Wednesday 23 August 2023

BUSINESS WITH PERSONALITY

NOW THERE’S AN EXCUSE FOR A POWER BREAKFAST...

THE OWNERS of iconic restaurant The Wolseley gave the City a vote of confidence yesterday, saying it is the “perfect” location for its second site.

The £10m The Wolseley City is set to open this autumn on the historic King William Street with a venue even bigger and more glamorous than the original, with features including Byzantine chandeliers, baroque ironwork and spectacular vaulted ceilings.

“We’re backing the City,” a spokesperson for The Wolseley Hospitality Group told City A.M. “It is a thriving location and we only see it going from strength to strength over the coming years.

“More and more people are coming back to offices and they need somewhere to eat and drink. City readers have always been an important part of our business and we’re happy to set up shop right in the heart of their parish. There couldn’t be a better marriage of customers and restaurant than those working in the City and The Wolseley.”

The new site will “pay homage” to the

original restaurant, although Baton says it will “be presented as a younger sister to the original and not a replica”.

He added that while it will have its own personality, “you’ll immediately know it’s The Wolseley”.

The original restaurant, located at 160 Piccadilly in Mayfair, has become a staple for both business breakfasts and lunches, and a hotspot for celebrities including Kate Moss and the Beckhams.

Last year, The Wolseley co-founder Jeremy King left the company after hotel group Minor International bought Corbin & King – which it had acquired alongside The Beaumont Hotel in 2017 in a deal worth almost £60m – out of administration.

King had attempted to buy back the company himself but was outbid; he is now rumoured to be eyeing the Grade IIlisted former Natwest bank on Piccadilly, a site just metres from the original The Wolseley, as part of his return to the restaurant business.

£ THE BEST NEW RESTAURANTS OPENING SOON: PAGE 15

STAR-STUDDED KANE’S SKECHERS DEAL HAS HIM ON THE FRONT FOOT P19

BANK: IT’S NOT AS BAD AS 2008

THE BANK of England was criticised last night by one of the country’s leading trade bodies for failing to grasp the “far from theoretical” impact of rising rates on the country’s smaller firms.

The Bank published a document yesterday which suggested that firms across the country were not feeling the same stress on their finances as they did in the global financial crisis.

The central bank said the proportion of firms seeing debt-servicing distress is projected to increase from 45 per cent in 2022 to 50 per cent by the end of 2023, data that was used in a recent Monetary Policy Committee meeting to green light another interest rate hike. Despite the increase in interest rates,

SMALL BUSINESSES CRITICISE BANK OF ENGLAND FOR IGNORING IMPACT OF RATES ON STRUGGLING UK FIRMS

the Bank reassured that the level of debt-servicing stress will remain below the equivalent level during the financial crisis.

Some business groups raised questions as to whether the Bank was taking the impact of rate hikes on businesses seriously enough.

Martin McTague, national chair of the Federation of Small Businesses (FSB), highlighted that the data does not include many small businesses which are “far more exposed” to rising rates than larger peers.

FSB data from the second quarter of

2023 shows that one fifth of small businesses reported financing as a main contributor to increased costs, the highest proportion on record.

“Small and medium-sized firms make up over 99 per cent of all businesses in the UK, and the risks to them from rising interest rates are far from theoretical,” McTague said.

David Bharier, head of research at the British Chamber of Commerce, said members were concerned by the increased hit to their debt costs.

“Businesses are citing significant increase to costs from loan repayment,

mortgages, and invoice financing…they need to be reassured that the Bank of England fully understands the impact high interest rates are having.”

Despite the pain rising rates are pouring onto businesses, other groups noted that there was still support for rate hikes.

Kitty Ussher, chief economist at the Institute of Directors (IoD), noted that a majority of the IoD’s members were “even more concerned” by high inflation than rising rates.

But Ussher also highlighted that monetary policy operates with a lag, raising the question of whether it might be prudent to pause rate rises “so as to avoid the risk of overshooting”.

CHRIS DORRELL

STEVE DINNEEN

Bank of England governor Andrew Bailey

GIG ECONOMY CONCERTS VIA VIRTUAL REALITY? IT MIGHT NOT BE SO FAR-FETCHED P9

STANDING UP FOR THE CITY

Blitz spirit may be overdone, but there’s a lesson in quick action

THE WORST fire in the City’s history was not, in fact, the Great Fire of 1666. It came on a Sunday night in December 1940, when seemingly half of the City was blitzed into oblivion. The other half took its punishment on other nights over the terrible weeks that followed.

Amongst the many indignities suffered by the Square Mile in those rather grisly months was a bomb which careened straight

through Bank junction into the tube halls below.

It killed dozens and left a crater in the middle of one of the capital’s most important meeting points. Within two weeks of this disaster, both on a personal level

and for traffic management, City of London engineers and the Army had cleared the junction of rubble. A month later the authorities had concocted a rather extraordinary bridge across the hole, allowing traffic to cross freely once again and keep London moving. This trip down memory lane is not just a plug for Jerry White’s fantastic book, The Battle of London, from which the story is drawn.

It is also a slightly tortured introduction to a topic irking today’s Londoners: why can we not build any houses? Blitz spirit is overdone. It was far from an uninterrupted period of collective coming together, and not everybody fits the keep calm and carry on mould –forgotten in the mythology are the Mirror headlines calling for looters to be hanged, for instance. But London’s extensive preparations for the Blitz and its

STORM HILARY Residents from a senior living facility are held by firefighters in a front loader whilst being brought to safety after tropical storm Hilary hit California

reaction to it do demonstrate two important facets of government: one, stuff can happen quickly if muscle is applied and two, choices must be made. The effort that went into rebuilding Bank junction were not mirrored in Stepney’s slums. The conclusion? In an economic emergency, which is the only way to describe the nation’s housing shortage, it is time to act.

WHAT THE OTHER PAPERS SAY THIS MORNING

THE FINANCIAL TIMES

THE CITY VIEW UK TO PROSCRIBE WAGNER GROUP WITHIN WEEKS, SAY GOVERNMENT INSIDERS

The UK will proscribe the Wagner group as a terrorist organisation “within weeks” as part of a fresh crackdown on the Russian mercenary network, according to British government insiders.

THE TIMES

ARM CHIEF’S FLOAT BONUS WORTH $40M

Rene Haas, who has led the British chip designer for 18 months, is set to receive cash and shares worth $40m in what could be America’s biggest stock market debut in nearly two years.

THE GUARDIAN RAPID GROCER GETIR TO CUT 2,500 JOBS IN FIVE COUNTRIES INCLUDING UK

The fast-track grocery service Getir is to cut about 2,500 jobs across five countries including the UK in the latest sign of waning demand in the delivery market.

Recession warning flashes after ‘gloomy’

UK manufacturing data raises concerns

CHRIS DORRELL

RECESSION concerns intensified yesterday after new data showed manufacturing output fell at its fastest pace since September 2020 in July.

According to the Confederation of British Industry’s (CBI) industrial trends survey, the balance of factories reporting a rise in output versus a fall slumped to -19 per cent, compared to plus three per cent in the three months to July.

Output fell in 15 out of the 17 sub-sectors included in the survey, with motor vehicles and transport, mechan-

ical engineering and paper production driving the fall. The survey was based on the responses of 277 manufacturing firms. Looking forward, order books were slightly below average, at -15 per cent compared to the long run average of -13 per cent.

Martin Sartorius, the CBI’s principal economist, said: “With output volumes contracting at their fastest pace since the Covid-19 pandemic and order books deteriorating, this survey makes for gloomy reading for manufacturers.”

Most economists believe the UK will narrowly avoid recession this year but

the survey points to a tough road ahead nonetheless.

Sartorius argued that the weak outlook shows the need for the government to “double-down on delivering sustainable growth” by offering incentives to boost green investment and encourage decarbonisation.

The survey also showed that inflation is likely to continue falling over the next few months with expectations for selling price inflation over the next quarter at its softest since February 2021. Expectations for selling prices have now eased for eight consecutive months.

Elon Musk to be invited

to No10 investment summit

JESSICA FRANK-KEYES

TWITTER owner Elon Musk is among top business leaders expected to be invited to Rishi Sunak’s global investment summit this autumn.

Tesla boss Musk – who recently bought and renamed Twitter as X –is among figures including Amazon founder Jeff Bezos who officials are keen to see attend the summit, according to Sky News.

It comes amid a key period for the UK with Sunak having outlined his ambition to see the nation become a science and technology superpower.

The flagship Global Investment Summit event is slated to take place on 29 November and is understood to be taking place at a “historic London location”.

Sky reported that while it was unconfirmed whether formal invitations had gone out to Musk and Bezos, other investors in the UK economy had told them they had been asked to attend.

An official said the government was keen for Musk to be there due to his meetings with French President Emmanuel Macron to discuss potential Tesla investments in France.

PwC UK profit drops amid economic gloom

CITY A.M. REPORTER

PWC UK yesterday reported a drop in annual profit against what it said was “a backdrop of political and economic upheaval”.

The Big Four firm revealed its total group consolidated profit fell to £1.3bn for the financial year to 30 June, down from £1.5bn last year. It said, however, the previous year included a “one-off gain” of £139m from the sale of the group’s global mobility practice. Average distributable profit per UK partner dropped to £906,000, down from £920,000 the previous year.

But the firm took on more staff during the period, lifting its UK headcount, including partners, to more than 26,000 –up from around 24,500.

“Considering the sizeable investments we’ve made in our people and technology, partner profits beat our forecasts,”

Kevin Ellis, chair and senior partner at

PwC UK, said.

Total revenue increased 16 per cent to £5.8bn, with strong growth across all of its divisions.

Consulting revenues were up 30 per cent, while expanded reporting requirements boosted client demand for its audit services, which increased by 19 per cent.

It also highlighted major client wins, becoming auditor to Natwest from 2026, and being reappointed by HSBC. Its tax and deals divisions recorded 19 per cent and six per cent revenue growth respectively, while its financial services business grew by 15 per cent.

“Against a backdrop of political and economic upheaval, our multidisciplinary business has chartered a strong course,” Ellis added.

The results come after the firm reportedly told staff to expect smaller salary increases and bonuses this year due to “challenging” market conditions.

