Tuesday 8 August 2023

LONDON’S BUSINESS NEWSPAPER

BATTERSEA’S REVAMP TEN MONTHS ON, WHAT’S THE VERDICT? P10

PORSCHE SPYDER WE TAKE THE NEW SUPERCAR FOR A SPIN P17

NOT-SO-CRUEL SUMMER

COST OF LIVING CRISIS? BRITS SHAKE IT OFF WITH TAYLOR SWIFT TICKETS BOOSTING CARD SPENDING –BUT RISE IN BUY NOW PAY LATER PURCHASES COULD LEAVE BLANK SPACE IN BANK ACCOUNTS LATER THIS YEAR

A RUSH for tickets to Taylor Swift’s longanticipated London gigs has fuelled a summer card spending splurge.

The megastar’s Eras Tour, which went on sale in July, drove a 15 per cent year-on-year spike in entertainment spending according to the latest data from Barclays. It is expected that the gigs themselves, held next summer, will provide a huge consumer spending boon to the London economy.

Consumer spending overall grew four per cent year-on-year in July, below the rate of inflation, suggesting cutbacks are occurring in other areas.

It was a less buoyant month for retailers as new  figures from the British Retail Consortium (BRC) show total sales increased by just 1.5 per cent month-on-month in July, slower than last year’s comparator.

“The slowing pace of retail price inflation

fed through into slower sales this July.

Spend was further depressed by the damp weather, which did no favours to sales of clothing, and other seasonal goods,” Helen Dickinson OBE, chief executive of the British Retail Consortium, said.

There were further signs that Brits were pushing the limits of their spending envelopes in fresh e-commerce data.

UK consumers spent £9.75bn online in July, with £1.5bn of it serviced by buy now, pay later products.

The July splurge –sustainable or otherwise –is likely to give third quarter GDP figures a boost when they emerge later in the year.

On Friday, GDP figures for June are likely to also show a small uptick in growth, with analysts at Oxford Economics and Pantheon Macroeconomics both expecting a 0.2 per cent month-on-month rise, helped by a weak May comparator due to the King’s Coronation.

KOWTOW KERFUFFLE

Top lobbyist at HSBC sorry for ‘weak’ call

A SENIOR HSBC exec has apologised after accusing the UK of being ‘weak’ by responding to American pressure to toughen its stance on China.

Sir Sherard Cowper-Coles (pictured) made the comments at a closed-door event, which were then leaked to Bloomberg News.

The former diplomat said he was “speaking at a private event under Chatham House Rules and my personal comments do not reflect the views of HSBC.

“I apologise for any offence caused.”

HSBC also said the remarks were of a personal nature.

HSBC, which makes around four of every five pounds of its profit in Asia, has been criticised in the past for being too close to China.

In particular, it was slammed for backing Hong Kong’s National Security Law, which effectively criminalised protest and dissent in the now Beijing-held territory.

The UK has largely followed the US’ lead in an ongoing data and tariffs tit-for-tat it has entered into with China.

Just what employees wanted: A hologram boss that can be in two places at once

SASCHA O’SULLIVAN AND ELENA SINISCALCO

C-SUITE execs have started using holograms powered by artificial intelligence to attend board meetings and events while remaining physically in other locations –for as much as £35,000.

Mike Blackman, the managing

director of Integrated Systems Europe, an annual audiovisual conference, was one of the first to test the technology.

While at a conference in Oman, Blackman was able to beam his likeness into an award ceremony in Spain –appearing on stage and ‘collecting’ his award.

Blackman said the experience of

Bosses here, bosses there, bosses everywhere

live streaming as a full body avatar was “highly innovative”.

The technology, developed by Hypervsn, allows people to live stream themselves to other locations with a “digital avatar”.

Alexander Staredetko, communications leader at Hypervsn, said there had been an uptick in interest from Square Mile executives.

“We are noticing more interest in this solution from C-level executives and their teams”, he told City A.M., with even virtual attendance at board meetings on the cards. The full suite of options would cost a prospective digital boss a very real £35,000.

STANDING UP FOR THE CITY

Our consumer spending is built on the nihilism of the cash rich and asset poor

ASK a personal finance journalist what they think of twenty-somethings buying clothes on buy now, pay later and spending hundreds of pounds on a Taylor Swift gig and the response would no doubt be a mixture of knowing smiles and finger-wagging. No doubt some of a more responsible generation might have a go at those same young-ish folk for spending all their money on avocado and toast rather than prudently squirrelling away their cash.

Gen Z, Swifties or otherwise, might justly reply: for what? A fiscal nihilism has set in, enabled by easy credit options. What’s the point, they might argue, of not spending the money on Taylor tickets? So it can be put aside for a

THE CITY VIEW

deposit that remains vanishingly out of reach? Even the house price fall we report on today will only bring house prices back to a level seen at the end of the pandemic. Last year, the average property ‘earned’ more than the average Brit. It’s hardly as if Gen Z don’t have a pretty good example to follow: after all, short-term spending rather than long-term prudence has become the guiding light of successive governments. It’s also guided their decision-making –which is why, for instance, successive administrations have

petrol tanks Filling

DANCING IN THE STREET Dancers take part in Edinburgh Fringe flashmob

prioritised winning politically sensitive by-elections by promising to crack down on development over a long-term housing strategy. For want of a better phrase, we are at risk of creating an entire generation of Brits who are fundamentally nihilistic about their finances. In London, ‘good’ salaries are no longer enough to fund long-term security on anything but the longest timescales –hardly a reason for a youngster to up their productivity levels or fight for promotion by working late. And of course, should they do so anyway, they might find themselves headed for a new tax bracket amid the most aggressive tax burden seen in the UK since World War II. You can see why it’s tempting to stick the T Swift tickets on the credit card.

bp’s wider transformation is underway. Whilst today we’re mostly in oil & gas, we’ve increased global investment into our lower carbon & other transition businesses from around 3% in 2019 to around 30% last year.

Treasury minister: Firms should be wary of ‘checklist’ ESG calls

A SENIOR Treasury minister has said he is “uncomfortable” with businesses “appropriating the views of their customers to make a political point” in a broadside against corporate woke culture.

John Glen (pictured) told the think tank Bright Blue’s Centre Write magazine that “the mainstream majority of this country want businesses to provide value for money and quality services and goods that they can rely on, and probably want them to keep out of politics.”

The calls for business to stay out of politics comes amid an ongoing row over Nigel Farage’s banking arrangements, with the former UKIP leader barred from having a Natwest-owned Coutts bank account due to his political views. That decision, and a media leak, cost Natwest CEO Dame Alison Rose her job.

Glen appeared to take aim at

a wider culture of so-called ‘ESG’ tick-boxing.

“I think where we’ve got to now is that we’ve almost got a checklist of things that a business has to say and do in order to be deemed to be socially and ethically on the right side of the line. And I’m not sure about this,” Glen said.

He criticised Bud Light for a recent advertising campaign featuring a trans influencer, which has become a touchpoint in the US’ culture wars.

A number of consumers have vowed not to buy the beer after the advert.

“I’m uncomfortable... to see big businesses appropriating the views of their customers to make a political point. If they want to get into politics, then stand for election.”

Coffee chain Costa is also under fire for recent marketing material which saw a transgender person with mastectomy scars pictured in a mural.

HEAVENLY Profits on the up at rock retailer All Saints after expansion

Aussie buyer of Britishvolt fails to pay up

AUGUST GRAHAM

THE AUSTRALIAN company that was supposedly meant to buy failed battery start-up Britishvolt has missed the deadline to pay for the business.

Filings from administrators at EY said the final instalment of a nearly £8.6m payment, which was due on 5 April, was still outstanding.

EY said that the buyer, Recharge Industries, had defaulted on its agreement to buy the business.

“The sale to the buyer had not completed as the final amount of deferred consideration was due to be paid on 5 April 2023,” the report from EY to creditors last week said.

EV batteries Charging

bp’s transformation is underway – and you can see it coming to life at our retail sites across the UK. We’re providing our quality fuels to keep drivers moving today, and rolling out bp pulse chargers where people need them – including at up to 180 forecourts by the end of the year – helping with the switch to electric vehicles. And whether our customers are filling up or charging up, they can enjoy a great tasting coffee from Wild Bean Cafe at many of our sites before getting back on the road.

Increasing investment in the transition to lower carbon energy and keeping oil and gas flowing where it’s needed. That’s our strategy.

Discover

City minister slams British investors for ‘defunding’ UK defence giants

BEN LUCAS

CITY minister Andrew Griffith has slammed UK investors’ decision to move away from the country’s top defence firms.

According to data from the London Stock Exchange, reported by the Financial Times, fund managers based in the UK have cut their holdings in defence firms, including BAE Systems and Qinetiq, by around nine per cent since the start of last year.

Reacting to the news, Griffith said it was morally wrong for investors to move funds out of these companies.

“Whether it is deliberate or the unthinking application of ‘ESG’ policies, [British] investors defunding defence is the opposite of social responsibility when peace and democracy [are] under threat,” Griffith wrote on X.

Kevin Craven, chief executive of aerospace and defence trade association ADS Group, in an emailed statement said: “Overcautious or

misapplied ESG considerations are drastically impacting the ability of the defence sector to secure financial services.”

However, some said it was unclear whether ESG policies were to blame.

