BCG, Bain and Alvarez to ramp up entry level hiring despite AI fears
Three of the UK’s largest management consultancies are boosting the amount of young people and graduates they recruit this year amid sector-wide concern that AI will disrupt junior hiring. Both Bain & Co and Alvarez & Marsal’s UK bosses said they will be stepping up the amount of junior hires over the next few years [...]
Three of the UK’s largest management consultancies are boosting the amount of young people and graduates they recruit this year amid sector-wide concern that AI will disrupt junior hiring. Both Bain & Co and Alvarez & Marsal’s UK bosses said they will be stepping up the amount of junior hires over the next few years and believe AI will not impact junior consultants in spite of widespread fears it will. Managing partner of Big Three firm Bain & Co, Clare Gordon, told the Times that the company, which guides chief executives and boards on strategic planning and major deals, has increased its targets for recruitment twice this year already. Gordon said that graduate hiring would be 25 per cent higher than last year at the firm as Bain & Co “needs juniors working alongside more senior experts, so they can develop the judgment, the expertise, the pattern knowledge of how you drive change through organisations”. She added that this would see graduate hiring “well above pre-pandemic levels” and it would amount to “triple-digit numbers of graduates and junior hires up to consultant grade”. Alvarez & Marsal’s European Practice lead, Antonio Alvarez III, also said the firm plans to ramp up their graduate hiring over the years to come, and has set up talks with educational institutions in the US and Europe to set up graduate schemes. “We’re in the process of making some alliances with leading institutions. We’ve recruited on campuses before, more in the US, less so in Europe. But I think that’s where we’re going to need to go. I’m hiring more junior people — I actually need grads,” Alvarez said. Alongside Alvarez and Bain & Co, Big Three consulting giant Boston Consulting Group (BCG) also said the firm “plans to hire consistent if not slightly increased numbers this year”. Sector facing a reckoning with AI The consultancy sector for years has relied on a traditional model and profitable formula to stay afloat, but it is facing major disruption as many firms cut headcount because of AI reshaping how consultants work, especially juniors. There has been a lot of noise around the future of the junior consultant as the technology automates much of the grunt work juniors would traditionally be dealt – such as research and data analysis. Last summer, it was revealed that the Big Four giants began to cut hundreds of entry level jobs and majorly pulling back on graduate recruitment. Clients are also reshaping their expectations of firms and how much they charge for their services as AI is increasingly being used.
NATO military chief presses UK to accelerate defence pledges
Nato’s military chief has urged Britain and other allies to speed up the delivery of their defence pledges. Admiral Giuseppe Cavo Dragone, Nato’s military committee chair, said he is “frustrated” by the UK and its allies’ commitments to spend on defence which he said do not stand if there is no equipment to show for [...]
Nato’s military chief has urged Britain and other allies to speed up the delivery of their defence pledges. Admiral Giuseppe Cavo Dragone, Nato’s military committee chair, said he is “frustrated” by the UK and its allies’ commitments to spend on defence which he said do not stand if there is no equipment to show for it. Dragone added that he is “unsatisfied” with the empty defence promises. Prime minister Keir Starmer is believed to be weighing tax hikes to fund the long-delayed Defence Investment Plan (DIP), which is estimated to be providing between £15bn and £18bn of funding. Starmer’s proposals will be outlined in the DIP to meet his pledge to spend 3.5 per cent of GDP on core defence by 2035, a promise made at the Hague last year after pressure from President Trump to increase contributions to Nato’s collective defence. The DIP will outline how Starmer plans to meet his 3.5 per cent GDP defence spending target he pledged to hit by 2035. He promised the boost at the Hague last year after President Trump pressured allies to increase their Nato defence contributions. Defence secretary John Healey last month said defence investment is Starmer’s “highest priority” as officials await the DIP. Speaking at the Shangri-La defence summit in Singapore where international officials and military chiefs met to discuss issues, Dragone told The Sunday Times that the UK and other members of the alliance need to “speed up” defence mechanisms. “With percentages, with numbers, or even with dollars or euros, you don’t deter anybody. You deter someone with capabilities, which is the real delivery of hardware,” Dragone said. He added that nato needs “to get capabilities faster and faster, because time is against us”, and that in procurement, “we are late.” Margus Tsahkna, the Estonian foreign minister, also speaking to the Sunday Times, agreed with Dragone’s concerns. “The UK needs to, of course, increase defence spending. I think that unfortunately it won’t be the last drone we will see in Nato territory,” Tsahkna said. UK US military relationship ‘meaningless’ This follows US defence secretary of war Peter Hegseth on Saturday at the same summit claiming that European allies are “freeloading” off America and said the country’s relationship with the UK is “meaningless” unless it matches it’s military capabilities. “You can’t just say, ‘Oh, we’ve been friends for a long time, so let’s work together,’” Hegseth said. “It’s: ‘We’ve been friends for a long time, so you better have the same capabilities we do, because if we don’t, our alliance is meaningless,'” he added.
Ministers back SNP probe as Sturgeon refuses to apologise for Murrell
Two top government ministers have backed an inquiry into the SNP after its former chief executive Peter Murrell admitted to embezzling over £400,000 from the party. Shadow home secretary Chris Philp told the BBC’s Sunday With Laura Kuenssberg that there “should definitely be an inquiry because trust in politics has been fundamentally undermined by the [...]
Two top government ministers have backed an inquiry into the SNP after its former chief executive Peter Murrell admitted to embezzling over £400,000 from the party. Shadow home secretary Chris Philp told the BBC’s Sunday With Laura Kuenssberg that there “should definitely be an inquiry because trust in politics has been fundamentally undermined by the Scottish Nationalist chief executive stealing money from his own supporters.” “It’s right this is properly investigated because trust in politics has been undermined, and we need to get to the bottom of it,” Philp said. Philp added that Murrell’s ex-wife and former SNP party leader Nicola Sturgeon “has more questions to answer as well”. Work and pensions secretary Pat McFadden also told Kuenssberg this morning when asked if there should be an inquiry into the party over Murrell’s embezzlement that he supports the idea. “The SNP have been the dominant force in Scottish politics for 20 years, and that dominance has extended not just to politics but to society and culture, and it has been protected by a claim to virtue, which is often denied to those elsewhere in the UK, particularly to England,” McFadden said. The nationalist party’s current leader, John Swinney, has rejected calls for an investigation, but McFadden said Westminster should lead the probe for it to move ahead. McFadden told Times Radio this morning the SNP has “surrounded itself by this culture of secrecy and control.” “Scandal is something that touches all political parties. It’s touched my party, it will touch other parties. The only response to it is to publish everything, get it out of the door,” McFadden said. Murrell pled guilty at Edinburgh’s High Court on Monday last week where he admitted using “false or inaccurate accounting codes and descriptions for the purchase of said items” to “disguise the true nature of said purchases.” Sturgeon refuses to apologise ‘for somebody else’s crimes’ Sturgeon, also speaking to Laura Kuenssberg this morning, refused to apologise for her estranged husband’s crimes which she said were “somebody else’s”. “I will take responsibility for the things I do, the decisions I make. I’m sitting here with you right now, answering questions because I believe strongly in that accountability,” she said to Kuenssberg. “But I am not responsible for the crimes that my former husband committed and I’m not going to apologise for somebody else’s crimes.”
The Cabinet Office will not release a key document linking to Peter Mandelson’s vetting following police warnings that it could derail the ongoing investigation into the disgraced peer. Government officials will not release the summary document, complied by the UK Security Vetting Agency (UKSV), following advice from Scotland Yard that it could jeopordise prosecuting Mandelson [...]
The Cabinet Office will not release a key document linking to Peter Mandelson’s vetting following police warnings that it could derail the ongoing investigation into the disgraced peer. Government officials will not release the summary document, complied by the UK Security Vetting Agency (UKSV), following advice from Scotland Yard that it could jeopordise prosecuting Mandelson in future. The nine-page summary, which was pulled together before Mandelson’s appointment as british ambassador to the US, was due to be included in the second batch of files relating to the disgraced former politician which was scheduled to be released next week. However, a spokesperson for the Metropolitan Police said some documents should not be made public, according to the Times. “An investigation into alleged misconduct in public office is under way and it is vital due process is followed so that our criminal investigation and any potential prosecution is not compromised,” they said. The spokesperson added that the police force “are working with the Cabinet Office to review relevant documents provided to us by them.” “While complying with the Humble Address is a matter for government and parliament, we have asked the Cabinet Office not to make some documents public as they would have a detrimental impact on our investigation or any subsequent prosecution,” they said. Mandelson saga continues Arrested in February, Mandelson is still under active investigation after leaked emails suggested he shared sensitive government secrets with Jeffrey Epstein while serving under Gordon Brown’s government. At the beginning of the month, the Cabinet Office said the intelligence and security committee (ISC) had mutually agreed to redact parts of the summary so it could be published as part of the Mandelson files. In April, top civil servant in the foreign office, Sir Olly Robbins, was ousted after it had emerged the disgraced peer was denied clearance in a confidential security vetting process. This follows Mandelson in March demanding a £547,201 payout for the remainder of his time as UK ambassador to the US after being sacked, according to official documents.
Streeting suggests North Sea drilling and NI cuts in latest pitch
Former health secretary Wes Streeting has suggested cutting national insurance and issuing new North Sea oil drilling licenses as he continues to make his leadership pitch. In an interview with the Sunday Times, Streeting set out a series of policies ahead of a potential leadership contest expected within the coming months in Westminster, including drilling [...]
