Wednesday 28 June 2023

THE PERFECT SERVE WINES TO GET YOU

IN

THE SPIRIT FOR A SPOT OF WIMBLEDON P14

ISN’T IT ACE WTA TOUR SET TO OFFER EQUAL PRIZE MONEY AT MORE EVENTS P18

FOR ONCE, THAMES WATER DOESN’T LEAK

EMBATTLED UTILITIES CEO QUITS WITH IMMEDIATE EFFECT – AND FIRM REFUSES TO SAY WHY

NICHOLAS EARL

THAMES WATER boss Sarah Bentley sensationally stepped down from her role as chief executive yesterday, with the firm refusing to offer any explanation for her sudden departure.

It marks the end of a controversial threeyear tenure, in which she took home nearly £5m in salaries and bonuses despite scandal after scandal rocking the UK’s largest water supplier.

The firm has been criticised for an almost constant stream of raw sewage overflows

into lakes and rivers, constant leakages, and extensive investigations from the regulators over its poor performance.

Recent data suggests leakage rates are now at its highest levels since 2018, and Thames Water pumped undiluted raw sewage into waterways more than 8,000 times in 2022.

The swift exit comes just weeks after Bentley announced she would give up her bonus for the 2022/23 financial year amid criticism of the company’s

sewage issues –though she saw her base pay doubled for the same period. When pressed, Thames Water did not deny she would receive a pay-off, only saying an announcement would come “in due course”.

Bentley, who was at the helm of the firm when Ofwat and the Environment Agency launched enforcement action against Thames Water, said: “It has been an honour to take on such a significant challenge.

“The foundations of the

turnaround that we have laid position the company for future success.”

The leadership vacuum is being filled on an interim basis by finance chief Alastair Cochran and strategy director Cathryn Ross as the company searches for a replacement. Whoever inherits the role will also find themselves underneath a debt pile of around £14bn.

Liberal Democrat Environment spokesperson Tim Farron MP urged for this to be a “watershed moment for the scandalriddencompany” and called for ministers to “reform the firm from top to bottom”.

MORTGAGE MAYHEM

Rates fuelling discounts on house prices

LAURA MCGUIRE

RED HOT mortgage rates are leading to sellers accepting lower prices for their properties and creating further pain for the housing sector, fresh data shows.

As the market grapples with the Bank of England’s 13th straight rate hike, figures by estate agent Zoopla show that 42 per cent of sellers are accepting discounts over five per cent on the asking price to secure a sale – the biggest discount recorded by the estate agent since 2018.

Meanwhile, 15 per cent of property sellers are knocking over 10 per cent off initial asking prices.

It comes as sky-high interest rates on mortgages erode buyers’ purchasing power, with Zoopla reporting a 14 per cent fall in buyers in the market over the last four weeks compared to a year ago.

The average rate for a five year fixed term mortgage now sits at 5.83 per cent, up from 5.17 per cent since the start of June, according to Moneyfacts.

“Our view remains that five per cent mortgage rates represent a tipping point, beyond which house prices will post annual price falls with lower sales volumes,” Zoopla said in the report.

“The sales momentum over [the first half of 2023] is not going to be maintained into [the second half].”

Wise shares rocket as rising interest rates push profits up over 200 per cent

CHARLIE CONCHIE

SHARES in money transfer Wise surged over 16 per cent yesterday after the firm posted a 234 per cent boost in profits over the past year on the back of rising interest rates. In its full year results yesterday, the London-listed fintech firm said

profits had surged from £43.9m in 2022 year to £146.5m in 2023.

Wise felt the lift of interest income on its customer balance’s throughout the year as central bankers hiked rates to tame inflation. The firm said its net interest income has rocketed to £118.1m in the year up from a £2.8m

loss in the previous year.

Boss Kristo Kaarmann said it was an “exceptional set of financials” for the firm on the back of “customer growth combined with some specific tailwinds from interest”.

“Our strong growth and continued profitability are a direct result of our focus on our mission

and our customers,” Kaarmann said.

Finance chief Matt Briers said the firm would use interest income to “power further profitable growth” by investing the cash in the Wise Account proposition.

The firm said 10m customers had chosen to move and manage their cash with Wise, an increase of 34

per cent year-on-year, while the amount of cash pinged around the world rose 37 per cent.

The results come after a troubling year for the firm in which its chief Kristo Kaarmann was embroiled in a tax scandal and faced a probe from the regulator over a bill dating back to 2017.

STANDING UP FOR THE CITY

The sun is out, but our politicians can’t afford a summer malaise

SUMMER is definitely in the air. As the champagne corks fly into the air at Lord’s this morning, it will be a sign of the usual slowdown into August. Dare we say it, the summer months have become almost French in recent years. Unfortunately, this year, the increased temperature can’t be matched by the cooling of our economic and political debate –at least for the Conservatives.

Rishi Sunak’s techy, slightly

THE CITY VIEW

nerdy approach has plenty of appeal. So far the country is yet to see the results, and to be frank, so is the City. The promise of jam tomorrow in the form of new financial regulations and

potential tax cuts is all well and good, but action rather than conversation is in short supply. The opposition for their part may soon find that “at least we’re not the other lot” isn’t as compelling an electoral narrative as Keir Starmer’s strategists may think. Both need to outline how they are to solve Britain’s fundamental issue: demographic change that will create a continually older

population, and trend growth below two per cent. Without radical reform of Britain’s public services or a national rethink of what the state is for. Neither Sunak nor Starmer seem inclined towards the latter, but ideas for the former are also in short supply. Let’s hope their holiday reads have them ready to bring the country a more compelling vision in September –or, better, before.

WHAT THE OTHER PAPERS SAY THIS MORNING

UK REJECTS CLAIM THAT EU SCIENCE PROGRAMME TALKS ARE FOUNDERING

Jeremy Hunt yesterday rejected claims that talks over British membership of the EU’s Horizon science programme have stalled, insisting London’s participation would be the “optimal outcome”.

THE TELEGRAPH FORECASTING FAILURES UNDER BAILEY HAVE MADE INFLATION WORSE, ADMITS

BOE POLICYMAKER

The Bank of England’s poor economic forecasts have undermined its response to the cost of living crisis, top policymaker Swati Dhingra warned.

THE GUARDIAN MOBILE AND BROADBAND FIRMS ACCUSED OF FUELLING ‘GREEDFLATION’

The UK’s largest mobile and broadband companies have been accused of fuelling “greedflation” after pushing through the biggest round of price hikes for more than 30 years.

Tories won’t probe groping claim against London mayoral hopeful Daniel Korski

FRANK-KEYES

JESSICA

THE CONSERVATIVE Party has indicated it won’t investigate an allegation of sexual assault by Tory mayoral candidate Daniel Korski.

The party told the PA news agency it “does not conduct investigations where the party would not be considered to have primary jurisdiction”.

Daisy Goodwin, a TV producer and novelist, wrote in The Times that Korski, a former No10 advisor to David Cameron, grabbed her breast during a

meeting in Downing Street in 2013.

Goodwin, creator of ITV hit ‘Victoria’ starring Jenna Coleman, wrote: “It is not fair on the great majority of men who treat women decently to allow a man who clearly has a problem with impulse control to reach a position of power.

“We don’t need any more politicians who believe that the rules do not apply to them.”

Korski (pictured) has denied the allegation.

“Unfortunately, in the midst of this demanding environ-

Johnson breach over Mail column sparks reform calls

ment, this baseless allegation from the past has resurfaced,” he said.

“It is disheartening to find myself connected to this allegation after so many years, but I want to unequivocally state that I categorically deny any claim of inappropriate behaviour.

“I denied it when it was alluded to seven years ago and I do so now. To be clear –nothing was raised at the time, nothing was raised with me seven years ago when this was alluded to and even now. I’m not aware that there was an official complaint.”

No10, the Conservative Party and Goodwin were contacted for comment.

SAM BLEWETT

BORIS Johnson’s “unambiguous rule breach” over his Daily Mail column shows the urgent need to reform the approach to post-ministerial jobs, the government has been warned.

Advisory Committee on Business Appointments (Acoba) chairman Lord Eric Pickles wrote to deputy prime minister Oliver Dowden yesterday arguing that the former prime minister’s case is a “further illustration of how out of date” the rules are, saying there must be sanctions for breaches and reform.

The Ministerial Code requires those who have left the government in the last two years to apply for advice on taking up a new appointment or role in a bid to avoid suspicion that posts might be a reward for past favours and to stop ex-ministers exploiting their contacts.

But the watchdog said Johnson only submitted his Acoba application 30 minutes before his new job was announced.

“This is a clear and unambiguous breach of the government’s rules and requirements of the Ministerial Code,” Pickles wrote.

RUSSIA-UKRAINE WAR Vladimir Putin yesterday addressed troops from the defence ministry in a bid to regain control after the aborted Wagner mutiny over the weekend

THE FINANCIAL TIMES

HSBC warns that recession signals are ‘flashing red’

CHARLIE CONCHIE

STOCK MARKETS are “out of sync” with blaring recession warnings across Western economies and investors should brace for a turbulent period ahead, HSBC Asset Management warned yesterday.

In a dire warning for the second half of the year, analysts at HSBC Asset Management said it sees “choppy markets” this year as central bankers in the UK and Europe continue to hike rates and markets begin to price in a more gloomy view of the economic conditions.

“Our central scenario is for recession in Western economies, and a difficult, choppy outlook for markets,” HSBC Asset Management’s chief strategist, Joseph Little, said.

“This is happening for two reasons.

First, we have the rapid tightening of financial conditions that’s caused a

SWEATING THE ASSETS David Lloyd could be sold as owners eye £2bn price tag

Report calls for overhaul of UK’s tax regime

JACK BARNETT

downturn in the credit cycle. Second, markets do not appear to be pricing a particularly pessimistic view of the world.

“We think the incoming news flow over the next six months could be tough to digest for a market that’s pricing a ‘soft landing’.”

Recession warnings were “flashing red for the US and Europe”, Little added, but credit and stock markets look “out of sync” with that and continue to trade well.

“The recession is not going to be big enough to really purge all inflation pressures out of the system. As a result, this points to a regime of somewhat higher inflation and interest rates over time,” he added.