“In the case of BAE Systems, it’s perhaps not surprising that some fund managers have cut their exposure here given the shares are close to record highs... locking in gains is a hallmark of good money management,” Michael Hewson, chief market analyst at CMC Markets, said.

South Bank could see Foster and Partners skyscrapers added to growing skyline

5 NEW ADDITIONS TO CITY SKYLINE

1 LEADENHALL Under construction

Expected to be completed in 2024

8 BISHOPSGATE Under construction

Expected to be completed in 2023

40 LEADENHALL ST

Under construction

Expected to be completed in December 2023

50 FENCHURCH Approved in 2020

THE SOUTH BANK may be set for three more skyscrapers after US property developer Hines submitted plans for an underdeveloped site near to Blackfriars Bridge.

The site, formerly home to Sainsbury’s’ headquarters, has been underdeveloped for 20 years but planning permission has

now been submitted to transform the location –which sits unloved behind Sea Containers House –with Foster and Partners-designed buildings.

Alongside two residential buildings which will provide 400 homes, Hines has plans to build a new public space called the Rotunda and office space.

Some 20,000 sq ft of the workspace will be affordable and aimed at supporting

“local and socially minded enterprises”. Plans also include retail and food outlets, office and residential amenities, cultural and performance facilities, educational spaces and other flexible uses.

“The significant investment we are planning underlines our firm belief in London, and its enduring appeal as a global centre for business,” Ross Blair, senior managing director and country

head of Hines UK, said. The project will run into local opposition, with plans for another development –known as The Slab –further down the river towards the National Theatre criticised for ruining the character of the location.

The apparent heritage site is around a two minute walk away from a 135m-high ferris wheel.

Construction due to begin in 2024

55 GRACECHURCH Approved in 2021

Awaiting construction timeline

Recruiter Page profits almost halve as firms batten down hiring hatches

JESS JONES

“LOWER levels of confidence” in the market have proven difficult to overcome for specialist recruiter Page Group, which yesterday reported a near 50 per cent fall in half-year profits. London-listed Page posted an operating profit of £63.9m for the six months ending 30 June, down 47.5 per

cent in constant currencies from £115.3m in the same period last year.

Gross profit for the UK region, which makes up 12 per cent of the group, fell 13.2 per cent.

Chief executive Nicholas Kirk said: “The challenging conditions we saw towards the end of 2022 continued into the first half of 2023, with lower levels of both candidate and client

confidence resulting in delays in decision making and candidates being more reluctant to accept offers.”

The group also noted that flexible working remained a priority, with temporary recruitment outperforming permanent roles.

Shares initially dropped two per cent after the update, but stabilised to close down 0.66 per cent.

London seeing house price fall as rate hikes hit

LAURA MCGUIRE

HOUSE prices dropped by 0.3 per cent from June to July, the latest data suggests, with London and south east homes falling fastest in value.

House prices fell by 2.4 per cent on an annual basis, easing from a 2.6 per cent drop in June, the latest figures from Halifax show. London saw one of the biggest declines in price, with average property prices down 3.5 per cent annually. The average home in the capital now costs £531,141. But the south east remains the area where house prices are facing the most downward pressure, down 3.9 per cent on an annual basis. Analysts believe house prices could fall by as much as five per cent across the year as interest rates feed through to

NONE FOR THE ROAD Takeaway pints banned as Home Office ends Covid scheme

Card Factory shares leap on positive outlook

CITY A.M. REPORTER

SHARES in Card Factory jumped 16 per cent yesterday after the budget greetings card firm said it expected its full-year performance to be “materially ahead” of its previous expectations.

mortgage rates –providing a ceiling on demand as well as potentially increasing supply as Brits find themselves struggling to keep up with repayments. However, lenders have continued to reduce the cost of their deals, despite the Bank of England raising interest rates for the 14th time last week, in a signal of hope for many prospective buyers.

Tom Bill, head of UK residential research at Knight Frank, said:

“While we expect UK prices to fall by five per cent in 2023, demand should prove more resilient than expected given the shock-absorber effect of strong wage growth, lockdown savings, the availability of longer mortgage terms, forbearance from lenders and the popularity of fixed-rate deals in recent years.”

The London-listed firm said the positive start to the year had continued, with trading in the first six months ahead of the board’s expectations.

Despite the “uncertain” economic outlook, the company said “given the strength of the performance in the first half… the board now expects the full year outturn to be materially ahead of its previous expectations”.

“Card Factory has been consistently raising earnings expectations of late so it must be doing something right in what is a very tricky retail environment,” Russ Mould, investment director at AJ Bell, said.

“The company’s offering is perfectly pitched for cost conscious consumers – and while some of this market has migrated online there are still plenty of people who want to go into a shop and peruse the cards,” he added.

Virgin Atlantic pilots are overworked, union warns as strike threat looms

JESS JONES

VIRGIN ATLANTIC pilots are tired and overworked, according to a survey by the UK’s pilots union, with over three quarters of the airline’s pilots saying they had flown with a tired colleague who was “clearly not fit to fly”.

Over 88 per cent of the 900 pilots surveyed by British Airline Pilots’ Association (BALPA) had seen a fellow pilot make a mistake due to fatigue.

In the leaked survey, reported by LBC, 80 per cent of Virgin pilots said

their mental health had suffered after annual flying hours increased by 20 per cent since the Covid-19 pandemic.

In a memo sent to members, also reported by LBC, the union said that there is “genuine safety risk presented by cumulative fatiguing flights”.

Speaking anonymously, one pilot told the radio station: “We are not asking for more money, we are asking for a roster which allows us to be safe. No passenger would want to fly with a pilot who is suffering with fatigue.”

The survey comes after Virgin

Reforms won’t be enough to fix equity markets

ONE OF THE CITY’s most active investment banks has warned that the “considerable activity” to reinvigorate the UK’s equity markets will nonetheless not be enough to turn around a 20 per cent tumble in the number of listed companies over the past five years.

Charles Hall (pictured), head of research at Peel Hunt, has warned in a note seen by City A.M. that while proposals to simplify the listings regime and encourage pension funds to invest in UK equities will help reverse the trend, more attention needs to be paid to smaller listed companies –many of whom are increasingly finding life as a public company tough.

Hall has called for the voluntary pact between the Treasury and pension funds to specifically include listed smaller companies as a welcome boost.

The note also suggested that changes to the research base in the UK, mooted in a recent government-backed review compiled by Hogan Lovells’ lawyer Rachel Kent, will go some way to addressing the lack of

institutional attention paid to the smallest companies on the markets.

In particular, Hall backed the formation of a ‘research platform’ which would allow retail investors greater sight of institutional analysis of firms on public markets.

The calls for further changes to equity market rules come after a slew of takeprivate deals in recent years, with relatively under-valued UK firms being picked off by often foreign buyers. UK firms trade at a price-to-earnings discount compared to peers in the United States, and smaller companies in particular have become easier prey thanks to a weaker sterling currency.

Senior City figures have also identified a focus on ‘short-termism’ among London investors.

Outgoing BT boss Philip Jansen pinned the blame for the telecoms giant’s slumping share price on a failure of the City’s institutional investors to recognise the value of his long-term investment in digital infrastructure. And other critics have pegged hitand-run short-sellers as being too blame for nervousness.

Atlantic pilots, who are members of BALPA, voted to be formally balloted for a strike action. They are demanding an end to the pandemic shift changes that aimed to rescue the airline from bankruptcy.

Responding to the leaked survey, a Virgin Atlantic spokesperson said: “The health, safety and security of our people and customers is our number one priority.

“Virgin Atlantic is one of the safest airlines in the industry and we will defend our reputation fiercely.”

GONE BUT NOT FORGOTTEN...

HYVE: The events organising business went private in a £320m deal led by two US private equity firms. Critics called the price “opportunistic”.

BIFFA: Taking out the bins led to a takeprivate by Energy Capital Partners in 2022, with a final bid of £1.3bn sealing the deal after a protracted process.

IT WOULD be churlish to reject all the work that is going into ensuring London’s public markets are fit for the future.

But as company numbers continue to decline, more must be done to get them functioning better right now.

Tax reform is urgent.

To boost liquidity where it is most needed, the Chancellor should consider a new type of investment vehicle that builds on the success of Venture Capital Trusts (VCTs).

It could admit a wider cohort of investors and reward the long-term backing of small but growing UKregistered public companies.

Even bolder would be to scrap stamp duty on share trading, a £4bn-a-year dampener that doesn’t even exist across the Atlantic on Wall Street.

Subsiding equity research is another important piece of the

Business groups urge PM to scrap hike in migrant worker visa fees

CITY A.M. REPORTER

BUSINESS groups have called on the government to scrap its planned increase in visa fees for migrant workers, arguing the change will make it harder to deal with ongoing labour shortages.

In a letter to Prime Minister Rishi Sunak, John Dickie, chief executive of

lobby group BusinessLDN, urged the government to rethink the move.

“This measure undermines our competitiveness when it comes to attracting top talent compared to other countries,” Dickie wrote, according to the Financial Times.

Under the plan, the cost of a threeyear skilled-worker visa would increase from £1,235 to £1,480. The

annual immigration health surcharge is set to increase 66 per cent to £1,035.

“It’s an uncalled for tax on small and medium sized businesses,” James Watkins, head of policy and public impact at London Chamber of Commerce and Industry, said.

A government spokesperson said it is “right and fair” to increase the fees to help fund public sector pay rises.