Storm in a teacup? Tetley workers accept pay deal averting strikes

WORKERS at Tetley Tea have voted to accept a pay deal that means a potential shortage of one of Britain’s favourite teas has been avoided.

The new offer, accepted by the 200 odd workers, consists of a seven per cent pay rise backdated to 1 April.

This represents a significant

Most challenger banks ducking sanction checks

CITY A.M. REPORTER

MORE THAN half of challenger banks have admitted to only performing occasional sanctions checks, according to a recent survey. Only a quarter of challenger banks surveyed by Smartsearch said they always perform the appropriate screening processes, while over half admitted to performing checks regarding sanctions or politically exposed persons only “on occasion”. Only a quarter said they always performed the appropriate compliance checks.

The results come despite a wealth of new Russia-related sanctions being implemented following its invasion of Ukraine.

increase on the 4.25 per cent rise the workers initially rejected, but is well under the 12 per cent that Tata, Tetley’s owners, told City A.M. the GMB union was gunning for. Tata and GMB welcomed the deal.

Laura Maughan, GMB organiser, congratulated Tata for listening to its workforce but warned “pay justice” for Tetley workers was a long way off.

Only a third of challenger banks have made changes to their compliance procedures since many of these sanctions were put in place. However, 60 per cent of high street banks have added additional checks since then.

Martin Cheek, MD at Smartsearch, said: “The figures reveal a larger problem with challenger banks and their unwise complacency towards compliance.”

Fears of a Tetley Tea shortage have been averted

LUCY KENNINGHAM

BHP boss bullish over demand as profits tumble

NICHOLAS EARL

BHP BOSS Mike Henry is confident the mining giant will be “resilient” in any scenario faced this year, despite the company yesterday posting its weakest annual profits in three years, weighed down by plummeting iron ore prices .

In an earnings call with reporters, he argued BHP had posted a “strong set of results” despite underlying profits for the year to the end of June sliding 37 per cent from $21.3bn (£16.7bn) to $13.4bn.

Henry hopes the company’s expansive portfolio means it can navigate China’s sluggish economic revival and the West’s hawkish response to inflation.

Both these factors have eaten into demand for iron ore, causing challenges for the world’s biggest miner by market capitalisation.

Over the past year, prices for iron ore,

BHP’s top revenue-generating commodity, have retreated from peaks above $165 per metric tonne towards $100 per tonne, as global supply chains calmed. Meanwhile, inflation has caused BHP’s capital and exploration expenditures to spike 16 per cent over the year to $7.1bn. The firm will also now have to spend $1bn per year BHP on its newly acquired Oz Minerals business.

Yet Henry said BHP was “running a tight ship, necessary to weather some of the external challenges – including China’s slashed steel production and flagging property sector.

The Aussie firm still expects China to produce more than 1bn metric tons of steel this year for the fifth consecutive year. Henry believes Western demand for commodities has been hampered hurt by hawkish interest rate hikes. BHP shares had slipped 0.71 per cent to AU$43.21 on the Australian Stock Exchange at time of reporting last night.

Weighed down by China’s stuttering economic revival and caustic inflationary headwinds, mining stocks have taken a battering this summer – and with BHP posting a sharp drop in profits , it would be natural to assume another downturn was on the way.

But yesterday’s rally struck a very different chord. Even BHP was only down 0.89 per cent in London despite posting its lowest earnings since the pandemic.

AJ Bell’s Russ Mould argued there

Oil output fuels record profits for Woodside

NICHOLAS EARL

WOODSIDE Energy yesterday posted record half-year net profits of $1.7bn (£1.3bn), fuelled by high production levels from the oil and gas assets it snapped off BHP Group.

This was up from $1.6bn a year earlier, with revenues rising 27 per cent to $7.4bn over the six month period of trading.

The Australian fossil fuel producer became one of the 10 largest oil and gas independents in the world after its merger with BHP’s petroleum arm last year.

was longer-term thinking from investors, with a resolutely resilient future outlook towards China despite its problems.

Susannah Streeter, a senior analyst noted China’s economic situation was more of a mixed bag than the negative media coverage has suggested.

Either way, miners’ fates remain very much tied to the Chinese economy.

EARL

This has helped power the company to an all-time high in output levels, producing 91.3m barrels of oil equivalent.

Oil and natural gas prices remain historically elevated even after easing from last year’s record highs following Russia’s invasion of Ukraine last year.

However, the company did underwhelm investors with an interim dividend of 80 cents per share, falling short of consensus estimates of 86 cents.

This saw shares in the oil explorer tumble two per cent yesterday.

UK borrowing comes in lower than expected

CHRIS DORRELL

THE INTEREST paid on government debt hit its highest July level on record as government borrowing continued to rise, albeit by significantly less than expected.

According to figures from the Office for National Statistics, the government had to pay £7.7bn in interest in July, £1.5bn more than last July and the highest level for the month since records began in 1997.

More positively for the government, total borrowing in July came in at £4.3bn, which was lower than the £6.0bn predicted by the Office for Budgetary Responsibility (OBR), meaning the government’s fiscal position is stronger than expected.

The ONS estimates that so far the government has borrowed £56.6bn in the first four months of the fiscal year, which was less than the £68bn forecast.

The stronger performance came

thanks to better-than-expected tax receipts, which were £3.9bn more than last year.

Government debt in total came to £2.6 trillion, or around 98.5 per cent of the UK’s GDP.

The figures will be closely scrutinised to see whether Chancellor Jeremy Hunt has any space for pre-election tax cuts. Although the government borrowed less than expected, most experts argued tax cuts would not be possible without breaking the Chancellor’s fiscal rules.

Hunt’s current targets are to have the debt-to-GDP ratio falling and to make sure borrowing does not exceed three per cent of GDP in five years.

Ruth Gregory, deputy chief UK economist at Capital Economics, said “with interest rates still rising and a mild recession on its way, we continue to think the Chancellor will struggle to unveil a large package of permanent tax cuts in the Autumn Statement while still adhering to his fiscal rules”.

UK government transfers Bank record sum to cover bond losses

LUCY KENNINGHAM

THE GOVERNMENT made a record payment of £14.3bn to the Bank of England in July after increases in interest rates left the Bank with heavy losses from quantitative easing (QE). Last month’s sum totalled £5.3bn more than had been forecast by the Office for Budget Responsibility.

XTX Markets billionaire founder Alex Gerko almost doubles wealth in a year

CITY A.M. REPORTER

ALEX GERKO, founder of XTX Markets, has nearly doubled his net worth in just one year, according to the latest Bloomberg Billionaires Index.

The 43-year-old, who launched the London-based proprietary trading and market-making business in 2015, is now worth £8.5bn following a bumper year for the business. In

UK downplays reports of trade deal with India

JESSICA FRANK-KEYES

THE UK has downplayed reports that a trade deal with India is “imminent” ahead of the G20 summit in Delhi next month.

Some reports in the Indian press suggested that a deal could be agreed as early as September.

Prime ministers Rishi Sunak and Narendra Modi are expected to meet at the G20 conference, with bilateral talks alongside the main summit, in a bid to conclude the long-awaited deal. Meanwhile, business and trade secretary Kemi Badenoch is reportedly set to travel to India today to continue trade talks.

QE, a bond-buying scheme launched in the aftermath of the global financial crisis, saved the government £120bn between 2009 and 2022 when the trend reversed as interest rates shot up over 1.75. The Bank’s own predictions show taxpayers will need to shell out a whopping £220bn to Threadneedle Street over the seven years to 2030.

But a source close to the deal told City A.M. there were still “complex” issues to resolve and a deal was not as “imminent” as the reports suggested. “The 12th round of talks is underway and progressing well,” they said. “But what’s on the table is still complex.”

A government spokesperson said: “While we cannot comment on ongoing negotiations, we are clear that we will only sign when we have a deal that is fair, balanced, and ultimately in the best interests of the British people and the economy.”

June, it was reported that revenue from its UK business jumped by 68 per cent to £2.5bn.

XTX employs so-called algorithmic trading strategies, where decisions are automated through machines, to provide liquidity to businesses, exchanges and trading venues.

Gerko – who was born in Russia but took British citizenship in 2016 after living in the UK for a decade – was also

recently named the by The Sunday Times as Britain’s biggest taxpayer earlier this year, coughing up a total of £487.4m.

He has been a fierce critic of the invasion of Ukraine and last year renounced his Russian citizenship.

Gerko has reportedly donated to charitable causes including the UBS Ukraine emergency appeal and educational initiatives in Africa.

The payment of £14.3bn was the largest state transfer in history

Gerko was named by The Sunday Times as Britain’s biggest taxpayer

Try again? CMA to look at revised Microsoft deal

gaming giant Activision Blizzard, triggering a new investigation by Britain’s competition watchdog.

The Competition and Markets Authority (CMA) yesterday confirmed it is blocking the original deal to protect consumer choice in cloud gaming.

However, Microsoft has submitted a fresh merger proposal for the CMA to scrutinise.

Under a revised agreement, Microsoft has surrendered its cloud rights to existing Activision games such as Call of Duty or any new games released during the next 15 years.

Instead, Ubisoft, a gaming competitor based in France, will acquire Activision’s

“This is not a green light” said CMA chief executive Sarah Cardell in a statement.

“We will carefully and objectively assess the details of the restructured deal and its impact on competition.”

“Our goal has not changed — any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice,” she added.

It comes after the pound deal was approved by both EU and US regulators.

Following this, the CMA expressed readiness to cooperate with Microsoft on the acquisition if the two companies presented a revised proposal.

ANALYSIS

So, will Microsoft’s new deal be enough to assuage the CMA? It’s certainly not a done deal, but experts seem to think a green light could be down the road, though how far down that road is another question.

Gustaf Duhs, former CMA lawyer and now competition and regulatory lead at Stevens & Bolton, told City A.M. the new deal will present a challenge. “This is not a straightforward issue because Microsoft is still in charge of the underlying product,” he said.

Although the restructuring appears to diminish Microsoft’s potential to use certain games as leverage in the cloud gaming market, the changes mainly take effect outside of the EEA and, ultimately, the tech giant still owns the rights to these games.

“However, it is unlikely Microsoft would have gone to the trouble of restructuring the deal if they didn’t think the CMA would approve it,” Duhs added.