Former health secretary Wes Streeting has suggested cutting national insurance and issuing new North Sea oil drilling licenses as he continues to make his leadership pitch. In an interview with the Sunday Times, Streeting set out a series of policies ahead of a potential leadership contest expected within the coming months in Westminster, including drilling for oil and gas as he claims it would raise tax revenue. “We do have to take climate change globally much more seriously and go aggressively towards more renewable energy,” he said. He also backed his potential opponent Andy Burnham’s support for more devolution and a more regulated market as “a good pro-fairness thing to do”. ‘Targeted’ NI cuts Since leaving the cabinet just over two weeks ago and claiming he will challenge Kier Starmer in any leadership contest, Streeting has been steering away from the Labour parties policies. The former health secretary has already said the UK’s future relies on “one day” rejoining the European Union, and called for what he referred to as “wealth tax”. However, Streeting is now eyeing “targeted” cuts to National Insurance contributions to tackle unemployment amongst young people, reversing the move previously introduced by Rachel Reeves. “We have to make it easier for business to employ young people and for businesses to take that risk on someone,” Streeting said. “I think we should be thinking actively about how to incentivise, whether that’s through targeted reduction in employers’ National Insurance or other kinds of recruitment and retention incentives,” he said. This follows former health secretary Alan Milburn earlier this week publishing a review into the rising number of young people not in employment, education, or training – referred to as NEETS. Streeting’s suggestions echo those from former prime minister Sir Tony Blair in an essay published last week criticising some of Labour’s policies and accusing the Government of lacking a “coherent plan”. He told the Times that Labour had risen to power “underprepared” and “lacking any sort of intellectual curiosity”.
Manchester City and Spygate prove lawyer gulf is opening in football
In February 2023, Manchester City fans unfurled a banner at the Etihad Stadium bearing the words “Pannick on the streets of London”. This play on The Smiths’ 1986 song referred to Lord David Pannick KC, the barrister hired to spearhead the club’s defence against 115 charges for alleged breaches of the Premier League’s financial rules. [...]
In February 2023, Manchester City fans unfurled a banner at the Etihad Stadium bearing the words “Pannick on the streets of London”. This play on The Smiths’ 1986 song referred to Lord David Pannick KC, the barrister hired to spearhead the club’s defence against 115 charges for alleged breaches of the Premier League’s financial rules. Three years later, a verdict from an independent commission appointed under the Premier League’s Judicial Panel framework is now hotly anticipated. As one of a growing number of top-flight lawyers whose earnings could almost invite comparison with the Premier League stars themselves, Lord Pannick arguably exemplifies just how expensive football-related litigation has become. His instruction by Manchester City shows that the biggest battles in football are no longer fought solely on the pitch, and that the quality of legal firepower can matter as much as sporting performance. In the recent Spygate appeal, Southampton FC again turned to Lord Pannick and another silk from Blackstone Chambers, Kate Gallafent KC, to argue their case in front of the Disciplinary Commission of the English Football League. At issue was the Commission’s decision to expel the club from the Sky Bet Championship play-offs and impose a four-point deduction for spying on their opponents’ training. Pannick on the streets The quality of lawyers instructed in cases such as these highlights a growing divide: the richest clubs can afford to fight longer, spend harder and challenge every decision. Meanwhile, smaller clubs whose pockets are far less deep risk being left behind. It is well-documented that since the establishment of the Premier League in 1992, UK football clubs have been completely transformed from relatively modest domestic teams into multi-billion-pound global entertainment corporations. As broadcast revenues exploded, clubs diversified through huge commercial sponsorships, stadium makeovers and digital merchandising. But elite clubs are no longer just buying success on the pitch. They are also litigating to gain advantage off the pitch: and those with the deepest pockets are increasingly best placed to influence the rules, challenge enforcement decisions and, critically, absorb the cost of the fight. In this legal arms race where the richest clubs can litigate harder, longer and more aggressively than the rest, the total spend on litigation lawyers by the twenty clubs in the Premier League is not formally documented, although it is likely to run to many tens of millions of pounds each year. As a reference point, the Premier League recently revealed that it has spent more than £100m on legal fees over the past three seasons. According to reports this surge was driven by increased legal costs to enforce Profitability and Sustainability Rules (PSR) and defend against cases brought by clubs like Manchester City regarding Associated Party Transactions (APT). Battleground for lawyers The overall cost of disputes in football now extends far beyond fines being levied or points deducted, with clubs facing substantial bills for lawyers, independent experts, arbitrations and appeals. Against this background, many smaller clubs simply cannot compete in the legal stakes. They are therefore at risk of being priced out when seeking to lawyer up against football leagues, regulators or wealthier rival clubs. Ultimately, this creates a two-tier football system, where only the wealthiest can afford to fight every legal battle. As is so often the case when comparing the fate of wealthier football clubs with their less fortunate counterparts, the fans potentially suffer most. Legal costs look set to continue their inexorable rise, meaning that the fans themselves will ultimately pay the price. Matthew Kain is Chief Executive Officer at costs law firm Kain Knight.
‘Defining moment’: UK’s largest train operator enters public ownership
Ministers have hailed the nationalisation of the of the largest train franchise as a ‘defining moment’ as the government pushes forward with nationalising the railway. Transport secretary Heidi Alexander hailed the nationalisation of Govia Thameslink Railway (GTR), with its services accounting for one in six train journeys in the UK. Its four brands, Southern, Thameslink, [...]
Ministers have hailed the nationalisation of the of the largest train franchise as a ‘defining moment’ as the government pushes forward with nationalising the railway. Transport secretary Heidi Alexander hailed the nationalisation of Govia Thameslink Railway (GTR), with its services accounting for one in six train journeys in the UK. Its four brands, Southern, Thameslink, Great Northern and Gatwick Express, cover large areas of south-east England and beyond. Transport secretary, Heidi Alexander, said: “From this Sunday, millions of passengers across the South East and East of England will be travelling on rail services back in public hand, run for the public good, not private profit. “Bringing Britain’s largest train operator into public ownership is a defining moment in our reform of the railway.” Doubling down The Department for Transport has also doubled down on its commitment to double the frequency of Gatwick Express services between London Victoria and Gatwick Airport from December. This includes introducing more early morning services on Saturdays and Mondays from this summer. It also pledged to crackdown on graffiti in Thameslink train toilets, upgrade signalling between Farringdon and Blackfriars to cut delays. The department will also deploy 110 new travel safe officers to tackle anti-social behaviour across the network. Alexander added: “It gives us an opportunity to tackle the bread and butter issues people want, like driving down cancellations and improving the frequency of services to Gatwick Airport. “As we set up Great British Railways (GBR), we’re putting passengers first, fixing what’s broken, and delivering a railway people can rely on.” Creating GBR GBR will be a new public sector body bringing responsibility for tracks and trains under a single organisation for the first time since privatisation in the mid-1990s. Legislation to create GBR was included in the recent King’s Speech, with the first train displaying GBR branding was a Southern train being unveiled in Brighton earlier this month. GTR chief operating officer John Whitehurst said: “This is a railway that carries millions of people to work, to school, and to see friends and family every single day. “From this Sunday every one of them will be on a publicly owned service, which is a responsibility we take seriously and one we have been preparing for. “We have spent the past year building the foundations, and bringing even deeper integration into our operations with Network Rail, with a single focus on what’s right for our customers and communities. He added that public ownership gives GTR the chance “to go further to deliver the railway that millions of people across the South East deserve”. GTR is the fifth operator to enter public ownership, joining c2c, Greater Anglia, South Western Railway and West Midlands Trains. LNER, Northern, Southeastern and TransPennine Express were already nationalised when Labour came to power. Chiltern Railways’ services will be next to transfer on September 20, followed by Great Western Railways on December 13. The full public ownership programme is expected to be completed by the end of next year.
Trump yet to make ‘final determination’ on Iran war despite discussions
US president Donald Trump is yet to make his ‘final determination’ on the war in Iran, despite holding a meeting with advisers on Friday to reach a decision on extending the ceasefire. Trump is yet to decide whether to move forward with a deal to extend the Iran ceasefire and reopen the Strait of Hormuz, [...]