Big investors have begun to snap up bonds in the past few weeks, which slump in value in a high rate environment. Investors see value ahead of predicted rate cuts next year.

PRIME MINISTER Rishi Sunak should cut companies’ national insurance contributions and make the temporary business investment tax relief permanent, an influential think tank has argued in a radical blueprint to overhaul the UK’s tax regime.

Employers should be subjected to a 12.8 per cent national insurance levy, one percentage point lower than the present rate, according to a report out today from the Resolution Foundation.

Reducing reliance on generating tax revenues from earnings would stimulate employment and help the UK reverse its more than decade-long stagnant economic growth, the think tank has claimed.

Making the current 100 per cent investment tax relief permanent would incentivise businesses to ramp up capital spending and create more opportunities for GDP growth to flourish, the report argued.

Britain’s tax burden is currently on track to hit its highest levels since just after the second world war. The Treasury was contacted.

PRIVATE equity firm TDR Capital is reportedly mulling a sale of its health and fitness business David Lloyd Leisure. Sky News reported that it has drafted in Morgan Stanley to advise on potential suitors for the business, and is aiming for a £2bn price tag.

Bank of England commits to new green pledges in net zero push

CHRIS DORRELL

THE BANK of England has committed to reducing its greenhouse gas emissions 90 per cent by 2040 as part of its net zero push.

In a speech ahead of the publication of the Bank’s climate transition plan, BoE COO Ben Stimson said “our central target is to reduce greenhouse gas emissions

from our physical operations by 90 per vent by 2040 relative to our baseline year in 2015/16”.

He noted the Bank had interim milestones to reduce emissions every five years. The first target is to cut emissions by 40 per cent by 2025. The Bank has already committed to reach net zero by 2050.

The Bank’s plan, which will be released next week, is one of the first

of its kind by a central bank.

Already, Stimson said, the Bank has cut electricity emissions to zero. The Bank will now focus on its direct emissions and Scope 3 emissions.

“We are working with organisations along our supply chain, from the largest global corporates to local SMEs, to ensure that they are able to quantify and begin to mitigate their own emissions,” Stimson said.

Chancellor strikes financial services deal with Europe

JESSICA FRANK-KEYES

CHANCELLOR Jeremy Hunt yesterday signed a long-awaited deal with the European Union on improving regulatory cooperation for financial services, in a move that Hunt said will help the City secure its position as a “global financial services hub”.

Hunt and EU financial services commissioner Mairead McGuinness signed a Memorandum of Understanding (MoU) at the European Commission, marking Hunt’s first visit to Brussels as chancellor.

The post-Brexit agreement will establish a forum to discuss voluntary regulatory cooperation on financial services issues.

Hunt said the deal, which builds on existing agreements between the UK and the USA, Japan and Singapore, would help “support the sector as a global financial services hub”.

“The UK and EU’s financial markets are deeply interconnected and building a constructive, voluntary relationship is of mutual benefit to us both,” Hunt said.

UK Finance boss David Postings wel-

comed the deal as “an important step forward… on removing frictions and supporting a better flow of mutually beneficial cross-border trade with the EU.”

Miles Celic, chief executive of the The CityUK, called the signing “another positive step forward in rebuilding UK-EU relations” and said industry was hoping to see “constructive dialogue”.

He added: “Progress has been a long time coming… a joint forum to discuss regulatory cooperation is vital to boost coordination and communication on issues of mutual interest.”

Chris Cummings, chief executive of the Investment Association, said the MoU was an “important milestone” for a “more resilient and dynamic investment management sector”.

But Cummings stressed the forum needed to deliver “pragmatic dialogue” and address issues including retail participation, international coherence, sustainability, and tech and innovation.

The MoU comes after Prime Minister Rishi Sunak and European Commission president Ursula von der Leyen signed the so-called Windsor Framework deal earlier this year.

Odey Asset Management in talks to transfer funds to SW Mitchell

CHARLIE CONCHIE

ODEY Asset Management (OAM) is in “advanced talks” to transfer funds to rival SW Mitchell Capital as it reels from sexual assault allegation against its founder Crispin Odey.

In a letter seen by City A.M., the beleaguered hedge fund wrote to investors saying it was in discussions over the transfer of four of its European Equity Funds and their manager Oliver Kelton.

The Brook Continental European Fund, Brook European Focus Fund, Odey Pan European Fund and Brook European Focus Absolute Return Fund would be shifted across to SW Mitchell as part of the deal, OAM told investors.

OAM has been reeling since the Financial Times revealed that founder Crispin Odey faced sexual assault allegation from 13 women. He has called the allegations “rubbish” and denies them.

Founder Crispin Odey is facing sexual assault allegations from 13 women

Budget Britain: Inflation forcing us to trade down

JACK BARNETT

BRITS are trading down to cheaper products and are opting to holiday at home in response to rampant inflation and higher interest rates squeezing their budgets, new research shows.

Some 40 per cent of families have been buying more value or own brand products in 2023, according to analysis from consultancy KPMG. The same proportion have been seeking out stores’ promotional or discounted goods to help withstand the pressure on their budgets from the cost of living crunch.

Mounting signs of consumers trading down has propelled the share prices of companies offering products at more affordable prices.

FTSE 100-listed and discount retailer B&M has climbed nearly 40 per cent so far in 2023. German value supermar-

kets Aldi and Lidl have been steadily increasing their market share over the last year, according to data from Kantar. Sky-high food and energy bills are also eating up cash that could have otherwise been spent on treats.

An increasing number of Brits are opting to stay in the UK for their summer breaks to avoid higher travel costs.

KPMG said more than two in five families intend to head to Britain’s seasides and green pastures for their summer getaway, mainly due to a third expecting airlines to charge higher ticket prices.

Meanwhile, some 71 per cent of the 3,000 consumers surveyed by KPMG said they have also cut back on eating out, while 62 per cent are shunning takeaways more frequently.

KPMG found that 34 per cent of families are reducing non-essential spending due to crippling mortgage bills.

BOOTS has revealed a surge in online shoppers and people opting for ownbrand labels has driven up sales over the latest quarter.

The pharmacy and retail chain yesterday said its own ranges have been flying off the shelves as consumers hunt down value.

Retail sales across Boots jumped by

Quintessentially swaps auditor amid delays

BEN LUCAS

QUINTESSENTIALLY, the membersonly concierge service founded by the nephew of Queen Camilla, Ben Elliot, has switched its auditors amid severe delays to the company’s accounts.

BDO officially resigned as the auditor for Quintessentially (UK), the parent company, on Monday, according to an update on Companies House.

A spokesperson for Quintessentially confirmed the change to City A.M., but said that the decision to replace BDO with Mayfair accountants Sopher & Co was made back in March.

13.4 per cent in the three months to the end of May, compared to the same period last year.

Boots said its ‘Everyday’ essentials products saw volume growth of 40 per cent –meaning more were sold.

It came as its US owner, Walgreens Boots Alliance, revealed its net quarterly profit more than halved as demand for Covid vaccines and testing declined. PA

The change comes amid severe delays to its accounts for 2021 and 2022, with the former overdue by well over a year.

The spokesperson said it plans to publish both by the “end of the summer”.

BDO was also the auditor for Quintessentially Travel up until it resigned in August last year. It was replaced by White Hart Associates. BDO declined to comment “due to confidentiality”.

ANNA WISE

Vitol and Gunvor rake in Russian oil profits a year after Ukraine invasion

NICHOLAS EARL

ENERGY traders Vitol and Gunvor are still buying vast quantities of refined Russian oil, despite pledging over a year ago to significantly cut business with Kremlin-backed firms following the country’s invasion of Ukraine. They are the only two Western companies to remain among the top 10 buyers of Russia’s refined products, including petrol and diesel.

According to the Financial Times’ analysis of the country’s export

records for the first four months of the year, Gunvor was the eighth largest buyer by value while Vitol was the tenth biggest purchaser.

Gunvor bought 1m tonnes, worth an estimated $540m, while Vitol bought in 600,000 tonnes over the same period, worth around $400m, according to the paper’s analysis.

Trading in Russian refined fuels including oil is not prohibited by Western sanctions, and has been supported by the White House to limit supply restrictions, provided

Energy industry must not return to ‘Wild West’

NICHOLAS EARL

THE RETAIL energy sector has to avoid a “repeat of the Wild West of the last decade” and ensure suppliers are “pricing sustainably”, the boss of challenger supplier Telecom Plus has argued.

Andrew Lindsay told City A.M. there was “no probability of a return to £400 discounts on energy” when suppliers would focus on rapid customer growth over hedging by offering ultra-cheap deals below market norms, after the government lowered the bar for entry into the market in a bid to provide more competition.

“The period of 2015 to 2021 was not in any way the norm. It was extraordinary and ended up with an enormous implosion in the energy markets because suppliers across the board were losing a billion pounds a year – and that’s entirely unsustainable,” he said. Instead, he believed that in a market with tight profit margins of less than two per cent, suppliers should differentiate themselves with “disruptive” models for customers that provide them with better services and choices rather than prices.

The domestic energy crisis saw the

collapse of over 30 suppliers, when suppliers were exposed by their lack of hedging after prices rose in line with post-pandemic demand two years ago – eventually leading to the collapse of Bulb Energy, the UK’s seventh biggest supplier.

This contributed to record energy bills and the need for tens of billions of pounds in multiple support packages for households and businesses, after prices were further escalated by Russia’s invasion of Ukraine last February.

As it stands, energy bills remain nearly double conventional levels prior to the instability caused by both events.

Lindsay’s comments follow Telecom Plus announcing record revenues and profits for its bundled household services offering yesterday, powered by customer growth and ultra-high oil and gas prices.

The FTSE 250 firm revealed that revenues soared 155 per cent over the 12 months until March, rising from £967.4m to £2.48bn with profits up 55 per cent from £61.9m to £96.2m.

Shares in the firm rose to climb up almost nine per cent after the robust update yesterday.

traders comply with restrictions imposed on Russia by the US and its allies. This includes the G7 price cap, which was introduced in February to limit the price Moscow gets for its refined oil products.

Nevertheless, the vast majority of European traders have backed out including Shell and BP.

