Tuesday 29 August 2023

BUSINESS WITH PERSONALITY

JUST DO IT HOW NIKE FELL OFF ITS VIRTUOUS HIGH HORSE IN EARPS SHIRT DEBACLE P14

AXE SHARE STAMP DUTY, NO 11 TOLD

CALLS FOLLOW CHINA’S MOVE TO SLASH TAX TRADING TAX

CITY A.M. REPORTERS

CALLS ARE increasing for the UK’s £4bn-a-year share trading tax to be reduced or scrapped in an effort to reinvigorate our capital markets.

When buying shares, Brits are charged a stamp duty of 0.5 per cent on the purchase price.

Over the weekend Chinese authorities slashed their own stamp duty on shares to give battered equity markets a shot in the arm.

Some are now calling for a similar move here.

James Ashton (pictured), the chief executive of the Quoted Companies Alliance, said scrapping the share trading tax would be a “bold” move to give London’s stock markets some much needed life.

A combination of take-private deals and a low price to earning ratio across the capital’s equity markets have seen many in the City fear for the reputation of London as a listing destination.

Ashton described the tax

LANCIA HYENA ONLY 24 EXIST, WE TAKE ONE FOR A RIDE P17

as “a dampener that doesn’t even exist on Wall Street”.

The Treasury roped in £3.7bn from the tax in 2022-23, after a £4.4bn windfall the year before.

Think tank wonks believe scrapping the tax could lead to greater interest in share trading from retail investors, boosting the long-held aim of greater participation in equity markets from ordinary Brits.

“Imposing stamp duty on the buying of shares puts off investors, leaves Britain at a competitive disadvantage compared to our international rivals and makes us all poorer in the long run. Like any transaction tax –for example, the stamp duty imposed on house-buying –it results in less of the activity being taxed,” said Nick King, a research fellow at the Centre for Policy Studies and author of a recent report into boosting shareholder capitalism.

“That not only means less liquidity in the

market, but that all our pension funds and savings end up being smaller, through a thousand tiny cuts of the knife.”

Richard Wilson, the chief executive of retail investment platform Interactive Investor, has also called for the tax to be axed to encourage pension funds into equity markets rather than bonds. “Pension companies are increasingly cost conscious, and stamp duty is another unnecessary barrier to investing in UK shares,” he said.

The comments point to a plunge in pension funds’ holding of UK equities in the past two decades and a mass migration to fixed income assets. The move has in part been triggered by tax tweaks rolled out in the early 2000s. A government spokesperson said: “A recent consultation sought views on proposals to modernise the Stamp Taxes on Shares framework. We are analysing feedback and a summary of responses will be published in due course.”

£ CHINA’S PROPERTY CHAOS: PAGE 6

GREEN LIGHT FOR ULEZ Khan’s new emissions policy in play today

SADIQ KHAN’s controversial Ultra Low Emission Zone (ULEZ) will today be expanded to all London boroughs, after months of pushback and protests.

From this morning, drivers across all of London will face a £12.50 charge if their vehicles fail to meet emissions standards.

Khan said it was a “landmark day for our city, which will lead to a greener, healthier London for everyone”.

clean air zones like ULEZ that are the game-changer in a city like London when it comes to cutting toxic air quickly and meaningfully to protect people’s health.”

But the policy has faced fierce opposition, with critics arguing it will hit the poor hardest, who cannot afford to buy newer, greener vehicles. Khan has, however, announced a £160m scrappage scheme to help Londoners with the cost of replacing their non-compliant vehicles.

British public slam Bank and Bailey’s management of inflationary cycle

CHRIS DORRELL

FEWER than one in five of the British public think the Bank of England is doing a good job –but a majority still think politicians should steer clear of encroaching on the Old Lady of Threadneedle Street’s independence.

Only 18 per cent of people think the Bank is performing well during an inflation spike and an economic slowdown, according to polling data from Public First.

The Bank has come under pressure for its mischaracterisation of inflation as transitory.

As a result, the central bank was

slow to hike rates, and inflation skyrocketed to a multi-decade high of 11.1 per cent in October last year following Russia’s invasion of Ukraine.

While many economies have faced similar problems, inflation in the UK has remained higher than in

many western economies and the Bank has repeatedly overestimated the extent to which it will fall.

The headline rate of US inflation has come down sharply to 3.3 per cent while in the EU it stands at

5.3 per cent. In the UK however, it stands at 6.8 per cent.

One recent report, compiled by the National Institute of Economics and Social Research, suggested inflation would remain above the Bank’s target of two per cent until 2025.

£ CONTINUED ON PAGE 2

The UK’s stamp duty on shares is a form of fiscal self-harm

THE MALAISE of our stock markets has been discussed at length over the past year. Reasons offered vary: Britain’s investors lacking a risk appetite, pension funds not putting sufficient capital into equities, a lack of research thanks to Brussels-era unbundling rules, even our liberal approach to short sellers have all been given as perfectly sane reasons for a sea of undervalued companies and poor price to earning ratios.

STANDING UP FOR THE CITY THE CITY VIEW

Perhaps we can add one more to the list: the stamp duty on shares, as the CPS’s Nick King suggests. This acts like any other stamp duty: it creates less of the thing that you’re taxing, in this case share trading. Pension funds find it more expensive to deal in

equities; retail investors find their activity comes with additional cost; and everybody ends up poorer via the thousand cuts metaphor. Yet doing something about it sits entirely within the Treasury’s gift. This isn’t a cultural shift, as we may need from investors to become more risk-on. It’s not a technical reworking of unbundling rules, as we need to do to reinvigorate the research ecosystem in the City. It’s a tax –raising around £4bn a year and

helping to plug the holes in our public finances. Moving to cut or abolish the share tax would needless to say irritate some of the country’s more excitable commentators and no doubt be derided as a costly giveaway to greedy bankers. Now, quite apart from the fact that what is good for the goose in this instance remains good for the gander –after all, every green day on the stock market helps the nation’s pensions look a little

IN FULL FEATHER Notting Hill dresses up for annual celebration of Caribbean culture

healthier –it could also encourage participation in equity markets. Shareholder capitalism is a worthy goal; the more people who feel they have a direct interest in the performance of Britain’s biggest companies, and those who choose to list here, the better. More scrutiny drives better outcomes, as a rule, and it has the added benefit of creating a larger group of people who would object to policies soaking Britain’s businesses or wealth creators.

WHAT THE OTHER PAPERS SAY THIS MORNING

THE FINANCIAL TIMES

STANDARD CHARTERED EXITS AVIATION LEASING AND FINANCING SECTOR

Standard Chartered has sold $4.5bn in assets linked to aircraft leasing and financing, announcing two deals with Riyadh-based Avilease and with a company backed by Apollo.

BLOOMBERG AMAZON’S JASSY AMPS UP RETURN-TO-OFFICE RHETORIC, INSIDER SAYS

Chief exec Andy Jassy told employees who refuse to comply with his return-tooffice mandate that “it’s probably not going to work out for you,” according to a recording of a company meeting.

THE GUARDIAN HUNDREDS MORE RAPID CHARGING POINTS INSTALLED IN UK

Charging companies are plugging the gaps in the UK’s high-speed charger network, with hundreds added this year outside London in a shift that hopes to help end “range anxiety”.

UK’s poor maths

and shame,’ reckons Lord Mayor

understanding should ‘shock

THE CITY’s Lord Mayor has said it should “shock and shame” the UK that half of the country’s adult population have the numeracy level expected of a primary school child.

Writing in today’s Nicholas Lyons warns that a failure to radically upskill the country’s numeracy abilities will leave a generation unable

to manage their finances and see the UK miss out on the “jobs of tomorrow”. Lyons’s warning comes after Prime Minister Rishi Sunak warned of an ‘anti-maths mindset’ in the UK. Sunak has launched a plan to make maths a compulsory subject up to 18.

“We’ve got to change this antimaths mindset. We’ve got to start prizing numeracy for what it is – a key skill every bit as essential as reading,” he said at the time.

‘Savaged’ Bank hopes Ben Bernanke can restore credit

The Lord Mayor said maths education had been a key pillar of his flagship policy drive.

“As the premier financial hub, the City has a moral obligation to do what it can to promote numeracy and financial literacy,” he writes today.

Many global measures of the UK’s maths ability have been disrupted by the Covid-19 pandemic.

A UCL analysis of the latest global PISA rankings suggested England would sit only just above average if low-achieving pupils were included.

£ OPINION: PAGE 14-15

CONTINUED FROM PAGE 1

Reflecting its failure to predict the persistence of price rises, the Bank of England has brought in ex-Fed chair Ben Bernanke to lead a review of its forecasting models.