CLINIGEN:

Triton –a Londonbased investment firm –secured a £1.3m takeover battle for the listed pharma firm in 2022.

puzzle that would aid better valuations – just as long as it does not pile more cost on companies. In the meantime, to the pension funds that have committed up to £50bn to growth companies by 2030, I would say there is no need to wait seven years to invest in a bargain.

£ James Ashton is chief executive of the Quoted Companies Alliance, the members’ organisation that champions small and mid-sized companies whose shares are publicly traded

SURESERVE: The board of Sureserve agreed an all-cash take private offer of £214m in April of this year.

DECHRA:

The £4.5bn take private by Swedish firm EQT was finally given the green light in June of this year.

SPACE TO GROW?

A rich man’s toy or an out of this world business opportunity? The verdict on space tourism is on its way

GUY TAYLOR

RICHARD Branson’s Virgin Galactic is set to launch its first tourists to space this Thursday.

The Galactic 02 mission, which follows the successful launch of the company’s first commercial flight in June, will carry three paying customers –an 80-year old Olympian and a Caribbean motherdaughter duo.

Launching from Spaceport America in New Mexico, a three person Virgin Galactic crew will take the ‘space tourists’ high into the atmosphere, in a rocket ship known as Unity.

Unity will initially be strapped to mothership VMS Eve, before detaching and shooting above the Earth’s atmosphere to give passengers a few minutes of weightlessness.

Billionaire Branson has been flying high since the success of Junes’ Galactic 01 mission, which marked a shift in fortune for the brand after his

other venture Virgin Orbits’ botched UK rocket launch and bankruptcy earlier in the year.

Last week, Virgin Galactic reported a 500 per cent increase in revenue as amateur astronauts queued up for tickets. But analysts and experts are split on the economic benefits of space tourism, and whether it can eventually become more than just a hobby for the super wealthy.

As of 2021, the space tourism market was valued at a modest $600m (£470m), but it is forecast to grow to over $7bn by the end of the decade.

“Space tourism, usually considered a fantastical concept reserved for a space-faring civilisation of the future, is becoming closer to reality for many of the world’s wealthiest individuals,”

Trisha Saxena, investor expert at Seraphim Space, said. It's “very early days,” she added, but it could “emerge as a prominent driver of the global tourism economy”, with strong demand already evident. Virgin

Galactic has already sold 800 tickets, albeit with an asking price of $450,000. ‘Cheaper’ options are available though, with US start-up World View offering reservations for its ‘stratospheric balloons’ at $50,000. Commercial space stations such as Voyager Space’s ‘Starlab’ hotel are also in the works.

Others are more sceptical. Will Lecky, director of consultancy Know.space, told City A.M. that in the near term, it

is “only going to be a niche activity in terms of its impact on the wider economy”, and paid for by the super-rich.

“If space tourism does come to the UK, we wouldn’t expect it to have a big aggregate UK economic impact… though it could have a positive impact in terms of jobs, skills, and investment at the local and regional level,” he explained, as well as “spur on new research and development”.

Think tank: Scrap energy price cap to boost competition and lower bills

NICHOLAS EARL

THE ENERGY price cap should be abolished because it is raising bills for customers and stifling competition in the market, according to a new report. It warns that the energy crisis and the regulator’s scramble to shore up the industry after the collapse of 30 suppliers has caused the price cap to shift away from its original purpose. The price cap was brought in as an emergency limit to prevent households that don’t switch regularly

from being punished with ultra-high bills from suppliers.

But research by think tank the Centre for Policy Studies reveals that for almost two years almost all tariffs have been priced at or just below the price-capped level, with no evidence this will change in the near future.

The think tank has called for a host of reforms, including ditching the price cap and bringing in a social tariff for vulnerable households.

Forecasters at energy research firm Cornwall Insight expect energy bills

Aramco profits drop to $30bn as oil prices fall

AP REPORTERS

SAUDI Arabia’s state-run oil giant Aramco made $30bn (£23.5bn) in profit in the second quarter – a near 40 per cent decline from the same period the previous year, which it attributed to lower crude oil prices.

Total sales stood at just over 400bn riyals (about £83bn), down from 562bn riyals in the second quarter of 2022.

In an earnings report filed with the Saudi stock exchange yesterday, Aramco said the decrease “mainly reflected the impact of lower crude oil prices and weakening refining and chemicals margins”.

Last week, Fortune magazine ranked Aramco, officially known as the Saudi Arabian Oil, the second biggest company in the world by revenue, behind only Walmart and ahead of Amazon and Apple.

That came after the oil company reported a profit of more than $160bn in 2022, the largest ever recorded by a publicly traded firm.

Those kinds of earnings will come

under heightened scrutiny later this year when the United Arab Emirates, another major oil producer, hosts annual UN climate talks aimed at getting the world to slash emissions and reduce its reliance on fossil fuels.

Aramco benefitted from a spike in oil prices last year caused by Russia’s invasion of Ukraine.

Internationally traded oil peaked at over $120 a barrel in June 2022 before settling in a range of $75 to

to stay historically elevated until at least the fourth quarter of 2024 and that the price cap –currently set at £2,074 per year by regulator Ofgem –will only fall marginally over the 12-15 months.

While this is well below the monster £4,279 per year price cap during the first quarter of 2023, it is still significantly above the £1,000-£1,200 norms before the domestic energy crisis and Russia’s invasion of Ukraine. City A.M. has approached Ofgem and the government for comment.

Experts expect energy bills to remain historically elevated until the end of 2024

Siemens sees €4.5bn loss over turbine issues

CHRISTOPH STEITZ AND ALEXANDER HÜBNER

SIEMENS Energy yesterday said problems recently unveiled at its wind turbine unit would cost it €2.2bn (£1.9bn), well short of worstcase estimates but still casting doubt over whether it will keep the struggling business.

The charges will inflate Siemens Energy’s net loss more than six-fold in 2023 to €4.5bn, the company said, as it published third-quarter results showing a record order backlog of €106bn due to strong demand.

Keir Starmer calls out Just Stop Oil’s demands as ‘contemptible’

$85 for much of the past year.

Saudi Arabia has repeatedly cut its oil production in recent months and pressed fellow Opec members to do the same in an attempt to push up prices in the face of weaker demand from China and rising interest rates aimed at combatting inflation.

The kingdom needs high oil prices to fund Vision 2030, a costly and wideranging plan to overhaul its economy and transform itself into a regional hub for business and tourism.

SIR KEIR STARMER has said Just Stop Oil’s demands to “turn off the taps in the North Sea” are “contemptible” and would lead to working people paying the price for the energy transition.

The Labour leader said the transition to net zero did not need to be an “ideological identity issue”, and that his approach would instead be “pragmatic” and “hard-headed.”

The protest group is calling for no new oil and gas licences in the North Sea, which is not dissimilar to Labour’s

position aside from the opposition’s recent pledge not to retroactively cancel agreed licences.

Writing in The Times, Starmer confirmed he would only ban the granting of new licences to explore oil and gas fields in the North Sea.

“We won’t revoke any licences issued by this government because, unlike them, we take investor certainty and legal obligations seriously,” he said.

The stance comes after energy secretary Grant Shapps has made persistent attempts to link Labour to the protest group.

The group also cut its sales outlook, and issued a new, lower profit outlook after withdrawing it in the wake of the disclosed issues, which include wrinkles in rotor blades and faulty gears at its newer onshore turbines.

The equipment and service provider to the power industry said only some of the 2,900 turbines of its most recent 4.X and 5.X models in the field were affected by the problems, but declined to provide a specific number.

Siemens Energy shocked markets in late June when it announced a wide set of problems at Siemens Gamesa, one of the world's biggest wind turbine makers, just weeks after it managed to fully acquire the business.

Its share price dropped to close down 1.8 per cent yesterday after the update.

Canadian pension giant shorting Severn Trent and United Utilities

NICHOLAS EARL WATER companies on the London Stock Exchange are being shorted by one of the world’s largest pension schemes, according to data from the Financial Conduct Authority (FCA).

The watchdog revealed that the Canada Pension Plan Investment Board (CPPI) – worth £336bn – has

accrued hefty bets against Severn Trent and United Utilities.

CPPI is currently the only investor with an outstanding short against United Utilities sufficient in size to require disclosure to the City regulator, and is one of only two funds that have bets disclosed against Severn Trent.

The UK’s water industry has faced

Reuters

severe scrutiny over its financial health after Thames Water scrambled for funds following a boardroom exodus, with the supplier buckling under the weight of £14bn of debts. Severn Trent shares have fallen 15 per cent since the start of May following the crisis, while United Utilities’ shares are down 10 per cent over the same period.

BATTERSEA’S REVAMP: FLOP OR NOT?

Almost 10 months on from its reopening as a shopping and leisure destination, Laura McGuire asks whether Battersea Power Station’s makeover has been a success

PRIOR to its completion, there were many grand plans drawn up to transform Battersea Power Station, including everything from a theme park to a football stadium.

But last October – and £9bn later –the industrial landmark finally opened its doors as a shopping centre and residential space.

Its grand architecture sets it apart from traditional London shopping centres, such as Westfield in Stratford.

Chief of the Battersea Power Station Development Company, Simon Murphy, told City A.M. that since opening nine months ago it has welcomed some

ANNOUNCEMENTS

7m visitors.

