tax hikes unless the much delayed HS2 project was abandoned. Jeremy Hunt looked less than happy as he anticipated a tough crowd for his tax rises and spending cuts

Salami slicing can make the remaining cost base even less productive

WE WANT TO HEAR YOUR VIEWS › E: opinion@cityam.com COMMENT AT: cityam.com/opinion

LETTERS TO THE EDITOR

Running away from the banks

[Re: Computer says no: Frustrated businesses screaming for fresh cash struggle to get bank loans, Nov 15]

As the cost-of-living crisis rumbles on, the computer says no attitude of the traditional banking system is causing huge issues for SMEs who need access to finance to survive and grow.

When the going gets tough and businesses need funding, banks back out of the market and refuse to lend.

The strict affordability tests from banks are inflexible and leave many small businesses in the lurch. Cash is the lifeblood of small businesses and banks are failing to provide the necessary

support.

Fintechs are however stepping up to fill the gap left by banks and are providing alternatives for smaller companies.

Advanced technology is enabling deeper analysis of their trading history, giving them a better chance of being accepted for credit. It also offers alternative finance schemes such as deferring payroll, helping companies to boost their working capital and release pressure on their cash flows.

It’s no wonder that firms are deserting the banks in such big numbers in favour of fintech partners which actually value their business and help them during their time in need, rather than the banks which pull up the ladder behind them.

David Brown Founder and CEO of Hi

A HARD CORE OF ANGST Elon Musk gives Twitter staff a ‘hardcore’ deadline

London pays its way in the economy, Treasury needs to remember to pay us back

Nick Bowes

While many companies are worried about trends like ‘quiet quitting’, Elon Musk wants his staff to commit to being ‘extremely hard core’ and working ‘long hours at high intensity’. Let’s hope he has a good HR department.

EXPLAINER-IN-BRIEF: A HOUSING CRISIS CLAIMING LIVES

The revelation that the death of 2-year-old Awaab Ishak in 2020 was caused by extensive mould in his family house has rocked a nation locked in a permanent housing crisis.

Giving a statement about this tragedy in Parliament yesterday, Secretary of State for Levelling up Michael Gove said that "every single person in this country, irrespective of who they are, where they’re from or how much they earn, has the right of living in a home which is safe and secure”. He promised the Social

Housing Bill, currently before Parliament, will stop the scandal and drastically change the power imbalance hanging between landlords and renters. He’s promised he’ll make the housing ombudsman more powerful, ensuring all tenants know about the complaint process.

But all of this, as with many problems in the housing sector, comes too late. For years, people have been complaining of unsafe housing, and now a 2year-old has paid the price.

AFTER three prime ministers in as many months, it’s been hard to keep up with the government’s positions. Fracking, triple lock pensions, levelling up – out, in and out againlike a kind of policy hokey cokey. Today, at least, we will get some clarity on the fiscal plan of the new government, after weeks of briefings.

In all this uncertainty, London hasn’t been immune. Between Boris Johnson and Liz Truss, the city went from out of favour to suddenly back up the political agenda.

Under Boris Johnson, London wasn’t flavour of the month. His healthy majority came from seats won across the north and midlands. His levelling up mission was widely seen as Johnson returning the political favour to those parts of the country voting Tory for the first time. London’s own extensive levelling up challenges were downplayed or ignored.

All this changed when Liz Truss moved into Number 10. Levelling up dumped in the political dustbin – instead, primacy went on boosting economic growth at a national level. Ministers recognised that to achieve this by the next election they needed a supercharged London – the mini budget’s tax cuts hugely favoured the city. Yet, as quickly as it came, this agenda went with the sudden departure of Truss.

Now all eyes are on Rishi Sunak and Jeremy Hunt. From Sunak’s time as Chancellor and from what was (and wasn’t) said during the summer’s Tory leadership contest, it’s possible to piece together some of what might lie in store for the capital. Publicly at least he hasn’t said all that much about the city. Perhaps the affinity is less strong; after all his three predecessors had political links to the city – May and Truss had both been local councillors, Johnson the Mayor. In his informative Mais lecture last year, Sunak said “productivity, living standards and dynamism are not growing fast enough”. He added: “If we cannot accelerate growth, people will begin to lose faith in the moral and material case for free markets.” This is an almost tailor-made mission for London, to be a totem for a modern British economy which encourages growth and innovation, and shares the benefits of our wealth

across the country.