Despite its difficulties in getting a handle on inflation, 56 per cent of respondents said the Bank should maintain its independence to set interest rates. Just 23 per cent said control over interest rates should return to the government, as it had been pre-1997.

James Frayne, founding partner of

research agency Public First, said:

“The Bank of England has been savaged by politicians and commentators for months and its reputation has clearly been damaged.”

But Frayne said the figures indicated the people still trust the Bank more than Westminster politicians.

A Bank of England spokesperson said: “We know that people are unhappy about the level of inflation. That’s why we are entirely focused on bringing it back down to the two per cent target.”

JAMES SILVER

The City of London Lord mayor Nicholas Lyons

Food inflation cools but grain shortage looms

LAURA MCGUIRE

FOOD INFLATION cooled once again in August, new figures out today show, in a sign that cost of living pressures in the UK are gradually starting to ease.

Food inflation fell to 11.6 per cent in August, down from 14.3 per cent in July, according to fresh figures from the British Retail Consortium (BRC).

However, Helen Dickinson, chief executive of the BRC, said that while the dip in inflation is good news, the battle over rising food costs is far from over.

“Russia’s withdrawal from the Black Sea Grain Initiative and its targeting of Ukrainian grain facilities, as well as poor harvests across Europe and beyond, could serve as potential roadblocks to lower inflation,” she warned.

In July, Russia exited a UN-led deal enabling the safe export of grain from Ukraine through the Black Sea.

Both Russia and Ukraine are among

the world’s top grain exporters, and Russia’s ongoing invasion of Ukraine has played a key role in rising food prices for UK consumers.

Dickinson also said that shop price inflation – which dropped to 6.9 per cent in August, down from 8.4 per cent  in July – would have been lower had the government not increased alcohol duties earlier this month.

Alcohol started being taxed by strength from 1 August, with duty hikes pushing up the price of some 90 per cent of wines sold in the UK.

Usually, duty paid on alcohol is revalued each year in line with inflation, but it has been either cut or frozen in every budget over the past decade.

Earlier this month is was confirmed that the UK’s annual inflation rate fell sharply to 6.8 per cent in July, from 7.9 per cent in June, which was largely driven by a fall in energy prices. Core inflation remained at 6.9 per cent.

Second last-minute bid for Wilko emerges

GEORGE LITHGOW AND STAFF

A SECOND last-minute bid has been launched to save stricken retailer Wilko, according to reports. Wilko tumbled into administration two weeks ago, putting the future of its 400 shops in doubt. Administrators from PwC have sought offers from interested firms in an effort to save jobs and stores.

A second last-minute bid worth £90m has been made by restructuring specialist M2 Capita, the Guardian reported, which could keep the entire Wilko chain trading. It comes after Canadian businessman Doug Putman, who bought music retailer HMV in 2019, was believed to be making an offer –which the BBC reported is unlikely to meet legal requirements.

PwC said talk of Putman’s bid was “speculation”. A spokesperson for the administrators said it would be inappropriate to comment on bidders or interested parties “at this stage”. Last night, the Guardian reported the GMB union had called for a meeting with business secretary Kemi Badenoch to ensure PwC prioritised finding a deal that protected the 12,500 jobs currently at risk.

PA

The race to save the ailing retailer is hotting up after the deadline for bids passed on Friday

Hundreds of flights cancelled after UK air traffic fault grounds planes

GWEN WRIGHT AND JORDAN REYNOLDS

HUNDREDS of flights to and from the UK are estimated to have been cancelled this bank holiday, leaving passengers stranded, after an air traffic control failure.

By Monday afternoon 232 flights departing UK airports had been cancelled and 271 arriving flights,

according to aviation analytics firm Cirium. This equated to about eight per cent of all expected departures and nine per cent of expected arrivals, Cirium added.

The technical fault meant flight plans had to be input manually by controllers.

National Air Traffic Services, the country’s leading provider of air traffic control, said at 3.15pm that it

had “identified and remedied” the issue affecting its systems and was working with airlines and airports to support affected flights.

Major UK airlines such as Tui and BA warned of “significant delays” for passengers amid changes to schedules. And Heathrow Airport said flights would remain disrupted for the rest of the day, despite the technical issue being resolved.

Travel recovery in focus as Gatwick readies to report

GUY TAYLOR

THE AVIATION sector will be watching Gatwick Airport’s half year results with interest this Wednesday, to see how close the UK’s second biggest hub can get to its pre-pandemic heyday.

The West Sussex airport has performed strongly this year and looks to be outshining its loss-making rival Heathrow, which continues to blame a cap on the amount it can charge airlines – rather than a pretty hefty debt pile – for an extended period in the red.

In its annual results in March, Gatwick swung into the green for the first time since Covid-19 struck, reporting profits of £196.5m for the 12 months prior, up from a loss of more than £830m between 2020 and 2021.

In fact, 32m passengers passed through last year, bringing revenues to £776.6m, in what were early signs that the airport would reap the benefits of so-called “pentup demand” after the lockdown period. And that pent-up demand has shown no signs of easing, with numerous carriers –including its biggest resident airline Easyjet – either announcing or forecasting

record profits for the year amid one of the busiest summers of travel in memory.

It has also coincided with a bullish period of activity in the airport sector and at Gatwick, which in July joined the long list of UK hubs currently fighting to expand capacity when it submitted plans for a £2.2bn plot for a second runway.

But there are still reasons to temper expectations of a post-Covid recovery.

The airport itself has struck a cautionary tone throughout the year, and its previous 2023 passenger forecast of 40.5m still keeps it at around 87 per cent of prepandemic levels.

It has also said it does not expect passenger numbers to normalise until 2025.

Future passenger figures will also no doubt be affected by consistent flight disruption, which has been as much a staple of this summer as the aviation sector’s profit bonanza.

Paul Charles, CEO of travel consultancy the PC Agency, said the airport was recovering very well but had “much work to do on improving relations with ground handlers and their employees”, suggesting that rival Heathrow had better industrial relations.

FINTECH FUNDS Metro Bank looks to boost next generation of startups with accelerator

THE FOUNDER and former chair of Metro Bank and Atom Bank has launched a business designed to support the next generation of fintech startups. Anthony Thomson’s latest venture, known as Archie, aims to identify and back high-potential, earlystage technology firms.

It will initially focus on partnering with fintechs in Thomson’s home country of Australia, as well as startups in the UK and the Middle East.

Fortescue Metals chief steps down after profits hit three-month low

NICHOLAS EARL

THE BOSS of Fortescue Metals has resigned just six months after taking the job, with the world’s fourth largest iron ore miner posting a steep decline in profits yesterday.

Chief exec Fiona Hick stepped down with immediate effect from her role at the commodities giant.

The majority of Fortescue’s senior team has left or shifted positions since 2021, with at least 10 major changes

taking place in less than three years.

“The departure of Fiona has been both friendly and mutual, and we warmly wish her the best for her future,” Fortescue said in a statement.

Hill’s resignation follows her arrival in February, when the miner poached her from Woodside Energy in February to run the group’s core operations. However, retreating iron ore prices have contributed to a 23 per cent decline in profits – their lowest levels since the pandemic.

Circle Health snapped up by rival for £953m

JAYNA RANA

UK INDEPENDENT hospital operator

Circle Health Group has been snapped up by Middle East rival Purehealth, in a deal worth around $1.2bn (£953m).

Purehealth, the largest healthcare platform in the Middle East, already boasts many healthcare companies including in the US, as part of its global expansion programme, but this acquisition marks its first entry into the UK.

As part of the deal, the company will gain Circle Health’s entire portfolio including specialities such as orthopaedics, oncology, cardiothoracic surgery, ophthalmology, neurosurgery and general surgery.

This also includes the new state-of-theart hospitals the group has been building, including the UK’s first purpose-built rehabilitation hospital in Birmingham.

Circle Health, which was founded in

2004, currently employs over 8,000 workers and has partnerships with 6,500 consultants in more than 50 hospitals in the UK

Purehealth chief executive Farhan Malik said: “This acquisition marks an important milestone in our journey towards creating a global healthcare network which revolutionises patient care.

Our mission is to drive scientific innovation to unlock longevity and greater quality of life for humankind.

“Through integrating the expertise of both organisations, we will positively impact the lives of patients globally.

Purehealth, as the region’s largest healthcare group, is well-positioned to make significant contributions to the improvement of healthcare systems... in the UAE and beyond.”

The deal comes after Purehealth recently completed a $500m purchase of an equity investment in US private healthcare firm Ardent Health Services.