Whatever the verdict, it seems a lengthy regulatory process is in store, withthe decision likely to be appealed to the Competition Appeal Tribunal if not approved. “The saga will continue,” said Wessen Jazrawi, member of the London Solicitors Litigation Association.

JESS JONES

Lookers rakes in £46m profit amid takeover deal talks with Global Auto

GUY TAYLOR

CAR DEALERSHIP Lookers, which looks set to be swiped from London markets in a £504m take-private deal, reported resilient trading in the first half against significant macroeconomic headwinds.

The UK’s biggest car seller reached an agreement late last month with Global Auto Holdings – an entity linked to the Canadian Alpha Auto Group – to sell itself for 130p per share, pending investors’ approval.

Amid the speculation, Lookers yesterday said that half-year profits had broadly levelled out at £46.1m, a slight dip from £47.2m in 2022.

The Altrincham-based retailer reported a jump in revenues of eight per cent year-on-year to £2.42bn, as it benefitted from improving vehicle supply following years of pandemicinduced supply chain snarl-ups.

Lookers boss Mark Raban said: “Against significant macroeconomic headwinds the group has once again delivered a good trading

Marex expansion pays off as IPO rumours swirl

LONDON-BASED commodities broker Marex Group more than doubled its pretax profit in the first half of the year as it reaped the rewards from its expansion plans.

Total trades completed climbed 166 per cent to 59m while the number of contracts cleared tripled to 312m. This helped revenue climb 86 per cent in the period to hit $1.2bn (£943m).

Pretax profit meanwhile jumped to $120.2m, up from $55.4m in the first half of last year.

The significant expansion came after its acquisition of ED&F Man Capital Markets in October last year.

The deal has helped to boost its metals business and expand its global footprint with over 400 former ED&F employees joining Marex since the acquisition.

The ED&F Man acquisition also swelled Marex’s presence in Dubai and the US, with the US operation now rivalling the size of its historically dominant European business.

The results also reflect a boost from higher interest rates and the more normalised markets conditions in the commodity markets compared to the “exceptional volatility” seen last year.

Ian Lowitt, chief executive, commented: “We have delivered exceptionally strong performance in the first half of 2023, reflecting the strength and scalability of the diversified global platform we have built, which provides our growing client base with essential market connectivity and quality service.” Marex said its “expanded global footprint, growing capital base and client-centric growth strategy” positioned it well for future growth.

The strong set of results will bolster speculation about a potential float for Marex, which is one of the world’s largest privatelyowned commodities brokers.

A potential IPO was shelved back in 2021 due to market volatility, but after its last set of results in March, Lowitt said “private equity does look to exit” – suggesting a deal might be in the offing.

performance. I would like to thank the entire Lookers team for their amazing contribution and dedication to the company.”

The takeover deal for Lookers has dominated newspapers in recent weeks and would bring an end to 50 years of trading as a public company. According to a letter of intent published yesterday, the number of shareholders willing to accept the bid has reduced to just over 85m, representing approximately 22.3 per cent of Lookers’ share capital.

Downgrades for US banks due to ‘tough’ context

GOKUL PISHARODY AND AKANKSHA KHUSHI

S&P GLOBAL on Monday cut credit ratings and revised its outlook for multiple US banks, following a similar move by Moody’s, warning that funding risks and weaker profitability will likely test the sector’s credit strength.

S&P downgraded the ratings of Associated Banc-Corp and Valley National Bancorp on funding risks and a higher reliance on brokered deposits.

Former Treasury minister joins board in Arbuthnot

reshuffle

ANGELA KNIGHT, former chief executive of the British Bankers’ Association (BBA) and an ex-Treasury minister, has been appointed to the board of Arbuthnot Banking Group. Knight will join as a non-executive director from September. She was a Conservative MP from 1992 to 1997, serving as economic secretary to the Treasury from 1995 under John Major.

After her parliamentary career, Knight became CEO of the Association

of Private Client Investment Managers and Stockbrokers before becoming CEO of the BBA, now UK Finance, in 2007.

Knight left the BBA in 2012 having defended the industry during the 2008 banking crisis.

Jayne Almond, current chair of Kensington Mortgages, and Lord Sassoon, who has extensive experience in both the banking sector and as a Treasury official, will also join as nonexecutive directors.

Arbuthnot is a boutique bank which dates back to 1833.

It also downgraded UMB Financial Corp, Comerica Bank and Keycorp, citing large deposit outflows and prevailing higher interest rates. A sharp rise in interest rates is weighing on many US banks’ funding and liquidity, S&P said in a summarised note, adding that deposits held by Federal Deposit Insurance Corp insured banks will continue to decline as long as the Federal Reserve is “quantitatively tightening”.

The rating agency also downgraded the outlook of S&T Bank and River City Bank to negative from stable on high commercial real estate exposure among other factors.

Moody’s had earlier this month cut the ratings of 10 banks by one notch and placed six banking giants, including Bank of New York Mellon, US Bancorp, State Street and Truist Financial on review for potential downgrades. Reuters

Former Bank governor Mark Carney called in to head Bloomberg board

CHARLIE CONCHIE

BLOOMBERG has called in former Bank of England governor Mark Carney to chair a new board of directors in a slew of senior promotions.

In a memo to staff, billionaire founder Michael Bloomberg said he had appointed the former Threadneedle Street governor Carney

to lead a new board that will take “a fresh look at where we should be”.

Carney’s appointment came amid a senior shake-up at Bloomberg, with the company’s head of product Vlad Kliatchko promoted to chief executive. Bloomberg has led the company since its foundation but will now step back from the hands-on role leading the firm.

“Much of our success stems from internal mobility, giving the next generation a chance to grow and lead, while bringing in the best and brightest to give us a fresh perspective,” he wrote in the memo, which was seen by Reuters.

Carney currently serves as UN special envoy on climate action and finance and co-chair of GFANZ.

CHRIS DORRELL

Angela Knight served as economic secretary to the Treasury under John Major

CHRIS DORRELL

The car dealership has seen a strong few years of trading thanks to pent-up demand

GREEN PLANS DERAILED AS FREIGHT TRAIN CANCELLATIONS SKYROCKET

Wood Group CEO says policy must match ambition

NICHOLAS EARL

POLICY agendas need to keep up with growing investment appetite for low and zero carbon projects, if developed economies are serious about their net zero goals, the boss of Wood Group has warned.

Ken Gilmartin, chief executive of the engineering giant, told City A.M. that governments need to “match the ambition we have and need to accelerate to net zero”.

“There are multiple facets to that, which need to happen in a parallel –policy as well as planning needs to be in a proper framework. In certain areas, and certain jurisdictions, it needs to be accelerated to match the ambition and scale of the challenge we have ahead of us,” he said.

The boss of the FTSE 250 firm referenced the US Inflation Reduction Act as a key development in the green energy race, and also praised the UK government’s decision to back carbon capture projects with £20bn of investment support as a “very encouraging” move.

A FIVEFOLD increase in the number of freight train cancellations threatens to undermine a number of firms’ recent decisions to start transporting goods by rail in a bid to reduce their carbon footprints. Freight cancellations between the financial years 2021/22 and 2022/23 rose

from 2,492 to 12,708, according to data from a Freedom of Information request filed by City A.M.

The data, broken down by cause, shows that the fivefold rise was primarily driven by industrial action, which resulted in the cancellation of 9,952 trains in 2022/23 –78 per cent of the total number of cancellations.

The figures come as an increasing number of firms look to use Britain’s rail freight network to transport goods across the country and stop relying on gasguzzling lorries.

Last year, Nestle announced plans to increase the use of rail freight in the UK, while DP World is reported to be eyeing up a move from trucks to rail in a bid to

decarbonise.

The Office for Rail and Road told City A.M. that Network Rail’s performance in freight had been “poor” and that improvement plans enforced by the regulator “must be delivered on now”.

A Network Rail spokesperson said it was “determined to continue to improve punctuality”.

His comments followed Wood’s half-year results announced yesterday, where the company hiked its guidance – predicting higher pretax profits after hefty contract wins bolstered its order book.

The firm anticipates yearly revenues of $6bn.

Wood has also announced the exit of its finance chief, with David Kemp stepping down as chief financial officer after eight years at the helm.

London councils slammed over parked car charges

LONDON councils have been accused of “attacking working class people” after introducing new parking charges for residents’ vehicles based on their cars’ emissions.

Lambeth Council introduced the policy in May, despite furious residents dubbing it “scandalous” and “greedy” in a consultation with over 100 pages of responses, while Greenwich rolled it out in July.

Now a south London MP has

slammed the schemes and called for them to be scrapped.

Louie French, MP for Bexley, said: “Labour wants to charge you more for owning a car, even when you’re not driving it. Targeting people who are more likely to own older cars because they are retired or on lower incomes is regressive and wrong.

“It is also highly questionable how a parked car can generate emissions. This is yet another attack by Labour on working class people in London.”

Asked for comment, Lambeth

Council directed City A.M. to its original press release announcing the policy. According to the release, deputy leader of Lambeth council Rezina Chowdhury said: “This new emissions-based pricing structure will ensure Lambeth can continue to tackle toxic air.”

Greenwich Council was approached for comment.

The criticism comes just days ahead of the expansion of the controversial ULEZ scheme, which will be rolled out on 29 August.

JESSICA FRANK-KEYES

A GIG IN FIVE YEARS: AN IMMERSIVE DREAM OR VIRTUAL INSANITY?

passing the £2bn threshold for the first time ever, according to data from PRS for Music, which licenses live events.

Thanks to pop queens Beyonce and Taylor Swift, some live music events have even managed to boost the GDP of entire nations.

But while the industry is basking in its recent success, new technology could radically change the way we consume live events in the future.

Groundbreaking productions like ABBA Voyage, a live London concert experience featuring ‘ABBAtars’, have taken centre stage, selling over 1m tickets as of April this year since it launched in November 2021.

“Live, virtual and integrated events are continuing to evolve, and we do see the potential of augmented reality events extending far beyond where they are today,” Miller told City A.M.

Cliff Fluet, managing director of media advisory company Eleven, is also optimistic about the untapped potential of technology-driven entertainment.

“We are at the foothills of what we can imagine,” he said.