Levelling up is an agenda that has often felt hostile to London, no matter how many times politicians have insisted it isn’t about “levelling down” the capital. It is a phrase which looks at the top line relative wealth of London and refuses to acknowledge the stark deprivation. In the Levelling Up White Paper, under Michael Gove’s stewardship, the lack of plans for devolution, particularly the decentralisation of tax and spend powers, was striking. The Treasury is not a department known for giving up power willingly. It takes a strong chancellor and prime minister.

As prime minister, Sunak reappointed Gove after a four-month hiatus. Sunak knows the importance of levelling up to him, to keep his premiership tied to the mandate of the 2019 election, and to the Tories, if they are to have any chance of winning the next election. With Gove back, all eyes will be on the new Chancellor Jeremy Hunt to see if he has the energy to take on Treasury hostility to devolution.

The political arithmetic remains unchanged. Sunak’s government still relies on 2019’s hefty parliamentary majority and the Tories don’t need to go to the polls until December 2024. The seats that matter are beyond the M25 and it is the decisive issues in those seats that will dominate the agenda –not what is most important to London. But London holds an ace card. With huge pressure on Sunak given the perilous state of the nation’s finances, London’s enormous tax revenue becomes more critical than ever if we’re to pay our way in the world. Treasury officials will be regularly reminding the prime minister that any faltering of London’s economy would have grave consequences for the nation’s balance sheet.

That’s why, if we’re to remain solvent as a country, central to the government’s agenda must be London’s continued success as a global economic powerhouse.

£ Nick Bowes is the chief executive officer of the Centre for London

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London and the South East raise the most revenue for the Treasury

LIFE&STYLE

Locusts for tea? Sign me up

Wonders Adam Bloodworth

Spare a thought for poor former health secretary Matt Hancock, who has been so drastically misunderstood that he’s had to fly all the way to Australia to eat bugs and worms and testicles to present his “human” side to the British public.

“The honest truth is there's so few ways in which politicians can show that we're human beings,” he lamented, suitcase in hand, I’m A Celeb gilet on, on his way Down Under. Hancock must not believe that snogging his aide under a security camera and groping her bum in a breach of lockdown rules counts as showing his humanity – I’d say that it was a spectacular display of the type of human being he is.

I hope Hancock feels more understood now he’s been photographed with testes hanging out of his mouth on every paper and social media outlet these past weeks. Even those who steadfastly refuse to watch I’m A Celebrity Get Me Out Of Here will have seen images of the politician grimly wrestling with animal organs that really should have stayed privately attached to the animal. He’s eaten mealworms, camel’s penis and cow’s anus and it has certainly got the nation talking.

It had me wondering: could I get a bite of the action? What will people think of me if I start eating bugs and sexual organs? Maybe I can have an image overhaul like Matt Hancock.

“What about going to Archipelago,” my editor said.

Archipelago is a restaurant in Fitzrovia serving critters from the same rainforest where Hancock is currently swinging in his hammock. Head chef and owner Maurilio Almeida says he sometimes spends three years crafting one dish. There’s crocodile in vine leaves, marinated kangaroo skewers with candy beetroot and a ‘love bug salad’ made with mealworms, silk worms and locusts.

I book a table, sit down and begin to pile fresh crickets in my mouth. Someone has to. They look like little robots with their bulbous, shiny heads. They explode in my mouth, but that leads to a nuttiness in both flavour and crunch.

I pick out a locust which has a ginger kick, then start shovelling them in like

they’re going out of fashion. Paired with a salad, they make sense as a texture switch-up for walnuts.

“We want to give an idea of what’s out there,” Almeigh says as I eat. He’s certainly doing that. I have more bugs for dessert: caramelised mealworms with vodka jelly and pancakes which are fun to wrap into little parcels. Chocolate covered locusts come with a sweet dessert wine.

Earlier there was ostrich steak, one of the leanest meats and superb with a fresh pepper sauce that dissolves into the meat. Thin slivers of camel had the luxurious feel of beef carpaccio atop piles of creamed potato and zebra with onions, picked garlic, carrot and ginger gel with biltong soil was a revelation: it’s the most popular dish on the menu and was fatty like duck but strong in a totally different way. “Every time we introduce a new dish we do re-

search around the world to give our diners a new experience they can never have at home,” says Almeigh.

I’m still eating but I’m already lamenting the loss of zebra meat in my life. I can’t sustain my Archipelago habit weekly but I’ve never tasted anything like this and I want more. Who knew kangaroo and lime jus would be the mouth party of the season, or that spiced elk would arrive as a steaming pile of meat cuts alongside a triumphant cold Brazilian potato salad with grilled courgettes, aubergine and crème fraiche? “We’re helping control the population,” Almeigh says of the kangaroo meat. “It is considered a pest in Australia so it’s very sustainable.”