“From the very beginning of this regeneration project, it has been our aim to create a retail and leisure destination that offers something for everyone from small independents to high street and premium brands, which is demonstrated by the strong mix of British and international retailers that now call Battersea Power Station home.”

The centre’s restaurants have proven a hit, with an evening reservation at one of its most

LEGAL AND PUBLIC NOTICES

popular venues ‘Control Room B’ hard to come by –it is almost fully booked on Friday and Saturday for the next But while the destination has made an impressive start, it still has some way to go before it can compete with London’s leading retail destinations.

Westfield shopping centre in Stratford, for example, welcomes an average of 50m shoppers annually.

Looking at footfall data from Transport for London for the last week of July, Battersea Power Station tube station saw around 160,000 entries and exits. By comparison, Oxford Circus saw 945,000. Shepherd’s Bush tube station, which is right next to the other major Westfield shopping centre, saw some 267,000 entries and exits.

“Battersea Power Station has worked hard to position the scheme away from that of a traditional shopping centre,”

Jonathan De Mello, founder of JDM Retail, told City A.M.

But he said it “faces strong competition from the flagship retailing found in the West End, and quality retail offerings in

Norton Rose hires BNP Paribas senior lawyer

JAMES SILVER

NORTON ROSE has strengthened its litigation and disputes team in the capital with the hiring of a senior lawyer from BNP Paribas.

Alison Kellett will join the firm as a partner, having served as the French bank’s head of group dispute resolution for the UK, Ireland and the Nordics. Kellett, who was elected as the president of the Solicitors’

Disciplinary Tribunal in 2022, becoming the first woman to hold the position, said she was excited to join the firm’s highly talented team and work together with colleagues to help clients navigate their most complex issues”.

Patrick Bourke, head of litigation and disputes, Europe, Middle East and Asia at Norton Rose Fulbright, commented:

“We are delighted to welcome a lawyer of Alison’s calibre to the firm.”

Chelsea and Knightsbridge”. Luxury shops such as Rolex and Cartier fill the bottom floor of Battersea Power Station, but it only offers a handful of high street brands, such as Uniqlo and Zara.

One source familiar with Battersea’s development plans told City A.M. the lack of affordable shops risks holding it back.

“This is one of the problems at the moment, you go to have a mooch and actually [shoppers] are not buying the products at those shops,” they said. Its hesitancy to introduce more affordable shops could cost it dearly, as it works to compete with the rest of London’s top shopping destinations.

Corbyn who?

Khan relaxed about battle

DAVID HUGHES

SADIQ KHAN said he would not be surprised by Jeremy Corbyn running to be London Mayor because it is “the best job in the world”.

The Labour mayor appeared relaxed at the prospect of his party’s former leader standing as an independent in next year’s contest.

Khan told the PA news agency: “Last time I stood for mayor in 2021, I think there were 20 candidates, including Count Binface. So let’s wait and see how many people put their name forward.”

THE NOTE BOOK

Cause or correlation?

Either way, a charity worth supporting

Nick Hungerford (pictured), the well-liked and respected entrepreneur behind Nutmeg, passed away last month aged just 42.

Before he died, he and his wife set up a charity –Elizabeth’s Smile –named after his young daughter to help children remember they can smile through the grieving process. It reminded me of a startling fact about our politics. Almost half of prime ministers have lost a father before the age of 21; a third have lost a mother before the age of 22. It’s not just here.

In the US, a third of US presidents have lost a parent before the age of 30. Is it correlation or coincidence? I’d posit the former.

Losing a parent forces you to grow up quickly –maturing at an accelerated rate. It also leaves you with an early impression that time is finite, and you need to get on with making an impact in your life. And surely it does something to build resilience, too. One of life’s most challenging moments

HARDLY CHECKMATE

happening so early on can only toughen the ‘rhino skin’ you need to get on in politics. And finally, perhaps it makes you more compassionate and empathetic with other people –the ones you are trying to win votes from. Becoming the leader of a country is, after all, largely a coalition-building exercise. You have to get people to support you that wouldn’t naturally bend your way –and you need them to believe you’d be there for them when it really matters.

The loss of a parent not only means the loss of a supporter and adviser, it can also mean you lose access to a huge network, which can be particularly impactful in your formative years before you have an opportunity to build a professional one of your own. This is why the charity Elizabeth’s Smile is looking to build on its early work –and what a legacy that would be for Nick to leave behind in far more than just the tech and business world.

Rishi Sunak has taken a lot of social media stick for directing £500,000 of taxpayers’ cash to the Chess Federation. Don’t discount the importance of such a small amount, though. In a focus group I once sat in, one of the starkest things I remember someone saying was ‘what can i do for free on a Saturday afternoon? Nothing’. Small changes from the government can have a bigger impact than people think.

£ Last week, the CBI announced an events programme for the rest of the year: the big shock being that the annual conference has been pulled from the back-from-the-dead business group’s schedule. It’s not the only big day out to now be missing in action: the IoD’s Annual Convention used to be held at the Royal Albert Hall in front of 3,000 delegates, with speakers ranging from Uber founder Travis Kalanick to former US President Ronald Reagan. That, too, has gone by

Data attacks set to enter new era under ‘FraudGPT’

JESS JONES

A NEW BREED of AI models are “heralding an era of AI-enabled data attacks” on businesses, Darktrace VP of strategic cyber AI Nicole Carignan has warned.

Speaking to City A.M., Carnigan said data attacks will become “faster and harder to defend against in the next few years” as new AI systems make attacks more sophisticated.

Sold on the dark web, AI systems such as ‘FraudGPT’ and ‘WormGPT’ are designed to help cyber criminals write phishing emails, plan cyber attacks and craft malicious code with ease.

“They enable adversaries who are much less sophisticated to perform much more sophisticated attacks,” Carignan, who boasts 25 years of experience in cyber security, explained.

A study by British cyber security company Darktrace in April revealed a 135 per cent surge in phishing emails from January to February, coinciding with the widespread adoption of Chat GPT.

At the current rate of growth, global damage from cyberattacks is expected

A MAN ON THE MOVE

Speaking of events, I was at the Tony Blair Future of Britain conference last week (another prime minister who lost a parent all too early).

The conference had some stellar names lined up from the world of tech including Poppy Gustafsson from Darktrace.

the wayside. There is now not likely to be a premier business gathering event before the next UK general election –a striking thought. In a time when it’s never been easier to organise events, it seems to be getting more challenging to pull off the truly momentous. That’s a shame –for all the online content, nothing can replace the atmosphere of an electrifying speech that can change or inspire minds. It’s a big gap to fill: who will take the opportunity?

CAN I QUOTE YOU ON THAT?

Boredom has effectively been abolished

Columnist James Marriott on the rise of podcasts and entertainment more generally

A name that has not received as much prominent coverage yet though is Alex Kendall (pictured), the 20-something founder of Wayve who recently took Bill Gates out for a ride in an autonomous car around London.

We recorded an episode of Jimmy’s Jobs of the Future talking about how he built his prototype from his student bedroom, and how he and his flatmates took it for an early spin around the block.

It’s out today on Youtube or wherever you get your podcasts.

to amount to $10.5 trillion (£8.2 trillion) annually by 2025, according to a McKinsey survey.

Darktrace said global cross-industry professionals are witnessing an “uncontrollable rise” in fraudulent emails, with nearly one-third falling victim to phishing attempts.

While AI regulations are still being developed, Kunal Anand, chief of technology at cybersecurity solution company Imperva, argued data regulations “need more teeth”.

Fraudsters are now harnessing malicious AI systems in data attacks

Currently, UK companies can be fined up to four per cent of their annual revenue for mishandling data. However, Anand told City A.M. he thought companies should be penalised with more severe financial penalties, especially when customer data breaches are involved.

The warning comes after a rise of recent high scale data breaches have made headlines, involving the likes of Boots, British Airways and the BBC.

LSL Property Services warns over profit

ABY JOSE KOILPARAMBIL

LSL PROPERTY Services yesterday said it now expected the group’s annual profit to be “substantially lower” than previously forecast due to subdued activity in the British mortgage market.

The British housing sector is in the middle of a pronounced slowdown, as high mortgage costs and tight credit conditions eat into demand.

The Bank of England has raised interest rates 14 times in a row since December 2021 to 5.25 per

cent in its bid to tackle raging inflation, piling pressure on the property market.

The company, which provides services to mortgage intermediaries and estate agent franchisees, said it expected there would be lower levels of purchase and remortgaging activity than previously forecast for the second half of the year.

LSL said its performance in the six months to 30 June, particularly in its surveying and financial services division, was impacted by significant changes in the mortgage market.

The company has about 2,700 advisers and represents around 10 per cent of the total purchase and remortgage market in the UK.

The warning came on the same day new data was released showing house prices are falling across the UK.

According to Halifax, the average UK house price fell for the fourth month in a row in July, bringing prices down 2.4 per cent on an annual basis.

The south east reported the biggest decline, with prices down 3.9 per cent.

Where interesting people say interesting things. Today, it’s Jimmy McLoughlin, former No 10 advisor and now podcast host

Niger airspace shutdown forces carrier disruption

JOANNA PLUCINSKA

EUROPEAN carriers yesterday reported disruptions and suspended flights across the African continent after Niger’s junta closed its airspace. The junta yesterday braced for a response from the West African regional bloc after ignoring its deadline to reinstate the country’s ousted president or face the threat of

military intervention.