Multimedia messaging app Snap is making headway with its augmented reality approach to live entertainment, having already added tech-powered experiences for gigs with Drake, Taylor Swift, Lil Nas and, most recently, Kygo.

head of music strategy, told City A.M. it is working to “revolutionise” live performances, adding that it was a “no-brainer” to add it to Kygo’s shows this summer.

He said that the tool helps bring fans “deeper into the experience without taking them out of the moment”. But fully virtual experiences could also become more popular as the live music industry wrestles with environmental challenges.

The United Nations said last year that live concerts and tours contribute to the climate crisis, driving up emissions through fan and artist travel, energy consumption and the mass production of merchandise.

Alex Wills, chief experience officer at Disguise, a company specialising in live event technology, told City A.M. the environmental challenge is “going to become an increasingly big issue” and could lead to the “hybridisation” of concerts.

“People can't all go to the Taylor Swift concert –there’s a limitation.”

While he believes a fully virtual concert cannot replace the experience of

actually going, they do offer a way to extend the audience and generate more revenue for the artist.

Wills suggested that headsets such as Apple’s Vision Pro will be adapted for live music events, as they are already being used in sporting ones.

He said Apple is using the headset to stream courtside experiences of NBA games.

In June, courtside seats went for as much as $46,326 per ticket, according to ticket platform Seatgeek.

By comparison, Apple’s headset costs $3,499 (£2,755), and some expect that price to fall over the next decade. Sceptics argue that virtual gigs won’t take off, with many struggling to imagine watching a live gig through a device.

But Fluet replies: “Have you ever looked around at a concert?”

JESS JONES

A defeat for the Lionesses – but a victory for their public perception

OLGA CARMONA’s 29th-minute strike may have ended England’s hopes of taking the 2023 FIFA Women’s World Cup home – but data from YouGov FootballIndex shows that the Lionesses have emerged from the tournament with a stronger brand among the UK public: one that even compares favourably to the men’s team.

Overall, the public were impressed with the football on display. Between 20 July and 20 August (the dates of the tournament), Quality scores for the England Women’s National Football Team, which measure perceptions of the team’s standards, increased from 15.8 to 20.9 (+5.1); our most recent scores for the men’s team were 19.1. Similarly, Reputation scores, a measure of general prestige, rose from 17.8 to

Stephan Shakespeare

23.2 (with the men’s team at 11.0).

During this period, Consideration scores – which track whether consumers would see a team if there were no barriers in terms of price or geography – rose from 9.9 to 15.0; exceeding our most recent scores for the England men’s team (13.1). But even if price is a barrier, the team’s perceptions have gone from good (5.7) to better (10.5) over the course of the competition, rising by

4.8 points overall. The men’s team, whose tickets are generally more expensive, scored -1.8 as of 20 August.

And following the Women’s World Cup, the public are more likely to say they plan to follow the Lionesses in future. Satisfaction scores, which measure whether people would give up time to support a team, more than doubled from 5.5 to 12.7; the most recent men’s scores were at 8.4.

World Cup glory might still elude England’s Women’s team – as it has for the men’s side since 1966 – but the public like Sarina Wiegman’s Lionesses more, regard them as a better team, and are more likely to follow them in future as a result of their 2023 showing.

Stephan Shakespeare is the co-founder and CEO of YouGov

THE PUBLIC ARE MORE LIKELY TO FOLLOW THE LIONESSES FOLLOWING THE 2023 FIFA WOMEN’S WORLD CUP

YouGov FootballIndex Satisfaction scores: Which of the following are youLIKELY/UNLIKELY to give up the time to follow or support as they take place? (4 week moving average)

England Women’s National Football Team

England Men’s National Football Team

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

MARKET GOSSIP

FTSE 100: London markets kick longest losing streak since 2019

LONDON’s FTSE 100 index yesterday rose for the first time in seven days as it successfully ended its longest losing streak since 2019.

Miners helped lift the FTSE 100 0.2 per cent to 7,274.71 while the midcap FTSE 250 index climbed 0.7 per cent to 18,029.00.

Fresnillo, Endeavour Mining, Anglo American and Glencore were among the largest risers on the bluechip index as markets hope for greater stimulus measures from the Chinese government to boost its flagging economy.

Fresnillo was up 5.5 per cent, Glencore 2.4 per cent while Anglo American picked up 1.6 per cent. Endeavour Mining also rose 1.7 per cent. Mining stocks are closely tied to the fate of the world’s second largest economy, which is a key source of demand for minerals.

“It may be wishful thinking, but the

expectation of more significant stimulus is helping give a little more support to stocks,” Susannah Streeter, head of markets at Hargreaves Lansdown, said.

On the FTSE 250, engineering firm Wood Group climbed 4.8 per cent, rising to the top of the index, after it upgraded its expectations for the remainder of the year. Markets were also given a boost as Softbank-owned chip designer Arm confirmed it will float on New York’s Nasdaq next month in what will be the largest US initial public offering (IPO) in almost two years. It marks a potential revival of the market for initial listings after an 18-month dry spell which has contributed to a subdued market sentiment.

In the UK there was also a “glimmer of good news”, Streeter said, after public sector borrowing yesterday came in below forecasts.

British video game developer Team 17 has made changes to its senior teams. Chris Bell, who has been a non-executive director with the company since IPO in 2018, is stepping down. He will be replaced by Frank Sagnier. Peel Hunt considers this a “fantastic appointment from the firm” and “adds to its already rich roster of talent at board level”. It says buy with a target price of 515p per share.

“US sentiment got a bit of a lift by chatter that a discussion on the Fed’s inflation target being reset to three per cent might take place at Jackson Hole. If this were to happen, the central bank need not be as aggressive in returning inflation to target if the target were raised from two to three per cent.”

MICHAEL HEWSON, CMC MARKETS

Gene cell therapy specialist Oxford Biomedica has expanded its licensing deal with US-based clinical-stage biotech firm Cabaletta, who are focused on developing and launching curative and targeted cell therapies for autoimmune diseases. Investment specialist Peel Hunt considers this “good news” for Oxford Biomedica. It has kept its buy stance with a target price of 1,170p per share.

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

PART

OPINION

EDITED BY SASCHA O’SULLIVAN

Britain is shooting itself in the foot with prohibitive rules for skilled migrants

THERE is a global race for talent. In the face of rapid technological transformation, talent has become a prized commodity more sought after than ever before. Western nations aren’t only competing against adversaries to attract and retain the world’s best professionals, innovators and entrepreneurs, they are also competing with each other.

Talent shortages are evident all over the world. Semiconductor moguls in the US had to delay opening new manufacturing plants due to a shortage of advanced engineers. Meanwhile, British business leaders have been listing “access to talent” as a main challenge to their firms for years. The World Economic Forum estimates that half of the workforce will require some kind of reskilling and training to stay as productive as they are today. With demographic changes demand will only become more acute.

Foreign talent is already the backbone of British business. As shown in our recent report, Job Creators 2023, 39 of our 100 fastest-growing firms –such as Kroo, Zapp and Zilch – have an immigrant founder or co-founder, despite the foreign-born population being under 15 per cent.

Historically, the UK has been a bene-

ficiary of skilled immigration. Immigrants have been job creators, productivity hackers and entrepreneurs. Business ownership rates are higher among immigrants than the nativeborn population. Studies examining enterprise data show that UK businesses with more immigrants are likelier to increase their productivity and innovate. Britons seem to know this by heart. In the face of all the tough talk on immigration, a recent poll by Kantar Public and Migration Observatory indicates that 60 per cent of the UK public would like to see immigration made easier for “high-skilled workers”.

Attracting talent is a quality that

needs to be mastered. However, with the proposed visa fee increases to pay public sector wage hikes, the govern-

ment is actively choosing to hinder the UK’s attractiveness. Currently, companies must pay for a sponsorship licence to employ non-UK nationals and pay fees up to £1,476, as well as covering application costs, health surcharge and an immigration skills charge that can go up to £1,000. All of these conspire to make employing immigrants a costly and bureaucratic decision.

The UK already has a dramatically expensive immigration system. For skilled workers on a path to permanent residency, visas can cost nearly three times what they would in Australia, around 12 times in Canada and around 43 times what they would in

Keep dreaming if you think Brexit is the reason craft beer breweries are going bust

ACOUPLE of weeks in the Highlands is always refreshing; the scenery is fantastic and the locals are welcoming, even if the weather has been typical of a very British summer. The experience was only marred in one respect: it was virtually impossible to obtain a pint of hand-pumped traditional bitter in the pubs. This outrage was compounded by the proliferation of craft beers, differing only in the extremity of their fruitiness and the ludicrous nature of their names.

It was therefore with considerable schadenfreude that I read that nearly 100 craft breweries had been forced to close down this year alone. At the start of this year 684 out of a total of 1,828 independent brewers were in trouble, according to the Guardian In a further enjoyable twist, the article claimed “it all disappeared with Brexit”. The decision to leave the European Union in 2016 was held to be the main reason for the demise of micro-breweries in 2023.

Paul Ormerod

One owner of a mothballed brewery opined that “We were heavily geared for export. We’d be selling to Finland, Sweden, Norway, Ireland, Netherlands, Italy, Spain. And it all disappeared with Brexit.” All this would, apparently, have been achieved by a company with a total capital investment of £70,000 - but for Brexit.

To be fair, there was also apportioning of blame to the other problems in the sector such as the cost of energy and the squeeze on living standards. Much more interestingly, a parallel was drawn with the craft beer market in the United States. During the 1990s, the market boomed with thousands of new firms. By the end of the

decade, most of them went bust. An American with experience of that time declared “Everybody thought it was cool, everybody started doing it and then everyone was competing to have the next new big thing. And you overwhelm your own market”.

This episode is entirely typical of new markets. A few producers experiment with an entirely new offer. Consumers seem to like it and as a result, more and more entrepreneurs want to try their luck and enter the market. But most of the firms end up in liquidation, with just a few survivors.

This is not just in rather niche markets such as craft beer. We see the same phenomenon in markets which go on to become a key part of the economy. When the internet started to take off twenty-odd years ago, there was a veritable plethora of internet service providers. But the market consolidated quite rapidly and most companies disappeared.

The 15th century saw its own version of this in the form of the printing press. The Italian cities were the Sili-

con Valley of the day, nowhere more so than Venice at the centre of a dense network of international trade. In 1469, twelve companies were engaged there in the new activity of printing, but three years later, nine of them had failed.