Vitol and Gunvor told the Financial Times that they were regular buyers of Russian refined fuels but disputed the accuracy of the data.

City A.M. contacted the firms.

BARBICAN UPGRADES Plans to refurbish Barbican Estate Podium given the go ahead

Total’s London Office targeted by Just Stop Oil

NICHOLAS EARL

TOTAL ENERGIES yesterday became the latest victim of Just Stop Oil's crusade against fossil fuels, with the group throwing orange paint over the ground floor windows of its Canary Wharf base.

Over a dozen protestors were involved in the vandalism, which also included a public demonstration after the windows were smeared at around 8am yesterday.

The police later confirmed it had arrested four people on suspicion of criminal protest after they were promptly called to the scene.

When approached for comment, a spokesperson for Total said it “fully respects the right to demonstrate and freedom of expression”, but the company also “deplores all forms of violence, whether verbal, physical or material”.

After the paint was smeared across the glass, the group sat cross-legged outside entrance, placing a banner on the ground echoing the slogan ‘Just Stop Oil’.

Protestors also held placards reading “Stop EACOP, Stop Genocide”.

EACOP refers to the East African Crude Oil Pipeline, a proposed 1,443km development that will transport fuel from oilfields in Uganda near Lake Albert to ports in Tanzania. Once completed, EACOP would be the longest electrically heated oil pipeline in the world.

BAE Systems, Babcock set to meet with ministers over ESG investment concerns

GUY TAYLOR

MINISTERS are set to hold talks today with the bosses of a number of major defence companies, over concerns that socially conscious investing is hurting the sector.

Andrew Griffith, the economic secretary to the Treasury and James Cartlidge, defence procurement minister, will meet bosses from BAE

systems, Babcock International and Qinitiq tomorrow, Sky News reported.

A source from the Treasury told Sky News that the goal of the meeting was to ascertain whether Environmental, Social and Governance (ESG) factors were acting as a barrier to the sector and how the government can help.

The defence and aerospace sector has previously warned that the ESG investment standards could restrict its

ability to access capital.

However, many have experienced a major profit boost from a rise in state defence spending following Russia’s invasion of Ukraine.

A BAE Systems spokesperson said it welcomed the opportunity to meet with industry and the government on the matter.

The Treasury did not respond to a request for comment.

Bosses from BAE, Babcock and Qinitiq are set to attend the meeting

THE CITY of London Corporation was yesterday given the green light to carry out new refurbishment works on the Barbican podium, including essential waterproofing works as well as increasing the greening of the area.

Gunvor and Vitol are the only two Western firms in the top 10 buyers of Russian oil

Asda and Morrisons bosses back ‘transparent’ fuel pricing model

LAURA MCGUIRE

SUPERMARKET bosses were yesterday agreed to consider entering into a fuel model which would give more transparency after a grilling from MPs on fuel prices. The government has been mulling a scheme whereby petrol stations would have to share live prices in efforts to bring more price

transparency for drivers. A similar system exists in Northern Ireland.

It comes as bosses from the UK’s biggest grocers, including Asda and Morrisons, were quizzed in Westminster yesterday on whether or not retailers were “behaving” when it came to how they price food and fuel.

“I think anything that can benefit consumers we will be happy to look

at,” David Potts, chief of Morrisons, said about the proposed model. Supermarkets will face fresh scrutiny today as Chancellor Jeremy Hunt meets with the CMA, as well as regulators for energy, water and communications (Ofwat, Ofgem and Ofcom), to examine whether or not supermarkets have capitalised on inflation by raising prices, known as ‘profiteering’.

JD Sports shares drop as US sales start to ‘soften’

LAURA MCGUIRE

JD SPORTS failed to impress investors at its AGM yesterday, with shares in the athleisure giant dropping after a warning of ‘softening’ sales in North America.

Ahead of its AGM yesterday, the ‘king of trainers’ said sales had grown eight per cent in the first three months of the year and the brand remained on track to pass the billion-pound profit mark for the year.

Trading remained positive during May as issues in the retail supply chain showed signs of stabilising, though organic sales growth slowed to eight per cent, JD Sports said.

However, the retailer said growth in the UK and Europe was ‘partially offset by the businesses in North America which are experiencing some softening in trade consistent with other businesses in the sector.’

Shares fell to close down xx per cent after the update.

Victoria Scholar, head of investment at Interactive Investor said: “JD Sports has sunk to the bottom of the FTSE 100... reflecting the retailer’s disappointing per-

formance in North America driven by a sluggish growth backdrop in the United States and less demand from consumers for discretionary goods.

“Nonetheless shares are still up over eight per cent in 2023, with most of the gains skewed towards the start of the year while recent months have been more challenging since the February peak.”

New boss Regis Schulz, who was the former chief of B&Q, has spent the last year expanding the retail brand’s presence in the market, previously revealing that he would spend up to £3bn to open over 1,000 new JD Sports in the coming years.

So far this year, JD Sports has opened a further 32 stores and has plans to open up to 150 sites over the next 12 months. In May, Schulz also green-lit a £425m acquisition of leading French sports brand Courir. It expects the takeover to formally close later in 2023.

“Securing greater control over the long-term development of JD and prioritising the development of the JD brand is a key pillar in our growth strategy in Europe,” Schultz said at the time.

London fintech Upp. pockets

$10m as it eyes global expansion

JESS JONES

LONDON-BASED fintech Upp. has secured $10m (£7.8m) in seed funding as its artificial intelligence (AI) and machine learning model wins over investors.

The startup, which uses AI to automate online retail, has garnered support in a funding round spearheaded by Californian venture capital firm Bonfire Ventures.

Mark Mullen, co-founder of Bonfire

Ventures, said Upp. is “the future of online sales” and “possesses a lot of horsepower”.

“The company’s platform is incredibly powerful and has the potential to revolutionise the way retailers market, price and sell their products online”, Mullen said. Upp. said it plans to use this investment to build a “world class” team, accelerate sales growth and expand its product into new global markets.

FORMER Ted Baker boss Rachel Osborne is set to join the board of Ocado as an independent non-executive director, as rumours swirl over a potential takeover from Amazon. Osborne left Ted Baker earlier this month after the firm was acquired by Authentic Brands.

NEW HIRE Former Ted Baker boss joins Ocado as Amazon takeover rumours swirl

THE CITY has been plunged into something of an existential panic in recent months. Fears of international decline have crystallised in the form of a listings drought and a crack squad of City grandees are scrambling to try and steady the ship.

But the causes of that decline, the levers that can be pulled, and whether indeed there is a decline at all, are complex.

A sharp drop-off in pension funds flowing into the stock market and a risk averse culture among the Square Mile’s money managers have been pointed to as reasons for the fall in the UK’s standing, as has restrictive regulation and burdensome reporting requirements.

There is also the valid point that the UK’s listings slump, while sharper than most countries, is part of a much wider global trend in which the IPO market has been shuttered amid the tumult of war in Ukraine and soaring inflation.

But one possible explanation divides opinion among City watchers more than others: Brexit.

DISCOUNT STORE

The battle to win listings in London is often a fight against a brutal and simple logic: a New York listing is likely to fetch a higher valuation –so why wouldn’t you?

The attention of policymakers is therefore trained on the underlying cause of the UK’s valuation discount and why firms on our shores have proved such laggards.

The reason du jour touted in the City is that the lack of pension fund cash flowing into the stock market has fu-

IS BREXIT THE REAL REASON FOR LONDON’S MARKET DECLINE?

being solely a Brexit effect.”

The EU similarly began to deviate from the US in terms of valuation just prior to Brexit. Much of the valuation discount may in fact, he says, be a simple assessment of the UK and EU’s long term economic prospects against the US in that time. Investors’ cash is not restricted by borders, and money managers may have just chosen to follow the more rosy economic outlook on the other side of the Atlantic.

GLOBAL IPO MARKET

elled the decline in valuations, which is in turn blamed on accounting tweaks brought in around the turn of the millennium.

Pension funds’ holding of equities has indeed plummeted since 2000. Just four per cent of the UK stock market is now held by pension funds – down from 39 per cent in 2000, according to a report from think tank New Financial.

However, valuations did not correlate with that decline. As Fidelity fund manager Alex Wright pointed out earlier this month, much of that de-equitisation was done by 2015, and the valuation of the UK market “held up roughly the same”.

He says the elephant in the room came after that –in June 2016.

“Unfortunately, and again politicians don’t want to say this, but it’s very clear what’s caused the undervaluation: it’s Brexit,” he told Citywire in an interview.

“You can see it to the day that international investors have disinvested from the UK market after the Brexit vote and the uncertainty that that has created. That is the key reason.”

Analysts at Capital Economics similarly point out the emergence of a gap in equity valuations doesn’t tally with the timing of the pension accounting changes and it was only from 2016 that a substantial gap emerged.

SMOKING GUN?

Given the timing, it’s tempting to attribute that gap solely to the UK’s vote to leave the EU, analyst Adam Moyes of Capital Economics tells City A.M.

The price/earnings ratio of UK firms, which compares a company’s share price to its annual net profits, was broadly comparable to the US up until 2016. It was only at that point that they began to diverge.

“It looks like a bit of a smoking gun” Moyes tells City A.M. But, he cautions, the reason may in fact be more muddy.

“You also got a real divergence in valuations between the US and the eurozone around that time,” he adds. “That is the real pushback I give against it

It is also important to note the global picture of a major listings slowdown. The IPO market globally has been largely shuttered for the past year and the UK is not alone in that regard.

Global IPO activity was down by eight per cent in terms of deal numbers and 61 per cent in terms of proceeds compared to the same period last year, according to data from EY.

The amount of cash raised via UK IPOs did fall more sharply, however, with cash raised falling some 80 per cent on the same period in 2022, and 99 per cent on the blockbuster 2021 levels.

But for William Wright, the director of think tank New Financial, even taking into account that UK slump, the wider global picture shows that it is not Brexit that has dampened the UK’s appeal.

“I wouldn’t personally put Brexit towards the top of the list or even on the list,” he tells City A.M.

“If Brexit were a significant factor in the recent slowdown in IPOs in the UK, then surely the markets in the rest of the European Union, which were very active in 2021, would have continued to

be very active in 2022 and into 2023 –and they just haven’t been.