The disruption adds to a band of African airspace facing geopolitical disruptions including Libya and Sudan, with some flights facing up to 620 miles in detours. “The closure of Niger’s airspace dramatically widens the area over which most commercial flights between Europe and southern Africa cannot fly,” tracking service FlightRadar24 said in a blog post.

CITY of LONDON

The PLANNING ACTS and the Orders and Regulations made thereunder

This notice gives details of applications registered by the Department of The Built Environment

Code: FULL/FULMAJ/FULEIA/FULLR3 – Planning Permission; LBC – Listed Building

Toshiba hopes for green light as it pushes for take-private

MAKIKO YAMAZAKI

Russian firm looks to courts after sanctions

RUSKHIMALYANS, 50 per centowned by Russian gas giant Gazprom, has filed a lawsuit seeking 45.7bn roubles (£374m) from Italy’s Unicredit, a guarantor of a project held up by EU sanctions, Russian court documents show.

The court documents were filed at the Court of Arbitration of St Petersburg and the Leningrad Region. No other details were available and Unicredit did not immediately respond to a request for comment.

RusKhimAlyans, which is building a gas complex at the Baltic port of Ust-Luga, last month filed similar suits against Deutsche Bank and Commerzbank whose next hearings are in September and October, respectively.

Consent; TPO – Tree Preservation Order; OUTL – Outline Planning Permission London Metropolitan University, 84 Moorgate, London, EC2M 6SQ

23/00458/LBC

Installation of new internal and external (within the north and south lightwells) ducting at ground to roof level and associated works and plant installation in relation to the education use of the Grade II listed building.

512 Bunyan Court, Barbican, London, EC2Y 8DH

23/00596/LBC

replacing the existing kitchen and bathroom. A number of existing doors and associated frames will also be altered. It is proposed to install a

level will be accessed by a spiral staircase and will have a small en-suite shower/WC cubicle below it.

See the included design statement plus plans and elevations for more detail.

Hasilwood House, 60 - 64 Bishopsgate, London, EC2N 4AW

23/00684/FULL

Installation of 3 no. antennas on the roof of the building, the installation of a radio equipment cabinet and ancillary development thereto.

Hasilwood House, 60 - 64 Bishopsgate, London, EC2N 4AW

23/00685/LBC

Installation of 3 no. antennas on the roof of the building, the installation of a radio equipment cabinet and ancillary development thereto.

Paternoster Column, Paternoster Square, London

23/00694/FULL

To install Interactive Sculpture call Wild About Babies - November 2023 - November 2024

66-73 Shoe Lane, London, EC4A 3BQ

23/00732/FULL

Construction of 2no. building connections from 66-73 Shoe Lane to 1 New Street Square.

Half Moon Court, London, EC1A 7HF 23/00738/TCA

Pollard and pruning works to a London Plane Tree Cripplegate House, 1 Golden Lane, London, EC1Y 0RR

23/00746/LBC

Application under Section 19 of the Town and Country Planning (Conservation Areas and Listed Buildings) Act 1990 to vary condition 5 (approved drawings) of Listed Building Consent 22/00203/LBC for design changes including the rationalisation of the base design, relocation of details, and alterations to roof access equipment.

66-73 Shoe Lane, London, EC4A 3BQ

23/00758/FULL

Public realm improvements to the Athene Place courtyard.

Scottish Provident Building, 1 - 6 Lombard Street, London, EC3V 9AA

23/00759/LBC

The Scope of Works include; Strip out and refurbishment of Third Floor West a tea point and meeting rooms.

Installation of new secondary glazing across Third Floor West to compliment the fenestration of the heritage facade.

Installation of secondary steel work to support overhead services.

Installation of new MEPH services and suspended metal mesh and plasterboard ceilings.

71 Fenchurch Street, London, EC3M 4BR

23/00803/FULL

Removal of 4 no. roof lights and associated solar

30 - 32 Ludgate Hill, London, EC4M 7DR

23/00817/FULL

Conversion of existing commercial accommodation (Class E) to apart-hotel (Class C1), with associated internal and external alterations, waste and cycle stores, and replacement rooftop plant.

You may inspect copies of the application, the plans and any other documents submitted with it on-line or telephone 020 7332 1710.

Anyone who wishes to make representations about this application should do so online: Any observations must be received within a period of 21 days beginning with the date of this notice (unless otherwise stated) and will be taken into account in the consideration of this application.

In the event that an appeal against a decision of the Council proceeds by way of the expedited procedure, any representations made about the application will be passed to the Secretary of State and there will be no opportunity to make further representations.

JAPAN’s Toshiba yesterday said a $14bn (£10.9bn) tender offer to take the industrial conglomerate private will be launched today –an effort that will, if successful, buy out activist investors and return it to domestic hands.

Toshiba’s board initially said private

equity firm Japan Industrial Partners' 4,620 yen-per-share ($32.44) bid was too low to recommend to shareholders. But it later concluded the price was “fair” as there were no prospects of a higher offer amid unfavourable economic conditions. At least two-thirds of shareholders will need to tender their shares for the bid to succeed.

All three banks were among the guarantors on an engineering, procurement and construction (EPC) contract signed in 2021 by German industrial gases company Linde and Turkey’s Renaissance Heavy Industries with Gazprom and its partners for the Ust-Luga complex.

Linde notified the customer in May and June 2022 that it had suspended work. A Russian court has since frozen Linde’s assets.

WHO IS IN AND WHO IS OUT? ARE THERE ANY SHOCKS? MATT HARDY TAKES A LOOK PAGE 19

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SAME ACROSS

FTSE 100 subdued as US job figures fuel Fed rate hike speculation

LONDON’s FTSE 100 opened the week in sluggish fashion as investors take in fears across the pond that the Fed could hike rates again.

The capital’s premier blue chip index closed on 7,556.41 points yesterday, 0.11 per cent down, while the FTSE 250, which is more aligned with the domestic market, was also broadly flat on 0.25 per cent.

The biggest risers were Melrose and Rolls-Royce, up 2.27 and 1.7 per cent respectively. Meanwhile, Scottish Mortgage Investment Trust, down over two per cent, Anglo American PLC (down 1.87 per cent) and Unite Group (down 1.6 per cent) led London FTSE’s losses.

The subdued opening came after negative data from the US last week, where a further dip in unemployment has spurred concerns about another Federal Reserve rate hike.

“In essence there was something for everyone in Friday’s jobs report, weaker jobs growth, the unemployment rate inching lower, and robust wage growth,” said Michael Hewson, chief market analyst at CMC Markets UK.

“Ultimately it spoke to a resilient US economy, as well as a possible Fed pause in September, ahead of this week’s CPI report, although there are some on the FOMC who are still on the ‘more rate hikes to come’ line.”

Yesterday in the UK, the Recruitment and Employment Confederation said its placements index had fallen by four points to 42.4 in July, significantly down from its 55.3 score last year.

Recruitment group Page announced a special payout for shareholders, but “lower levels of confidence” proved hard to overcome, as the group’s profits plummeted by 45 per cent, pushing the firm to finish in the red.

Peel Hunt analysts rated Clarkson a ‘buy’ after the shipping services company reported interim results which beat estimates. It delivered a 20 per cent increase in revenues to £321.1m, while operating profit surged 16 per cent to £49.6m despite spot charter rates sinking for many vessel types. Analysts said the group is “ideally positioned for the green transition and digitisation”.

Analysts at Peel Hunt rated global manufacturing company Volex a ‘buy’ as their Murat Ticaret deal races to the finish line ahead of anticipations. Competition regulators have given the green light for the acquisition, set to close by end of August. Analysts upgraded their forecasts as a result, raising revenue two per cent and EPS three per cent.

THE BOARD “We are certainly seeing some pockets of weakness in the latest economic data, house prices are slowing and unemployment is edging higher, while wage growth is above core inflation, however the UK is not unique in seeing these same trends, as they are also being played out in European data.”

MICHAEL HEWSON, CMC MARKETS

Powerful real-time thought leadership, insights and news delivery mechanism fuelling the most up-to date reporting, adding critical context for decisions that require consciousness, education and thought leadership. JOIN THE CONVERSATION AND BECOME A PART OF ONE OF LONDON’S MOST TRUSTED NEWS SOURCES

In the real world, Ken really needs a job to feel fulfilled - just like the rest of us

times as much as a corresponding single point increase in inflation: the researchers call this phenomenon the “misery ratio”. Multiple studies have also drawn a link between suicide rates and unemployment – particularly for men.

The nature of your work matters too.

IN A scene that generated much mirth when first released as a teaser trailer, and which I can testify continues to please fans in cinema, Ken explains to Barbie that though it’s a “common misconception” that his job is surfer or lifeguard, “actually, my job, it’s just beach.”

Just beach. This is true tragicomedy – behind Ken’s smouldering plastic gaze, a howling internal waste stretches, a desolation for which we will see him desperately seek remedy over the course of the film. But the emptiness of Ken’s life mirrors that at the heart of all of Barbie Land.