US president Donald Trump is yet to make his ‘final determination’ on the war in Iran, despite holding a meeting with advisers on Friday to reach a decision on extending the ceasefire. Trump is yet to decide whether to move forward with a deal to extend the Iran ceasefire and reopen the Strait of Hormuz, with Iran also noting that an agreement has not been finalised. A senior US administration official said the roughly two-hour meeting in the White House situation room with national security aides had concluded without a decision. The official, who was not authorised to comment publicly and spoke on condition of anonymity, said Trump would only sign a deal that “satisfies his redlines” and curbs Iran’s nuclear ambitions. Iran has 440.9kg of uranium that is enriched up to 60 per cent purity. This is only a short, technical step from weapons-grade levels of 90 per cent according to the International Atomic Energy Agency. The US wants Iran to give up the uranium, but Iran is still refusing to do so, with Trump repeatedly saying he does not want Tehran to have a nuclear weapon. Trump wrote on social media that “Iran must agree that they will never have a Nuclear Weapon or Bomb”. He also argued that the strait must be reopened for international navigation and all sea mines destroyed. Hegseth “quite confident” Despite the troubles to reach an agreement on certain topics, US defence secretary Pete Hegseth said he’s “quite confident” that Trump will secure a deal with Iran. Speaking in Singapore, Hegseth said: “Any deal that the president is willing to make, he’s only going to make what he believes is a great deal, for our country and the world… You saw it in how he’s been talking about it publicly.” He added that the “goalposts haven’t shifted at all”, claiming the closer Iran get to meeting US “expectations” the likelihood of a deal is clearer. Hegseth also said talks so far “have been productive”, but that the US military is prepared to resume operations in the Gulf region if required. “Betraying diplomacy” However, despite Hegseth claiming talks were progressing, an adviser to Iran’s supreme leader, Mojtaba Khamenei, accused Donald Trump of”betraying diplomacy for the third time” in his response to the current peace proposal. The adviser pointed towards the continuing US naval blockade enforced on Iran and what he described as excessive demands in negotiations. He also blamed the White House for the failure to create a concrete peace deal between the two nations. Another senior Iranian diplomat also told ISNA news agency that Iran’s draft for an initial agreement encompasses an end to the war on all fronts, the release of blocked Iranian assets and the lifting of the US naval blockade. Iran also want the Strait of Hormuz reopened alongside the withdrawal of US forces from Iran’s vicinity, and the freedom to sell Iranian oil.
Chaos at Heathrow as burst water pipe causes train cancellations
Passengers are facing major travel disruption travelling to and from Heathrow airport after a burst pipe ground train services to a halt earlier today. Transport for London said there were no services on the Elizabeth Line between Hayes and Harlington and Heathrow due to a signal failure caused by flooding at Heathrow Terminals 2 and 3. The Heathrow Express was also affected [...]
Passengers are facing major travel disruption travelling to and from Heathrow airport after a burst pipe ground train services to a halt earlier today. Transport for London said there were no services on the Elizabeth Line between Hayes and Harlington and Heathrow due to a signal failure caused by flooding at Heathrow Terminals 2 and 3. The Heathrow Express was also affected by the pipe troubles. There is also no Piccadilly line service to the airport due to planned engineering works. Heathrow Express posted on X: “Due to a significant incident outside of our control, there are currently no Heathrow Express services running. We are actively working to resolve the issue as quickly as possible.” Services are now beginning to resume on the Elizabeth line and Heathrow Express but the airport warned passengers to allow for extra time “due to the incident”. Half term chaos Families looking to travel for the half-term weekend found themeselves caught up in the disruption, with many passengers taking to social media to air their frustrations. One user on X said they were forced to take “two buses and a train” after finding the Elizabeth line flooded, while another was forced to go from Paddington via Reading on a bus. Another urged passengers to get taxis, claiming the replacements buses from TfL were failing to get passengers to the terminals. The user wrote: “Get a taxi. If you take a replacement bus as directed by Tfl you end up stranded at Heathrow Central bus station with NO internal transfer options. “It’s full meltdown here.” Heathrow airport is the busiest in the UK and Europe, and only last year it recorded its busiest-ever day, with more than a quarter of a million passengers passing through its four terminals on 1 August.
Neil Woodford criticises BP board for ousting ‘shouty’ chairman
Once-renowned investment manager Neil Woodford has criticised the BP board for ousting its ‘shouty’ chairman after less than a year in post. Woodford called out the oil giant’s board for removing Albert Manifold after just eight months in the job, noting that he is the third chairman the company has been through in three years, [...]
Once-renowned investment manager Neil Woodford has criticised the BP board for ousting its ‘shouty’ chairman after less than a year in post. Woodford called out the oil giant’s board for removing Albert Manifold after just eight months in the job, noting that he is the third chairman the company has been through in three years, claiming this makes BP look “ungovernable”. In a Linkedin post on Friday, Woodford said shareholders should look away from the churn at the top and instead at “who is doing the churning”, arguing people should focus on the decisions made by non-executive directors rather than the chairman himself. He said: “Most of the non-executive directors who pushed Manifold out have sat on that board throughout the entire period. “The same people who have hired and fired chairmen and chief executives in quick succession remain comfortably in place. “And the man they have just removed was the architect of BP’s turnaround strategy and the person who recruited the new chief executive in the first place. The board kept itself and discarded the one figure actually trying to change the business.” Contesting standards Woodford also contested the reasons for Manifold’s exit, claiming he was removed due to being a “bit dictatorial, a bit forceful, a bit too willing to drive change without waiting for the room to agree”. Woodford argued this is only a “sackable offence in a British boardroom”, with many American chief executives having these characteristics and staying in post. He added that the UK companies’ habit of not combining the role of chairman and chief executive also holds back growth, as “our governance regime frowns on it so heavily that no board would survive the shareholder resistance”. Woodford also argued that boards now spend “at least half their time” on governance and other matters that add “nothing to the value of the business”. He said: “The people charged with running genuinely complex, internationally significant companies are giving half their attention to exercises that create no value. “It is no wonder those companies underperform their international peers. We should not be surprised that an economy drowning in regulation has produced boardrooms that are drowning in it too.” BP troubles Manifold was ousted earlier this week by the oil giant, with the company claiming there were “serious concerns” about his conduct. Albert Manifold was stripped of his roles as chair and director of the London-listed petrochemicals giant having only taken the reins last July, with director Amanda Blanc saying the board had unearthed several cases of serious misconduct during his tenure. The ousting was reportedly on account of his “volcanic” temper towards colleagues, which stretched to verbal abuse and bullying, leading the share price to fall sharply in the immediate aftermath before losses were pared back. The decision extends a period of top brass turmoil at BP, which pushed out its previous chair Helge Lund just 10 months ago over concerns about his ability to oversee the energy giant’s re-embrace of petrochemicals. Despite the volatility, BP’s share price has jumped 18.2 per cent since January, as the group capitalised on the oil price shocks caused by the Iran conflict. Shares closed at 517.7p on Friday.
Easyjet attracts takeover interest from US private credit firm
Budget airline carrier Easyjet has drawn takeover interest from private credit firm Castlelake, which could make the airline the latest UK-listed company to be snatched off the stock market. Castlelake said it was in the “early stages of considering a possible offer” for Easyjet on Friday, but was yet to approach the company’s board. The [...]
Budget airline carrier Easyjet has drawn takeover interest from private credit firm Castlelake, which could make the airline the latest UK-listed company to be snatched off the stock market. Castlelake said it was in the “early stages of considering a possible offer” for Easyjet on Friday, but was yet to approach the company’s board. The firm, which is majority owned by Brookfield Asset Management. also cautioned that there was no certainty it would make a bid for the group. Under UK takeover regulations, Castlelake faces a June 26 deadline to make a firm bid or walk away. Castlelake and aviation US based Castlekale has roughly $36bn in assets under management, and has become a significant lender to the aviation industry over the past two decades. it has leased planes too carriers including Delta and Qatar Airways. The firm also took a significant stake in Scandavian airline group SAS after its Chapter 11 bankruptcy in 2023, alongside Air France-KLM, but has since sold the holding. It also held talks with Spirit Airlines earlier this year, as the US budget carrier scrambled to secure a buyer before it went into bankruptcy, but it ultimately declined to move forward with a deal. Easyjet blues The Luton-based airline has seen it’s share price languish in recent years, as customers shifted towards other budget carriers including Ryanair and Wizzair. Shares have fallen by more than a third over the past year, and lost more than half their value over the last five years. Its shares closed on Friday at 398p, giving it a market value of roughly £3bn. The airline is also bracing for a continuing difficult year, with jet fuel prices doubling after US strikes on crucial oil fields in the Gulf. Oil prices were also sent surging after Iranian forces closed the Strait of Hormuz, clogging a fifth of the world’s oil supply. In April Easyjet said it would lose £540m to £560m for the six months to the end of March, compared with a £394m loss for the same period a year earlier.
Burnham would end asylum hotel contracts if he was PM, allies say
Andy Burnham would end the multibillion-pound asylum accommodation contracts if he became prime minister, according to allies of the Labour leadership hopeful. Since March, the Home Office has had the opportunity to trigger a break clause in the ten-year contracts it signed with three private companies which are responsible for sourcing accommodation. The clause allows [...]
Andy Burnham would end the multibillion-pound asylum accommodation contracts if he became prime minister, according to allies of the Labour leadership hopeful. Since March, the Home Office has had the opportunity to trigger a break clause in the ten-year contracts it signed with three private companies which are responsible for sourcing accommodation. The clause allows the Whitehall department to negotiate or cancel them altogether at any point between now and 2029, when they expire. According to reports in The Times, allies of Burnham have said he is “very committed” to ending the use of private companies to source asylum accommodation and would activate the break clause if he replaced Starmer and entered No 10. Burnham would instead devolve the responsibility for sourcing accommodation to local authorities with asylum seekers instead housed in dispersal accommodation. This includes bedsits and multi-occupancy homes. But it is unclear if the Makerfield by-election candidate would continue the policy of home secretary Shabana Mahmood, of moving migrants into large sites such as military barracks. Mahmood is not reportedly considering triggering the break clauses, despite being said to have agreed that they are “terrible”, because of the lack of alternative options and the belief the government can end the use of hotels within the current contracts. Ending the use of hotels is a Labour manifesto commitment to be met by 2029. Burnham’s views A spokesperson for Burnham told The Times that he believed “hugely profitable outsourced contracts” was “not the basis for a fair asylum system”. They added that Burnham “stands by his view” and that he has been clear the current situation is “not fair on communities here and need to change”. Last year, Burnham called out the Home Office’s handling of asylum accommodation, arguing the use of hotels was “not acceptable” and “real change” was necessary. He also called the manner in which the Home Office dismissed concerns of members of the public living near migrant hotels”scandalous”. But a source involved in the provision of asylum accommodation questioned whether Burnham’s approach would work. This is because many councils were struggling with finding temporary accommodation provision for other people in need such as the homeless and newly released prisoners. The contracts The contracts with Serco, Mears and Clearsprings Ready Homes were signed in 2019 when almost all asylum seekers were housed in dispersal accommodation. But a report by the home affairs committee earlier this year said that the “flawed contract design” allowed contractors to house increasing numbers of asylum seekers in hotels rather than the cheaper dispersal accommodation. This meant that the practice of accommodating asylum seekers in hotels became permanent following the Covid pandemic and hit its peak in 2023, with 56,042 being housed in hotel rooms. The numbers have since more than halved, with the latest figures detailing that 20,885 asylum seekers were living in hotels at the end of March. The Home Office said it had no plans to trigger the break clauses in the three contracts but was firmly committed to ending the use of hotels before 2029.