UK biotech firm Abcam snapped up by US medical giant for £4.5bn

BRITISH biotech firm Abcam has been bought by US medical tech giant Danaher for $5.7bn (£4.5bn) .

Danaher will acquire Abcam for $24.00 per share, which it said was some 40 per cent above where stocks were trading at in the middle of May. Abcam, which produces protein

Barclay family look to regain The Telegraph

JAYNA RANA

THE BARCLAY family have reportedly made a fresh bid to regain control of the Telegraph newspaper group thanks to financial backing from Middle Eastern investors.

The business, which comprises the Daily Telegraph, Sunday Telegraph, Telegraph.co.uk and the Spectator magazine, fell into receivership in June and the family lost ownership after 19 years at the helm.

But a proposal has been made to buy back around £1bn of debt it owes to Lloyds Banking Group, according to Sky News.

research tools, is expected to function as a standalone operating company and brand once the deal is completed, sitting within Danaher’s Life Sciences segment.

Abcam said the deal has been “unanimously approved and recommended” by its board, but the offer still remains subject to shareholder approval.

The unnamed backers are reportedly based in Abu Dhabi, and the offer is believed to be in the region of £500m to £600m – a significant discount to the full value of the loans.

A formal sale process is due next month with other potential bidders including Lord Rothermere, owner of the Daily Mail, and National World, a local newspaper group run by David Montgomery.

Lloyds’s chief executive, Charlie Nunn, has said there is “no need to have a rushed sales process”.

Cambridge-headquartered biotech Abcam delisted from London’s AIM in December

China Evergrande sees $2bn wipeout

CLARE JIM

CHINA EVERGRANDE Group lost $2.2bn, or 79 per cent of its market value, yesterday after its shares resumed trading in a crucial step for the world’s most indebted property firm to restructure its offshore debt.

Evergrande is at the centre of a crisis in China’s property sector that has seen a string of debt defaults since late 2021, and its stock has been suspended for 17 months.

The developer, which is in the process of getting approvals from creditors and the courts to implement the debt restructuring plan, yesterday said it would postpone by a month meetings for these creditors to vote on the proposal to give more time “to maximise creditor engagement and support informeddecision making”.

The scheme meetings, meant to take place yesterday, will now take place on 26 September, but three people with direct knowledge of the matter said many creditors had already registered their vote by a deadline last Wednesday to submit forms.

Evergrande needs approval from more than 75 per cent of the holders of each debt class to approve the plan, which offers creditors with a basket of options to swap debt for new bonds and equitylinked instruments backed by its stocks

and those of its Hong Kong-listed units. Its Hong Kong-listed shares closed down 79 per cent to HK$0.35 yesterday. Market capitalisation shrank to HK$4.6bn ($586.29m) from HK$21.8bn from when it last traded.

Evergrande’s valuation hit an all-time high of close to HK$420bn in 2017.

The stock has been suspended since 21 March 2022, and resumed trading after the company said it had fulfilled all conditions by the Hong Kong Stock Exchange.

Its units, China Evergrande New Energy Vehicle Group and Evergrande Property Services Group, have both resumed trading in the past month after a 16 month halt.

Evergrande would have faced delisting if the suspension had reached 18 months.

“Going forward things will continue to be difficult for both its operations and share performance,” said Steven Leung, Hong Kong-based director of UOB Kay Hian.

“There’s little hope that Evergrande can rely on selling houses to repay debt because homebuyers would prefer stateowned developers, and it won’t be able to benefit from stimulus policies.”

The deepening of debt crisis in the property sector has weighed on the economy, forcing the state to relax residential housing loan rules and support affordable housing.

Reuters

Sunak’s China strategy set for first real test as Cleverly prepares for Beijing trip

JESSICA FRANK-KEYES

RISHI SUNAK’s China strategy is set for its first real test as foreign secretary James Cleverly prepares to head to Beijing in the coming days. Cleverly is widely expected to fly to the Chinese capital this week, marking the first visit to China by a UK foreign secretary in five years.

Sam Hogg, founder of the ‘Beijing to

Foxconn’s Guo goes for second bite of the apple

BEN BLANCHARD AND YIMOU LEE

TERRY GOU, the billionaire founder of major Apple supplier Foxconn, yesterday announced a bid to be Taiwan’s president in January elections, saying he wanted to unite the opposition and ensure the island did not become “the next Ukraine”. Gou is the fourth person to throw his hat in the ring, but his poll numbers before his announcement put him well behind the frontrunner, the ruling Democratic Progressive Party’s (DPP) William Lai, who is currently vice president.

Gou, 72, stepped down as Foxconn chief in 2019 and made his first presidential bid that year, but dropped out after he failed to win the nomination for Taiwan’s main opposition party, the Kuomintang KMT. The KMT traditionally favours close ties with China, whose government claims Taiwan as its own territory.

Speaking at a Taipei conference centre, Guo said the DPP has “led Taiwan towards the danger of war” and their domestic policies “are filled with mistakes”.

“Give me four years and I promise that I will bring 50 years of peace to the Taiwan Strait,” he said.

Britain’ briefing, told City A.M. that Cleverly’s trip to China “will be the first time Rishi Sunak’s China strategy – engage, align, protect –meets reality”.

“Many in Westminster and beyond will be watching closely to see how forcefully he raises significant security and human rights issues the Chinese government presents,” he added.

On Saturday, President Xi Jinping gave a speech in Urumqi, Xinjiang’s capital city, calling for the country’s hardline approach to continue in the region, where the government has been accused of human rights abuses. He reportedly stated the need for the further “Sinocizing” of Islam and called for more positive propaganda to show an open, confident Xinjiang to rebut critical foreign press reports. Cleverly’s

trip will mark the first visit to China by a UK foreign secretary in five years

Octopus edges closer on Shell retail wing deal

NICHOLAS EARL

OCTOPUS Energy is closing in on a deal to snap up Shell’s household energy business – which could be finalised as soon as this autumn.

The takeover would make the supplier the second largest energy firm with over 6m customers.

It would also confirm the Big Six’s stranglehold on the energy market, taking its share of the country’s customer base to well over 90 per cent.

Octopus emerged as the leading candidate to snap up Shell Energy Retail nearly three months after the division was put up for sale, Sky News reported.

Any potential acquisition would follow less than a year after it bought Bulb Energy – with its 1.6m customer base –which powered the supplier from fifth to third in the retailer rankings.

Taking on Shell’s 1.5m household customers also edges Octopus closer to

Centrica-owned British Gas, the UK’s largest energy firm, which supplies 10m homes and businesses.

Shell calculates selling the unit would remove about $300m (£238m) in its annual operating expenses.

Lazard is handling Shell’s auction.

Sky understands other parties remain in the mix to buy the business from Shell, and a superior offer could still emerge, but Shell expects to sign a sale agreement during the autumn.

Ovo Energy and British Gas have previously been linked with the deal.

While Octopus is expected to offload Shell’s 500,000 broadband customers, which are also being sold as part of the arrangement, it is unclear whether the company would retain the 125,000 customers across Shell’s retail businesses in Germany and the Netherlands.

Octopus, Shell, Lazard and Ovo declined to comment. Centrica did not respond by the time of publication.

LEFT COAST Nordstrom shutters iconic San Francisco store

A COMBINATION of falling sales and rising violent crime in downtown San Francisco saw Nordstrom close its iconic Market Street store over the weekend, the latest blow to the City by the Bay. A host of retailers and hoteliers have closed their downtown outlets in recent months, with the city struggling to rebound from Covid-19 and hit hard by a rise in the number of homeless people.

New man from the Pru expected to lay out Asia-focused growth plan

HENRY SAKER-CLARK

PRUDENTIAL is set to unveil its latest trading performance tomorrow as shareholders hope for a revival under its new boss.

The insurance giant has seen its shares drift slightly lower this year as it has been impacted by China’s faltering economy.

Shareholders will be looking for

Prudential to shed light on trading progress amid a backdrop of a weakerthan-expected recovery in the Chinese economy in its half-year update.

Around 50 per cent of the group’s projected new business comes from the region and it will, therefore, be key to the company’s trading outlook.

Matt Britzman, equity analyst at Hargreaves Lansdown, said the insurer’s Asian business “should

benefit from long-term economic development in its markets”, with state-sponsored social security having had limited take-up in China. The update comes after new CEO Anil Wadhwani formally took over at the helm of the firm in February.

Deutsche Bank’s Rhea Shah said Wadhwani is expected to lay out a new strategy and was optimistic investors would see positive signs.

CBI: New rules warn booze can lead to ‘accidents’

JAYNA RANA

THE CBI has implemented a new ‘code of conduct’ for its events in a bid to turn the page on a string of sexual harassment scandals that almost brought Britain’s biggest business body to its knees earlier this year.