With the City A.M. photographer flashing in my face, I feel like Matt Hancock must. It’s tough eating worms in front of people, but at least Hancock is earning a reported £400,000 for his

services. I sent some of the photos to a friend who immediately told me I’m just seeking attention. It’s true, but it’s not the response I’d hoped for. Another friend can’t stop laughing. “Not like you to put yourself forward for a novelty bug-eating photoshoot to go in a paper printed 90,000 times.” I think I’ve found another thing I now share with Matt Hancock, along with having had a mouthful of locusts. You don’t fool me, mate: the only human trait you’re revealing is your carnivorous desire for attention.

Archipelago-restaurant.co.uk; 020 7637 9611 or email info@archipelagorestaurant.co.uk. 53 Cleveland Street, London, W1T 4JJ Archipelago is bookable on The Fork , an online restaurant reservation platform with 170 restaurants to discover. The Fork Festival 2022 is running until 27th November with deals and offers.

Matt Hancock’s eating bugs to improve his imagewill the same work for me too?

Adam at the Archipelago Restaurant in Fitzrovia where the best dish was the zebra with carrot and ginger gel.

Images: Andy Blackmore and Gretel Ensignia

JOE SWASH GAGS ON EXPLODED GRUB: Essex cheeky chappy Joe Swash bit the head off a witchetty grub which exploded all over his face back in 2008 - it happened after he’d eaten silkworms, crocodile penis and cockroaches earlier on.

GEORGIA TOFFOLO SICKS UP MEALWORMS: Otherwise known as Toff, we could barely watch when the Made In Chelsea star nearly threw up while eating crickets, cockroaches, mealworms and a huntsman spider in 2017. Defiantly gross.

SPORT

SPORT

COMMENT

Prof Simon Chadwick

WITH the start of the men’s World Cup in Qatar imminent, fans are looking ahead to the action starting. Some will be anticipating Harry Kane retaining his Golden Boot, though others may feel Gabriel Jesus or Serge Gnabry is the top scorer in waiting.

Yet rather than in attack, it is in defence that this World Cup has already started – decades ago – though we’re not talking about Harry Maguire making the England starting line-up or the majesty of Virgil van Dijk.

Instead, Qatar’s hosting of international football’s most important competition is borne of the small Gulf nation’s security concerns. Though pre-tournament controversies around migrant worker and LGBTQ+ rights have suggested otherwise, Qatar’s diminutive nature is the most significant backstory to what is just about to happen.

Smaller in size than West Yorkshire, for a large part of the 20th century Qatar was under British protection. Its geography is precarious, jutting like a thumb out of Saudi Arabia, a major regional power to the west. To the east is Iran, a Shia adversary to the Saudi kingdom’s Sunni orthodoxy. To the south is unstable Yemen, currently beset by war.

To the north are other regional powerhouses such as Turkey, as well as more unstable neighbours like Iraq.

In return for providing military protection, the British – as well as the Americans and French – were instrumental in scaling-up Qatar’s oil and gas industry, and for exerting considerable influence over Qatari government policy.

In 1971, with Great Britain in decolonising mode, Qatar ceased to be one

SIZE MATTERS

of its protectorates and suddenly found itself vulnerable, without an established or significant place in the world, though with considerable gas and oil resources at its disposal – and therefore vulnerable to attack, the first Gulf war symbolising the threat level perceived by Qatari government officials.

NATIONAL SECURITY

The country’s strategy for protecting itself in this post-British era has therefore been to seek legitimacy by positioning itself as a trustworthy, dependable ally, often based upon hedging between adversaries. Evidence of this was seen in the decade up to 2021, when Doha played home to both the Taliban’s leadership and the United States’s biggest military facility in the Middle East.

Qatar’s bid to host the World Cup was a play entirely in keeping with this strat-

ENGLAND HAVE MOST VALUABLE SQUAD

ENGLAND have the most expensive squad at the Qatar 2022 World Cup while midfielder Jude Bellingham has been ranked the most valuable player at the tournament, according to the CIES Football Observatory. The tournament, which begins on Sunday, will see players with a combined value of €15bn (£13bn) compete for the Jules Rimet Trophy.

England’s squad, worth €1.5bn (£1.3bn), tops the valuation list while Brazil, France, Spain, Portugal and Germany also pass the €1bn mark in a

egy, a way of engaging with the world, building relationships, and creating interdependencies with other countries. Such relationships now exist; for example, the United States is the biggest investor into Qatar, a significant proportion of which has been devoted to the hotels and malls that many football fans will shortly be visiting.