Universal Music rejects Bill Ackman’s $65bn takeover bid
Universal Music’s board has rejected billionaire Bill Ackman’s takeover proposal, arguing it “materially undervalues” the company and is ultimately not in the best interest of shareholders or artists. The company’s board unanimously rejected the $65bn (£48.3bn) proposal from Ackman’s Pershing Square Capital on Friday, as it offered to buy the world’s largest record company last [...]
Universal Music’s board has rejected billionaire Bill Ackman’s takeover proposal, arguing it “materially undervalues” the company and is ultimately not in the best interest of shareholders or artists. The company’s board unanimously rejected the $65bn (£48.3bn) proposal from Ackman’s Pershing Square Capital on Friday, as it offered to buy the world’s largest record company last month. Pershing Square proposed a cash and stock offer through its acquisition vehicle, valuing the company at roughly €30.4 (£26.3) per share. The deal would have merged Universal with a blank-cheque company. In a statement on Friday, Universal said: “The board has rejected the proposal because it fundamentally and materially undervalues UMG and will not deliver superior value creation. “The Board has heard from many of UMG’s shareholders and other stakeholders and believes there is a strong consensus supporting the Board’s decision.” Universal’s largest individual shareholder, Bollore, also urged the board to reject Ackman’s offer. The company, which is linked to artists such as Taylor Swift and Kendrick Lamar, also noted recent plans to expand its share buyback programme and sell half of its stake to streaming giant Spotify, which remain “under continuous review”. Universal struggles But the company has seen its shares struggle in recent years, falling behind the broader market, with the group’s share price down over 20 per cent in the last year. Ackman argued moving its listing from Amsterdam to New York would help boost its value, with Pershing also wanting the group to dispose of its entire Spotify holding, which is valued at about £1.3bn. Despite listing in 2021, Ackman told investors that Universal had “never graduated from being a private company”. He said: “Since UMG’s listing, Sir Lucian Grainge and the company’s management have done an excellent job nurturing and continuing to build a world-class artist roster and generating strong business performance. “However, UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business and importantly, all of them can be addressed with this transaction.” Ackman’s proposal would have required the approval of two-thirds of Universal’s shareholders voting at a meeting, with the hedge fund manager last month saying he was confident of securing the needed support. But the decision of Bollore to urge the board to reject dealt a swift blow to Ackman’s plans, with chief executive Cyrille Bollore, saying he did not think the deal would “be positive for the company”. Looking forward Sir Lucian Grainge, chairman and chief executive of Universal Music Group, said: We remain committed to leading the industry by attracting the world’s top talent, deepening fan engagement globally, and driving innovation. “As we execute our strategy and deliver maximum long term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business.” Pershing Square holdings took a 10 per cent stake in UMG in 2021, shortly before it floated in Amsterdam with a €46bn valuation, with Ackman serving on the board until last year. Pershing Square was contacted for comment.
How do professional footballers keep their divorces private?
For footballers and other high-profile athletes, relationship breakdown may start as a personal matter, but where there is fame, wealth, public interest and commercial pressure, it can quickly become something much larger. A messy divorce can dominate headlines, distract from performance, and affect relationships with clubs, sponsors, agents and other commercial partners. The risks are [...]
For footballers and other high-profile athletes, relationship breakdown may start as a personal matter, but where there is fame, wealth, public interest and commercial pressure, it can quickly become something much larger. A messy divorce can dominate headlines, distract from performance, and affect relationships with clubs, sponsors, agents and other commercial partners. The risks are particularly acute in professional sport because an athlete’s public image is often part of their commercial value. Sponsorships, ambassadorial roles and club relationships may depend not only on performance, but also on off-pitch behaviour and brand fit. A private rift that becomes an acrimonious public spat can therefore have consequences far beyond the courtroom. Building a strong squad When a crisis goes public, a joined-up approach is vital. A sportsperson’s team of advisers could include a family lawyer, reputation management lawyer, publicist and even digital investigators to deal with media enquiries, prevent paparazzi intrusion, and address the misuse of private information, such as leaked photos or videos. A coordinated response matters: statements to the press, social media posts and steps taken in legal proceedings can all impact each other. Where there is an international angle, trusted overseas advisers should be brought on board sooner rather than later to advise on differences in publication, defamation and privacy laws. There is little point in shutting down a story successfully in one country, only to have it published in full in another. Swift steps may also need to be taken to secure divorce jurisdiction in the sportsperson’s preferred country, as financial outcomes can vary dramatically between countries. For athletes with global profiles, or connections to more than one country, this must be factored into the approach from the outset. Speed matters, but so does judgement. The aim is usually to reduce the temperature, protect privacy, and prevent the dispute becoming more damaging than it needs to be. That may mean seeking to stop publication of a story, correcting inaccuracies or agreeing a short, controlled statement. In other cases, the best course may be to say very little publicly, while dealing firmly with the legal and practical issues behind the scenes. The best defence is early planning Where allegations of domestic abuse, coercive behaviour, harassment, or the threatened misuse of intimate material arise, urgent applications to the Family Court for protective orders may be required. Whether the sportsperson in question is seeking protection or responding to allegations made against them, any emergency proceedings need to be handled carefully and in coordination with the wider legal and communications strategy. The best time to manage the risks of a messy divorce is well before the relationship is in crisis. For footballers and others in the public eye, pre-nuptial and post-nuptial agreements are much more than just wealth protection tools. A well-drafted “pre-nup” or “post-nup” will set out a framework for what happens if the relationship ends, reducing the risk of a dispute becoming hostile, prolonged or public. That can be particularly important where there are very substantial earnings and commercial interests at stake. Pre-nups and post-nups can also include confidentiality clauses restricting the other party from sharing any private information, including family photographs, messages and financial details. They can set expectations around the use of social media and require that any public statements are agreed jointly. Where there are children, provisions can also be directed at protecting their privacy and reducing the risk of the children being drawn into any media coverage. Divorce on the table For unmarried couples, cohabitation agreements perform a similar role. Although there is no “common law marriage” in England and Wales, disputes can still arise around property ownership at the end of a relationship. Like pre-nups and post-nups, cohabitation agreements can clarify property ownership arrangements and expectations if the couple splits. They can also include confidentiality provisions where a partner has access to sensitive information. Keeping disputes away from the courts should also be considered at the outset. Mediation and arbitration clauses are increasingly the norm in pre-nups, post-nups and cohabitation agreements, ensuring that any future dispute is resolved in an entirely private forum, rather than in a court room. There has been a shift towards greater transparency in the Family Court system in recent years, prompting more high-profile couples to turn to non-court dispute resolution when they separate. For professional footballers and other athletes, the lesson is simple: preparation matters off the pitch as much as on it. The right planning cannot avoid the pain of relationship breakdown, but it can reduce the risk of a private conflict becoming a public spectacle. In a world where reputation, performance and commercial value are closely intertwined, that preparation can make all the difference. Caroline Holley and Oliver Lock are partners at law firm Farrer & Co
Fortegra Completes Acquisition by DB Insurance
The Fortegra Group, Inc. (“Fortegra”), a global specialty insurance company, today announced the completion of its acquisition by DB Insurance Co., Ltd. (“DB”), one of Korea’s leading property and casualty insurers. The transaction, announced on September 26, 2025, received all required regulatory and stockholder approvals. Fortegra will operate independently, maintaining its existing leadership team, distribution [...]