Our heroine, Stereotypical Barbie, wakes up every day in her Barbie Dream House and then spends a fauxproductive day waving vigorously at and hanging out with other Barbies. This vapid existence is spiritually sustainable only because Stereotypical Barbie is fuelled by the knowledge that she and her kindred have achieved a feminist utopia for the women of the real world. When it begins to dawn on Barbie that this may not be the case, what passes for life in Barbie Land begins to lose its sheen. Perhaps, while watching Barbie or hearing about a world where every night is girls’ night, you felt a little

jealous. You thought about the time you sat in a damp seat on the tube (white jeans!) on your way to work, or remembered that it’s bin day, and that you promised Friend A you’d order Friend B’s birthday cake. There are people counting on you, tasks to be completed, obstacles to be negotiated: an alternate reality in which your biggest daily decision is picking out an outfit is not without charm. But the evidence is clear that just like Ken and Barbie, we too would eventually sicken and tire of living such a life. Certainly there is such a

thing as too much free time, with research suggesting that between two to five hours a day has a positive effect on wellbeing, and that more than five hours is likelier to actively decrease your happiness.

And even if you can’t quite believe me as your phone buzzes with yet another email alert, the link between happiness and having a job – no, beach doesn’t count – is strong.

Econometric analysis of European data shows that a single percentage point increase in the unemployment rate lowers wellbeing more than five

People aren’t lying to claim welfare, we really do have a systemic crisis of ill health

IT IS a tired story, dredged up time and time again to serve different purposes: people on benefits gaming the system. When Allegra Stratton, the erstwhile press secretary for Boris Johnson, was a journalist with the BBC, she accused a single mother of claiming benefits when she could simply live at home. This time, it’s Matthew Parris, the Times columnist who thinks our “mental health crisis” is not quite what it seems; and indeed is the result of a system which incentivises people to claim welfare at the expense of the taxpayer rather than seek gainful employment.

These arguments - and those that came before them - amount to nothing more than spurious nonsense. But they should draw our attention to the acute mental and physical health crisis facing our economy as well as the failings of the benefits system.

We have seen an increase in economic inactivity since the Covid-19 pandemic, but there is zero evidence that this because of people being lazy and attempting to game the system.

Rather, it is due to a rise in people being diagnosed with physical and mental health conditions meaning they themselves are unable to work and other people are forced to work fewer hours to care for them.

This is obviously a problem. We have seen businesses struggle to fill vacancies which in turn has hampered their productivity and exacerbated the cost of living crisis. Rather than blaming individuals and accusing them of being lazy fraudsters, we need to instead help people to get better and return to work.

Take mental health, for example.

Despite successive governments paying lip service to parity of esteem be-

tween mental and physical health provision, waiting lists are still far too long and provision is unacceptably poor for mental health treatment. For people across the economy, around 12 per cent of the work age population struggle with a mild to moderate mental health condition, according to the Office for National Statistics.

The situation is not much better for those struggling with physical health conditions. The NHS is still facing huge backlogs and the government still has no real plan for sorting out adult social care.

We also need to look at housing. Our homes can have a huge impact on our physical and mental health but too many people are living in crowded and poorly insulated flats owned by slum landlords. The country’s dysfunctional planning system means that many households are forced to spend a significant proportion of their incomes to live in one of these properties as it’s almost impossible to build new homes.

The benefits system itself also needs

to be reformed. The majority of people forced to rely on foodbanks are disabled with disabled people being three times more likely to face hunger than people without a disability. Poverty and hunger themselves make it even more difficult for people who are already struggling to work.

It is true we are in a vicious cycle where people become ill and are unable to work, and the fact of being out of the workforce can both make people more ill (often as a result of the ensuing poverty) and make it harder for them to return to the labour market. But the resulting burden on the taxpayer is not because of fraudsters.

Rather than blaming people struggling with sickness and disability, the government needs to radically reform health and social care and the benefits system in order to provide adequate and timely support to those who need it and help people back to work.

£ Ben Ramanauskas is an economist at Oxford University and former trade adviser

There is evidence that a wide range of factors influence the relationship between work and wellbeing, from the extent to which your job aligns with your values, to whether it gives you a sense of accomplishment and achievement. The Harvard Study of Adult Development – an extraordinary piece of longitudinal research that has been following its original cohort for eighty years – found a clear link between happiness and the chance to develop high-quality human connections in the workplace.

Beyond but perhaps including work, a study of three hundred Americans published in 2013 found that having a greater sense of self-reported purpose in life was predictive of faster recovery from exposure to negative stimuli in the form of a picture. We can see how for many of us, a job that we like, that we excel at, and where we are needed, provides that vital sense of purpose that may in turn lend us this resilience. Equally, it becomes clear how a life of pure leisure – in which we go unstimulated and are of no service to friends or loved ones – may pall and make us fragile. And whither then, for the man whose job is “beach”?

£ Phoebe Arslanagic-Wakefield is chair of Women in Think Tanks Forum and a columnist at City A.M.

£8 MILLION PRICE TAG

The Boris Johnson bar tab is still open, with the taxpayer footing an almost £8m bill for the former PM and other key witnesses at the Covid-19 inquiry. The cost of the examination of the pandemic has cost us £38m and is set to run up £100m by the time it closes in 2026.

Just like Ken and Barbie, we will sicken and tire of living a life only of leisure

LETTERS TO THE EDITOR

Our high street will be just fine

[Re: Retailers in trouble as 51 per cent of punters cut back on clothes shopping; July 31]

In her piece last week, Laura McGuire reports on the impact the cost-ofliving crisis has had on retail and hospitality, with consumers cutting spending and more outlets closing.

While there are clearly significant pressures on the high street, our research suggests growing businesses are more bullish about the outlook.

Indeed, three in five SME leaders are

forecasting increases in revenue for their businesses over the next 12 months, with two thirds (65 per cent) confident about the outlook for the economy.

Going out in the current cost-ofliving crisis is clearly more expensiveand consumers rightly expect more for this increased spend. But those businesses that have placed a razorsharp focus on delivering experiences that meet those enhanced expectations are certainly more optimistic about their prospects than the recent high street closures suggest.

RETIREE MISERY One in three Britons can’t afford comfortable retirement

right there - or my hologram will be. The weird future of your lifesize AI boss

THERE is something special about the moment when a tiny, colourful bird flies in front of you in a park or a forest, something from the world of poetry in the way it spreads its little wings and hangs in the air. I was recently reminded of that feeling while watching the hologram of a parrot flying in front of my face. Nature with a twist of AI is what we get served these days.

In a room in London Bridge, you can find yourself surrounded by holograms of not only birds but also cars and luxury rings. There’s even a holographic Barbie logo flashing up against a wall. It’s the showroom of Hypervsn, a company producing 3D solutions for retail and other clients. In the words of founder and chief exec Kiryl Chykeyuk, they are going one step further in creating immersive content that customers want to experience. “Digital content in the end it’s going to be almost indistinguishable from

Over a third of people do not believe they will be able to afford to retire in the UK - and would consider moving abroad for their twilight years, a study by Investing Reviews has found. More than half - 62.6 per cent - believe their pension is not enough to live on and will need extra income.

EXPLAINER-IN-BRIEF: ALL ABOARD THE BIBBY STOCKHOLM, SUNAK’S MIGRANT BARGE

The first asylum seekers boarded the Bibby Stockholm yesterday. The barge, located in Portland, was chosen by the government to host 500 men waiting for a decision on their asylum application.

The controversial plan has been plagued by delays - the first groups to arrive were expected much earlier in the summer, but worries over fire safety and security meant further checks were carried out.

The men will arrive in groups of

50 or so, to avoid an initial sense of overcrowding. The cabins are small, with bunk beds and ensuite bathrooms. Some rooms are bigger with two or three bunk beds in them. Security guards will be on the barge 24/7. Now that asylum seekers have effectively moved on the barge, the real test for government begins. They’ll have to prove that the plan works, that conditions are safe and that the strategy is better than housing people in hotels.

physical reality”, he says. It would all fit well in a Black Mirror episode. Hypervsn has an interesting life story, the brainchild of Chykeyuk and a friend while he was doing a PhD in machine learning at Cambridge. He started exploring the way our brain perceives things in 3D, and figured out that feeling of amazement - the same I felt while watching his digital parrotcould bring a lot of money to businesses. After participating in both Dragons’ Den and Richard Branson’s Pitch to Rich, the company is now a leader in its pioneering field, and it’s going one step further with holographic AI-powered humans.

The one they have in the showroom is called Luna, and she’s a beautiful blonde woman dressed in pink. She likes orange better though, or at least

that’s what she tells me. When asked whether she likes being a woman, she says she appreciates “the unique perspective and experiences that come with being a woman”. It was all getting a bit too real, until thankfully she confirmed she is only in “the virtual world” because she is a “computer program” without a “physical location”.

Chykeyuk says the digital human doesn’t have to be a blonde, attractive woman but can take any form. Even cartoon characters for a kids’ audience. These digital avatars are being deployed as customer assistance in banks, universities and shopping malls. They are powered by the same technology behind ChatGPT, plus a series of inputs that Hypervsn gives them to have specialised knowledge.

Chykeyuk says if we find an agreement on personal privacy, we could soon be in a world where a hologram welcomes you into your bank branch, calling you by name and asking you what you need.

One of their holograms is being used by a bank in Texas, another one by a university in Canada during open days. A hologram deployed in Slovakia had

tens of thousands of questions asked within months. “I don’t think all these people wanted to find out some information, I think it was a lot about experience”, says the founder.