“This is not a UK specific problem,” he says.

The fact the UK’s IPO market was going gangbusters in 2021 may also point to that argument. Britain had left the EU by then and it did not then prove to be too much of a deterrent for scores of firms to debut in London.

For Wright, the reason for the current slump is the more macro assessment of the current state of the UK economy.

“The only way that Brexit could be a factor is the extent –and one can argue this till the cows come home –to which Brexit has had a drag effect on the UK economy,” he said.

DRAG EFFECT

It’s there that Brexit may loom more definitively into view. As both Wright and Capital Economics point out, the reason for the decline may be firms voting with their feet on Britain’s economic prospects.

The UK economy is estimated to be 5.5 per cent poorer now than it would have been had it stayed in the EU, according to a study by the Centre for European Reform. Britain has also lost out on business investment worth £29bn since the referendum, according to a study by a senior Bank of England rate-setter earlier this year.

Imports and exports of goods have also felt a “significant adverse impact” as a result of Brexit, according to the Office for Budget Responsibility.

While Brexit may not be solely responsible for dragging down London’s capital markets, its looming spectre over the UK economy may have caused them to lose their shine.

The only way that Brexit could be a factor is the extent to which Brexit has had a drag effect on the UK economy

As the IPO market dries up, Charlie Conchie asks if it’s time to look to the elephant in the room

THE NOTE BOOK

Driving using your rear-view mirror leads to disaster

THE LATEST unfolding of events in Russia reminded me of an excellent column in The Times by William Hague last month. William’s article called for a new mindset for our ‘age of disruption’ and warned that our economic, social and political prediction models must change. This resonated deeply with me, as recognising the need for change and adapting accordingly has been responsible for my wins over the years.

Failing to do so has led to losses.

Terra Firma was very successful from 1995 until 2007 by changing the models of the businesses we bought. However, in the credit crash of 2007, I relied on a financing model for deals which then collapsed. The lesson I should have learnt was that even if strategic and operational models are theoretically correct, they must be adapted if a changing macro environment makes them impossible to execute.

Sixteen years later, most of the

KING’S WELCOME

world’s models have broken down just like my financing model did. In 2007, it cost me over £2bn. Today, unless we radically adapt our economic, political and social models, it will cost us peace, prosperity, and the world we live in.

Our Cold War models would have us celebrating political instability in Russia, but with almost 6,000 nuclear weapons in the country, it would be a nightmare scenario if Russia descends into anarchy. Western support for uprisings in the Middle East and North Africa has in the past caused immeasurable harm, millions of deaths and cost trillions of dollars. The tragic war in Ukraine must end but the situation in Russia is delicate and our political models should reflect this. Using outdated models to guide future decisions is like driving using only your rear-view mirror. Useful to have but if something happens up ahead, those not looking ahead risk causing a major disaster.

Where interesting people say interesting things. Today, it’s Guy Hands, founder and chair of Terra Firma Capital Partners

I was recently in Cambridge visiting the Aviation Impact Accelerator at the Whittle Laboratory, opened last month by King Charles. The team are making great strides in determining how to propel the aviation industry towards net zero. I was surprised that the researchers had modelled one relatively straightforward solution: tackle ‘contrails’, the wispy ice clouds that follow planes. The warming effect of contrails is up to 57 per cent of the total climate impact of aircrafts. Research has shown that by making small diversions to flightpaths to avoid the atmospheric pockets that create contrails, the impact of the aviation industry on the earth’s temperature could be decreased significantly. Combining technology and new mindsets can be truly revolutionary. However, ideas can only take off under certain conditions. We need mandatory global legislation to enforce such a change. Without it, airlines will do what is easiest, not what is best for the planet. Given the science is there and the cost manageable, this is an easy win for politicians. They must investigate immediately so the UK leads the world’s governments on saving the planet.

£ I remember King Charles being mercilessly mocked for caring about plants and the environment by the satirical show of the 80s, Spitting Image. As someone who has had a horticulture business I know how important it is to treat plants properly and with respect. We all know the part they play in our now fragile ecosystem. It’s extraordinary to think Charles was seen as an eccentric then and I hope more people listen to him now he is King.

Brexit tariffs risk £106bn to UK car industry: SMMT

GUY TAYLOR

FAILURE to bolster the supply chains for electric cars, coupled with looming post-Brexit tariffs, could cost the UK’s car industry over £100bn in growth, a leading industry group has warned.

A potential 10-fold increase in the production of electric cars worth £106bn is at stake, according to a new report from the Society of Motor Manufacturers and Traders (SMMT).

Unless the government invests in British manufacturing plants, helps to scale up their EV supply chains and reworks the incoming export tariffs created by the UK-EU trade deal, the UK’s automotive sector will become “uncompetitive” in the face of “fierce global competition”, the SMMT said.

New EU post-Brexit rules, which come into effect in January 2024, will place tariffs of 10 per cent on exports of electric cars between the UK and the EU if at least 45 per cent of their value does not originate in the UK or EU.

Mike Hawes, SMMT’s chief executive, said: “The government has set the industry tough targets and we are committed to meeting them.

“But we are in the middle of the most fiercely competitive investment land-

scape of a generation and need a UK response, urgently, using every policy, every fiscal and regulatory lever, to make Britain the most attractive place to invest,” he said, speaking at the group’s annual summit yesterday.

“The automotive industry rises to every challenge, so we set out today a challenge to all political parties: back us with the right conditions and we will turn our obligations into opportunities for our industry, for jobs, for the environment and for the UK,” he said.

The calls come after a rollercoaster start to the year for Britain’s automotive industry, which has seen the government come under fire for risking the UK’s position in the global EV race.

In May, Vauxhall-owner Stellantis and other major car manufacturers warned that the new tariffs could put UK factories at risk.

The sector is also waiting to hear whether the UK has pipped Spain in the battle to secure a new ‘gigafactory’ built by Jaguar Land Rover’s owner Tata. The outcome has been touted by some as pivotal in securing the future of Britain’s EV sector, although one industry source told City A.M. that many believe the government has already missed the boat.

CAN I QUOTE YOU ON THAT?

DOROTHY DAY

Released last year, Hallelujah: Leonard Cohen. A Journey. A Song is a wonderful documentary about the incredible song of the same name. I saw the film on a flight and it profoundly moved me. The song I had heard many times but watching this film gave a deep insight into the story of the song itself. Leonard Cohen’s record company turned it down as they didn’t believe it to be commercial enough. He however didn’t give up and Hallelujah has gone on to be one of the most enduring songs of all time. For me it sums up beautifully the bittersweet nature of love.

Arriva to keep running London Overground

JACK MENDEL

LONDON Overground will be operated by Arriva for another two years, with the operator’s sevenand-a-half year contract extended yesterday.

The train operator has run the capital’s transport network since 2016, with it now set to continue until May 2026.

It was not made clear how much the extension is worth.

The carmaker’s shares sunk to the bottom of the FTSE 250 yesterday

Aston Martin’s punchy profit promises fail to impress investors

GUY TAYLOR

ASTON Martin yesterday outlined plans to double revenues and quadruple profits within the next five years, but the omission of a sales volume target left investors worried. At its capital markets day, the marque told shareholders it would aim for revenues of £2.5bn and ebitda of £800m by 2028, as opposed to the £1.1bn in revenues it made last year and £190m ebitda. The firm retained its 2025 revenue forecast of £2bn.

However, shares in the company dropped nine per cent to the bottom of the FTSE 250 yesterday, a turn in fortunes after a rally in its share price on Monday after news of a deal with electric car designer Lucid.

“The dropping of an important figure such as a sales target is unlikely to be an accident by any means and that could play a part in spooking investors' confidence in a company whose track record of meeting the targets is weak at its best,” said AJ Bell analyst Russ Mould.

This comes as the UK’s entire rail network has been blighted by strikes as the cost of living crisis continues. A number of strike dates were called in July – but no industrial action has been called by Arriva Rail London employee as yet.

Paul Hutchings, managing director at Arriva Rail London, said: “I have no doubt that the team will continue to excel during the extension and build even further upon the legacy we have already created for the London Overground.”

The deal was also welcomed by Rory O’Neill, TfL’s general manager for London Overground, who praised their “collaboration”.

“There has been a great deal of change, not only at London Overground but in the rail industry, since the pandemic but ARL, supported by TfL, has risen to the challenge as we adapt to changing customer travelling habits.

The greatest challenge is: how to bring about a revolution of the heart, a revolution which has to start within each of us?

CITY DASHBOARD YOUR

ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

LONDON REPORT BEST OF THE BROKERS

To appear in Best of the Brokers, email your research to notes@cityam.com

FTSE 100: Asia stock surge lifts London index as Wise soars

LONDON’s FTSE 100 regained ground yesterday, taking its lead from a decent overnight session in Asia that was aided by Chinese lawmakers signalling economic support measures are on the way.

The capital’s premier index jumped 0.11 per cent to 7,461.47 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed 0.45 per cent to 18,054.84 points.

A decent start in the City was driven by Asian shares pumping up sharply overnight, with Hong Kong’s main Hang Seng index up nearly two per cent.

China’s Shanghai Composite also climbed more than one per cent after Chinese premier Li Qiand set out Beijing’s intent on boosting economic

growth by launching demand-stimulating policies.

The announcement cranked up Asiafocused shares listed on the FTSE 100. Insurer Prudential scaled to near the top of the index, advancing 1.53 per cent, while bank Standard Chartered nearly two per cent. Closing second bottom of the FTSE 100 was high street retailer JD Sports, shedding 2.73 per cent despite telling investors its profits are on track to top £1bn.

The share price drop is likely to have been driven by “some softening in trade in June” in its US business, Victoria Scholar, head of investment at Interactive Investor, said.

Telecoms giant BT was the worst performer, down 3.64 per cent.

International payments firm and London tech darling Wise closed up 16 per

Occupancy levels at listed landlord Grainger stood at over 98 per cent while sales remained resilient with volumes ahead of last year. Analysts at Peel Hunt said it was an “upbeat” trading update. They noted the shares trade at a 28 per cent discount to NAV. They rated it an ‘add' with a target price of 275p.