In comparatively more modern times, between 1900 and 1920 there were almost 2,000 firms involved in automobile production in the US. Over 99 per cent disappeared.

Of course, there are always specific reasons why any particular company fails. Management inexperience is a major one amongst startups. But unanticipated events can hit even the largest companies, as the experience of banks during the financial crisis of the late 2000s shows.

So the shake out in the craft brewing industry is entirely typical. I live in hope that a strategy for survival is to extend the market reach and offer a more traditional ale in the portfolio.

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

Germany. According to Gallup, an international pollster, these countries are already more popular destinations for potential migrants. Common sense dictates that the government should be focused on easing fees. However, the government is making matters worse by increasing the costs for migrants. The planned policy update includes a 15 per cent increase for work and visit visas and a 20 per cent increase for certificates of sponsorship. The health surcharge is also expected to increase by a whopping 66 per cent. For some time, the Treasury and the Home Office seemed to agree that the visa system should pay for itself. Now, they interpret the immigration system as a way to pay for other government expenses. This is a short-sighted understanding of immigration which does not factor in the fact that high-potential individuals create much more wealth for the UK than they “cost” – by paying taxes and building companies. Skilled migration is an investment with promising returns.

When we first looked at the percentage of foreign-born founders back in 2019, we found that 49 per cent of the UK’s fastest-growing businesses had a foreign-born founder. Rishi Sunak referenced this data to acknowledge the contribution of migrant entrepreneurs to the UK economy in his 2021 Autumn Budget. To ensure that this decline is just a blip and not a trend, Sunak’s Government should be focused on making Britain more attractive for the world’s most talented – not more costly.

COST OF LEARNING

£ Derin Kocer is a Researcher at The Entrepreneurs Network

Derin Kocer

Planned changes to migration rules would make visas 15 per cent more expensive

Keir

Starmer claimed he would have been unable to go to university had he been applying nowbut at the same time has ditched a plege to scrap fees. The Labour leader (predictably) blamed the Conservatives for ‘choking off of the dreams’ of young Brits

A visa for a skilled worker in the UK costs three times as much as it would in Australia

WE WANT TO HEAR YOUR

LETTERS TO THE EDITOR

Behind the cliff edge of IPOs

[Re: Complacent or cautious? City grandees divided on Government’s Square Mile cheerleading, Aug 22]

The drop off in UK IPO activity from last year has extended into 2023 with deal numbers falling 31 pre cent in the first half of this year compared to the same period in 2022. However, it’s important to mention London isn’t the only listing location that has suffered. Just 34 companies were publicly listed in Europe, the lowest level since the global financial crisis, while global IPO activity proceeds fell 36 per cent year-on-year in H1 2023. Many have cited issues such as a challenging macro environment, recent failed listings and firms choosing to list in the US, but a major factor is the growing sophistication of private

markets.

Private markets now offer funding at scale through private equity, venture capital, family offices and wealthy individuals, while the rise of secondary liquidity in private markets has eroded one of the core advantages of being public.

Underpinning this is a significant increase in the sophistication of the technology available to facilitate and manage private transactions, making private markets more accessible and closing the efficiency gap to public markets.

Private markets are functioning much smoother, quicker, more efficiently, at greater scale than was the case before, and are growing at double the rate of public markets. Firms can now get the funding they require while avoiding the complexity and expense of going public.

Myles Milston Globacap

CRUEL SUMMER Heatwave pushes all Italian glaciers above zero degrees

The stale status quo of buyto-rent properties has made London an unrealistic dream

Rick de Blaby

THE stalling economy and lack of growth in the UK is at the top of the agenda right now, and rightly so. With the International Monetary Fund (IMF) forecasting the UK’s growth to remain weak at 0.4 per cent and further monetary tightening on the cards, clear action needs to be taken.

But too often, the creation and improvement of the fundamental infrastructure needed to enable growth is not addressed.

It is an unavoidable fact that to drive growth we need the right people in the right places. It is also an unavoidable fact that there is simply not enough high quality housing in those urban centres to accommodate that talent.

We all know that there is a housing crisis and that more must be built and built fast. The government’s decision to drop the target of 300,000 homes a year is a disappointing reflection of the direction of travel. A further drop in home building in the short term looks inevitable, compounding the

EXPLAINER-IN-BRIEF: INDIA READY TO JOIN THE SPACE RACE

If we were snarky, we would point out that the Americans did it in 1969, but India is finally catching up and is expected to become the fourth country to land on the moon.

The Chandrayaan-3 moon lander is set to be the first to touch the lunar south pole of the moon. The robotic spacecraft was “in good health” as it dispatched photographs of the far side of the moon, according to the Indian Space Research Organisation (Isro). The space

agency plans to telecast the landing from just before 1pm BST today.

Meanwhile, Russia’s first attempt to land on the moon in almost half a century failed over the weekend when the Luna-25 spacecraft crashed into the celestial body. India’s last attempt to reach the moon failed in 2019.

Indian PM Narendra Modi is hoping to spur further investment into the private space sector and satelliterelated businesses.

centres

problem. The government is right in that development must be a considered process, but there must be more urgency and commitment to that process from a central and local level. After all, it is not just that these homes get built, but where and how they get built that matters. The generation currently in their twenties and thirties want to be near to their workplaces and to shops, cultural centres and restaurants.

They need to be able to move around with ease, they want to be in a place that allows them to make connections and collaborate.

The rollercoaster of the pandemic years showed us that the appeal of city living has not dimmed, but it also shone a light on the need for human

interaction and a sense of togetherness. These factors have a major impact on the life chances and well-being of the young talent that collectively creates the engine room of the UK’s future growth.

The traditional private buy-to-let rental sector that serves this group is in disarray. In many instances, renters have had to tolerate unscrupulous landlords and poor quality housing. But even the responsible private landlords are now exiting the sector in droves as policy changes have reduced the incentives to invest.

The recently introduced Renters Reform Bill is well intentioned and might drive better transparency and fairness in some areas. But we need to be honest and face the fact that without significant further new investment that can deliver new stock at scale, we’re going to be dealing with this crisis for quite some time and it is going to be those crucial younger generations that will suffer most.

The fast emerging, professional build-to-rent sector has long been knocking on the door to provide a solution to the problem.

Whilst at present only a relatively

small proportion of the overall housing sector, Build-to-rent has ambitious plans for growth with schemes in development across the UK, built on brownfield sites, located in and around key cities.

In fact, 49 per cent of all local authorities now have either completed Buildto-rent homes or units in the pipeline. Backed by sophisticated, long term and responsible institutional capital, the potential for these properties to make a meaningful impact on housing delivery is huge. It challenges the status quo which has dominated the market for so long.

Without a considerable increase in home provision, the UK is set to become less mobile, less productive and ultimately less happy.

People want high quality homes, in safe and vibrant neighborhoods where the opportunity to be part of a community is central. Its entire model is founded on providing residents with a great experience, existing interdependently with business, retail, leisure and the local civic family.

£ Rick de Blaby is chief executive of Get Living

The generation in their 20s and 30s want to be near to their work and cultural

VIEWS

The government has dropped the target for 300,000 new homes a year

A new heatwave - ominously dubbed Nero - has raised the temperature to above freezing at all of the glaciers in Italy, and their equivalent in Switzerland are also struggling. Experts have warned they could all have melted by 2050.

WINE-DOWN WEDNESDAY

THEREhave been many reports about the trend for reducing alcohol in-take, particularly among Gen Z and younger. As a wine lover and professional I can never fully support tee-totalism (unless for medical reasons) but what I can get on board with is the ethos of drinking less but drinking better.

Gone are the days people pounded down the cheapest bottle of house plonk to get buzzed as swiftly as possible, now many would rather skip the drunkenness and savour a glass or two of something delicious.

Thankfully London provides a smorgasbord of places serving excellent wines by the glass and I have done my due diligence without a single grumble and tried a whole host of host of them for you. Here are some of the best places to get yourself a glass of great wine.

I once spent a fabulous birthday with the wine-pairing tasting menu at Les 110 de Taillevent, so named because it stocks 110 wines by the glass. This French fine-wine brasserie off Oxford Street not only offers a huge variety of wines but some of the most knowledgeable Sommeliers in town. No matter which wine you choose, they always have a story about it. The only problem is I found each story so fascinating I completely ignored my dining companion for much of the meal.

Noble Rot (pictured) has swiftly become the darling of the wine world with its three award-winning venues across Bloomsbury, Soho and Mayfair. Bone-achingly cool but with a warmth of service that can only be born out of real love for the grape, the Soho restaurant won “Best By The Glass” at the Star

WINE RECOMMENDATIONS

FORMULA 1 SILVERSTONE FERRARI TRENTO

£30 HARVEY NICHOLS

The official toast of Formula 1, this limited-edition Blanc de Blancs sparkling wine from slopes of Italy’s Trentino mountains has a stylish, slick finesse.

Crystalline fruit purity is underlined by a luxurious, delicate nuttiness and fresh effervescence. Delicious.

Brodie

Wine without the snobbery, by Libby

WHERE TO DRINK TOP WINES BY THE GLASS

Wine List Awards this year. With some absolute treasures made by the most interesting producers, you may find it hard to stick to just the one glass…

The 10 Cases in Covent Garden is a London stalwart, as any regular reader of mine may have gathered by how many wine professionals name it in my “a glass with” interview as their favourite place. A brilliant, original model, they only buy 10 cases of each wine, meaning the list here is constantly changing. They also favour a relaxed short-list of 10 reds and 10 whites, as well as some sparking and rosés. Perfect for the wine curious who want to avoid the confusion of a mindbogglingly long selection.

For those who enjoy a bit of boggling, however, make your way to Soho’s secret gem The Mulwray, hidden above The Blue Post pub. A stylish snug, where wines are listed as “path less trodden” or “wild and free” enabling a voyage of discovery, or opt for their ‘Sundowners Selection’ of three glasses for £15.

East London’s Sager + Wilde is an easy-going place to enjoy an ever-changing offering by the glass and their low mark ups mean it is an affordable option for a guaranteed good time. Each time I visit I seem to bump into someone from the wine trade indulging in their tasty fare and natural wines.