Tony Danker, the body’s former director general, was dismissed in April after a short internal investigation into claims of harassment, which he denies. That opened the door to a host of other allegations including two allegations of rape.

Alcohol was believed to have been consumed in a number of the incidents which were complained about. Danker was replaced by Rain Newton-Smith, the body’s former chief economist, who vowed to reform the organisation.

The code of conduct, first reported by the Daily Mail, lists four principles including “we treat all people with dignity and respect” and “we create a safe and secure working environment” as well as advice regarding conduct and the consumption

of alcohol and misuse of drugs.

“Being under the influence of alcohol or drugs can seriously impair an individual’s judgement and reactions leading to an increased risk of accidents and injuries occurring. Alcohol and drug abuse misuse can also have a detrimental effect on work performance and behaviour,” the statement reads.

“Consumption of alcohol must be conducted responsibly, and only when permitted as part of an in-person event,” the

code of conduct reads.

The new regulations also includes details on how to report a complaint if any of its principles have been breached by staff as well as a warning to non-CBI members that their organisation may be informed if they have behaved inappropriately at one of the group’s events.

Danker has previously said that the CBI threw him “under the bus” by sacking him without having conducted a full investigation.

Labour’s business events hottest tickets in town at party conference

SOPHIE WINGATE

LABOUR has attracted a surge of interest from business at its annual conference in October, as shadow chancellor Rachel Reeves ruled out any version of a wealth tax under a Labour government.

The opposition, still riding high in the polls, said its latest figures show the number of attendees at its business forum has risen by 50 per cent in a year.

It is described as the “flagship

engagement event for business” at the four-day gathering in Liverpool.

The website for the event states there are no more tickets available, and Labour said on top of the 200 people already signed up, a further 150 are on the waiting list.

Labour said the increased corporate presence demonstrates it is now the “party of economic growth”.

Sir Keir Starmer is expected to use this year’s conference to set out how his government would revive the economy.

Labour leader Sir Keir Starmer has been on a charm offensive to win over big business

CBI boss Rain NewtonSmith has vowed to clean up the business trade body

Aston Martin fastest riser on FTSE 250

GUY TAYLOR

ASTON MARTIN is revving up a gear this year after a slew of major announcements, with shares more than doubling in value to make it the best performer on the FTSE 250 in the last 12 months.

The luxury car marque led London’s mid-cap index at the end of last week, rising more than five per cent after traditionally sceptical analysts backed

its remarkable turnaround.

Phillipe Houchois from Jefferies, who has covered the company as an analyst since its stock market debut in 2018, finally lifted his rating to buy from hold on Friday.

Houchois said in a note that it now “feels like a new start” for the carmaker “with net debt stabilised, renewed focus on front-engine cars” and a higher average price for its vehicles.

The company is beginning to “close

the gap to peers,” he explained, particularly amid a focus on its strongest “profit contributor” frontengine vehicles that see less competition from the likes of Porsche and Ferrari.

Aston Martin’s most recent quarterly results saw profits and revenues surge past market expectations, which the company said was primarily as a result of “unprecedented demand” for its new makes.

New strike rules on the table

ALAN JONES

THE GOVERNMENT has launched a six-week consultation on “reasonable steps” unions should take to ensure minimum service levels are provided during strike action.

The move follows the recent passing of a new law on how unions have to make sure of a certain level of services during walkouts in sectors hit by the wave of strikes in the past year, including the railways. Unions have vowed to campaign against the law and Labour has pledged to repeal it if it wins the next general election.

Customised models continue to be a huge money-spinner.

It marks a significant shift from last summer, when Aston Martin posted losses of £285m –a 215 per cent yearon-year drop as supply chain problems hit deliveries, primarily of its renowned DBX model.

Prior years have also seen the company struggle under a significant debt pile, which has hit the firm’s bottom line and hamstrung growth.

The government said it wants to produce a statutory “Code of Practice” – providing “clear guidance” that will ensure trade union members comply with work notices given by employers prior to strike action, as required under the new law.

The government said it believes that the ability to strike is an important part of industrial relations in the UK, rightly protected by law, and understands that an element of disruption is inherent to any strike.

But it added that the public expects ministers to act when essential services are put at risk.

Ukraine makes ground in south as hopes rise

TOM BALMFORTH

UKRAINE yesterday said its troops had liberated the southeastern settlement of Robotyne and were trying to push further south in their counteroffensive against Russian forces.

The Ukrainian military said that its forces had raised the national flag in the strategic settlement, but were still carrying out mopping-up operations.

Ukrainian forces believe they have broken through the most difficult line of defences in the south and that they will now start advancing more quickly, a commander who led troops into Robotyne told Reuters last week.

“Robotyne has been liberated,” deputy defence minister Hanna Maliar was quoted as saying by the military. The settlement is six miles south of the frontline town of Orikhiv in the Zaporizhzhia region on an important road towards Tokmak, a Russian-occu-

pied road and rail hub.

Tokmak’s capture would be a milestone as Ukrainian troops press southwards towards the Sea of Azov in a military drive that is intended to split Russian forces following Moscow’s fullscale invasion in February 2022.

Maliar told Ukrainian television that Kyiv’s troops, who began their counteroffensive in early June, were now moving southeast of Robotyne and south of nearby Mala Tokmachka.

Ukraine’s success in retaking Robotyne, which Russia has not confirmed, follows media reports of a meeting this month of senior NATO military chiefs and Ukraine’s top general on resetting Ukraine’s military strategy.

Ukrainian forces are also fighting Russian troops in eastern Ukraine, and progress has been slower than had been widely expected in the counteroffensive because they have encountered vast Russian minefields and trenches.

DAYS Kyiv protestors demand return of prisoners of war

500

FAMILIES of Ukrainian border guards –who have been held in Russian custody for nearing a year and a half –staged protests in Kyiv over the weekend calling for their return and for the rest of the world not to forget the plight of Ukrainian prisoners. Reuters

ENERGY

HEAT PUMP SLOWDOWN COULD HAMPER EXPORTS

THE UK CANNOT AFFORD TO EXIT THE SUBSIDY RACE

Band energy bill subsidies –have forced today’s occupants of Numbers 10 and 11 into penny-pinching mode.

Historic levels of generosity have been ditched. There will be no further pledges to shield households this winter from stillastronomical energy prices. That shift in tone may explain why energy secretary Grant Shapps has already indicated the UK has no interest in a green subsidy race.

He has persistently played down the prospect of domestic projects shifting stateside, lured by $369bn (£293bn) of

WOEFUL WIND AUCTION LOOMS

for everything from electric vehicle charging to full-scale nuclear power plants.

Last month, he tried to spin that the government did not need to challenge the sums being offered elsewhere because the UK was “already a decade ahead of the rest of the world” – probably referencing the country’s position as the second largest generator of offshore wind power worldwide. Unfortunately for Shapps, this will be exposed as wishful thinking in his first week back from the summer break, when the results of the latest auction for offshore wind projects are unveiled on 8 September.

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The upcoming auction round for offshore wind is expected to result in higher prices for renewable generation for the first time since the government’s allocation process was created in 2015 for new projects.

Such costs are driven by inflation and supply chain bottlenecks for key metals and minerals, with only a handful of successful approaches predicted for new developments in British waters.

It is a serious headwind for the government’s ambitions to reach net zero over the next three decades, and to decarbonise the electricity grid in just 12 years.

Both goals were meant to be powered by an energy security strategy targeting a ramp up in offshore wind from 15GW to 50GW by 2030. European energy company Vattenfall exposed this painful reality when it recently pulled out of the Norfolk Boreas offshore wind farm by the coast of East Anglia, citing an unfavourable climate. Orsted is also still wavering over whether to commit to Hornsea 3, raising concerns over the future of one of the UK’s largest mooted wind farms.

NET ZERO COMES AT A HIGH PRICE

Renewable energy is cheap – when it comes to generation costs.

This has proved exceptionally beneficial to the West amid a Kremlinbacked squeeze on fossil fuels, which saw gas prices soar to record highs.

The EU saved roughly £9bn last winter by replacing gas with renewable generation, while a study from Oxford University estimates switching from fossil fuels to low and zero carbon alternatives could present a £10.2trn global saving by 2050. However, net zero itself is ultraexpensive.

The development costs for green energy are a real hurdle for

potential projects – such as electrification and construction, creating the need for subsidies. Since the Tories took office in 2010, successive governments in Downing Street have made the same calculation most other developed economies have made.

It has estimated the costs involved in failing to mitigate climate risk and energy dependence are greater than the outlay for reaching net zero – a target signed into law four years ago.