CONCERNS CLOSER TO HOME

“Overall, London markets have set aside unease over the situation in Russia and focused on economic data closer to home. In the UK there are further signs that we are past the peak for food price inflation, which will be welcome news for households up and down the country.”

DANNI HEWSON, AJ BELL

Property investor CLS Holdings has completed a number of asset sales with a combined worth of £49m. The sales included Westminster Tower and St Cloud Gate in Maidenhead. Analysts at Peel Hunt noted the sales had an average 7.5 per cent premium to the December 2022 valuation. The analysts rated it a ‘hold’ with a target price of 150p.

OPINION

EDITED BY SASCHA O’SULLIVAN

Teasing supermarket execs won’t stop inflation, it’s suppliers we need to grill

the former.

The supermarkets in front of MPs made the point that the UK grocery sector is the most competitive in the world, with profit margins of around 3 per cent. Meanwhile, suppliers are recording profit margins closer to 20 per cent.

ILOVE a good select committee.

Nothing screams “grab the popcorn” like the chance to watch big beasts of industry face tough questions from politicians, pinning down crucial details on major issues and giving them a kicking in the process.

These bosses manage to avoid the same level of scrutiny when faced with the media. They can get up and walk away, or simply avoid your calls. If they do deign to give you some time, this will be no more than 15 minutes, lest you ask anything too difficult.

Instead the Business and Trade Committee on Tuesday morning was a great chance to hear supermarket bosses justifying their role in a cost-ofliving crisis that is seeing food inflation at record highs.

But from the start, it was a disappointment. Only David Potts, chief executive of Morrisons, turned up in person. Sainsbury’s, Tesco and Asda all sent along senior people - just not their chief executives. Admittedly, Asda cannot seem to convince anyone to become its CEO at the moment.

As a result, those attending appeared keener to avoid a dressing down from their bosses back at their headquarters afterwards than actually engaging with the questions being thrown their

way. But the questions themselves were equally weak. Food price inflation is a big, complex topic. It encompasses numerous avenues of enquiry from labour costs, energy prices, logistics and supply chains, farming, environmental factors, geopolitics and more.

Rather than focusing on a handful of topics, however, the select committee opted for a machine gun approach of showering bullets in the direction of the witnesses and hoping some would hit. None did.

The topics ranged from grandstanding about fuel prices, whether it was right for supermarkets to make a profit at all, workers’ rights, the price

of eggs, convenience stores and the difference between statutory versus underlying profits.

All we learnt was just how expensive eggs have become and how many times the supermarkets referred to being price competitive with Aldi.

It was incredible how often food “commodities” were referred to yet at no point did anyone discuss the price of actual commodities like wheat, sugar, coffee or soy. The closest we got was a brief mention of the price of a barrel of oil.

Politicians are turning their attention onto supermarkets because they are an easy target for a kicking. As the biggest private sector employers in the

country, MPs can attack them for poor treatment of staff. As the biggest food sellers, they can be accused of profiteering when prices are high. And with their huge networks of forecourts, rising fuel prices can also be an easy target for criticism.

The brand recognition is great too. If a politician says: “I went into my local Tesco and the price of my weekly shop was outrageous” they will get far more cut through. Good luck to one saying: “I was looking at the price curve for global wheat futures and can’t believe the price of bread hasn’t fallen”.

But the problem is, politicians need to be focusing on the latter statement – the supply chain – rather than

Sunak should be modelling his fiscal rules on Clem Attlee’s, not Margaret Thatcher’s

NORMALLY, reading economic statistics is, for almost everybody, a sure-fire way of curing insomnia. Not anymore.

The Office for National Statistics came out with yet another attention-grabber last week. Government debt in the UK, the august body pronounced, is now bigger than GDP for the first time in over 60 years.

The statisticians did qualify the number - 100.1 per cent. They also said that data can be revised. But the sheer scale of government borrowing – the addition to debt in any period – is such that the 100 per cent mark will soon be exceeded unequivocally.

Shock, horror. And yet, the ratio of debt to GDP has been very much higher. Immediately after the Second World War, for example, it was some 260 per cent. It was a matter of serious concern to the then Labour government of Clem Attlee. But the percentage subsequently fell in every single year until the early 1990s, when it troughed at around 24 per cent.

Paul Ormerod

A key reason why this happened is inflation. Between 1946 and 1990, inflation in the UK averaged 6 per cent a year. This was boosted considerably by the 1974-81 average of 14 per cent, but every single year over the entire period saw an increase in prices. In those days, government bonds were only denominated in money terms. If you bought one today for £100, you, or whoever held it at the time, would get £100 back when it matured. In the meantime of course there would have been a flow of interest on the bond, but the capital value was fixed.

Inflation erodes the value of anything fixed in money terms. At pres-

ent, for example, monies tied up in current accounts are losing their purchasing power due to inflation. In the same way, the value of government debt relative to GDP in money terms was being reduced every year by inflation.

From the mid-1940s to 1990, economic growth was healthy, averaging 2.5 per cent a year. This increase in GDP also reduced the level of debt relative to the size of the economy. The nominal value of GDP was rising due to both inflation and real growth. The nominal value of debt was fixed. So the ratio fell dramatically.

A problem for the Chancellor is that these factors, a sort of get-out-of-jail free card on government debt, are not currently working in the same way. Between the end of 2019 and now, for example, there has been zero growth in the economy.

Inflation of course is very much still around. But some 25 per cent of all UK government debt is now index linked, which means that its value is not eaten away by inflation.

There is, however, one more difference which is even more telling. Between 1946 and 1960, British governments carried out no new borrowing. As a consequence, it did not need to issue new debt.

The Attlee government, by reputation the most left-wing which Britain has ever had, was even more frugal than its Conservative successors, who won in 1951 and remained in power until 1964.

In its last two years of office, the postwar Labour government ran a surplus which averaged 4 per cent of GDP. In today’s money, this translates to £90bn. In stark contrast, in 2022/23 , according to the ONS, the government had a deficit of £134bn.

Contrary to much current wisdom, the huge surpluses run by the Attlee government did not cause a recession. Indeed, they laid the foundation for a very successful period for the British economy. Lessons all round from this.

£ Paul Ormerod is an author and economist at Volterra LLP

The business committee would have a far better understanding of what is driving inflation by grilling the chief executives of the suppliers rather than supermarkets – even if fewer people in the public will know their names. They could even consider inviting commodity traders in, who can talk them through commodity pricing and give a better picture of just how much a bag of sugar is actually costing a manufacturer. Then they will realise where the lion’s share of inflation is coming from. If you need a hint: it’s not the supermarkets.

Equally, the Competition and Markets Authority could start an inquiry of their own into the sky-high prices of food. Naturally, it too would start with the supermarkets but perhaps a better move would be the beginning of the supply chain, not the end.

If they manage to rule out suppliers enjoying bumper profits by taking advantage of high inflation by pushing through unjustified price rises, then, by all means, they should turn their attention onto the supermarkets.

The grocers sometimes need a good kicking but we need to make sure our collective boot isn’t better deployed elsewhere first.

£ Simon Neville is head of strategic media at SEC Newgate, he was previously City Editor at Press Association

Simon Neville

Top supermarket execs denied profiteering off of rising prices

WHO, ME? Matt Hancock has blamed the World Health Organisation for inaccurately saying the UK’s plans for a pandemic were in good nick. The former Health Sec told the Covid-19 inquiry that WHO provided faulty reassurances we were ready for a pandemic even though we expected an influenza

WE WANT TO HEAR YOUR VIEWS

LETTERS TO THE EDITOR

Quantitatively ease up, pal

[Re: Bank of England risks steering UK into needless recession with more interest rate hikes, June 20]

It was during Mark Carney's tenure as Bank of England chief that printing money was renamed as quantitative easing. It became the de facto method alongside zero interest rates and free money, for the Bank to keep the ponzi scheme going in the short term. Anyone with an ounce of common sense knew it would end in tears and it has. A credit bubble of huge proportions and low interest rates has finally burst.

Coupled with several rounds of QE during Covid-19, is it any surprise the mess we are in?

It seems City A.M. doesn't want to print

the facts or mention that the powers that be want to create a recession to deal with inflation. They have learnt nothing from the past and keep failing ordinary people in order to prop up the financial services firms.

Just last week ex-Chancellor Hammond admitted they use immigrants to supress wages of the poorest people in our society as one method to lower wage inflation. Truly despicable. House prices have become an inaccurate and foolish barometer of the state of the economy. Why? Politicians would rather the people have 100 year mortgages or other such gimmicks than address the fundamental issues that has resulted in property becoming a financial instrument of the rich. This was started by Tony Blair under New Labour. You won't print this in your joke of a paper because of your bias and wokeness.

Steve Commonsense

AN END IN SIGHT Nurses are no-show for ballot for further strikes over pay

A successor to Putin is just as likely to be an aggressor to the West if we’re not careful

Daniel Sleat

OVER the weekend, there was a whisper of a possibility that the tenure of Vladimir Putin might be heading towards a crashing end. Indeed, the events in Russia were important, but not for the reasons many have speculated.

The uprising from Yevgeny Prigozhin, the chief of the Wagner Group, moved from public criticism of the Russian military to open revolt, many, understandably, hoped this might be the thing to break Putin’s tight grip - or at the very least weaken it. The threat, however, has proved not to be immediately existential for the Russian leader, instead it has illuminated the scale of the long-term challenge for him to maintain his rule. Those of us in the West should be wary of concluding that anyone is better than Putin, or that any replacement is somehow more likely to push Russian society in a moderate direction.

For some time, tensions between Prigozhin and senior figures in the Russian military had been building.

Fewer than 50 per cent of the Royal College of Nursing’s members cast a ballot in the latest round of votes to give the union a mandate for further strikes. This means, for now at least, the industrial action could be over.

EXPLAINER-IN-BRIEF: FUTURE FLOOD RISKS PREVENTS NEW HOMES

In the latest example of how far the tensions in housing can reach, North Devon Council refused to approve new flats because they might be victims of flooding in 2105. Which is in more than eighty years. The flats wouldn’t even need to be built; they would be on empty floors above a former hairdresser’s shop which currently sits empty. The council says they’re simply following the government’s advice on taking into account the risks of climate change over the next century

when building new homes. But the Environment Agency had approved the planning project. The town of Barnstaple, where the flats would be, suffers from severe housing shortages. Follow this logic and we should simply stop renting out basement flats in London too because they’re most at risk of floods. Perhaps a better strategy would be ensuring we have an efficient infrastructure in place that can divert the water when flooding does come.