The Fortegra Group, Inc. (“Fortegra”), a global specialty insurance company, today announced the completion of its acquisition by DB Insurance Co., Ltd. (“DB”), one of Korea’s leading property and casualty insurers. The transaction, announced on September 26, 2025, received all required regulatory and stockholder approvals. Fortegra will operate independently, maintaining its existing leadership team, distribution relationships, and underwriting discipline. Agents, distribution partners, and customers will continue to experience the service excellence that has defined the Fortegra experience. Richard Kahlbaugh, Chairman and CEO of Fortegra, said: “Every company eventually changes ownership. That is the nature of business. The closing of this acquisition is a starting point. As part of DB Insurance, Fortegra is positioned to expand our business geographically, enhance our capabilities and deepen our market presence in the US, Europe, the United Kingdom and Asia. Together, DB Insurance and Fortegra intend to build a recognized leader in the global specialty insurance market.” About Fortegra For more than 45 years, Fortegra, via its subsidiaries, has underwritten risk management solutions that help people and businesses succeed in the face of uncertainty. As a multinational specialty insurer whose insurance subsidiaries have an A.M. Best Financial Strength Rating of A- (Excellent) and an A.M. Best Financial Size Category of ‘X’, we offer a diverse set of admitted and excess and surplus lines insurance products and warranty solutions. For more information: www.fortegra.com. About DB Insurance For more than six decades, DB Insurance Co., Ltd. has built a strong foundation as one of Korea’s leading insurers, protecting individuals and businesses while driving the advancement of the nation’s insurance industry. Founded in 1962 as Korea’s first public automobile insurer, the company adopted the name DB Insurance in 2017 to embody its vision of becoming a global insurance group. With an A.M. Best Financial Strength Rating of A+ (Superior) with Financial Size Category of ‘XV’ and S&P Rating A+ (Stable), DB Insurance provides a comprehensive portfolio of general, long-term, and automobile insurance, along with a broad range of financial services through its subsidiaries in life insurance, securities, savings banking, and asset management. For more information: www.idbins.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260528048583/en/ Contact Vijaya Singh vsingh@fortegra.com Katie Butler Katie@Aartrijk.com Company Logo
Training Maestro Size set for profitable Sunday at Sha Tin
13-TIME champion trainer John Size could be the man to follow when racing gets underway with an 11-race programme, including a couple of Group Three contests at Sha Tin in Hong Kong on Sunday. Size seems to have dropped off the radar with regards winning the trainers’ title race and currently lies 10 winners behind [...]
13-TIME champion trainer John Size could be the man to follow when racing gets underway with an 11-race programme, including a couple of Group Three contests at Sha Tin in Hong Kong on Sunday. Size seems to have dropped off the radar with regards winning the trainers’ title race and currently lies 10 winners behind leading duo Caspar Fownes and Danny Shum. The master trainer has always downplayed his chances of gaining another title, but there are still 13 race-meetings left in the season, and with the strong firepower within his stable, there is plenty of time to bounce back to form with trebles or even more before the season ends. Size sends out the heavy artillery this weekend. Nine of his gallopers go at Sha Tin, including the hugely exciting prospect SKY JEWELLERY in the Group Three Lion Rock Trophy Handicap (9.05am) over a mile. The four-year-old suffered a serious health issue before the end of last year and needed all of Size’s kid glove treatment and expertise to get him back in tip top condition. Two wins, including the Class Two Members Cup Handicap over the course and distance earlier this month, suggest he is back firing on all cylinders, and from his present mark in the handicap, he should be hard to beat. The stable should have already got on the scoresheet, with talented former Irish import RED MAESTRO who looks set to score his first success in the seven-furlong Hakka Cup Handicap (8.05am). Size has always had a lot of time for this son of Ten Sovereigns and even sent him for seven trials before he made his debut in March. He reappeared again early this month, with an eye-catching performance, chasing home useful Baby Sakura over the course and distance and should now be cherry-ripe to reward his trainer’s patience. Stable companion CROSSBORDERPEGASUS can defy top-weight in the six-furlong Hong Kong Ka Ying (Meizhou) General Chamber of Commerce Cup Handicap (11.20am). Despite winning three times in his eight-race career, the Australian import has cost bettors plenty with his quirky habits during races on many occasions. He has, however, looked better behaved recently and his recent performances against progressive, recent winner My Mars suggests that he has plenty in hand over his rivals. POINTERS Red Maestro 8.05am Sha Tin Sky Jewellery 9.05am Sha Tin Crossborderpegasus 11.20am Sha Tin
Trust in Patch to deliver the goods at Sha Tin
WITH the form book suggesting there is little to choose between the majority of the 10 contenders lining-up for the six-furlong Group Three Sha Tin Vase Handicap (10.10am), racing fans can expect a nail-biting finish. Top-weight Raging Blizzard has raced with distinction on the last six occasions behind the fastest horse on the planet Ka [...]
WITH the form book suggesting there is little to choose between the majority of the 10 contenders lining-up for the six-furlong Group Three Sha Tin Vase Handicap (10.10am), racing fans can expect a nail-biting finish. Top-weight Raging Blizzard has raced with distinction on the last six occasions behind the fastest horse on the planet Ka Ying Rising. He finally comes out of his shadows, but has an awkward draw, and will probably have to sit at the back of the field. Despite his blistering turn of foot in the closing stages, the fact he will be conceding weight and likely giving a start to some smart performers sets him a stiff task. It is a similar scenario for Crimson Flash, who despite regularly producing fast closing sectional times, is lumbered with an outside gate and will need to pass many of his rivals when making his charge for glory. With renowned front-runner Beauty Waves likely to set a searching early pace, PATCH OF STARS from the inside gate one is likely to get all the favours in this fiercely competitive handicap and his draw could prove decisive. His recent form when outpointing rivals such as Crimson Flash and Lucky With You reads well, and with past statistics pointing to gallopers with low handicap marks faring best, he could be hard to beat. Consistent Invincible Shield can never be discounted in this company. However, he has a tendency to start slowly which tempers enthusiasm. A better alternative is the Caspar Fownes-trained SKY TRUST, who is always likely to pop up at decent odds. You can ignore his latest form at Happy Valley as he has never won around the tight turning track, but his course and distance form reads well with three wins to his name. With the stable and jockey Joao Moreira presently in top form, he is capable of out running his odds. POINTERS Patch Of Stars 10.10am Sha Tin Sky Trust e/w 10.10am Sha Tin
Iran and Russia to target Fifa World Cup, threat experts say
Russia and Iran rogue actors will target the Fifa World Cup as part of an ongoing anti-US position, according to global threat intelligence experts. This year’s World Cup – taking place across the United States, Canada and Mexico – is likely to be subject to a number of acts of cyber terrorism, while the use [...]
Russia and Iran rogue actors will target the Fifa World Cup as part of an ongoing anti-US position, according to global threat intelligence experts. This year’s World Cup – taking place across the United States, Canada and Mexico – is likely to be subject to a number of acts of cyber terrorism, while the use of drones could fuel domestic, physical terrorism. But security experts have told City AM that rogue actors from both Iran and Russia are likely to increase the number of cyber attacks they’re carrying out. Unit 42’s “Discussing the world’s biggest game’s attack surface” report stated that Russia-linked hack accounts have targeted NATO members and events such as the Ukraine Peace Summit and Paris and Milan Olympic Games. Two of the three World Cup hosts are members of NATO. Iranian hackers have reportedly been targeting “small municipal authorities” which could impact “water, wastewater and energy infrastructure” across host cities. Hack threat at World Cup Unit 42’s Justin Moore told City AM that “geopolitical tensions mean we are monitoring active interest from state-backed and proxy threat actors”, adding that, “Russia may have been banned from competition, but it’s been running cyber interference in global sport since long before Ukraine”. “Similarly,” Moore added, “from destructive attacks to disinformation, Iran is running a full campaign, and the World Cup could be a target given the highly volatile geopolitical climate.” It is another concern for a World Cup that begins next month but has seen controversy over immigration, visas, tickets, transport and geopolitical stances. Iran will be competing in the World Cup despite the ongoing conflict in the Middle East, with their matches slated for the West Coast of the United States. Russia is banned from the tournament but President Trump did tout their return earlier on in the World Cup cycle amid Ukraine-related peace talks in Alaska. Added Moore: “Cybercriminals get excited by the mass exploitation of worldwide sporting events because they’re great at exploiting human psychology for financial gain. “While hacktivists may attempt disruptive DDoS (Distributed Denial-of-Service) attacks to garner headlines, the overwhelming volume of cyber activity we anticipate will actually come from everyday, financially motivated cybercriminals deploying ransomware and ticketing scams. “The risk isn’t about an inevitable disruption, but rather a reminder of why early, coordinated digital readiness across the entire host-city ecosystem is so critical.”
I’m 50 – but I feel young dining at Simpson’s in the Strand
Happy birthday to our top columnist – 50 years young and still eating out every night, especially at Simpson’s in Strand where he feels half his age As I turned 50 this weekend, with a solid celebration at Quaglino’s, a friendly journalist advised me that when it comes to writing, less is more. Or in [...]