Soaring gas prices and Vladimir Putin’s warmongering in Europe appear to have at least, initially, vindicated this position. However, fiscal discipline is also vitally important, alongside not hiking the already onerous tax burden on customers.

This means that to ensure energy security, the government should look to other areas of runaway spending that could be tapered first, everything from £4.8bn in estimated waste from cancelled Ministry of Defence contracts last year to NHS spending ballooning to £164.1bn – an unsustainably high amount.

For net zero to be an effective policy, it also needs to be an upgrade for millions of Brits rather than a painful punishment cost justified with lectures over the environment.

This means subsidies have to be targeted where they can make the most impact – with meaningful calculations over which investments could spur economic activity – such as floating offshore wind where RenewableUK forecast £26bn of potential growth from £4bn of investment.

The government has already dipped its toe into the subsidies race with £20bn support packages for nuclear reactors and carbon capture projects in recent months. However, failing to back offshore wind where the UK has the opportunity to drive down bills for millions of customers with low carbon power would be highly remiss. Without meaningful support –wind power investment will shift truly offshore.

The UK risks losing out on more than £65m worth of central heating boiler exports every year by the end of the decade if the industry does not start switching to clean heating solutions, new analysis from the Energy and Climate Intelligence Unit (ECIU) has found. This could cost a total of £1.3bn in lost exports between 2030 and 2050. Overall, total UK exports of central heating boilers have roughly halved between 2019 and 2022, from around £150m to £85m. Jess Ralston, energy analyst at the ECIU, said: “The IMF has said that the UK was worst hit by the gas crisis because we are so dependent on it and the OBR has shown that we could add 13 per cent GDP to debt if we don’t transition away.”

£ Households risk a ‘postcode lottery’ across regions of the UK if the government opts to bring in so-called locational pricing, trade bodies warn. Three of the biggest industry associations – RenewableUK, Scottish Renewables UK and Solar Energy UK – have urged the government and Ofgem against such proposals to overhaul the energy market, warning it would inevitably lead to higher electricity bills for consumers. Locational pricing, where prices are based on local supply and demand, risk taking billions out of the green economy. Instead, they backed commissioned research from Cornwall Insight calling for the contracts for difference scheme to be reformed.

SEND US YOUR THOUGHTS

What can we do to improve energy security? Email energy editor Nicholas Earl at nicholas.earl@cityam.com

City A.M.’s energy editor Nicholas Earl delves into the sector’s challenges in his weekly column

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Glimmers of hope in UK data but property set to remain subdued

KICKED off by a long bank holiday weekend, it’s expected to be a relatively quiet week for UK markets, though property data and some big name corporate updates will be noted by investors. Data on consumer credit and mortgage approvals out tomorrow will provide an indication of how markets are responding to the Bank’s aggressive rate tightening cycle. Mortgage approvals are expected to remain well below their pre-pandemic average amid skyhigh borrowing costs. Friday’s update on house prices from Nationwide is also set to show an acceleration in their decline. However, it’s not all doom and gloom, with the BRC shop price index out today revealing that food inflation cooled once again in August, which, teamed with growing consumer optimism reflected in GfK data out last week, signals

cost of living pressures may finally be starting to ease.

Despite an August lull taking hold of the corporate calendar, a host of big names are also set to update City investors this week.

Among the biggest players reporting is insurance giant Prudential, which will be looking to provide some reassurance to shareholders in its halfyear update tomorrow.

New chief Anil Wadhwani will be looking to ease nerves over a slowdown in China with a new growth strategy.

Logistics giant Bunzl is also hoping to breathe some life into its share price in its half-year results today, with the firm trading down at near 12 month lows.

Closing the week will be Revolution Beauty, whose full-year results are sure to be scrutinised after the company’s recent 10-month share suspension.

Trading platform CMC Markets revised down its expected net operating income for the year ahead in an unexpected update on Friday. Analysts at Peel Hunt said that while a number of new initiatives should deliver long-term growth, the firm “clearly continues to face significant market headwinds”. It has placed its recommendation and target share price under review.

LIGHT AT THE END OF THE TUNNEL?

On Friday, Rolex announced it was buying Bucherer, the 100-store global watch retailer. Analysts at Peel Hunt said this could be bad news for London-listed Watches of Switzerland, where Rolex watches account for about 50 per cent of its sales. The analysts believe that more Bucherer stores will start selling Rolex watches. It reduced its rating from ‘buy’ to ‘hold’ and lowered its target share price from 900p to 600p.

“High inflation, rising interest rates and the cost of living crisis have been weighing on consumer sentiment. But with the end of the rate hiking cycle in sight and with inflation starting to show signs of cooling sentiment is beginning to pick up.”

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OPINION

EDITED BY SASCHA O’SULLIVAN

Just do it: Nike fell off its virtuous high horse of inclusion during the World Cup

The decision not to offer them taken before the tournament should have been flagged within Nike—perhaps it was— and public dismay should have been recognised immediately and handled with more grace.

MARY Queen of Scots was a football fan. She wrote about the game (or its antecedents), and the world’s oldest football was found stuck in the rafters of the Queen’s Chamber at Stirling Castle, which she left in 1547. But it has only been in the last 15 years that England’s national team has made its way to a decent share of public attention.

The Lionesses made the leap to national icons last year when they won the UEFA Women’s Championship. In front of nearly 90,000 spectators, at Wembley Stadium, playing the ancient enemy, Germany, they scored a fine 2-1 victory: football came home, but it took the women to bring it back.

All of this meant that the team’s steady progress through this summer’s FIFA Women’s World Cup in Australia and New Zealand was relished. Facing Spain in the final, they were defeated 10, but they went down hard, and they went down in English style. In the 68th minute, goalkeeper Mary Earps saved a penalty by Jenifer Hermaso, and a dam of adrenaline burst. Joyously she pounded her chest and bellowed “F*** off!” at the opposing team: not with venom but with the defiance of someone who has kept her team in the game.

Where sport goes, money marches in

lockstep. Women’s football has an estimated 144 million fans in Europe, and the predictions are of massive growth with a young and diverse fanbase; last year a UEFA report suggested the women’s game could be worth £577bn in a decade, a sixfold increase. Ahead of the tournament, Orange commissioned Paris creative agency Marcel to produce a dazzling two-minute commercial trumpeting their support for the French national team.

It is a bonanza for sports manufacturers in particular. Nike has invested heavily in the women’s game, sponsoring 13 teams. But after the final, an extraordinary fact came to light. Nike did not offer a replica goalkeeper’s shirt for Earps’s armies of fans to buy.

Nike CEO John Donahue had pro-

claimed his brand was “proud to partner” with so many of the teams in the World Cup. Acknowledging the thrum of excitement, he said “we’ve matched that energy with our most comprehensive women’s football collection ever”. But producing goalkeepers’ shirts was not part of Nike’s commercial strategy. The astonishment which greeted this omission after Earps’s heroic performance was substantial, and visceral. Her Manchester United team shirt had sold out the previous season. Fans rushed to social media to express their sheer bewilderment, while David Seaman, who appeared between the sticks 75 times between 1988 and 2002 for the men’s national team, tweeted sardonically “Bet @Nike are regretting not selling the #maryearps shirt now”. An online

petition urging Nike to change its mind now has 160,000 signatures.

Nike, which celebrates its 60th birthday next year, can feel how the wind is blowing, and quickly pledged to supply “limited quantities” of goalkeepers jerseys. With a degree of contrition, a spokesman said “We recognise that ...we didn’t serve those fans who wished to show their passion and support to the squad’s goalkeepers”. But its initial response had been vague and halting, and Earps responded dryly on Instagram, “@Nike is this your version of an apology/taking accountability/a powerful statement of intent?”

It is a plain commercial fact that goalkeepers’ shirts are challenging; they require special production runs and appeal only to one section of the public.

We should be ashamed that half of us have the numeracy levels of a primary school kid

LAST week, teenagers across the country gathered to find out the results of years of hard work. Some pupils will be feeling very pleased with their mark in GCSE mathematics, and I congratulate them.

For others, trying to obtain a pass grade will have been much more of a struggle. Some may have been consoled by the thought that maths doesn’t matter because we all have calculators on our phones anyway.

For too long, we Brits have adopted a curious attitude toward mathematics. Though most understand its importance in almost every aspect of our lives, as a nation we’re unphased - or even amused - when people pronounce themselves “hopeless at maths”. But it is no laughing matter.

In the UK, around half of workingage adults have the numeracy level expected of a primary school child. That figure should shock and shame us. Firstly, because a basic understanding of maths is fundamental if people

Nicholas Lyons

are to get a grasp on their personal finances - especially during a cost-of-living crisis.