On the flipside of this, nestled in Bank’s Royal Exchange is chic Oeno House. Mainly specialising in rare, iconic and staggeringly expensive bottles they also offer a tidy yet exciting glass list of premium wines from all over the world that won’t break the bank, to be enjoyed on their alfresco terrace or private tasting room. Perfect for that post-work glass of champagne.

CHATEAU LA FLEUR DE BOÜARD LALANDE-DEPOMEROL 2014

£30 JUSTERINI & BROOKS

September is “Bordeaux

Month” so get ahead of the game with this sophisticated yet juicily full-bodied red, owned by the same winemaker as the legendary Château Angélus. Delicious deep dark fruits combine with delicate floral notes and wisps of vanilla spice. Incredibly satisfying.

CHATEAU SAINTE MARGUERITE FANTASTIQUE ROSÉ

£44 GREAT WINE CO.

A beautiful bottle to grace any table this summer and, as the name suggests, a “fantastique” Provencal rosé too. Organically made, there is a vibrancy to its flavours of rosebuds and raspberries and a lusciously long, fresh finish. Summer in a glass.

EVERFLYHT ROSÉ DE SAIGNÉE 2020

£40 GRAPE BRITANNIA

Newly released this is only the second vintage produced by this fantastic English winery, but they are on to a winner. A sumptuous coral pink, it has been aged for 20 months to create a generous depth of flavour, like a summer berry millefeuille with fine, silky bubbles. A class act.

FLINT BACCHUS FUMÉ 2022 £23.50

BERRY BRO’S & RUDD

If you like a vibrant Sauvignon Blanc then this is going to be right up your street. A beguiling barrel-aged English Bacchus from Flint Vineyard in Norfolk offering aromatic, crisp layers of green fruit, lemongrass, almond and plenty of zest.

AGLASS OF WINE WITH: Hattingley Valley’s Head Winemaker, Robert MacCulloch MW

THISmonth Hampshire’s Hattingley Valley celebrates a decade since their first vintage. I caught up with their Head Winemaker and Master of Wine Robert MacCulloch about what sets Hattingley apart.

WHAT BROUGHT YOU TO WINE?

As an apprentice at Oddbins I was exposed to wines from all over the globe and became fascinated– the sensory power, wine sales, variety of styles, the science of growing grapes, all of it. I’ve worked on over a dozen harvests across five continents and took the leap to become a Master of Wine, which has helped me understand both sides of the business, wine making and

commerce. I am fascinated by the world of wine and driven to continue making some of the country’s best English still and sparkling wines.

HOW WOULD YOU DESCRIBE  HATTINGLEY'S HOUSE STYLE?

A great level of acidity, combined with real richness. The oak we age the wines in creates a softer bubble, resulting in a richer wine being produced that has greater finesse. Whether it be a still or sparkling wine, Hattingley Valley wines boast a distinct freshness and depth of flavour making them incredibly drinkable! The vineyard was first planted in 2008 but our first vintage wasn’t released until 2013. We have

something coming to celebrate a decade since our first vintage which we can’t wait to announce, I’m unable to say anything just yet… but something limited edition and very special is on its way – watch this space!

WHAT WINE ARE YOU DRINKING AT THE MOMENT?

For me, you can't beat a good German Riesling - It's an ideal summer wineand I’ve been enjoying a glass outside in the evening. It's a great way to end the day!

YOUR FAVOURITE PLACE FOR A GLASS OF WINE? Bedford Street Wines in Covent

Garden. It’s the perfect place to graband-go with a great bottle of wine, or you can watch the world go by, with a wonderful glass of wine in hand. The team there offer a warm welcome, show such passion, and have incredible knowledge.

YOUR FAVOURITE RESTAURANT?

London’s a total mecca for incredible food, but if I had to pick one, it’s got to be Fenchurch Restaurant in the Sky Garden. Head chef Kerth Gumbs has made the most incredible menus that

combines best British ingredients with Caribbean flavours and one of the best views of London, it really can’t be beaten.

YOUR FAVOURITE PLACE FOR A LATE NIGHT DRINK?

Cave Cuvée in East London feels like a tiny, subterranean Parisian bar. It has a host of wines and their cocktails are equally delicious. Another great spot for top quality cocktails and late night jazz, swing and blues is Nightjar in Carnaby – it never disappoints!

GUESS WHO’S BACK? SOME OF THE TOP NAMES IN FOOD ARE PLANNING RETURNS

and lunch likely to be especially popular with City types, and the evenings helping to further establish the Square Mile as an enticing food and booze destination in its own right.

BÉBÉ BOB (SEPTEMBER)

London may be in that strange, midsummer quiet period but the restaurant industry is already gearing up for the autumn rush, with some of the most exciting launches since the preCovid times lined up over the coming months.

Whether it’s the iconic The Wolseley opening its second venue on King William Street in the City, or Jamie Oliver making a dramatic return to the London food scene, there are lots of reasons for foodies to be excited right now. Here are some of the upcoming restaurants we’ll be booking into ASAP.

JAMIE OLIVER (NOVEMBER)

Everybody’s favourite celebrity chef is set to restart his London business after all but three of his UK restaurants were forced to close in 2019. The new venture will open in the Theatre Royal on Drury Lane, which is operated by Andrew Lloyd Webber’s LW Theatres and promises to “celebrate everything that’s wonderful about Britain’s rich and diverse food culture with a seasonal menu that champions the best of British produce.”

Oliver says he will source produce from the best British farmers “from the best farmhouse cheesemakers to Creedy Carver who will supply free range chickens and ducks, and Cobble Lane Cured”.

MORLEY’S X HEINZ POP-UP

South London fried chicken institution

Morley's has partnered with Heinz to create a month-long pop-up chicken shop at The Standard hotel at King’s Cross. Guests can enjoy caviar topped fried chicken, glazed-toorder wings and ice cream sundaes dusted with Heinz Ketchup sherbet, alongside the launch of a limited-edition Morley’s x Heinz Fried Chicken Sauce. A combo made in heaven.

Theatre Royal Drury Lane reopened in 2021 after a £60m restoration.

Oliver’s restaurant will occupy a new space adjacent to the main theatre at 6 Catherine Street.

THE PARK (EARLY 2024)

Jeremy King, former boss of Corbin & King restaurant group that ran iconic destinations including The Wolseley, The Delaunay and Brasserie Zédel, is also making a return to the London

NATIONAL BURGER DAY!

In honour of National Burger Day tomorrow, chef Tom Cenci has created a Double Beef Slider, which will be on the Nessa menu for one week only. It’s priced at £14 and comprises a perfectly sized double milk bun with two smashed beef patties, American cheese, burger sauce and pickles, nodding to Tom's passion for nostalgic flavours and playful creations.

restaurant scene. His new venture is The Park, located at 123 Bayswater Rd right beside Hyde Park in the new Park Modern building. King says the restaurant will be “very much within the ‘Grand Cafés & Brasseries’ mould that I love so much but it is very much of the early 21st Century rather than 20th.”

Expect a massive terrace, extravagant interiors and more of that King magic that made The Wolseley et al some of

INTRODUCING AEGEAN SUNDAYS

From 3 September, Notting Hill contemporary ocakbasi restaurant The Counter will introduce Aegean Sundays, a new Sunday menu exploring the coastal cuisine of Turkey. Celebrating the home region of chef-founder Kemal Demirasal, the seafood-focused menu will serve 12 dishes including Pickle Tzatziki, samphire salad with radish and almond, fried squid, and sauteed prawns with garlic butter from £50 per person.

the best restaurants in London.

THE WOLSELEY CITY (AUTUMN)

While King is preparing his own restaurants, his former company is busy expanding the brand he made into an icon. The Wolseley City on King William Street promises to be every bit as glam as its Mayfair sibling, with an even bigger footprint and an estimated £10m expenditure. It will be an all-day experience, with breakfast

Speaking of which, one of our favourite City restaurants, Bob Bob Ricard City, is further expanding with a new Bébé Bob concept in Soho. This one is moving away from the FrancoRussian menu and instead focusing on rotisserie chicken (albeit all sourced from France). But don’t worry –you can still consume as much caviar as your wallet can sustain, although there won’t be any “press for Champagne” buttons this time.

RAFFLES AT THE OWO (OCTOBER)

One of the most exciting and talked about openings not only in London but the entire world, Raffles London at the Old War Office (or OWO if you’re in the know) looks set to be a foodie paradise, with 11 restaurants housed in what might well be the most spectacular space in the entire city.

Mauro Colagreco, the chef behind Mirazur, 2019’s best restaurant in the world (according to World's 50 Best Restaurants) is behind three of the new ventures, described by Raffles as “a brasserie with a twist, a fine dining restaurant, and an avant-garde private Chef’s Table.” Expect world-beating food and gigantic waiting lists. Also coming to the OWO is a rooftop restaurant from renowned Japanese chef Endo Kazutoshi.

ROW ON 5 (LATER IN 2023)

You can tell it’s a good time for new restaurants when a new Jason Atherton opening barely scrapes a mention. The chef-restaurateur is opening a Savile Row dining room that promises to show off the best of what made Atherton’s “Social” restaurant empire so successful.

VISIT THE LOWCOUNTRY

Lowcountry, the recently opened bar tucked below Joe Laker’s Counter 71 at Old Street, has created a new menu inspired by the American South with a focus on bourbon and rye. Created by laker (ex Fenn head chef), it will feature a selection of American South-inspired snacks using British ingredients such as pimento cheese rarebit, shrimp and grits prawn toast and fried okra.

GO TO THE BEACH... IN THE CITY

On bank holiday Monday (28 August), Swingers City will be celebrating its seventh birthday with a big party –and everyone is invited. Walk-in bookings will get the chance to experience free crazy golf all day, delicious street food and an exclusive birthday cocktail for just £7. Also available is half-price Perrier Jouet champagne, to toast to another swinging year. An all-day affair, it kicks off at 12pm all the way through to 10pm.

After a slow Covid recovery, London’s food scene is thriving. Steve Dinneen looks at some of the best upcoming venues

FOOD NEWS

Bill Esdaile previews day one of York’s Ebor Festival

Fantastic Foxes looks the bet for Juddmonte upset

ALL EYES will be on Paddington as he bids to land a fifth consecutive Group One in the Juddmonte International Stakes (3.35pm), the feature race on the opening day of York’s four-day Ebor meeting.