Similarly, through its active World Cup-related courting of other countries, Qatar can now call upon Italian naval vessels, British air force jets, French

ranking of the 32 competing nations. Host nation Qatar holds the penultimate position in the rankings, worth €29m while Costa Rica’s €23m valuation is the lowest, according the academic institute.

England’s Bellingham tops the individual rankings with an estimated valuation of €202m (£177m) while Real Madrid’s Vinicius Junior is second, ahead of France superstar Kylian Mbappe in third. Of the top 10 players, four play in Spain, three in Germany and one in each of France, Italy and England.

Matt Hardy

cyber security specialists and Turkish police officers to guarantee its safety. No longer just a sandy outcrop, Qatar has become a legitimate and important member of the international community, partly due to the World Cup.

Whatever the truth about bribery and corruption surrounding Fifa’s bidding process for the 2018 and 2022 World Cups, Qatar needed to win hosting rights – not necessarily for the sake of world football, but as a matter of its own national security.

By locking overseas investors into its security plans, Doha also used this as a means through which to engage in nation building. British protection of the peninsula left a legacy of oil and gas exploration but not much else. The World Cup has therefore served to turbocharge Qatar’s national development plans.

LEGACY

Even back in 2010, Doha ended where it met the desert – still relatively small and parochial. Nowadays, it has become a sprawling metropolis that has long since consumed huge tracts of that desert. The most visible manifestation of how the nation has been built is the physical infrastructure now associated with staging football’s biggest event.

Fifa has specific requirements in terms of the number of stadiums, their size and their facilities which prospective hosts must commit to providing. Qatar has delivered in this regard, though new stadiums require supporting infrastructure, and this is where Qatar’s ambitions to build a brand new 21st century city have become reality.

The eight stadiums are connected by a series of eight-lane highways and a brand-new metro network, as well as shopping malls, cultural attractions, and civic amenities such as public gyms and sports pitches. Even a new city – Lusail – has been built to ease pressure on

Doha. We will know about Lusail very soon, as it will host the World Cup final. By 19 December the circus will have left town and attention will shift elsewhere. Qatar will nevertheless be left with a legacy of high-quality infrastructure that will form the basis of everyday life in Doha. Yet there are already plans to utilise it: the country wants to attract 6m new visitors to the country in the five years following the World Cup.

Furthermore, Qatar will host the 2023 men’s Asian football championship and the 2030 Asian Games. There are strong rumours too that it will bid to stage the 2036 Olympic Games, as the country seeks to cement its position as an important event destination. This is not only about security and legitimacy but is also about employment, export earnings and contributions to national output.

Qatar’s hosting of Fifa’s showpiece has been called a lot of things – corrupt, immoral, sportwashing and so forth – but such interpretations fall a considerable way short of what the country has always intended. It now feels safer, more secure and better about itself. All of this is built upon a strategy of sound defence, something that Maguire and van Dijk would presumably endorse.

£

is Professor of Sport and Geopolitical Economy at Skema Business School in Paris.

Simon Chadwick

It has been called corrupt and sportswashing but that interpretation falls short of what Qatar intended

Why Qatar thinks –despite worldwide criticism of its human rights record and inevitable player protests –the World Cup is still worth hosting

WE

KANE

England captain Harry Kane has said England have the belief to win the World Cup. The Three Lions fell short of the final four years ago in Russia but the Tottenham Hotspur striker says his side should back themselves to win the World Cup for the first time since 1966. “I look back at England 10, 15 years ago and it was almost [like] we were scared to say we wanted to win it,” he said. “We’re going to this tournament to win it because we believe we can.” England begin their World Cup campaign on Monday afternoon against Iran.

DO

IT England captain positive Three Lions can win Cup

UK AND IRELAND FORMALLY SUBMIT BID FOR EURO 2028

£ The United Kingdom and the Republic of Ireland yesterday submitted a formal bid to host Euro 2028. The bid would have to fend off a rival one from Turkey should it be successful in hosting the European Championships. As part of the bid, 14 stadiums have been named as potential host grounds for the tournament with the final bid having 10 stadiums. The potential venues in England would be Wembley, Villa Park, Everton Stadium, London Stadium, Tottenham Hotspur Stadium, Etihad Stadium, St James’ Park, Stadium of Light and Old Trafford. Dublin’s Aviva Arena and Croke Park have been proposed. Northern Ireland’s Casement Park Stadium, Scotland’s Hampden Park and Wales’ Principality are also options.