Indeed, it’s perhaps no coincidence that a similar number of peoplearound half - don't feel confident managing their money day-to-day.

Another reason why numeracy is so important is because many of the jobs of tomorrow - particularly in areas like technology and science - will demand a more sophisticated understanding of numbers. Indeed, research has shown that, in general, workers with low numeracy earn around 6.5 per cent less than their peers. That differential is only going to widen.

A lack of basic numeracy skills prevents Brits of all ages from reaching their potential in life and work. It lies at the heart of the issue of social mobility.

England remains unusual among advanced countries in that the study of mathematics is not universal for all students beyond 16. And the UK’s numeracy levels are significantly below the OECD average.

So, I was pleased to see the Prime Minister unveil plans for all pupils in England to study maths up to the age of 18.

Yet research shows that children’s money habits are formed as early as age seven, and there’s a compelling argument therefore for increased financial education at a much earlier age.

As the premier financial hub, the City has a moral obligation to do what it can to promote numeracy and financial literacy, and tackle the issue of financial exclusion blighting the lives of 1.1 million Brits.

That’s why I’ve made this a key pillar

of my mayoral aims - Financing our Future - and there are many great organisations working on these issues already.

My charity, the Lord Mayor’s Appeal, has partnered with the brilliant charity “National Numeracy”, which seeks to foster a culture where people of all ages feel comfortable improving their numeracy skills.

In April, I was proud to bring key stakeholders together for the first Financial Literacy and Inclusion Summit at Mansion House, which led to the creation of a steering group to formulate a comprehensive plan to boost both financial literacy across the UK.

While the exam hall may be a longdistant memory - or recurring nightmare - for many of us, we must recognise the importance of maths education and do all we can to boost numeracy and financial literacy for generations to come.

£ Nicholas Lyons is the Lord Mayor of the City of London Corporation

But there is a more profound lesson here. Nike does not present its sponsorship of women’s football in purely commercial terms. Instead it dwells heavily on inspiration and equality. It seeks “to celebrate the outrageous confidence and skill of women today and the girls that will change the game tomorrow” and talks about “dreams come true”.

The commitment to equality is stirring but advertising is a cynical business; if you are going to reach out to an audience you want to inspire as well as take money from, you have to look like you mean it. As the great Tory orator F.E. Smith once remarked of David Lloyd George: “I do not, more than another man, mind being cheated at cards; but I find it a little nauseating if my opponent then publicly ascribes his success to the partnership of the Most High.”

Businesses should be in a comfortably virtuous circle. Customers will pay, often above a strictly commercial rate, for a product which resonates with them. The endlessly self-referential General Z is quite explicit in saying what it looks for in a business. It is simply good sense to listen to them and pretend to care while supplying their commercial needs. Nike can’t afford to step so clumsily again, because there is always a competitor willing to step over you. As the company says, just do it.

£ Eliot Wilson is co-founder of Pivot Point and a columnist at City A.M.

Eliot Wilson

Nike has invested heavily in women’s football, sponsoring 13 teams

MAN OF THE PEOPLE Rishi Sunak traded in his Malibu holiday for some time at home in his constituency in North Yorkshire. It will make quite the difference from the Taylor Swift concerts and Soul Cycle classes he’s spent the rest of his summer enjoying, instead he enjoyed a great British bank holiday

WE WANT TO HEAR YOUR VIEWS

LETTERS TO THE EDITOR

Social housing under pressure

[Row over why London built just one affordable home a month, Aug 16]

The current row over recent statistics showing just three affordable homes were started by City Hall between April and June this year fails to acknowledge the scope of the issues facing those on ordinary incomes trying to find decent housing in London. We need urgent change not only to allow more development but also to help simplify the affordable housing system.

Not only is there a lack of available stock, tenants must navigate a confusing sector whose terminology and application processes leave the general public bewildered. It may surprise some to learn that you can earn too little as well as too much to be eligible for affordable housing which can be

advertised as social housing, submarket housing, intermediate housing or even London Living Wage housing.

Minimum income requirements are excluding the low paid workers that affordable housing schemes were created to help. The median household income for the UK is £32,300, meaning that thousands of workers fall below affordable housing minimum income requirements which begin at £30,000.

Housing associations must navigate a complex landscape, or else risk unforeseen pitfalls that prevent getting the most vulnerable into the quality and stable accommodation they need.

The government must provide our industry with long overdue financial support, but we, as a sector, must also strive to deliver clear communication to prospective tenants to ensure quality housing is accessible to those that need it most.

Barbara Brownlee Soho Housing Association

SEASIDE BLUES A viral post claimed Notting Hill locals had £3k Carnival trip

Ollie Dudfield

IT HAS been a truly amazing summer of sport. We’ve enjoyed fascinating duels in the hills during the Tour de France, the Women’s World Cup has undoubtedly inspired millions of young people across the globe, and now the World Athletics Championships have already produced some adrenalinepumping moments.

Far beyond the elite field of play, many people have also continued to enjoy the benefits that participating in safe and inclusive sport can bring; things like physical health, mental wellbeing and social connections.

However, we are at risk of fewer communities accessing these benefits. In turn, that means losing the next generation of champions as a result of increasing barriers such as the cost of living and continued hangover from pandemic-era lockdowns.

New research from the International Olympic Committee (IOC) and Worldwide Olympic Partner Allianz has reinforced the notion that certain demographic groups, including women and girls, and young people from low-income families, are less likely to be involved in sport and physical activity.

Over a third (37 per cent) of those surveyed are now playing less sport because of the cost of living.

If you live in Kensington and Chelsea, you are given £3,000 to escape the borough during Notting Hill Carnival. Except... you’re not. A fake news post went viral over the weekend as revellers took to West London. Only a handful of elderly residents in the hotspot are taken to Eastbourne for the weekend.

EXPLAINER-IN-BRIEF: CHRISTMAS AT JOHN LEWIS, ALREADY?

At the end of last week, John Lewis started recruiting for 10,000 new staff - 8,400 of which were positions for seasonal workers over the busy Christmas period. While it’s become somewhat of a game to spot the shop with the earliest Christmas display (one eagled eyed colleague saw Easter eggs in Sainsbury’s in February), it is true that firms are recruiting early for the season.

The retail and hospitality industry have been on the pointy end of the workforce shortages,

with the number of vacancies in the sector still high. Stats out earlier this month showed that while the number of open positions had fallen, it was still at a very high point of 127,000. Last Christmas was a particularly challenging time for retailers and hospitality staff who tend to look for around 250,000 seasonal workers over what is known as the “golden quarter”. John Lewis has started hiring for Christmas staff in August to get ahead of the labour crunch.

Some demographic groups are disproportionately affected too, with nearly half (44 per cent) of people aged 20 to 24 being less active due to cost pressures.

If young people – particularly those who are more vulnerable – continue to miss out on sports participation opportunities now, we are at risk of having a less diverse pool of champions tomorrow. And while ensuring we find the best athletes of tomorrow is important, young people across the globe missing out on the benefits of sports participation is a key issue today.

As well as the obvious physical benefits, organised and team sports have been linked to positive psychological and social indicators, including self-esteem, confidence and social skills. Sports participation can also contribute to educational and vocational attainment by increasing students’ motivation and engagement with school. More than half of those surveyed in our research reported that they enjoy school more when physically active, and 46 per cent reported they find it easier to concentrate.

It is therefore concerning that participation has continued to decrease despite young people and parents recognising the value and well-being benefits of playing sport.

To help reverse this trend, the IOC launched its Olympism365 strategy, It takes a concerted effort from governments, sports organisations, civil society and the private sector to provide accessible and inclusive sport infrastructure and programmes.

An important example is the Allianz’s MoveNow programme, which aims to fa-

cilitate opportunities for young people to stay active and enjoy the benefits of sports participation, is a successful example of how to combat this challenge, having supported tens of thousands young people globally.

When it comes to young people we must foster and develop a diverse sports, physical education and physical activity “workforce” and leadership who promote equality and inclusivity and can attract and retain young people from all backgrounds. This is not only a job for a PE teacher or coach. Family members, teachers, health workers and community leaders all play an important role in demonstrating the benefits that sports participation can offer.

By contributing to creating safer, healthier and more inclusive communities through sport, we can maintain inspiration for future generations and help more young people benefit from sports participation today.