Happy birthday to our top columnist – 50 years young and still eating out every night, especially at Simpson’s in Strand where he feels half his age As I turned 50 this weekend, with a solid celebration at Quaglino’s, a friendly journalist advised me that when it comes to writing, less is more. Or in his own fancy and somewhat harsh words: I am missing the skill of brevity. So this week, I pledge to write less about more, a tasting menu of London’s foodie haunts and more opinions than you would imagine one could squeeze into an Eat, Drink, Sleep, Repeat, column. CHEZ BRUCE Sunday lunch in Wandsworth Common is a favourite of the City gent. It is a day when gilets are cast aside and Ralph Lauren (Purple Label) linen is plentiful. The dining room at Chez Bruce has quietly doubled in size over the past decade, holding its own as noisy neighbours and their restaurant concepts have come and gone. On my wife and I’s first visit – around the turn of the millennium! – the prix fixe, four course menu was £35. Today it is £68.50, which still feels like great value. A quarter of a century on, they still begin with bread and butter so flavoursome and rich it could be a cheese. This is multi-choice courses of Michelin-level food cooked in the original spirit of the guide. Opt for a reasonably priced Ridge Grenache Blanc (£140) to accompany artistic starters, which may indulge an ingredient too many but if anyone can make you embrace that level of complexity it is chef Bruce Poole. Mains are more seasonal and simpler, executed perfectly. The personnel have a rarely found personality and a passion that delivers true hospitality. ROMANO’S – UPSTAIRS AT SIMPSON’S IN THE STRAND Last year I visited Bistro Romano in Sunderland after a match I’d attended with England, Everton and Sunderland legend Peter Reid, whose war stories entertained an entire restaurant (incidentally, Reidy is hosting our cinema-sized World Cup screenings at Quaglino’s next month, a guaranteed blast of a game… just don’t mention Maradona). Romano’s on the Strand is not nearly as much fun. Situated in the same building as Jeremy King’s Simpson’s, it is very much the council estate step-sister of its pretend-posh sibling. While Simpson’s is inspired by the Queen Mum, Romano’s could take its influence from the dinners served in the retirement homes of the North East coast, around which I was brought up (as a Sunderland fan). Regardless, the service can’t be faulted. The room had the unenviable buzz created by the pre-theatre crowd, which a £21 menu encourages. My friend and I opted for the la carte. Prices are ludicrously cheap, which is perhaps to blame for the disappointing quality. The endive salad wilted at the sight of my martini, a pork pie served with piccalilli somehow had no flavour, while both the Scotch egg with coronation chicken and a chicken and leek pie were around the same level of quality (and price!) you’d find at M&S, only a little smaller (perhaps aimed at the Ozempic diner). As in Simpson’s, one feels remarkably young dining here, which was admittedly the perfect antidote to a milestone birthday. LOS MOCHIS CITY My fellow entrepreneur and friend Markus Thesleff has with blind ambition created Los Mochis City, arguably the second best rooftop in the Square Mile (after Coq d’Argent). At seasonal celebratory events, large format champagne and rose is paraded around the terrace, as is an entire 200g yellowfin tuna. The menu is perfect when paired with a three litre bottle of Rock Angel (£390); the salmon tiraditos and seabass ceviche are brilliant. The food here is worthy of more credit and acclaim, while the service is consistently outstanding – an unsung hero of the City. WILD IZAKAYA Another good guy in hospitality, George Bukhov-Weinstein founded US-style steakhouse Goodman back in the noughties. I remember visiting to see his big Josper (no innuendo intended) in the Mayfair original and being treated to vodka shots in return for my advice (I was MD of Gaucho at the time). Now he has many venues, some under the ‘Wild’ prefix. The latest opening is no more than ten steps from Goodman City in the former Browns building – it’s a welcome injection of quality Asian cuisine in Bank. Begin with a carafe of ‘Modern’ Senkin Kimoto Junmai (£60) and a king crab cucumber salad. As at Los Mochis, the hot food shines: nasu dengaku (aubergine with sweet miso) and WFC karaage (wild fried jidori chicken) both stand out, especially when accompanied by a Catena Zapata Malbec (£90) or a 2023 Marc Colin ‘Margot’ Chassagne-Montrachet (£230). And a final note about that big ball of heat in the sky: the Square Mile has many options when seeking out the perfect terrace (and a number of restaurants with impressive aircon) so regardless of which side of half a century you are batting, there is something here for everyone!
Burberry delays climate pledge by a decade to 2050
Burberry has pushed back its net zero target by a decade, becoming the latest blue-chip business to water down ambitious climate goals set in the wake of the coronavirus pandemic, City AM can reveal. The high-end fashion firm, known for its trench coats and tartan scarves, made the decision to delay its target to become [...]
Burberry has pushed back its net zero target by a decade, becoming the latest blue-chip business to water down ambitious climate goals set in the wake of the coronavirus pandemic, City AM can reveal. The high-end fashion firm, known for its trench coats and tartan scarves, made the decision to delay its target to become ‘climate positive’ from 2040 to 2050 after reassessing the business case for its previous goal, it said in its annual report. “We believe our revised targets reflect a pragmatic response to external factors, while allowing us to maintain a level of ambition in line with our assessment of climate change as a principal risk facing our business,” the company wrote. In 2021, Burberry had set itself some of the most ambitious climate goals in the fashion industry, pledging to have a net positive impact on the climate by 2040 and to reduce its indirect greenhouse gas emissions by 46 per before the end of the decade. Jonathan Akeroyd, Burberry’s chief executive at the time, hailed the move as a sign of the group’s “long-standing commitment to sustainability” and “appreciation for nature and the outdoors” in a document outlining the pledge five years ago. The decision forms part of Burberry’s root and branch overhaul under Akeroyd’s successor, Joshua Schulman, who is seeking to stem years of heavy losses and stuttering performance at the firm. As part of the turnaround the group chose to slash as many as 1,700 jobs – a fifth of its workforce – last year to keep a lid on costs. <img fetchpriority="high" decoding="async" height="640" width="960" src="https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg?w=960" alt="Models walk the runway at the Burberry show during London Fashion Week, September 2024. Photo by Jeff Spicer/Getty Images" class="wp-image-2261460" srcset="https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg 1200w, https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg?resize=630,420 630w, https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg?resize=768,512 768w, https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg?resize=960,640 960w, https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg?resize=1107,738 1107w, https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg?resize=742,495 742w, https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg?resize=304,203 304w, https://www.cityam.com/wp-content/uploads/2024/09/GettyImages-2172454911-e1726590568493.jpg?resize=75,50 75w" sizes="(max-width: 960px) 100vw, 960px" /> Burberry’s turnaround has convinced investors, for now Burberry latest of several climate U-turns In the same financial report, Burberry said restructuring charges brought about by the mass redundancies cost the fashion brand more than £45m last year, on top of £29m in the previous reporting period. But it added that the job losses had already unlocked £80m in immediate cost savings, and helped it return to profitability in 2025. The decision to U-turn on climate initiatives makes FTSE 100 constituent Burberry the latest in a growing line of household name companies that have watered down their net zero goals set when monetary conditions were looser. In 2024, ESG posterchild Unilever scaled back its previous pledges on plastic and diversity, saying new goals were “unashamedly realistic”. Oil majors Shell and BP have both abanoned their own Covid-era emissions targets, replacing them with slower transition timelines. And almost every major American bank has also watered down its commitment in response to Donald Trump’s hostile approach to the Democrats’ climate agenda, which he has branded the ‘Green New Scam’. Burberry top brass said in the report that the firm had “refined its climate targets” after it conducted a review of its legacy goals that “strengthened [its] understanding of the risks and opportunities associated with climate change. “This decision, taken by the Board in FY 2025/26, is grounded in our business transformation and in building clear, credible delivery pathways that we know are required to decarbonise our business,” they added. Burberry declined to comment.
London was once a destination for the young, now it’s a compromise
New research shows a third of young Londoners expect to leave within two years. The city is pricing out its talent, says Festus Akinbusoye.
New research shows a third of young Londoners expect to leave within two years. The city is pricing out its talent, says Festus Akinbusoye Picture a 23-year-old young man who had just started a small business from his parents’ East London council flat with the help of a £2,000 loan from the Prince’s Trust. By any definition, he is exactly the kind of young person London is supposed to be for. Ambitious, willing to work and take risks, deeply rooted in the city – until he had to leave. That was me; priced out of the city that was home. I am not an unusual case. New research from London Heritage Quarter, carried out by Public First, finds that two in five Londoners aged 18 to 30 are likely to leave within five years. A third expect to go within two years, roughly 600,000 people. 81 per cent say the city costs more than they expected. Young Londoners increasingly describe life here not as opportunity but as survival. London has become a compromise A recent publication reported that London’s economy grew at a tenth the rate of 20 years ago in the four years to 2023. One City worker surveyed put it plainly: “10 years ago London was a destination. Now it is a compromise.” The Mayor of London bears direct responsibility for a significant part of this. His London Plan requires 35 to 50 per cent affordable housing on any new development. Its misreading of the 2018 Parkhurst Court ruling effectively baked in a price control on land valuations, making schemes financially unviable before ground is broken. When schemes cannot pencil out, developers walk away and sites stay empty. Thirty-five per cent of zero is zero. The numbers bear this out. The London Plan targets 52,000 new homes a year. In the first quarter of 2025, London started just 1,210. 23 of its 32 boroughs recorded zero new starts, the lowest quarterly figure since the depths of the 2008 financial crisis. Planning permissions fell to their lowest level since records began in 2006. The Wimbledon effect This contrast with King’s Cross makes the waste more visible. Platform 37, Google’s new London headquarters, opens this summer, anchoring a cluster that already includes Google DeepMind, OpenAI, Anthropic and Meta. AI companies leased more than 450,000 square feet of London office space in April 2026 alone, against a monthly average of 40,000 across all of 2025. London has more than 20,000 engineers with meaningful AI expertise, double the figure of any other European city. Yet around 90 per cent of the later-stage capital those companies are raising is coming from outside the UK. London provides the talent, the universities, the networks – but the value flows predominantly elsewhere. This is what some are calling the Wimbledon effect: we build the court, sell the tickets and someone else lifts the trophy. When OpenAI recently paused plans to build major infrastructure here, citing energy costs and the regulatory environment, it was a reminder that companies making decisions at that scale watch the fundamentals, not the brochure. The engineers and founders clustering around King’s Cross are drawn from exactly the generation Public First found is now leaving. I came back to London in my forties because I can afford to. Most who leave never come back. A city serious about competing with San Francisco, Dubai or Singapore for the most mobile generation of talent in history has to be one that generation can actually afford to stay in. At the moment, London is asking them to compromise. Too many are concluding they would rather not. Festus Akinbusoye is a Westminster City councillor for Abbey Road Ward, and former police and crime commissioner
Business services staff face redundancies at City law firm
City-based law firm Clyde & Co has launched a restructuring consultation for its business service staff as part of its ongoing strategy to centralise support operations into regional hubs. The firm is proposing to move certain services currently performed by teams within legal support, purchase-to-pay, and IT to its service centres in Glasgow and its [...]