With Hypervsn technology, you can even make a hologram of yourself. It only comes at the humble price of £35,000. But it saves you from going to that board meeting you so despise. Perfect for rich people who also happen to be shy.

There is no arguing that the technology behind all of this is impressive. And it’s true that for retail, with the digital high street replacing those in our city centers, experience is becoming more important than the product itself. If Zara still wants people to come down to their shops, it has to offer them something more - as it did in its flagship store in Paris replacing mannequins with augmented reality.

Chykeyuk says that people want augmented reality to have a body and a face. “People would like to see different digital people, they would like to talk to digital people”, he says. He might be right, but I still liked the parrot better than Luna.

I’ll be

In a room in London Bridge, you can have birds fly around your head - only they’re holograms

MOTORING

SPYDER THAT FLIES

The 718 Spyder RS is the ultimate Porsche Boxster and a glorious assault on the senses. Tim Pitt drives it

IN1973, Porsche introduced its first road car with an RS badge. Five hundred examples of the 911 Carrera 2.7 RS were needed to homologate the car for FIA Group 4 racing, but Porsche sold more than three times that amount. An icon was born. Every RS model since has followed broadly the same formula: more power, less weight, increased downforce and track-honed handling. But in 50 years, Porsche has never built a convertible Rennsport. Until now.

Ironically, the 718 Spyder RS also marks the end of an era, as the last mid-engined Porsche powered by an internal combustion engine. The next Boxster, due in 2025, will be fully electric. “With this project, the normal limits didn’t apply,” says Markus Atz, manager for Porsche GT cars. “We just went for it.”

The Spyder is essentially an open-air version of the Cayman GT4 RS, a car we awarded the full-house of five stars in 2022. Its 4.0-litre naturally aspirated engine drives the rear wheels via a sevenspeed PDK transmission. You also get adjustable ball-jointed suspension, a mechanical differential and sticky Michelin Cup 2 tyres. Oh, and a ducktail spoiler – just like the original ’73 RS.

The key differentiator, of course, is what’s above your head. Or indeed, what isn’t. The Cayman has air scoops in place of rear side windows, but the Spyder shifts them onto its haunches, meaning it required a bespoke roof. This stows neatly beneath the Speedster-style humps and weighs 16.5kg less than a regular Boxster’s electric hood. But it does make going al fresco more complicated…

Before I’m handed the key to a new

PORSCHE 718 SPYDER RS

PRICE: £125,499

POWER: 500HP

0-62MPH: 3.4SECS

TOP SPEED: 191MPH

FUEL ECONOMY: 21.7MPG

CO2 EMISSIONS: 294G/KM

718 Spyder RS, the first item on the agenda is 30 minutes of ‘folding top training’. With a German engineer guiding my every move, I unpop the poppers and clips for the rear window, fold it inside a bag in the boot, release the cables tensioning the top cover, roll up the fabric and release it from the windscreen rail. Phew. Then it starts raining and I tackle the whole process in reverse.

With 500hp from its racing-derived engine and a modest 1,410kg to shift, the 718 Spyder RS is almost supercarquick. Zero to 62mph takes 3.4 seconds and top speed is 191mph – achievable with the roof down, apparently. The dual-clutch PDK ’box is seamless when you’re cruising and brutally sharp when you raise your game. And the fun doesn’t stop until 9,000rpm.

The rain has stopped, thankfully, so I pull over to disassemble the Spyder’s roof (again) before heading into the Swabian hills. Now there is nothing between my ears and the carbon fibre intakes feeding the hungry flat-six. They snort, gasp and bellow like a caged animal inches from the nape of your neck, a metallic howl from the twin exhausts joining in as the revs soar. The onslaught of speed and sound feels dizzyingly intense.

Unlike some of its Rennsport relatives, though, the Spyder isn’t a set of stickers away from a starting grid. Its suspension is notably softer than a Cayman GT4 RS, remaining taut but composed over poor road surfaces (that will be most of the UK, then). Push harder and its mid-engined balance comes to the fore, with lucid steering, rabid throttle response and superb carbon-ceramic brakes to flatter your every input.

Make no mistake, the Spyder isn’t a multitasking daily-driver like a Boxster 4.0 GTS. This is a car to savour on Sunday mornings, when everyone else is asleep (they soon won’t be). A price tag of £125,499 is close to 911 GT3 territory, but this mould-breaking RS has a character all of its own.

Tim Pitt writes for motoringresearch.com

LOTUS LONDON OPENS AS THE CAPITAL’S ‘NEWEST TOURIST ATTRACTION’

LOTUSwas born in London 75 years ago, so this is a coming home moment,” says Niels de Gruijter. The director for Lotus Cars Europe is standing in front of a bright yellow Eletre SUV, speaking to the assembled press at Lotus London – a new flagship store, now open.

In truth, this stylish showcase for all things Lotus is a long way from the lock-up garage in Hornsey, where company founder Colin Chapman created his first car – a modified Austin Seven christened the Mark I – back in 1948.

Located at 73 Piccadilly, directly opposite The Ritz hotel, it’s more about ‘brand experience’ than selling cars, with a minimalist aesthetic,

‘the best coffee in Mayfair’ and a brand new Evija hypercar taking centre-stage.

Walk into Lotus London and you’re greeted by a huge, nine-metre screen, also visible to anyone waiting for a taxi outside The Ritz. Framed photographs from the marque’s history, including its innovative F1 cars, are displayed straight ahead on the ‘heritage wall’.

The Evija currently on display is one of eight Fittipaldi limited editions, in black and gold John Player Special livery, and it shares the ground floor with the rest of the Lotus range: the Emira coupe and Eletre SUV.

The ‘by invitation only’ downstairs area is where you can personalise

your new car, using trim samples and an incredibly detailed life-sized screen. We spent a very diverting 10 minutes configuring a purple Evija with a blue interior, but –thankfully, perhaps – didn’t have the requisite £2 million to order it.

If that sounds a bit steep, Lotus London also sells a range of branded merchandise, from KEF Lotus Edition home speakers (£7,000 a pair) to T-shirts and baseball caps.

Niels de Gruijter hopes the Mayfair site will become London’s newest tourist attraction, heading up a Lotus network that will expand to 35 UK dealers by 2025. It’s definitely worth a visit on a London day out –and the coffee is exceptional, too.

GOLF

Bryson 58 glass ceiling moment for LIV Golf

IT’S fair to say that LIV Golf has been the metaphorical banished sister of the traditional golf tours since its inception in 2021. It was cast aside, discarded and looked down upon by many on the DP World Tour and PGA Tour. But Sunday evening may have been the moment when LIV Golf shattered the golfing glass ceiling.

Bryson DeChambeau hit an astonishing 58 – 13 birdies and one bogey in a 12-under-par round – at Greenbrier to seal his first LIV Golf win.

It was a score that only five others have ever achieved professionally, and it led to a 54-hole score of 23-under-par.

Incredible.

When LIV Golf burst onto the scene as the noisy neighbour to the traditional tours, it was slapped down for being a money project – some would argue the Saudi Arabia-supported league still is.

Can Borthwick’s side challenge in France later this year, asks Matt Hardy

AND there we have it, England’s squad for next month’s Rugby World Cup in France. It has been named much earlier than any other northern hemisphere nation but it’s done and dusted, and it’s on head coach Steve Borthwick and England to make it work across the channel.

It is a mixed squad; experience against youth, shock inclusions versus shock exclusions and depth in some positions in contrast to lighter options elsewhere. It really does have it all. But can it win a World Cup? Well, only time will tell. So here are three takeaways from Borthwick’s 33-man squad.

MAJOR OUTS

When news filtered through on Sunday evening that England centre and 50-cap back Henry Slade was set to be dropped by Borthwick, reaction was mixed. Some thought it was a huge omission for England while others weren’t too bothered by the loss.

But what it shows is that Borthwick is making major moves this far out, and Slade isn’t alone.

Veteran winger Jonny May did not make it into the 33-man squad, while Alex Dombrandt – who had started every match under Borthwick in 2023 – was also dropped.

The head coach, then, isn’t entirely about sticking to his usual suspects and that suggests he could spring a few selection surprises during the World Cup next month.

YOUTH

At just 20 years of age, Racing 92 winger Henry Arundell is an exciting inclusion for Borthwick and England. He made his name in Toulon, scoring an end-to-end try for London Irish in the Challenge Cup before scoring for England with his first touch of the ball on the 2022 summer tour to Australia.

He is electric and exciting, and is a little bit of an unknown to the opposition. But he is not alone; Theo Dan, Saracens hooker, and Freddie Steward are among other youthful inclusions.

Youngsters are often fearless weapons in World Cups, but they also need managing – they simply cannot

When it saw a range of winners in its first season some said it wasn’t competitive enough.

And when it produced its first major winner – Brooks Koepka winning his fifth major at this year’s PGA Championship – many finally took notice.

Since that win by Koepka at Oak Hill, however, golf has started to participate in a chapter of happy families.

In early June a form of merger was announced between LIV, the PGA and the DP World Tour, whereby any new investment would first need to be refused by the Public Investment Fund before the sport looked elsewhere.

That huge conglomerate of sporting leagues hasn’t, though, stopped some

animosity towards LIV Golf, though its bigger critics – including Rory McIlroy – have softened their tone.

MAKE A MARK

So Sunday’s 58 by DeChambeau was more significant than many would have otherwise expected.