£ Ollie Dudfield is Associate Director of Olympism365 at the International Olympic Committee

It’s been a record summer of sport, but our future athletic prowess is at risk of waning

If people miss out on sports participation now, we will have less diverse talent pool

The World Athletics Championships are underway in Budapest

LAST LAUGH

The Lancia Hyena is one of the rarest cars Tim Pitt has ever driven. And one of the most desirable, too

TAKEone of the world’s greatest hot hatchbacks, then clothe it

was thus forced to buy brand new examples of the Integrale Evo 1, remove

covered in carbon fibre – a real rarity in 1993. Bespoke Hyena dials sit alongside

churned gelato on an August afternoon. Sadly, the Lancia Hyena’s future melted away after just 24 examples had been built.

The Hyena was the brainchild of Marco Pedracini, a stylist at Milanese coachbuilder Zagato, and Dutch Lancia importer Paul Koot. Together, they envisioned a compact coupe based on the all-conquering Lancia Delta HF Integrale. Pedracini started to sketch and a prototype was revealed – to widespread acclaim – at the 1992 Brussels Auto Salon. Koot excitedly made a plan to produce 500 cars.

However, Lancia was wholly uninterested in the project, and refused to supply Zagato with a rolling chassis. Koot

Yes, it had the rally-winning innards of an Integrale and a svelte Zagato suit, but £75,000 was a mighty big ask for a small car. In 1992, that kind of money could stretch to a Ferrari 348 GTB. Why choose the wild dog when you could own a prancing horse?

Although it was a commercial flop, the Lancia is now a sought-after classic. This example is the second Hyena built, recently auctioned by Carhuna (www.carhuna.com) on behalf of Girado and Co. It might be the rarest car I’ve ever driven.

In the metal, the Hyena looks almost dainty, its rounded contours – including Zagato’s trademark ‘double bubble’ roof – a total contrast to the angular and aggressive Integrale. It’s also a far prettier effort than the Alfa Romeo SZ, an equally oddball Italian coupe, despite the two cars sharing the same headlights and glasshouse.

Lower your hips into a big-bolstered Recaro seat and you notice the upright dashboard and F40-style door panels are

larger intercooler, spikier camshafts and a tubular exhaust manifold, this one musters more like 300hp. With at least 120kg less weight to shift than an Integrale, it delivers 0-62mph in 5.4 seconds – and a frenzied rush of acceleration once the Garrett GT28 turbo wakes up at 3,000rpm.

Unsurprisingly, and pleasingly, the Hyena feels much like a Delta Integrale to drive. Its combination of a balanced, sure-footed chassis, maniacal turbocharged boost and four-wheel-drive traction allows you to brake late, get on

the power early and catapult away from corners. Before long, I’m treating the Oxsion. Like its four-legged namesake, the Hyena enjoys a good laugh, and encourages its driver to join in.

Carhuna has now sold this Hyena, but expect to pay upwards of £150,000 if you fancy a small slice of Zagato exotica. That’s far more than a Ferrari 348 today, tellingly, but arguably good value when you consider the six-figure sums now asked for late-model Integrales. One thing is certain: you will never see another one.

Tim Pitt writes for motoringresearch.com

OFFICIAL VINTAGE BENTLEY REPLICA IS ELECTRIC AND ROAD-LEGAL

THE1929 Bentley 4½-litre supercharged Blower is an icon of British motorsport, thanks to its success at the Le Mans 24 Hours.

Now, Bentley and Oxfordshire-based The Little Car Company have created an 85-percent-scale replica of the original Blower racing car.

Unlike previous vehicles from The Little Car Company, including downsized versions of the Ferrari Testa Rossa and Aston Martin DB5, the aptly named ‘Blower Jnr’ will be road-legal in the UK, Europe and the USA.

There is no shrunken supercharged petrol engine fitted here, however; the Blower Jnr is powered by a 15kW electric motor – good for a top speed of 45mph. An imitation supercharger

acts as the plug-in port, with a 60-mile range possible when fully charged.

The car's construction combines traditional and modern methods, including impregnated fabric and carbon fibre. Leaf springs and scaleddown friction dampers replicate the original Bentley’s suspension, but are fitted alongside uprated Brembo brakes.

At 3.7 metres long, the Blower Jnr can accommodate two adults and their luggage. Engine-turned aluminium covers the dashboard, just like in the full-size car, and there are period-style magneto switches. A dualfunction display is used for the Garmin sat-nav system and reversing camera.

The first 99 examples of the Blower

Jnr will be First Edition models, finished in classic Blower Green with a colour-coded chassis and wheels. A Union Jack flag is painted on the side, with the seats upholstered in Dark Green Lustrana leather. Even the steering wheel is rope-bound, just like the original racer.

Unsurprisingly, such hand-built craftsmanship doesn't come cheap. In the UK, First Edition cars will cost £108,000 each – still considerably less than the £1.8 million charged by Bentley for one of its full-size Blower Continuation cars.

Following its public debut at Monterey Car Week in California, production of the Blower Jnr will commence in the second quarter of 2024.

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Defeat to Fiji puts the spotlight on Borthwick

STEVE Borthwick declared himself “deeply honoured” and “excited” upon being named the successor to old mentor Eddie Jones as England rugby coach in December.

“The English game is full of talent and I want to build a winning team which makes the most of our huge potential and inspires young people to fall in love with rugby union the way I did,” he said.

Eight months later, even the most generous assessor would struggle to consider any of those boxes ticked.

After a sixth defeat from nine matches in charge, the harsh glare of the spotlight is falling on the man who was supposed to be England’s saviour.

Saturday’s first ever loss to Fiji marked the nadir – so far – of Borthwick’s tenure. England were well beaten 30-22 at Twickenham in their

final warm-up match for next month’s Rugby World Cup in France, as the visitors repeatedly breached the hosts’ fragile defence.

England have now shipped 30 tries in total under Borthwick and an average of 26 points per game. For all the gripes about the team’s lack of creativity, it was assumed they would at least be hard to beat under the former lock. Anything but.

“I’m very clear that I was disappointed with the defence,” he said at the weekend.

“We conceded too many tries and missed too many tackles. Our focus is on ensuring we are much better against Argentina in two weeks’ time.”

World Cup-winning England coach Sir Clive Woodward said the former Leicester Tigers boss needed to “prove why he is the right man for the job”. “This is where we will find out if Borthwick can step up and lead,” Woodward wrote in the Mail on Sunday. “He needs to be strong in front of the media and deliver firm messages in the face of adversity. We haven’t seen that from him yet.”

FAILING

As alarming as England’s performances have been, perhaps equally concerning is fly-half George Ford’s admission that they are just as poor behind closed doors. “We’re playing the

way we train at the minute, which is not good enough obviously,” Ford said. “We understand that we need to make fewer mistakes. There’s an urgency that we need to fix it and get better. The way you do that is to be more consistent in training.”

If a coach’s job is to get the most of his players then Borthwick and his staff are clearly

Borthwick has lost six of nine games

failing, while comments like Ford’s resemble a cry for help.

In Woodward’s view, England need a drastic change of approach before their World Cup opener on 9 September.

“England are playing far too conservatively,” he added. “I really hope Borthwick has the coaching capacity to react and evolve the way he operates to help get England back on the path to success.”

The Rugby Football Union took a gamble by sacking Jones and handing Borthwick a five-year contract. England will need to improve markedly over the next few weeks or they may be forced to revisit that decision.

THIS has been the most disrupted summer of sport for over a century. The pitches, courses and tracks of the UK now host a new game, as climate protestors try to side-step the lunges of stewards, all to the pantomime booing of a frustrated crowd.

In some ways it’s surprising it has taken Just Stop Oil and others so long to target sport.

Hanging from a gantry on the M25 is perilous. It also unfairly affects hardworking commuters and isn’t even that visible. In contrast, interrupting major sporting events is relatively safe – unless you run into Jonny Bairstow –and it doesn’t disturb long-awaited hospital appointments.

Sports arenas also have infinitely more power to garner attention. In fact, live sport is one of the last places where society’s collective energy is focused on the same thing at the same time. Sport is therefore the perfect stage to make a scene.

This summer, as the police struggles to define a strategy to cope, protesters have made hay while the sun shines. We have seen disruption at pretty much every marquee sporting event, from the Ashes to the Open.

This is by no means the first time sport has encountered protest, but rarely have we seen it on this scale or with this persistence.

You have to go back 110 years to find anything comparable. Between 1912 and 1914 the Women’s Social and Political Union launched a string of devastating attacks in the fight for women’s suffrage.

SUFFRAGETTES

In the summer of 1913 these included not just the death of Emily Davison at Epsom, but attempted arson attacks at the FA Cup Final and Wimbledon, not to mention targeted action at hundreds of private golf courses and other sporting clubs.

The suffragettes chose sport not just because it created attention, but because it was perceived as a male domain. There is a similar duality to the thinking this summer too.