His regular Telegram videos, where he shares his views on the war in Ukraine, have been increasingly critical. In May, for the first time, Prigozhin went as far as to criticise Putin personally. A break between the Kremlin and Prigozhin had started to become inevitable. In recent weeks signs began to emerge that within the struggle between Prigozin and senior military figures - like Defence Minister Shoigu and Army Chief of Staff Gerasimov - Putin was beginning to more decisively side with his military. Prigozhin reached a tipping point: either the Wagner Group would slowly become consumed within the Russian military or he had to up the ante in his attempts to have those key military figures removed. If Prigozhin hoped others would sup-

port his march on Moscow, he was sorely disappointed. In the absence of this, he would have hoped the pressure on Putin was enough to trigger changes within the military to help consolidate Wagner’s position. This too didn’t happen. As the events unfolded it became clear he was marching his troops to the top of the hill without a clear plan on what he would do when he got there. The efforts by Belarus’ President, Aleksandr Lukashenko, to mediate a climb down then became a lifeline. Prigozhin would leave for Belarus in exile, the Wagner Group itself could join the Russian military. Crisis averted.

While the immediate flashing red light for Putin has been dimmed, long term, Prigozhin’s actions should be the final signal we need that Putin is not likely to outlast the Ukraine war. The war has unfolded in a way that has become too disastrous and too costly for him to come back from. The problem though, as Prigozhin found, is that there is no clear alternative to Putin at present. The problem for us is that there is no candidate on the horizon that is likely to be more moderate than Putin. So, yes, the uprising is a signal

that this is the beginning of the end for Putin, but that may not be wholly good news without a plan by the West to shape who follows.

If the West wants a future relationship with Russia that is more amicable, with a leader in the Kremlin more moderate in stance, we need to do more than cross our fingers hoping for one. We can’t overstate our influence within Russia at present, nor be considering interference which is too active. But the West desperately needs a plan to better engage with Russian society, using platforms like Telegram, to help shape the future direction of the country in a more moderate direction. There has been a widespread crackdown on information in Russia, but there are still social media channels which would allow us to cut through the Kremlin’s propaganda narrative, and work those who want a different future for Russia. It’s the beginning of the end for Putin, but without a plan for what happens next, we’ll be resigned to crossing our fingers and hoping for the best.

£ Daniel Sleat is Senior Policy Advisor of Global Trends at the Tony Blair Institute

The flashing red light for Putin has dimmed, but he is unlikely to outlast the Ukraine war

Vladimir Putin has hailed the Russian military for ‘stopping civil war’

WINE-DOWN WEDNESDAY

EVENwatching tennis can be thirsty work so it is time to prime those palates for Wimbledon and pair your glass to whomever you are supporting this season.

Our very own Andy Murray has won Wimbledon twice already and is looking as good as a glass of something crisp and cold on a hot day after winning two of his last three grass court tournaments.

Cheer on Murray with something refreshing like Exton Park’s newly released Blanc de Blancs 2014 (extonparkvineyard.com £65) which like the man himself, has a bit of age and experience, coming from Exton’s oldest 20-year-old vines. Waitrose is currently doing up to 20 per cent off English wine right now so I snapped up some cool, zippy Chapel Down Sparkling Bacchus (£15.99) and to pair with any sweet treats later on, Nyetimber’s Cuvée Cherie (£29.99).

Those of you watching through lunch, go for a classic English estate like Simpsons whose Roman Road Chardonnay 2022 (simpsonswine.com £28) is a precise and elegant match for summertime picnics with its notes of honeysuckle and lemon.

If sticking to the traditional strawberries and cream then why not try it in sophisticated bottle form and select another English award winner, Gusbourne’s delicious English rosé 2022 (gusbourne.com £25).

Of course, there are other players making waves. The reigning champion is Novak Djokovic but no, I am not going to be recommending a Serbian wine for his supporters, instead I’m pairing this OG of the tennis

Wine without the snobbery, by

Libby Brodie

THE PERFECT SERVE

courts with the OG of the wine world –champagne. Drappier have been crafting champagne for over two centuries and eight generations.

When it comes to quality, they are heavyweight contenders and their expressive Carte d’Or Brut is currently on offer (£38 down from £44 thechampagnecompany.com). Djokovic has plenty of experience spraying bottles about after his seven previous Wimbledon wins, though he did once nearly take his eye out with a close-shave cork, so lesson learned for any celebrations –keep your hand over the cork and aim the bottle neck away.

If you favour a likely upstart, such as Carlos Alcaraz, who last year became the youngest world number one male tennis player at 19, then try something new and fittingly Spanish. The brand new Azabache sparkling white rioja (£24.99 The Naked Grape) is something really quite different with its smooth bubbles and heady floral aromas.

Another bright young thing to watch out for is American Coco Gauff who also at just 19 is already ranked as the world top 10 for women’s single and doubles. A wine that keeps delivering in complexity and skill is Californian Talbott’s Sleepy Hollow Pinot Noir 2018 (£40.50 The Wine Library). This luxurious, lightly spicy red can be gently chilled for easy sipping in the sun.

Wines from around the tennis world: What Serbian wine pairs well with Djokovic? And what to drink with Andy Murray

WINE RECOMMENDATIONS

SCHLOSS REINHARTSHAUSEN 2015 ERBACHER

HOHENRAIN RIESLING

SPÄTLESE £31.10

THE WINE BARN

A sweeter style of wine with sophistication and complexity. This classy Riesling has layers of honeyed apricot, lemon and orange blossom. Off-dry wines go well with Asian dishes butthis goes wonderfully with a cheeseboard.

TEUSNER, JOSHUA GSM

2021 £25

THE GREAT WINE CO

A juicy, plush blend of Grenache, Mourvedre and Shiraz. Think a French Rhone Valley red, but with the concentrated flavour of Australia’s Barossa Valley’s amazing old vines. An absolute beauty of a wine that can be served lightly chilled.

PORTE NOIRE CRU CLASSE ROSÉ 2021 £29.80

PORTENOIRE.CO.UK

Is there anything

Idris Elba cannot do?

With his love of wine this bar-owning, entrepreneurial actor has now perfected the Provence rosé in a collaboration with Chateau Sainte Marguerite. Peachy, fresh, summertime sipping.

CONTINO RESERVA 2018

£25.90

SAINSBURYS

A fantastic blend of Spanish Tempranillo, Graciano, Mazuelo and Garnacha. This rioja has been aged for three years, two in oak barrels, to give it depth but retains a youthful freshness making it an uplifting red for tapas.

AGLASS OF WINE WITH: Wines brand manager for Moët Hennessy

CHARLOTTEGordon is the wines brand manager for Moët Hennessy and was named in Harpers 30 under 30.

WHAT GOT YOU INTO WINE?

I waitressed at a gastro pub on Dartmoor from age 15 and loved it. I put in 100 hour weeks and messed up school, then dropped out of uni as I was desperate to work in a restaurant. It got a Michelin star and my boss went on to Masterchef but we needed a winelist to match the food. For my 18th birthday they paid for me to do my wine qualifications and by 19 I was the

restaurant supervisor of a Michelin starred restaurant. By 20 I was a sommelier in London’s Michelin starred restaurants and at 21 I moved to the corporate side.

WHAT IS YOUR ROLE NOW?

We have the best portfolio of drinks brands from all over the world and I look after the

premium wine brands. Marketing, sales, advocacy… I am the face of them in the UK.

WHAT CHALLENGES HAVE YOU FACED?

Being a young, British woman it was hard to be taken seriously. It still can be, despite my qualifications and 15 years’ experience. I turn up to run a corporate event and they think I’m there to pour the water.

Finally, Ukrainian tennis star Sergiy Stakhovsky was inspired to create his own wines after playing the French Team Championship for the Bordeaux team, Villa Primrose. Though Stakhovsky has now volunteered for the National Guard of Ukraine his wines are still available throughout Europe at stakhovskywines.com.

AYALA ROSÉ CHAMPAGNE MAJEUR NV

£44 JEROBOAMS

My goodness this is a delightful bottle. A beautiful pink in the glass, fine bubbles abound with flavours of ripe strawberries and dusky cherry blossom. Expertly made this is not to be quaffed with its rich, long, lingering finish.

Charlotte Gordon

But 10 years ago London’s wine scene was very different, all older French and Italian men, very locked off. I turned up to places uninvited and worked my ass off to get myself in.

WHAT ARE YOU DRINKING RIGHT NOW?

I’m working on a Cloudy Bay popup at the OXO Tower’s terrace until 14 August so I’m drinking a lot of Cloudy Bay Pelorus rosé as it’s my favourite of their wines.

FAVOURITE WINE BAR?

67 Pall Mall. I basically live there.

The team are the best sommeliers in London. Friendly and knowledgeable, they look after you like it’s your own living room.

FAVOURITE RESTAURANT?

Fallow. I love their approach to sustainability, using every part of their ingredients, growing their own mushrooms. Fantastic.

FAVOURITE LATE NIGHT DRINK SPOT?

Milroy’s. They have every whisky in the world, or at least the best selection in London, with one to suit every budget and mood.

Become a top home barista

Chuck the instant in the bin and throw away your cafetiere. Steve Dinneen on how to make espresso at home

Flat whites have been unfairly maligned as the reason millennials can’t afford to buy houses. So why not use this boomer nonsense as an excuse to up your home espresso game, forgoing that daily outlay in favour of splurging a single lump sum?

Upgrading from a basic automatic coffee machine – press a button, out comes black liquid – to a more elaborate “prosumer” set-up will, in my experience, improve your morning by about 1,000 per cent. But making the leap can be fraught, with the internet bursting with conflicting opinions, and unscrupulous companies more than happy to part you from your money. This article will focus on the £500-£1,000 range, which is reasonable for an entrylevel machine. Bear in mind this doesn’t include a coffee grinder, which is equally –or even more – important (set aside an additional £300-£700 for this).