Only three weeks have passed since he sloshed his way through the mud to add Goodwood’s Sussex Stakes to his Irish 2000 Guineas, St James’s Palace Stakes and Coral Eclipse successes.

Aidan O’Brien’s son of Siyouni has unquestionably been the star of the current Flat season to date and that superstar status is the likely reason that only three rivals have opted to take him on. His biggest danger on paper is undoubtedly Mostahdaf, who bounced back to form with an impressive win

in the Prince Of Wales’s Stakes at the Royal meeting.

He does seem at his best when given plenty of time between his races, so the two-month break since that victory is in his favour.

However, the fact that he has to give Paddington 7lbs makes life tough and it would be a surprise if he were good enough to hold off his younger rival.

Nashwa found that soft ground put too much emphasis on stamina when she was only third in the Nassau Stakes at Goodwood last time.

Conditions will be much more to her liking this afternoon, but the small field doesn’t really play to her strengths, and she can sometimes be hard to settle.

Therefore, if there is a danger to

the favourite it could easily be his fellow three-year-old THE FOXES, who still has lots of potential.

He ended his juvenile campaign with victory in the Royal Lodge Stakes at Newmarket and he confirmed his Classic credentials when taking the Dante Stakes over this course and distance.

That success thrust Andrew Balding’s three-year-old right into the Derby picture, but he blatantly failed to stay that trip.

He returned to 10 furlongs in the Belmont Derby last month and was a little unlucky not to land that Group One prize.

A slow start put him on the back foot from the off and he just found himself too far back when the sprint for home started.

His fast-finishing second behind Far Bridge underlined his suitability for this distance.

With trip, track and ground all in his favour, he is a sporting bet at around 16/1 to create a bit of an upset.

Another small field lines up for the Great Voltigeur Stakes (3.00pm) with only the five runners.

Having recorded three wins from as many starts and open to further improvement, Gregory should take some beating with Frankie Dettori in the saddle.

The son of Golden Horn won on debut at Haydock, and then maintained his unbeaten record by winning the Cocked Hat Stakes at Goodwood by three lengths.

He then took the step into Group

company in his stride when landing the Queen’s Vase at Royal Ascot, showing that stamina is his strong suit.

Though York is a fairly flat track, the long home straight certainly tests a horse’s staying power and that should play to his strengths, with Aidan O’Brien’s Continuous likely to be his biggest danger.

They are around 11/10 and 9/4 respectively and that would appear to be spot on, so a watching brief looks the most sensible option.

POINTERS

The Foxes 3.35pm York

Paddington, The Foxes (World Pool Quinella) 3.35pm York

Back Ryan’s Bergerac to start Ebor meeting with a bang

KEVIN Ryan often does well when targeting sprints at York and won this race (1.50pm) last year with BERGERAC, who showed serious speed to break from stall two and lead against the far side rail.

That’s a sore point for me, as he edged out my own King Of Stars in a head-bobbing finish, but he looks worthy of close attention back at the scene of his biggest success.

Once again, he is reasonably drawn in stall 10 and should be able to race on the far side, which looks to be where the majority of the pace is.

While he hasn’t shown much in three starts so far this season, a return to this contest looks to have been the plan and he now races off a three-pound lower mark than when scoring last season.

Considering Ryan’s five-year-old

has plenty in his favour, the 20/1 available in places means he makes plenty of each-way appeal.

With a strong pace likely on the far side of the track, things could set up well for horses that like to close from off the speed and MONDAMMEJ is one that immediately springs to mind.

Often a difficult horse to win with, Antony Brittain’s six-year-old needs everything to fall right for him, but

has run well at York in the past, including when going down by less than a length here in May this season.

That came off a higher mark than the 94 he runs off today, and at around 14/1 he’s another likely each-way proposition.

With the World Pool in operation, I’ll be throwing both in a Quinella along with top-weight EQUILATERAL, who is used to running at a

much higher level, and the in-form INTRINSIC BOND

POINTERS

Bergerac e/w 1.50pm York

Mondammej e/w 1.50pm York

Bergerac, Mondammej, Equilateral, Intrinsic Bond (World Pool Quinella) 1.50pm York

The Foxes (blue and white) won the Dante Stakes at York earlier this season

Bill Esdaile previews the rest of day one from York’s Ebor Festival

Ballymount to be the Boy in the Acomb

THE GROUPThree Acomb Stakes (2.25pm) has broken up a bit, with only six runners left in the field and not much depth among them.

Adrian Keatley’s BALLYMOUNT BOY looks increasingly difficult to oppose, having placed second by just a length to Vandeek – who became a Group One winner in France last weekend – in the Group Two Richmond Stakes over sixfurlongs at Glorious Goodwood last time out.

That was on soft ground, but he has won on better (over six furlongs at Hamilton in a four-runner race) and looks to be a horse that will excel over seven this time.

With plenty of milers in his family, he might even get further in time, but

this should be the ideal race for him at this stage of his career.

The firmer ground we are expecting at York should help him inject some speed in the final stages and as he is the only runner in the race with Group level form he could well outclass his rivals, and the general 9/4 on offer should be snapped up.

There could still be plenty of competition for the placings, however.

All of the six runners have won a race from three or fewer starts, but Charlie Hills’ COGITATE stands out to me as Ballymount Boy’s main competition.

This Churchill colt won on his debut in July over this trip at Newbury by two lengths.

That form has been franked since with one of the runners that day,

King’s Gambit, having won since over a mile. York and Newbury are comparable tracks, both being left-handed and flat, so Cogitate ought to thrive on the Knavesmire and he should be right there, especially having had plenty of time between runs after he went well fresh on debut.

William Haggas’ Loose Cannon won over course and distance last month, but Cogitate looks to have a bit more class and he should like the conditions, provided the rain keeps at bay. With the World Pool in operation for the opening day of the meeting, there’s plenty of opportunity to get involved in the exotic markets and Cogitate is the one I’ll be playing in a Quinella alongside Ballymount Boy.

Both selections are drawn either side of Hot Fuss, who looks likely to try and lead the field and – now a winner over seven himself on soft ground – could set the race up nicely for those in behind.

Two-year-old nursery handicaps, like today’s six-furlong finale (5.20pm), are often difficult puzzles to solve but sometimes it can pay to stick with proven ability. Given his high level of form in five starts this season, including when finishing an excellent sixth in the Coventry at Royal Ascot, it came as a shock to see BOBSLEIGH quoted at a general 11/1 for this race.

I genuinely thought Eve Johnson Houghton’s colt would be close to favouritism for what doesn’t look the

strongest of races.

Jason Hart will be aboard Ballymount Boy in today’s Acomb Stakes

His Ascot run looks the best form in this race and there are plausible excuses for last two defeats, when drawn on the wrong side in the Super Sprint at Newbury and finding the ground too soft at Goodwood last time.

I expect him to go close back on this better ground, despite having to lump top-weight, and he looks a great each-way bet.

POINTERS

Ballymount Boy

Tronador entitled to Max respect in Stayers Handicap

IT QUITE often pays to follow National Hunt trainers in the big staying handicaps on the Flat.

Willie Mullins and Nicky Henderson regularly win races like the Cesarewitch at Newmarket and Queen Alexandra Stakes at Royal Ascot, and another leading Jumps handler looks to have a big chance of winning the Stayers Handicap (4.10pm) today.

Gordon Elliott saddles TRONADOR

and conditions should be perfect for a big performance.

He’s always been a horse that goes well on good ground so the drying surface at York should really play to his strengths.

The seven-year-old is a more than solid campaigner over hurdles, so the fact he’s 48 pounds lower on the Flat means Elliott could have a very wellhandicapped horse on his hands.

He ran perfectly respectably at Goodwood last time considering he was given far too much to do on ground that was softer than ideal, so hopefully he’s ridden a bit more prominently here.

I’m hoping for a big run at 8/1.

The other one I’m interested in is THEMAXWECAN at 16/1.

Recent form figures of 9300 hardly get the pulse racing, but this is his time of year as shown by his win at Ascot

over this trip just over a year ago.

Jamie Spencer rode him there and he’s back on board, and I expect him to massively outrun his odds off just a two-pound higher mark.

With the World Pool in operation, I’ll add ZANNDABAD in a Quinella. He’s done virtually nothing since joining the Tony Martin yard, but the Irishman has a knack of turning these types of horses inside out.

Ryan Moore is a very interesting jockey booking and his mount could easily be the proverbial ‘plot job’ in this field.

POINTERS

Tronador e/w 4.10pm York

e/w 4.10pm York Tronador, Themaxwecan, Zanndabad (World Pool Quinella) 4.10pm York

Golf’s merger talks on track despite silence, insists PGA Tour

FRANK DALLERES

PGA TOUR chief Jay Monahan has played down concerns over the progress of its deal to join forces with LIV Golf and Europe’s DP World Tour, insisting talks with Saudi Arabia’s Public Investment Fund continue to advance with “intensity and urgency”.

Eleven weeks after all parties made the shock announcement that they had agreed a framework for joining forces to create a new entity to own and manage men’s elite golf, no further details have been forthcoming.

Monahan, who took time off with an anxiety-related illness following a backlash to the PGA Tour’s U-turn over Saudi investment, also denied that the agreement had been struck to stem the crippling cost of litigation with LIV Golf and its backers.

“I would say that we operate in good faith and I see that on both sides,” he said in his annual press conference ahead of the season-ending Tour Championship in Atlanta.

“If you were to see the amount of conversation and the amount of time the PGA Tour, DP World Tour and PIF are spending working forward from a framework to a definitive [agreement], I think you’d see the sincerity of the efforts there.

“There are frequent talks. We’re probably right where I would expect that

we would be. There’s an intensity and there’s an urgency and there’s a lot of work, good work, that’s being done.”

PGA Tour president Tyler Dennis, who is leading the talks, said he had been “actively engaged weekly, multiple times a week. It progresses daily.”

The PGA Tour’s framework agreement with PIF promises to repair the fragmented men’s game, which has seen players forced to choose between staying loyal to traditional circuits or joining the lucrative LIV Golf tour.