Climate protests also target sport be-

BRAND LESSONS FROM SPORT’S PROTEST SUMMER

tory of course remembers things differently. Climate change is our great social struggle. Future generations will almost certainly see those wearing orange as the heroes.

ANTIDOTE

The first thing sponsors should do therefore is to make sure they aren’t vulnerable to an attack. It’s one thing sponsoring a sporting event that is targeted; it’s quite another being the target yourself. It’s advisable not to go into any major sporting sponsorships unless your own carbon footprint is dainty to say the least.

The second thing sponsors should get straight is why they are entering into the partnership. When you officially tie yourself to a sporting event, your brand is in the hands of others – not just the event organisers, but now those who wish to hijack it too.

Climate change is our social struggle. Future generations will see those in orange as heroes

The antidote to this is purpose and clarity. If a sponsor is clear what it stands for – not just what it stands next to – it is far more protected. It retains control of the narrative.

When the inevitable protest happens it can be sympathetic but also clear on why it is there and what it believes in.

If it is using a sports sponsorship as a badging exercise, it will be up to the viewer what story they take out of it.

We are in a key period in the fight to reverse climate change. As economic hardship hits and resolve begins to falter, it would be easy for brands to swat away the significance of these protests. In truth, this is the social fight that will define our generation.

cause it can be a major contributor to the crisis. This doesn’t just include the events themselves but those who sponsor them.

The protests at Wimbledon and the Cycling World Championships were attributed directly to the involvement of Barclays and Ineos respectively. This should be a wake-up call to all brands involved in sport.

When crowds are cheering and

laughing as protestors are evicted it’s easy for sponsors to think they are on the right side of the debate, but they can’t afford to become complacent. Whilst it’s only natural for high-paying fans to be frustrated, it shouldn’t be mistaken for broader society thinking that way and it certainly isn’t how history will judge these years.

The suffragette movement couldn’t have been less popular in 1913, yet his-

Sport, and therefore sponsors, have been thrust into the heart of it. Brands need to think very carefully about how they react. It’s no longer safe to put your company name in the limelight without having a clear reason for doing so. If you’re in it for the attention alone, you might get more than you bargained for.

Matt Readman is chief strategy officer at creative agency Dark Horses.

Sponsors need to make sure they aren’t vulnerable to attack, writes Matt Readman

England coach ‘must prove he is the right man’ after torrid build-up to Rugby World Cup, writes Frank Dalleres

OPINION

If a sponsor is clear what it stands for –not just next to –it is more protected

SPORT

Premier League spending hits record £2bn for summer window

FRANK DALLERES

PREMIERLeague spending has passed the £2bn mark for the first time in a single transfer window as England’s leading clubs have flexed their financial muscle.

With four days of trading left before the transfer deadline on Friday at 11pm, top-flight teams have already exceeded the record £1.92bn lavished last summer. And they could yet surpass £3bn for the calendar year, having shelled out more than £800m during an unprecedented January spree.

“For the second year in a row, the summer transfer spending by Premier League clubs has surpassed the previous record,” said Calum Ross, assistant director in Deloitte’s Sports Business Group.

“This sensational level of spending appears to be the new norm for Premier League clubs. They are generating unprecedented levels of revenue, which for some clubs is combined with the receipt of significant investment from new ownership.”

West Ham United’s £38m signing of Ghana midfielder Mohammed Kudus from Ajax at the weekend took the Premier League’s total summer spending past £2bn.

It currently stands at £2.02bn, with more big deals anticipated before Friday. Last summer, £500m was spent in

GOLF

PITCH INVADERS

Lessons for sponsors from sport’s summer of protest

PAGE 19

NEW YORK BAGEL Swiatek races through in Flushing Meadows

the final week and £120m on deadline day alone. Added to the £815m spent in January, it means Premier League clubs have bought £2.835m of playing talent in 2023.

This summer’s outlay has been driven by some landmark deals, such as Chelsea’s Premier League record £115m signing of midfielder Moises Caicedo from Brighton.

Arsenal have also invested heavily, making Declan Rice the most expensive Englishman of all time in a £105m switch from West Ham.

Champions Manchester City paid £78m to prise Croatia defender Josko Gvardiol from RB

West Ham’s Kudus deal took the total past £2bn for the first time

Leipzig and are among the teams tipped to spend again before Fri-

City have been credited with interest in Wolves midfielder Matheus Nunes, who on Monday reportedly refused to train in the hope of forcing a transfer.

The average price paid for a player by Premier League clubs, where a fee was involved, has risen from £20m last year to around £25m, Deloitte said.

But despite the overall increase in outlay, the league’s collective net spend was down thanks in part to big fees being received from overseas, notably Saudi Arabia.

Dire Straits performance drives

McIlroy’s Ryder Cup mission

FRANK DALLERES

RORYMcIlroy insists he is determined to harness the pain of Europe’s record defeat at Whistling Straits to regain the Ryder Cup next month in Rome.

World No2 McIlroy is one of three European players to have guaranteed their place at the biennial contest against the USA, along with Masters winner Jon Rahm and new FedEx Cup champion Viktor Hovland. All were on the wrong end of a 19-9 hiding two years ago.

“There’s a lot of us that were in that team at Whistling Straits and

Murray ready for ‘volatile’ Moutet at US Open

FRANK DALLERES

ANDYMurray has revealed that he used his summer holiday to come to terms with a disappointing Wimbledon exit and identify where he went wrong.

The Briton was 2-1 up and on his way to a famous win over Stefanos Tsitsipas when SW19 chiefs called time for the night, only to be swept aside by the fifth seed when the second-round match resumed the following day.

Since then Murray has had time to reflect on his performance and make changes for the US Open, where he begins his campaign against

Frenchman Corentin Moutet today.

“I went away on holiday straight afterwards. Always immediately after matches, especially Wimbledon, there’s greater disappointment and emotions,” he said.

“After three or four days, I chatted to my team about things that I feel I need to change if I wanted to win more of those matches. So I did that, went away and worked on things.”

The 36-year-old has the chance to put those lessons into practice in his first ever meeting with world No72 Moutet, who has not won a match in the main draw of a hard-court since Wimbledon. Murray, on the other hand, reached the third round of the

Prosecutors

that didn’t feel very nice, didn’t feel good,” he said.

“So I’m excited to get back over to Europe. We’re all making our way over to Europe a couple of weeks early. It will be nice to all get together, get some early team dinners before the week in Rome and really feel like that sort of team chemistry is starting already.”

McIlroy played down concerns over a back injury after closing the Tour Championship with a 65 to finish on 14 under par, 13 strikes behind Hovland, on Sunday.

US Ryder Cup captain Zach Johnson is set to name his 12-man line-up today.

Canadian Open earlier this month, only to suffer an abdominal injury that threatened to keep him away from Flushing Meadows, where he won his first Grand Slam in 2012. “I’ve not played against him but I practised with him once. He’s an unbelievably talented guy,” the Scot said of Moutet. “He can be a bit volatile at times but [is] a good challenge for me, very different to how most players play in the draw.”

Fellow Briton Lily Miyazaki beat Margarita Betova in straight sets in her first round match last night. Cameron Norrie, Dan Evans, Jack Draper, Katie Boulter and Jodie Burrage are due to play today.

probe Rubiales

amid mother’s hunger strike

FRANK DALLERES

SPANISHprosecutors began enquiries yesterday into whether Luis Rubiales committed sexual assault by kissing Women’s World Cup winner Jenni Hermoso – as the football chief’s mother went on hunger strike over the storm surrounding her son.

Rubiales appeared to grab Hermoso before kissing her on the lips at the medal ceremony for last week’s World Cup final, an act that the player has said was not consensual. The approach from prosecutors means that she now has 15 days to decide whether to file a formal complaint against the president of the

Spanish football federation (RFEF) at the country’s High Court. Rubiales has refused to stand down despite widespread condemnation, forcing world governing body Fifa to take matters into its own hands and hand him a 90-day ban while the incident is investigated.

Earlier on Monday his mother Angeles Bejar locked herself in a church in the southern town of Motril, where Rubiales was raised, in protest at what she called the “inhuman and bloody hunt that they are doing with my son”. Rubiales’ cousin Vanessa Ruiz, speaking on behalf of the family, said: “We are suffering a lot for him. He has been judged before his time.”

FOOTBALL

TENNIS

DEFENDING champion Iga Swiatek dropped just one game against Rebecca Peterson as she raced through her US Open first-round match 6-0, 6-1 last night. The Polish world No1, who won the French Open earlier this summer, wrapped up the win in under an hour and said: “I’m happy to play such a great game and despite all the pressure and expectation I can still have fun on the court.”