RAHM CRITISISES GOLF POINT SYSTEM AHEAD OF DUBAI

£ World no5 golfer Jon Rahm has said the new ranking points system in golf is “laughable” due to it rewarding depth of field rather than quality. “I’m going to be as blunt as I can, I think the [ranking organisation] right now is laughable,” Rahm said. “I understand what they are trying to do with the depth of field but having the best players in the world

automatically makes the tournament better. I don’t care what their system says. I think they have made a mistake.”

TONEY CHARGED OVER 232 ALLEGED BETTING BREACHES

£ Brentford striker Ivan Toney has been charged by the Football Association over 232 alleged breeches of betting rules over a four-year period. Toney was excluded from England’s 26-man squad for the World Cup and has previously said he’d been assisting the FA with its enquiries amid allegations he gambled on matches. The striker has played 92 times for Brentford and has scored 52 goals for the Bees. Some suggested that he should have been on the plane to Doha.

ALCARAZ BECOMES YOUNGEST YEAR-END MEN’S TENNIS NO1

£ Spanish teen sensation Carlos Alcaraz has become the youngest year-end Wworld No1 in men’s tennis following Rafael Nadal’s exit at the ATP Finals. The US Open takes the record away from Layton Hewitt, who acheived the feat in 2001. Nadal could have returned to world No1 in Turin this year but instead continued his run of bumpy form.

REDS

FORTY-THREE days without the Premier League. Three days in and already I’m suffering withdrawal symptoms. Yes, I knew it was coming. And having watched athletics three times in Doha I’ve no intention now of jumping on the hypocrisy train.

I do, though, expect club football across the globe to be the big winner from the decision to stage the World Cup at the start of the northern hemisphere winter. Absence will make our hearts grow even fonder.

Fifa’s marquee product is going to be a poor substitute for our habitual football at this time of year. Crawley Town v Gillingham will be the first ever professional game in England to coincide with a World Cup finals fixture. The Broadfield Stadium on Tuesday sounds a more appealing prospect than watching France v Australia from my sofa, especially as the crypto club has recently climbed off the bottom of League Two. Many top-flight clubs will be plotting a mid-season reset during this enforced break. None could be more dramatic than the search for new investors – possibly outright owners – at Liverpool FC. A valuation of £4bn, 60 per cent higher than the base price paid for Chelsea by Todd Boehly and his crew, has been mooted.

Whether or not a transaction eventually occurs, the process initiated by Fenway Sports Group highlights once again the difficulties involved in monetising a stake in a football club. The Glazer family are derided for taking hefty annual dividends out of Manchester United –around £30m last year alone – but they are unabashedly making their investment work for them. Other owners are dependent on selling as their means of turning notional paper returns into real ones.

It may be that the injection of new funds at Liverpool in return

for only a minority stake beside FSG is the route the club’s owners pursue. This would be a classic private equity industry ploy. Whatever valuation at which a new shareholder comes onto the club’s register would set a level for FSG to declare to its own investors. In that way FSG finds money for, say, signing Jude Bellingham, still retains its own shares, and demonstrates the success of its investment to itself and its

Of course, this “mark to market” approach relies on the football industry merry-go-round continuing to spin – or, cynically, the greater fool theory holding. The investment world is littered with businesses whose high notional valuations based on small minority share sales are subsequently shown to be grossly overblown. The hotly contested pursuit of Chelsea back in the spring could have

sowed the seed for FSG. The leading contenders in that process were American. AFC Bournemouth is currently moving into the hands of a Texan who owns the Vegas Golden Knights ice hockey franchise, while the 49ers Enterprises group is expected to take majority control at Leeds United soon. There will be talk of Chinese and Middle Eastern money for Liverpool, but it

seems the strong dollar, US sport valuation metrics and simple investment fashion are likely to mean Americans remain the principal players in town.

Potential investors might first like to ask Boehly how he’s found his first five months at Chelsea though.

STOKES JOKES

Event presentation teams have a standard playlist of retro songs that you hear repeated across sports. Heaven for an old headbanger like me, but short on imagination.

I did smile, though, when the unmistakable riff of Led Zep’s Kashmir belted out across the MCG straight after Ben Stokes bagged the wicket of Pakistan’s Iftikhar Ahmed in Sunday’s T20 World Cup final. A man in the PA room with a cheeky sense of humour.

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

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Ed Warner

There’ll be talk of Chinese or Middle Eastern money but Americans are principal players

BUYERS TO BE MORE OF SAME