City-based law firm Clyde & Co has launched a restructuring consultation for its business service staff as part of its ongoing strategy to centralise support operations into regional hubs. The firm is proposing to move certain services currently performed by teams within legal support, purchase-to-pay, and IT to its service centres in Glasgow and its third-party partner facility, Accenture’s service centre in Manila. The move, first reported by the legal publication Rollonfriday, affected around 200 staff. Chief executive, Matthew Kelsall, said this move “builds on similar changes already implemented in the Americas, Middle East and Asia-Pacific.” “These centres are a common feature of modern global professional services firms and are designed to deliver services through standardised processes and enhanced technology, enabling a more efficient, scalable and resilient support model as our business continues to grow and client needs evolve,” he explained. Kelsall added the firm recognises “that these proposals will be unsettling for colleagues affected, and we are committed to supporting them throughout this process”. Clyde & Co, known for its work defending the insurance sector, recorded a global revenue of £854m for the financial year ending 30 April 2025. Business services roles on the line This consultation comes as it was reported earlier this month that A&O Shearman was set to cut roles in its business services team in its London office. These are not the only firms, as business services jobs are on the chopping block across the sector, with investment in Tech and AI cited as the common reason. In November, magic circle Clifford Chance was reported to be cutting 10 per cent of its back-office roles in its City office. Mishcon de Raya, BCLP, and Baker McKenzie have all made similar cuts over the last year. Meanwhile, magic circle law firm Freshfields kicked off a round of redundancies in September, targeting paralegals in its Manchester office.
Can Newcastle go posh? Our honest review of city’s first five-star hotel
In a far cry from the late noughties zeitgeist of Geordie Shore, Hotel Gotham offers a fresh brand of sexy that differentiates Newcastle from its MTV days. Once famous as the hangout for characters from that reality show, like Scotty T and Gary ‘the parsnip’ Beadle, Newcastle has quietly been building a higher-end repertoire of [...]
In a far cry from the late noughties zeitgeist of Geordie Shore, Hotel Gotham offers a fresh brand of sexy that differentiates Newcastle from its MTV days. Once famous as the hangout for characters from that reality show, like Scotty T and Gary ‘the parsnip’ Beadle, Newcastle has quietly been building a higher-end repertoire of bars and restaurants. Sitting at the heart of this shift following its launch late last year is the city’s first five-star venue, Hotel Gotham. The Stay The hotel opened its doors in late 2025. Situated in the city’s old fire and police station on Pilgrim Street, rooms range from a standard double to the Station Master’s suite. The suites, many of which are named after Newcastle legends including Robert Stephenson, feature products from Argentum designed for the hotel. The design celebrates the building’s 1920s architectural heritage. The palette spans inky blacks and charcoal greys, contrasted with the “fire-engine reds”, and the contrasts create a moodily intimate balance. Those checking into a suite also have the pleasure of a bathtub in their bedroom for guests to channel their Hollywood starlet (or their favourite character from Geordie Shore). Newcastle: where to eat, drink and visit Where to eat The Siren restaurant plays on the obvious reference to a fire engine. But the wallpaper – specifically designed for Gotham – pivots to the Greek mythology siren, a sea nymph who enticed sailors with enchanting music. Siren offers a refined take on the British classics. Stand-outs include a beef sirloin served with all the trimmings, and a tasty side bowl of perfectly cooked cauliflower cheese. For afterwards, the sticky date pudding with butterscotch sauce is well worth the indulgence. Breakfast is also served here, with a continental buffet and table-service main dishes ranging from a classic full English to smoked salmon and an avocado burrata. In the hotel’s second venue Fire, the red tonal palettes are dialed up. The bar uses recycled fire hoses for menus, with old equipment redeployed and turned into lampshades and ceiling decoration. The bar is open from 11am until late, with a cocktail menu split into the classics, femme fatales and the director’s cut. A special mention has to be handed to ‘Sorry Mez Jackson’ from the director’s cut, which mixes cazacabel, mezcal and disaronno with coconut rum and black walnut. For a special touch, bar staff will bring a martini trolley to your room and make your drink to taste, while telling you about the history of the drink. The ingredients are clearly very well sourced: the olives alone are a particular highlight. What to do in the ‘toon’ With the hotel sitting in the centre of the toon – Newcastle’s affectionate nickname for locals – it’s easy to make the most of a short visit. In a former Victorian subterranean gentleman’s toilet in the centre of town is a candlelit cave dubbed WC. The underground wine and cocktail bar is a must-visit, found inside a beautifully restored Grade II-listed former public toilet dating back to the late Victoria era. For food, down on the Quayside in a Victorian warehouse is Dobson & Parnell, which boasts a visual style that matches the 1930s aesthetic of Hotel Gotham. In the centre of the city is Grainger Market, which hosts a thriving street food scene. Newcastle is also famous for clubbing: if you’re going out late, try Dog & Parrot for a famous treble and a super club called Digital in Times Square. Newcastle reveals itself through winding riverside paths and scenic walks that are every bit as exciting as the city’s nightlife. A short walk from Gotham is Leazes Park, with sights of the St. James’ Park football stadium, home to Newcastle United FC. The centerpiece of the area is the large, serene lake surrounded by weeping willows. A night at Hotel Gotham starts at £99, for more information go to hotelgotham.co.uk
IFF Enters Into Agreement to Sell Its Food Ingredients Business to CVC
Transaction advances portfolio transformation, sharpens focus on higher-growth, higher-margin businesses, strengthens balance sheet, and enhances value creation for shareholders
IFF (NYSE: IFF), a global leader in flavors, fragrances, food ingredients, and health and biosciences, today announced that it has entered into an agreement to sell its Food Ingredients business to funds advised by CVC Capital Partners, a leading global private markets manager, in a transaction that values the business at approximately $4.3 billion, representing an enterprise value-to-EBITDA multiple of approximately 10x. As part of the transaction, IFF has chosen to retain an approximately 10% minority equity interest in the business, or approximately $200 million, permitting continued collaboration and cooperation between IFF and Food Ingredients and allowing IFF and its shareholders to participate in future value creation under its new ownership. The transaction marks a significant step in IFF’s portfolio transformation and is expected to strengthen the company’s focus on its innovation-driven businesses: Taste, Scent, and Health & Biosciences. Following the transaction, IFF will be a more focused company with improved cash flow characteristics, greater financial flexibility, and a stronger position to achieve its growth and profitability objectives. “This transaction represents an important strategic milestone in our ongoing portfolio optimization initiative, allowing us to further concentrate resources on our higher-growth, higher-margin segments,” said Erik Fyrwald, CEO of IFF. “By simplifying our portfolio to where we can create the greatest value, IFF will accelerate innovation, drive investment in R&D, and further integrate our biotechnology and naturals capabilities more effectively across our global platform. Importantly, by retaining a minority stake in Food Ingredients, we will continue to participate in the future upside of a strong business under dedicated ownership. This transaction creates substantial value for shareholders while positioning IFF to drive sustained, profitable long-term growth.” IFF’s Food Ingredients business is a globally recognized leader in texturants, emulsifiers, plant-based solutions, and other specialty ingredients serving multinational food and beverage customers. In 2025, the Food Ingredients business that will be divested generated nearly $3.1 billion in annual sales and approximately $430 million of EBITDA. “We are proud of the strong market positions, customer relationships, and talented team that have made Food Ingredients a strong business,” Fyrwald added. “We are confident CVC is the right owner for its next chapter and that this transaction creates significant value for IFF shareholders while giving Food Ingredients an excellent platform for future success.” “We are delighted to welcome IFF’s Food Ingredients business to CVC’s U.S. portfolio,” said Lorne Somerville, managing partner and co-head of North American private equity at CVC. “The business has built a strong position in an attractive, resilient sector supported by long-term growth trends, including increasing global food consumption and demand for clean-label products. Its global reach and proprietary technical capabilities provide a clear competitive advantage, and we see significant opportunity for continued growth.” James Christopoulos, partner at CVC, added: “The Food Ingredients management team has done an exceptional job building a business with meaningful scale and technical depth. We look forward to partnering with the team and with IFF as co-shareholders to accelerate the next phase of growth through scale and commercial expansion.” Transaction Benefits and Portfolio Positioning Over the last several years, IFF has taken decisive action to simplify its portfolio, sharpen strategic focus, and strengthen its financial foundation. Including this transaction, IFF has divested 13 non-core businesses, generating nearly $10 billion in gross proceeds, which have supported balance sheet improvement and reinvestment in the company’s highest-return businesses. Upon completion of the Food Ingredients transaction, IFF will be centered on three market-leading businesses serving attractive end markets supported by long-term megatrends in health, well-being, food, and sustainability. Each business is well positioned for strong revenue and EBITDA growth opportunities and powered by shared naturals and biosciences capabilities: Taste: Unique, technology-enabled flavor solutions for global food and beverage customers Scent: Leading positions in fine fragrance, consumer fragrance across personal and home care categories, and fragrance ingredients Health & Biosciences: Innovation-led solutions spanning probiotics, enzymes, cultures, and bioactive health ingredients With a more streamlined portfolio, IFF expects to be better positioned to accelerate innovation, improve execution, enhance free cash flow conversion, and deliver a stronger long-term financial profile. Over time, in a normalized environment, IFF expects to achieve mid-single-digit revenue growth and high-single-digit adjusted EBITDA growth, underpinned by the differentiated and innovation-led nature of its remaining business. Use of Proceeds and Financial Impact IFF expects to receive net cash proceeds of approximately $3.8 billion at closing, reflecting the rolled-over equity, customary