It led to surprise and criticism among players who had rejected LIV’s advances, such as Rory McIlroy and Jon Rahm,

Farrell to miss two England World Cup games

FRANK DALLERES

and has prompted calls for Monahan – previously a critic of Saudi money –and other high-ranking officials to resign. Others, such as world No1 Scottie Scheffler, have questioned the lack of clarity over the sport’s future, with issues such as future Ryder Cup eligibility and the prospect of LIV Golf’s continued existence yet to be reconciled.

“If I were to succinctly put it, and this is the way Jack Nicklaus put it to me, the proof is in the pudding,” Monahan said. “So I think players are now saying, OK, I understand the confidential nature of what we’re dealing with and how you plan to handle that.”

Guardiola sidelined for weeks after emergency back surgery

FRANK DALLERES

MANCHESTERCity will be without manager Pep Guardiola for at least their next two Premier League games after he underwent emergency back surgery.

Guardiola flew back to his native Spain to go under the knife after “suffering from severe back pain for some time”, the English champions said. The 52-year-old is set to stay in Barcelona while he recovers from the operation and is not expected to return to the dugout until after next month’s international break.

His assistant Juanma Lillo will take charge of the first team in the

interim, during which time City are scheduled to play Sheffield United and Fulham.

Guardiola was treated by Dr Mireia Illueca, a specialist surgeon at the Barcelona Spine Institute, in what the club described as a successful routine procedure.

City, meanwhile, are poised to complete the signing of Belgium winger Jeremy Doku, 21, after agreeing a fee of £56m with French club Rennes.

Bernardo Silva is expected to sign a new contract this week, but a deal for West Ham’s Lucas Paqueta is now off.

ENGLANDwill be deprived of captain Owen Farrell for their first two games of the Rugby World Cup after he was handed a four-match ban for his high tackle against Wales earlier this month.

Farrell was initially shown a yellow card for the challenge on Taine Basham, which was then upgraded to a red on video review, only for it to be quashed at a disciplinary hearing last week.

But World Rugby appealed against the decision by a Six Nations independent committee and a second hearing on Tuesday found the fly-half guilty.

He was banned for four games, backdated to last week, so will miss

England’s final warm-up match and the Pool D fixtures against Argentina and Japan.

England could yet lose Billy Vunipola too. The No8 was due to attend a disciplinary hearing yesterday evening after being sent off in similar circumstances in last weekend’s defeat by Ireland.

It continues to a troubled buildup to the World Cup, which starts in France next month, for England and their head coach Steve Borthwick.

They have lost five of eight matches since Borthwick took charge at the start of the year and have just one more fixture, against Fiji on Saturday, before the tournament.

England are due to begin their

FOOTBALL

campaign on 9 September in Marseille against Argentina, their main rivals in a pool that also includes Japan, Samoa and Chile. Scrum-half Danny Care, meanwhile, insists the players are honing their tackling technique in order to avoid any further dismissals.

“We are not going out there to try and be ill-disciplined but we have to learn from it,” veteran No9 Care told BBC Sport.

“We are working on our tackle technique every day. We get referees in every day, who are trying to help us out.

“In big games, you need 15 players on the pitch. There will be some [red cards] in the World Cup and we are just hoping they are not ours.”

Pressure mounts on Spanish chief to step down over kiss

FRANK DALLERES

EMBATTLEDSpanish football chief

Luis Rubiales is facing renewed pressure to resign as the fallout from kissing Women’s World Cup winner Jenni Hermoso on the lips continues.

Rubiales’ apology on Monday has failed to dampen the furore over his public lunge at Hermoso as she collected her medal following their 1-0 win over England on Sunday in Sydney.

Spain’s prime minister Pedro Sanchez said the “apologies were not enough”, while acting second deputy prime minister Yolanda Diaz called for the 45-year-old to step down over what she called “harassment and assault”.

The Spanish football federation (RFEF), meanwhile, has been accused of fabricating quotes attributed to Hermoso in which she purportedly played down the incident. Rubiales repeatedly and unsuccessfully pressured Hermoso and her family to get her to appear in his video apology, according to a report in outlet Relevo.

The 33-year-old’s only verifiable comment on the incident came in dressing room footage streamed on social media after the final, in which she said she “did not enjoy” the embrace.

“What we saw was an unacceptable gesture,” said Spanish premier Sanchez. “Rubiales’ apologies are not enough, they are not adequate.”

FOOTBALL

Monahan has been criticised for the tour’s U-turn over Saudi cash

Kane’s Skechers tie-up no average boot deal

OWN IT, own who you are and own what you want to achieve.” That was the main message that Harry Kane wanted fans to take when announcing his lifetime partnership with Skechers, as the footwear company joined the likes of Castore as disruptors in a sportswear sector long dominated by Adidas, Nike and Puma. The record-breaking striker may not just be talking the talk but also walking the walk, as these types of deals –perhaps the most famous of all being Michael Jordan’s relationship with Nike – often go beyond simply an exchange of cash for commercial rights and can include royalties, signature lines, part ownership, an advisory role and share options.

Leveraging the commercial pull of Bayern Munich’s new No9 for the launch of the American multinational’s debut SKX_01 boot – fresh from smashing the German club’s

FORMULA 1

Watch these three storylines when F1 returns from its break this week, says Matt Hardy

BEFORE you have had the time to dust the house and buy new uniforms, the school holidays have almost come to an end. The Formula 1 break has come to a conclusion, too, with the circus back up and running this weekend in the Netherlands.

Home hero Max Verstappen is well on his way to a third consecutive world title and his constructor Red Bull aren’t far off wrapping up the team title too. So what else is there within the paddock to look out for?

1M INTO SEVEN

Everybody wants to be a racing driver in Formula 1 but the reality is that there are just seven seats left for next season – and even a number of those may be out of reach.

Valtteri Bottas is awaiting an Alfa Romeo team-mate next year, with Zhou Guanyu currently not confirmed for 2024.

AlphaTauri, which is set to rebrand next season, has not announced a single driver yet but could keep on Daniel Ricciardo, having poached the Australian former Red Bull, Renault and McLaren man midway through this campaign.

Aston Martin owner Lawrence Stroll is yet to confirm whether his team will retain his son Lance, while Haas are still to announce who will be driving alongside Kevin Magnussen. Williams, too, are in the market for a new driver.

But the big one comes at the Silver Arrows. Lewis Hamilton’s current contract at Mercedes runs out at the end of the year. The seven-time world champion is close to a new deal but until it is signed his future is anybody’s guess.

For some of the drivers, the remaining 10 races of 2023 could be the difference between job security and the job centre.

RED BULL RECORDS

Though the continued success of a single driver or team can get tiresome, it will be truly fascinating to

merchandise income record for shirts sold – will not have been cheap, although money alone is unlikely to have persuaded England’s record goalscorer to agree to a contract with such longevity.

Andy Murray’s involvement with the then three-year-old start-up Castore in 2019 is perhaps a contemporary example, as the tennis star put pen to paper not just as the brand’s leading ambassador but also a shareholder and board advisor with his own product line. Fast forward to today and Castore is now valued at more than £750m – proving that it was a calculated risk worth taking for Murray.

To put it simply: the blueprint of a traditional brand ambassador deal is very rarely enough for someone to sign

on for life and, as Kane stated in his post launching the deal, “there is loads more to come in this partnership”.

Skechers’ foray into football is timely given that the US will co-host the men’s World Cup in 2026, while the brand is no stranger to the nuances of sport and already boasts a presence in golf, baseball and even emerging properties such as pickleball.

Last month the company announced second-quarter sales of $2.01bn (£1.65bn) –a year-over-year increase of 7.7 per cent. With such numbers, you would not be wrong to think that the multinational could look to build on this momentum and secure additional stars as ambassadors.

New Balance, for example, put its money where its mouth was when it

made a push into football during the last decade, signing up leading players like Aaron Ramsey and Vincent Kompany as brand ambassadors as well as clinching a kit deal with Liverpool. There were lessons learnt though, as New Balance first acted under the name of its subsidiary business, Warrior Sports, before rebranding based on

the global reach of its parent brand in 2015.

Skechers is leading from the front with a strong entrance, but that in itself provides a challenge. There will not be an immediate transition from the company’s perception as a day-to-day footwear brand to a leading sportswear provider for football fans. Challenger brands have found it tough in the past to truly assert themselves as a market leader in a sector as saturated as football, so it will be interesting to see how things develop for Kane and Skechers from both a business and sponsorship perspective.

DRIVING INTEREST

F1 STANDINGS

DRIVERS

Max Verstappen, Red Bull314

Sergio Perez, Red Bull189

Fernando Alonso, Renault149

Lewis Hamilton, Mercedes148

Charles Leclerc, Ferrari99

George Russell, Mercedes99

see whether Verstappen and Red Bull can continue to set records.

Red Bull toppled McLaren’s benchmark of 12 successive race wins earlier in the season and can still complete a clean sweep, which would see them win 22 races in all.

It would be a feat of incredible dominance and engineering. Although it may be unwanted by some fans, it would be a sight to behold.

As for Verstappen, he has won all but two races on the calendar thus far and will be doubly determined to continue that streak at his home race on Sunday in Zandvoort.

The Flying Dutchman has become a serial winner, much like the domi-

nance shown by Hamilton and Sebastian Vettel in the past, and he will be targeting individual records as much as team success.

JEOPARDY, ANYONE?

In complete contrast to the above, Formula 1 simply needs some alternative winners.

Sure, there’s some competition further down the Team Standings, where one point can be the difference between a seven- or eight-figure pay-out at the end of the season, but at the top is where it counts.

And with the dominance of Verstappen and Red Bull, the sport is in danger of becoming a parade of

predictability. Imagine a series of Drive to Survive where everything is curated around off-track moments because the on-track side is boring. It doesn’t sound great.

The sport needs variety, or at least for Verstappen to be rammed – safely – off the track at his home grand prix by team-mate Sergio Perez.

Utter dominance should be praised, but not at the expense of a weaker product overall.

Other teams have had time to develop their cars over the summer break and close the gap. Fans may well be hoping that it has been closed by more than Red Bull have been capable of extending it.

Ben Peppi is head of sports services at JMW Solicitors.

England striker’s lifetime contract with a brand entering the football market is a sign of the times, writes Ben Peppi

Kane is Bayern Munich’s new No9