So what exactly should you be looking for? Pulling the perfect shot of espresso is a fine balance of various factors, including pressure, grind and temperature. Without splashing out thousands of pounds on a professional-grade machine, you’re essentially managing a series of compromises. Would you rather a workhorse that will do the basics bril-

liantly, or a machine with a “PID” function that regulates the temperature to within a degree? And how much do you value the ability to easily adjust the pressure output through an “OPV”, allowing you to pull your shot for longer without forcing the more sour notes from the coffee?

One thing to consider is that, with the majority of these machines made in Italy, many are available on the “grey market”, legally exported but not guaranteed by the manufacturer. Avoid these and buy direct from the official UK stockists.

RANCILIO SILVIA V6

This is the entry-level machine most recommended by professional baristas. It’s a relatively basic unit that does the essentials incredibly well and wastes no money on frills (there’s no PID and you’ll need to open up the machine and rummage about to adjust the pressure, potentially voiding your warranty in the process). If this is the start of your journey into home espresso-making and you want to keep your outlay within three digits, this could be the machine for you.

£ £579, ranciliogroup.com

GAGGIA CLASSIC EVO PRO

The most recognisable of all prosumer espresso machines, it’s a classic for a reason. Similar in many ways to the Silvia, it’s a single-boiler, stainless steel machine with no bells nor whistles (no PID or OPV) that will nevertheless produce a nice espresso

with decent crema without too steep a learning curve. The “Pro” refers to the improved steam wand over the regular Classic, which makes creating good foam a little easier.

£ £499, gaggiadirect.com

LELIT VICTORIA

Lelit has been on the periphery of the espresso hobbyist world for years but has gained in popularity since it was bought by Breville last year. It produces a range of machines, with the Victoria hitting the sweet spot

between functionality and affordability. Built from stainless steel, it’s a real looker that will stand out nicely in your kitchen. It has a single boiler with a pressure gauge, PID and programmable preinfusion, making a mean espresso with relatively little user effort required.

£ £850, lelit.com

QUICK MILL SILVANO

This is a beautiful beast, made in mirrored stainless steel with a real retro, Italian aesthetic. As you’d expect at this price, it has a PID, a shot timer and a pressure gauge, as well as an adjustable OPV, giving you a huge amount of control over your shot. It also comes with an unusual gimmick – as well as the single boiler it has a separate “thermoblock” for steaming, meaning you can foam milk at the same time you’re pulling an espresso. If I had £1,000 to spend on an espresso machine, this is where my money would go.

£ £1,000, quickmill.it

PROFITEC GO

The Profitec Go is an outlier in this list, being the only machine that isn’t made in Italy. This one is German-built and comes with the stamp of quality that would suggest. Smart and compact, everything about this machine feels reassuringly expensive. It comes with a PID, shot timer and pressure gauge, and an easily adjustable OPV, giving you an unprecedented amount of control over your shot at this price point. Available in a range of funky colours, it’s a strong contender for the best overall entrylevel machine on the market right now.

£ £769, profitec-espresso.com

JOIA: AUTHENTIC PORTUGUESE IN BATTERSEA

price tag of £18 is rather off-putting. Iberico croquettas are also delicious in a slightly forgettable way.

There is something decidedly vaginal about the long, pink corridor through which you enter Joia, as if you’re being birthed into this little slice of Lisbon-uponThames. It is the glamorous, expensive brainchild of Portuguese chef Henrique Sá Pessoa, a man famous in his home country for his two Michelin star restaurant Alma.

On these shores he plays second fiddle to another Portuguese, Nuno Mendez, the former executive chef of Chiltern Firehouse and current boss of Fitzrovia’s Lisboeta; will Joia help to redress that balance?

The sprawling 15th floor dining

room is like a pastel tribute to the memory of Made.com, its banquettes and scalloped chairs painted in hues of powdery pink and blue. Outside the floor to ceiling windows looms that final evolution of gentrification they call Battersea Power Station.

The Joia –“jewel” –menu is designed to be an accessible window into the kind of cuisine on offer in Alma, with tapas staples sharing the menu with more esoteric dishes whose names contain altogether too many ‘x’s.

The salt cod tortilla, a signature dish, is very nice in the way salt cod tortilla just is very nice, although a

More memorable is a perfectly weighted wild mushroom escabeche topped with an egg yolk the colour of a dying sun. The big boys arrived in the form of a carabineros prawn stew (£64), a hearty, authentic affair that I enjoyed more in principle than practice, and an enormous plate of txuleton rib steak (£95) so decadently fatty it was almost liquid, which I still find myself fondly day-dreaming about during quiet moments.

Joia is a strange proposition, a little too academic in its approach to be a real crowd pleaser but too cautious to be a genuine deep-dive into Portuguese cuisine. I liked it fine, but unless you’re local I’m not sure it’s worth the trip to this post-industrial toy town.

Inset far left: The Quick Mill Silvano; Left to right from top: The Gaggia Classic Evo Pro; The Rancilio Silvia; The Profitec Go; The Lelit Victoria

This blingy new Battersea restaurant promises authentic cuisine but falls short of excellence, says Steve Dinneen

THE PUNTER

Wally Pyrah previews today’s card from Happy Valley

Denfield can break duck under Valley Wonder Vincent Ho

BANK on the talented, but sometimes frustrating, DENFIELD to finally recoup some of his expensive sales purchase price when lining-up in division one of the Dianthus Handicap (1.15pm) over six furlongs, on the mid-week Happy Valley card.

Connections had to go to around £780,000 to buy this Australian-bred son of Deep Field at last season’s Hong Kong International Sales, and despite some near misses, have so far very little to show for their outlay.

The Danny Shum-trained three-yearold has been hindered by a series of awkward or double-figure draws since

the turn of the year, but nevertheless has performed with plenty of credit, including when unlucky in defeat over the course and distance last month.

On that occasion, coming from the widest gate and caught on the outside throughout the contest, he still looked the likely winner before being collared in the closing stages, after jockey Matthew Poon was unable to keep him racing in a straight line.

The ‘Poon Train’ has consequently been relegated to the sidelines, and jockey Vincent Ho is once again reunited with the chestnut gelding, having already finished twice in the frame aboard him. Ho may need a telescope to

find this season’s Hong Kong champion Zac Purton in the jockey’s championship table – he currently trails him by 74 wins – but he has still surpassed his previous best total with a current tally of 86 winners, and presently holds a slender one-winner lead over Purton in the race to be top jockey at the Valley. You can guarantee the Zac-Man, for so long the supreme master of navigating the tricky city circuit, won’t take kindly to the current situation, and will be going all out to wrest back his top jockey mantle with three meetings at the venue remaining.

Purton rides obvious threat Golden Luck against Denfield, having won

readily last start but a penalty and high draw, makes his task difficult, and it might be that the improving Joy Coming proves the principle threat.

Ho and Purton are in opposition again in the finale, the Violet Handicap (3.50pm) over six furlongs, and it’s Ho who can once again come out on top when he partners the talented WONDER KIT for trainer Francis Lui.

The son of Sooboog is another who has found awkward or outside draws costing him dearly in his quest to gain a first win from eight starts.

Both his performances at the city track have seen him flying at the finish, after starting from outside gates, but

this time fortune has finally smiled on him, with the golden inside draw of stall one.

The formbook says Wonder Kit should gain his revenge over recent conquerors Superb Capitalist and Magic Phoenix, while Purton’s mount, the strongly fancied Reward Smile, will need some luck from his tricky draw if he is to navigate a trouble-free passage during the contest.

POINTERS

Juneau no Flash in the pan as he aims for overdue win

BETTORSmayhaveleftShaTinlast Sundaywithasmileontheir facesaftersixfavouritesobliged onthe10-raceprogramme,butthey willsurelyfaceadifferentscenario whentheyarriveatHappyValley today.

Thenine-racecardlooksaminefield andtypicalend-of-seasonaction,so anyoneshowingaprofitcomeitsconclusionshouldcongratulatethem-

selves.Therecouldbesomerespitefor racingfanshowever,iftheyfollowgallopersracingupwiththeearlypace fromtheoff.

Overthepastsixweeks,therehas beenamajortrackbiasfavouringonpacerunnersatthevenue,apoint highlightedwhenracingtookplaceon the‘C’tracklastmonth.

Onthatoccasion,eightofthenine raceswerewonbyhorsesinthefiring-

linefromthestart.

It’salwaysworthcheckingtheinvaluable‘SpeedMap’foundontheHKJC website,whichgivesanindicationof howalltheraceswillberun.

Theeyesweredrawntolong-shotYee CheongBraveintheCamelliaHandicap (12.15pm)overninefurlongs,with DavidHall’sstableinred-hotformand thefive-year-oldpostinganencouragingeffortlaststart.

Withblinkersequippedforthefirst time,heisthetypetooutrunhisodds, buthisstrong-finishingracingstyleis off-putting.

Amoreattractiverecommendationis theJohnSize-trained JUNEAUFLASH wholines-upindivisionthreeoftheDianthusHandicap(2.45pm)oversixfurlongs.

Thisfour-year-oldismuchbetterthan hisrecentformsuggests,havingtwice

foundhimselfinthewrongplacewhen thepacehasquickenedbeforethe hometurn.

ProvidedjockeyAlexisBadelcanfind agoodspotearlyonfromhislowdraw, heiscapableofscoringanoverduewin

POINTERS

Vincent Ho is the leading rider at Happy Valley this season with 46 wins

SPORT

Stokes backs Tongue to have Australia licked in Ashes clash

MATT HARDY

JOSH Tongue will make his Ashes debut today at Lord’s with England captain Ben Stokes defending the call to pick the 25-year-old over the experienced Mark Wood.

The Worcestershire seamer replaces spinner Moeen Ali as Ben Stokes’s side look to level the Ashes series at 1-1.

The England side is otherwise unchanged and will see a full-time bowling attack made up entirely of seamers – Tongue, James Anderson, Stuart Broad and Ollie Robinson.

England lost the opening Test at Edgbaston by two wickets and head into today’s Lord’s Test at the Home of Cricket trailing in the fivematch series.