It was LIV Golf’s gotcha moment, where they demonstrated they have the quality and ability to stand on the same stage as the world’s two other major tours. It was never a question of names; DeChambeau, Phil Mickelson, Ian Poulter, Cameron Smith and Dustin Johnson all sit among the quality players on the LIV Golf tour. But it was a question of whether such

a radical change to the norms could have a lasting impact on the sport.

It has done that now.

LIV Golf can now stand on the golfing stage alongside its competitors – which it technically owns now – and be able to show there is extraordinary golf on the tour.

Sometimes names and variety in winners aren’t enough, so the sheer record matching performances just carry more. And

It was a first win on the LIV Golf circuit

ENGLAND WORLD CUP SQUAD:

behind DeChambeau at Greenbrier it was extremely close.

Chilean Mito Pereira finished second, six shots back, on 17-under-par while three players, including England’s Richard Bland were one shot back.

Six further players made the top 10 places, either solo or tied.

LIV Golf can shout and scream about itself now knowing others cannot bite back; they’ve developed a rebel competition where records are being broken. And that’s key.

LIV appears to be here to stay and, no matter what deal comes from the merger with the other tours, it’s going nowhere anytime soon. And maybe we should revel in that.

THE VERDICT

ENGLAND 33-MAN SQUAD FOR WORLD CUP

FORWARDS

4. THEO DAN, HOOKER

5. BEN EARL, FLANKER

6. ELLIS GENGE, PROP

7. JAMIE GEORGE, HOOKER

8. MARO ITOJE, LOCK

9. COURTNEY LAWES, LOCK

10. LEWIS LUDLAM, FLANKER

11. JOE MARLER, PROP

12. GEORGE MARTIN, LOCK

13. DAVE RIBBANS, LOCK

14. BEVAN RODD, PROP

15. KYLE SINCKLER, PROP

16. WILL STUART, PROP

18. JACK WALKER, HOOKER

19. JACK WILLIS, FLANKER BACKS

1. HENRY ARUNDELL, BACK THREE

2. DANNY CARE, SCRUM-HALF

3. ELLIOT DALY, UTILITY BACK

4. OWEN FARRELL, FLY-HALF

5. GEORGE FORD, FLY-HALF

6. OLLIE LAWRENCE, CENTRE

7. MAX MALINS, BACK THREE

8. JOE MARCHANT, UTILITY BACK

9. MARCUS SMITH, FLY-HALF

10. FREDDIE STEWARD, FULL-BACK

11. MANU TUILAGI, CENTRE

12. JACK VAN POORTVLIET, SCRUM-HALF

13.

14.

the only specialist No8 is risky and the inclusion of an exciting ball carrier such as Zach Mercer could have offered England a point of difference.

Likewise, the inclusion of turnover merchant Val Rapava-Ruskin or sniping No9 Alex Mitchell would have given the squad some layers.

Instead they look predictable and one dimensional. Borthwick said this week that he named the squad as early as he did to provide clarity, but he has picked players as the sole representatives in their positions who are just out of surgery. It baffles the mind.

So what can this England side do?

Well they have three warm-up games this month – against Wales, Ireland and Fiji – to remain fit before they head across the channel for the main event.

Then they take on Argentina in a huge clash in Marseille – where many are placing their chips on Los Pumas –before matches against Japan, Chile and Samoa.

Should England finish in the top two of Pool D and make it to the quarter-finals, they’re set to play one of Georgia, Australia, Wales, Fiji or Portugal.

So in what is a squad demonstrating mixed ability and a lack of outward ambition, it will be interesting to see what on Earth Borthwick and England can do in France next month.

It is not a squad to strike fear into any opposition side, but it is one which could – like in 2019 when Eddie Jones led England to the World cup final – go on a run towards glory.

DeChambeau feat was one which will make the rest of the golfing world take notice of new challenger, says Matt Hardy

SPORT

IOC ‘monitoring’ Iran and could ban regime from Olympics

EXCLUSIVE

MATT HARDY

THE International Olympic Committee (IOC) stands ready to ban Iranian athletes from competing at next year’s Olympic Games in Paris if human rights abuses in the country continue, City A.M. understands. With tensions in the nation between protestors and both the government and Islamic Revolutionary Guard Corps, athletes have been targeted by the regime.

Former national wrestler Navid Afkari was executed in 2020 by the Iranian regime in relation to an alleged murder, though the defence insisted the then 27year-old had done nothing wrong –they claim the former athlete was arrested after participating in protests against the government. Even former US President Donald Trump had called for Afkari’s pardon.

But the detentions have not stopped there. Former bronze medalist in youth wrestling Saman Pashaei was arrested 30 days ago without charge and boxer Mohammad Javad Vafaei Sani has been sentenced to death for his role in protests in 2020 over gas price hikes.

City A.M. understands that the IOC are following the situation in Iran and could yet change their policy on Iranians participating in the Olympics in

FOOTBALL

REACTION

England head coach Steve Borthwick names squad for Rugby World Cup

Paris next year.

The IOC and its president Thomas Bach have so far tried to stay out of political discussions, but did raise eyebrows when inferences were made that suggested Russians could be allowed to compete in the Olympics next summer – Ukraine and other countries have threatened an Olympic boycott.

When approached by City A.M., the IOC stated only that they continue to “monitor the situation very closely” and pointed to a statement from March which read: “The IOC reserves the right to take any action relating to the participation of the Iranian athletes”.

Amnesty Interna-

Lionesses overcome scare to make quarters

MATT HARDY

ENGLAND manager Sarina

Nigeria missed their opening spot kick attempt.

tional’s UK advocacy lead on Iran, Nina Navid, told City A.M. that athletes themselves cannot be punished for the state of the regime.

“The IOC must of course ensure the Olympics aren’t in any way complicit in human rights violations but banning Iranian athletes from competing at Paris 2024 would amount to punishing the athletes themselves, not the Iranian authorities,” she said. “[They] have seemingly singled out high-profile sporting figures in their draconian crackdown on protesters.”

The UK Government declined to comment on the matter.

Spurs reject Bayern’s €100m offer for international Kane

CITY A.M. REPORTER

TOTTENHAM Hotspur have reportedly rejected the latest Bayern Munich offer for star striker Harry Kane.

The German club are believed to have offered a package worth in excess of €100m (£86m) in what was their third tabled attempt at signing the England international but the two clubs are around £25m apart. The bid, made on Friday, was set to be the final one from the German side with the Bundesliga champions keen on having enough time to find another player should the offer fall through.

Kane could therefore feature for Tottenham Hotspur in their opening Premier League fixture of the season, away to Brentford on Sunday afternoon.

The striker, who has 58 goals for England in 84 appearances, is into the final year of his contract at Tottenham Hotspur having initially joined the north London club in 2009 and scored 280 goals since.

If Kane were to head to Germany, it would leave Tottenham Hotspur and new manager Ange Postecoglou short of firepower up front as the club look to find a way back into the Champions League.

Wiegman insisted she was not worried about her side’s progression chances despite the Lionesses needing to overcome a moment of madness by Lauren James and a goalless 120 minutes of football to beat Nigeria on penalties and reach to the quarter-finals of the Fifa Women’s World Cup. James was sent off for a stamp on Michelle Alozie in the 87th minute in a match Nigeria dominated.

But England rode out the rest of the regulation 90 before holding off Nigeria for the 30 minutes of extra-time.

England’s penalty taker Georgia Stanway fired her shot wide before

Then Bethany England, Rachel Daly and Chloe Kelly netted for the Lionesses while Nigeria could score just two successful penalties.

England will take on Colombia or Jamaica in the last eight.

“I don’t know what my heart rate is, I just know I’m 10 years’ older,” said manager Wiegman.

“I was not worried. It was a really intense game. Nigeria has done really well in the group stages so we were not underestimating them at all and they showed what a good team they were.

“We had trouble getting out of their press. We could do a little better but I also think we should give them credit.”

Nigeria manager Randy Waldrum said: “[The players] have been fantastic all tournament.

“We’ve played four matches, including against the Olympic gold medallists and the European champions and had clean sheets in those games.

“I’m so proud of them. They have such a bright future. The players came together in an unbelievable way.

“They just played their hearts out and I couldn’t be more proud of them.

“We can be and should be one of the top teams in the world. I think we have shown we’re capable of playing with anybody.”

England’s quarter-final will be on Saturday morning.

Borthwick names World Cup squad ahead of tournament

CITY A.M. REPORTER

STEVE Borthwick named his 33-man squad for the upcoming Rugby World Cup yesterday with Saracens’ Billy Vunipola the only specialist No8.

The England head coach named the bulldozing back-row, who has not played a match since April due to injury, alongside inclusions such as teammate Theo Dan and Harlequins centre Joe Marchant.

Henry Slade and Alex dombrandt, both experienced internationals, are the glaring omissions from the squad.

“Billy’s been fantastic in this training camp,” said Borthwick. “It’s been an opportunity to work with him and see

just how hard he’s worked to come back from his injury.

“He looks in great shape, he looks as fit as I’ve ever seen him, and his experience will add to this squad.”

“We believe this 33 has the right blend of experience and young, exciting talent, and also has the positional flexibility and playing combinations that we’ll require throughout the tournament.”

England take on Argentina in their World Cup opener on 9 September in Marseille before facing Japan, Samoa and Chile in their other Pool D fixtures.

£ ENGLAND ANALYSIS P19