“We needed to get to Lord’s first and see what conditions we were faced with,” Stokes said on picking Tongue over Mark Wood. “We wanted to play Wood. We felt that he could definitely start the game, but with conversations we felt the extra week with build-up and getting his loads up would give him a better chance and an opportunity to play a full part from Leeds [third Test].

“We brought Josh Tongue into the team as a like-for-like [for] Woody, so I’m looking forward to seeing him continue on the great start he had against Ireland here.

“The only thing that’s different is

that it’s a bigger occasion for him. He’s had his first Test match, he’s had his debut game which he’s had huge success from – so I think coming in and being able to use him as a fourth seamer role is something that I’m very looking forward to him being able to do. I think he’s really looking forward to the challenge as well.

“We turned up here and saw there was quite a bit of grass on the wicket, a bit of green.

“Traditionally Lord’s has offered more for the seamers and with how Mo’s finger was last week – it’s actually recovered really well – we thought we would get more out of our fourth bowler

Stormzy and Zaha to buy Croydon Athletic

FRANK DALLERES

being Josh Tongue this week.”

Tongue recorded figures of five for 66 in the second innings of his solitary Test against Ireland in June. He will hope to have a better start to the Ashes than Anderson, who took just one wicket for 109 runs across the entirety of the Edgbaston Test.

Stokes could find himself doing a fair amount of the spin bowling – alongside Joe Root – due to the lack of a specialist, but the captain’s fitness has been somewhat uncertain with the Durham all-rounder carrying a recurring knee injury.

WTA Tour pledges more equal prize money events from 2027

FRANK DALLERES

THE WTA Tour has announced plans for a major increase in the number of tennis tournaments that will pay equal prize money to women and men.

From 2027, at least seven WTA 1000 events, the most important tournaments outside of the Grand Slams, will offer equal prize money, the tour said.

By 2030, all 10 WTA 1000 events and some WTA 500 tournaments will achieve pay parity. The four Grand Slams and one WTA 1000 competition, Indian Wells, already

offer equal prize money.

WTA founder Billie Jean King said: “Fifty years after the players found strength in unity, I’m proud the WTA continues to be a global leader focused on providing opportunities. I hope that women in other sports and walks of life are inspired by its example.”

The move is part of a wider revamp of the tour, which will increase the number of WTA 1000 events from seven to 10, with Doha, Dubai and one more tournament to be confirmed set to join the likes of Indian Wells, Miami, Madrid and Rome.

RAPPER Stormzy and Crystal Palace star Wilfried Zaha have agreed to buy their hometown football club, AFC Croydon Athletic.

Stormzy and Zaha are part of a three-man consortium, which also includes former Palace kit man Danny Young, that has exchanged contracts for a takeover with the current ownership. No financial details have been disclosed and the deal is subject to sign-off from the Football Association and league chiefs.

AFC Croydon said: “The consortium will own, operate and develop their childhood hometown football club.

“Whilst completion is subject to legislative and governance procedures, the three consortium members are excited about developing a community asset in the borough that gave them their own opportunities. They hope to take the entire community on this exciting journey with them.”

Stormzy – real name Michael Ebenezer Kwadjo Omari Owuo Jr –was born in Croydon and has previously funded scholarships for disadvantaged children in the borough.

The three-time Brit Award winner, 29, also has a publishing imprint, Merky Books, which is a subsidiary of Penguin Random House.

Zaha, 30, was born in the Ivory

Coast but settled in Croydon aged four and went to school in the area before joining Palace.

He has spent most of his career at the Eagles, earning club legend status, but is tipped to leave this summer when his current contract expires.

Croydon Athletic play in the Premier Division South of the Combined Counties Football League, the ninth tier of English football. They finished 15th in the 20-team league last season. The Rams were formed in 2012 after a previous club of the same name folded.

The move would see Stormzy and Zaha become the latest celebrities to dip their toe into football club ownership.

Man Utd forecast record revenue as sale talks stall

FRANK DALLERES

MANCHESTER United chiefs expect to achieve record revenues of up to £640m this year after raising their guidance for investors.

United’s revenue for the three months to March 2023 increased 3.5 per cent on the same period last year to £481.1m.

It comes after the 20-time English champions enjoyed a return to form on the field and amid long-running takeover talks between their owners, the Glazer family, and two bidders, billionaire Sir Jim Ratcliffe and Qatari Sheikh Jassim Bin Hamad Al Thani.

United said revenue guidance had been raised from the £590m-£610m mark to the region of £630m-£640m, while EBITDA guidance was up from £125m-£140m to £140m-£150m.

Those figures would see United eclipse Manchester City’s Premier League-leading revenue of £613m in 2021-22, although City’s income is also likely to have risen after they completed the Treble this term.

Commercial and matchday revenue were the drivers of United’s increased income for the three months to March 2023, due to new sponsorship deals and extra games incurred by their progress in three cup competitions.

FOOTBALL

TENNIS

Stokes said Wood could return for the third Test at Headingley

Why Rice should pick Man City over Arsenal

THERE is no question that this is the right time for Declan Rice to leave West Ham United. Firmly established in the Premier League at 24, now is a natural juncture for him to move on and he can depart on good terms after helping the Hammers win a European trophy.

I also don’t think there’s any doubt that Rice is worth the £100m or so that West Ham are asking. He has one year left on his contract but the club have an option for a further year, and in today’s transfer market that’s what top players, especially English ones, cost.

MORE TO COME

West Ham manager David Moyes says there is lots more to come from the midfielder and I’m inclined to believe

OPINION

FOOTBALL

him. He has shown for England that he is at home in international football, and moving to a stronger side will allow him to dominate games even more.

The question, then, is where he goes, and it appears to be either Arsenal or Treble winners Manchester City. It may come down to what Rice himself prefers, presenting him with a dilemma.

If he goes to City he is more or less

guaranteed to win more trophies. Arsenal can offer an excellent manager who seems to have a clear vision for the team but some of the sheen has been taken off by the way they ran aground in the Premier League title race. Arsenal stumbled because their squad wasn’t deep enough. Can they bridge the gap to City? I think it will be difficult, and they will need to sign several players and ensure that they all fit into Arteta’s way of playing. There is more certainty about what City’s season will look like. Playing time may be a concern. While Arsenal can probably guarantee that Rice plays every game, no one

ALL SEAMERS RIGHT CALL FOR ENGLAND

ALORD’S Test match is always special, even more so during the Ashes. It is the Home of Cricket and Ben Stokes and his England side will be keen to level up the series after their opening loss to Australia.

The tourists played their part in an exceptional Test match and while the early declaration from England was strange it did set the tone for the rest of the series. We’re in for a cracking further four matches and that will continue today in north London.

Many of us thought Moeen Ali would miss the second Test – for a spinner, a split finger like his just ruins the style and rhythm which players aim to bowl with.

He played his part in the first Test and he could yet feature again later in the series, but for now it is all eyes on Josh Tongue.

The 25-year-old Worcestershire seamer will be relishing the prospect of an Ashes debut at Lord’s, the ground he got a five-for at against Ireland ear-

lier this year.

He makes up a main attack entirely of seamers – alongside James Anderson, Stuart Broad and Ollie Robinson –on a pitch which is expected to be a little bit green.

PSYCHOLOGICAL ASSET

It is a shame Mark Wood is not quite fit enough to take part at the moment but there’s little doubt he’ll add to the England attack in the future. But for Tongue this Test represents a chance to make a name for himself, producing a moment that’s spoken about in Ashes folklore for years to come.

He also has the psychological asset

that he took the wicket of Steve Smith in the County Championship this year – it was the former captain’s first ever dismissal in domestic English cricket. And though I do think four seamers is the right way to go at Lord’s, which has favoured pacers in the past, I worry about the pressure which could be put on Joe Root.

With no Moeen and existing concerns over Stokes’s fitness, there’s a lot of pressure on Root to offer spin if required by his captain – especially with the added expectation of being the current world No1 batsman.

It’s a lot to handle for the former England captain but the 32-year-old is a calming presence in the England squad and he’d be up there alongside anyone you’d bet on to guide the side home.

I think this is an exciting England side, given that Stokes and coach Brendon McCullum could only pick from the squad named for the opening two Tests. England must draw the series level.

enjoys that status at City and he might have to make do with appearing in 60 per cent or, if he’s lucky, 80 per cent of matches.

He may also look at the experience of two of his England team-mates.

Kalvin Phillips moved to City last summer but ended up playing fewer than 300 Premier League minutes. And even someone as gifted as Phil Foden has to accept he isn’t an automatic selection.

The fact is, though, that City’s policy of rotating within a very strong squad is the way forward and, if it were me,

I’d pick them over Arsenal. Pep Guardiola has the winning formula and they don’t look to me like a team that is running out of steam. Far from it; I think they remain a work in progress and that he and City won’t be happy until they have reached Real Madrid and AC Milan levels of European pedigree. Wages shouldn’t be an issue – City can match whatever Arsenal offer –but location might come into it if Rice prefers to stay in London. But if he wants the best chance of winning more medals, there is really only one choice.

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

CRICKET COMMENT

Chris Tremlett

Tongue got a five-for in his England debut against Ireland at Lord’s this month

COMMENT

Trevor Steven

A bench.

You can find one in just about every park, bus stop and train platform in the UK. They are as functional as they are familiar, but behind their simple design lies something more. An invitation to talk. After all, a bench is made for sharing and when people come together on a bench, it becomes an opportunity for a conversation.

Today, there’s a lot to talk about: energy costs, climate change, the cost of living and of course, the weather. But the one thing no one seems to be talking about is living longer and what that means for retirement. As 1 in 3 children born today have a good chance of living to 100, we need to ask ourselves, are we ready?

With a longer life comes a lot more things to think about. Over half of us aren’t confident we can afford to retire by 65. It’s time we started talking about that. We need to talk about it.

Let’s talk about why almost 18 million people don’t think they can save for the retirement they want. Let’s talk about how more than 750,000 people over 50 are not working but would like to. Let’s talk about the 7 million retirees who expect to rely on financial support from a partner, family or friends. It’s time we started having these conversations.

Let’s talk about savings.

Let’s talk about pensions.

Let’s talk about retirement.

Let’s talk about making the most of living longer. thephoenixgroup.com/living-longer