purchase price adjustments, costs incurred to stand up and carve out the business and taxes. The company intends to prioritize use of proceeds toward: Debt reduction to accelerate deleveraging and reinforce balance sheet strength Targeted share repurchases, as authorized by the Board of Directors Reinvestment in high-return growth and high-return opportunities across the core portfolio The transaction is expected to be dilutive to adjusted EPS in the first 12 months following closing, prior to the benefits from capital deployment and any actions to address stranded overhead costs. IFF believes the strategic and financial benefits of a more focused portfolio, stronger balance sheet and improved cash generation profile outweigh the near-term earnings impact. Furthermore, the company has implemented a plan to address all of the stranded overhead costs that are a consequence of the transaction. IFF is also reiterating its previously communicated full-year 2026 guidance ranges. The company expects full year 2026 sales to be in the range of $10.5 billion to $10.8 billion and full year 2026 adjusted operating EBITDA to be in the range of $2.05 billion to $2.15 billion. IFF continues to expect comparable currency neutral sales growth to be between 1% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 3% to 8%. Transaction Details The transaction is expected to close by the end of the second quarter of 2027, subject to applicable information and/or consultation requirements and customary closing conditions, including regulatory approvals, where required. As part of the retained 10% equity interest, IFF will also hold a board seat in the new company. J.P. Morgan Securities LLC (lead) and BofA Securities are serving as IFF’s financial advisors, and Skadden, Arps, Slate, Meagher & Flom LLP & Affiliates is serving as legal advisor. Cautionary Statement Under The Private Securities Litigation Reform Act of 1995 This press release includes statements that are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio optimization initiatives (including the anticipated closing date of the sale of our Food Ingredients division), pricing, productivity and cost-discipline actions, capital allocation, future operations, growth potential, strategic investments and the expected effects of foreign exchange. These statements reflect management’s present views, are based on a series of expectations, assumptions, estimates and projections about the company, are subject to change, and involve uncertainties that could cause actual results to differ materially. Certain of such forward-looking information may be identified by such terms as “expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “will”, “would”, “estimate”, “should”, “predict”, “plan”, “project”, “could”, “potential”, “seek”, “target”, “continue”, “future”, and similar terms or variations thereof. These statements are not guarantees of future performance and are subject to risks and uncertainties that could lead to materially different outcomes. Such risks, uncertainties and other factors include, among others, the following: (1) demand trends, competitive dynamics and customer concentration in our end markets; (2) execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures; (3) working capital and inventory management; (4) outcomes of legal claims, disputes, regulatory investigations and litigation; (5) tariffs and trade actions, supply chain disruptions and macro events, including geopolitical developments, climate events, natural disasters, public health crises; (6) 4 volatility in input costs (such as raw materials, transportation and energy); (7) attraction, retention and turnover of key employees and executives; (8) product innovation, time-to-market, product safety and quality; (9) cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws; (10) exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks; (11) capital allocation, dividend policy and potential impairments of tangible or intangible assets; (12) our indebtedness, credit rating, liquidity, and access to capital; (13) pension and postretirement obligations; (14) compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and sanctions laws and related ethical business practices; (15) protection and enforcement of intellectual property; (16) changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and (17) changes in federal, state, local and international rules and regulations. The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. Important factors are described under “Risk Factors” in our most recent Annual Report on Form 10-K and in our subsequent filings with the SEC, and those disclosures are incorporated herein by reference. We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results, whether as a result of new information, future events or otherwise. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results. Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release. Use of Non-GAAP Financial Measures We provide in this press release non-GAAP financial measures, including: (i) comparable currency neutral sales; and (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA. Our non-GAAP financial measures are defined below. Currency Neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of segment performance. We also use currency neutral numbers when analyzing our performance against that of our competitors. Comparable results exclude the impact of divestitures. Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as impairment of goodwill, restructuring and other charges, divestiture costs, strategic initiatives costs, regulatory costs and other items. These non-GAAP measures are intended to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company’s results under GAAP and may not be comparable to other companies’ calculation of such metrics. The Company cannot reconcile its expected adjusted operating EBITDA under “Use of Proceeds and Financial Impact” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture costs, gains (losses) on business disposals, and regulatory costs. Welcome to IFF At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, food ingredients, health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook. About CVC CVC is a leading global private markets manager with a network of 29 office locations throughout EMEA, the Americas, and Asia, with approximately €209 billion of assets under management. CVC has seven complementary strategies across private equity, secondaries, credit and infrastructure, for which CVC funds have secured commitments of over €257 billion from some of the world’s leading pension funds and other institutional investors. Funds managed or advised by CVC’s private equity strategy are invested in approximately 150+ companies worldwide, which have combined annual sales of over €240 billion and employ over 660,000 people. For further information about CVC please visit: https://www.cvc.com/. Follow us on LinkedIn. © 2026 by International Flavors & Fragrances Inc. IFF is a Registered Trademark. All Rights Reserved. View source version on businesswire.com: https://www.businesswire.com/news/home/20260529975821/en/ Contact Media Relations: Jennifer McGowan 848.358.1680 Media.request@iff.com Investor Relations: Michael Bender 212.708.7263 Investor.Relations@iff.com Company Logo
Bank of England’s Bailey: Interest rates hike may not be needed
The Bank of England may not raise interest rates in response to the Iran war and has already effectively tightened monetary policy by taking the prospect of future rate cuts off the table, governor Andrew Bailey has said. In a speech in Iceland, the central banking chief said that inflation is “likely to go higher” [...]
The Bank of England may not raise interest rates in response to the Iran war and has already effectively tightened monetary policy by taking the prospect of future rate cuts off the table, governor Andrew Bailey has said. In a speech in Iceland, the central banking chief said that inflation is “likely to go higher” as a result of the conflict in the Middle East but that the rate-setting Monetary Policy Committee (MPC) could ignore those higher prices if they do not filter through into wage bargaining and household expectations. “Monetary policy generally looks through the direct effects of energy prices on inflation,” he said. “It takes time for changes in interest rates to affect the economy and inflation, so higher interest rates might only push inflation below [the Bank’s two per cent] target once the energy price shock has passed, resulting in undesirable volatility in both inflation and activity.” The remarks are some of Bailey’s most dovish since the outbreak of the Iran war prompted the closure of the vital Strait of Hormuz shipping lane. The governor and other central bank officials had signalled at previous MPC meetings that the Bank of England was likely to raise its central interest rate were the conflict in the Middle East to stretch over several months. But Bailey told the Reykjavík Economic Conference on Friday that despite the closure of the Strait stretching into its fourth month, a hike to the so-called Bank Rate may not be needed because of the weak domestic outlook for the UK economy. “Continued weakness in the UK activity and the labour market is likely to lessen the strength of second-round effects from higher energy prices,” he said, “while recognising that these effects are likely to be stronger, the larger and more persistent is the rise in energy prices.” Bank of England messaging shift effectively raised interest rates Monetary policy officials are particularly wary of price rises from an energy shock might become embedded into an economy because they lead employees to bargain for higher wages, or leave a company for a better paying job. This scenario – known as ‘second-round effects’ – can then develop into a wage-price spiral, whereby employers are forced to raise staff’s wages after a price shock in order to to prevent them from leaving, stoking more demand in the economy which could further push up prices. But the Bank of England governor told delegates that protracted erosion of the labour market in Britain, which has seen job vacancies hit a five year low and unemployment hit five per cent, means that scenario is unlikely. He also said that the sudden change in messaging from the MPC since the closure of the Strait of Hormuz had also had the effect of raising interest rates in the wider economy, even if the central rate remained unchanged. Before the war, financial markets and mortgage providers had priced products and set borrowing costs on the assumption that the central bank would vote through three 0.25 per cent rate cuts over the course of 2026. But by taking those cuts “off the table” the Bank of England has forced private lenders to withdraw loans and products the offered at the start of the year and price them differently, Bailey said. He added: “We have already tightened policy considerably in response to the shock relative to what had been expected by markets. That is already affecting the economy. Key quoted rates on mortgages have increased since the onset of the conflict.”
Reeves’ savings package to have minimal impact on inflation rise
A discount campaign launched by Chancellor Rachel Reeves will “shave off” an expected rise in inflation, analysis has suggested, as economists have raised concern over Britons’ inflation expectations. Reeves’ move to delay a hike in fuel duty beyond September and offer VAT relief for businesses giving families reduced prices could strip 0.2 percentage points off [...]
A discount campaign launched by Chancellor Rachel Reeves will “shave off” an expected rise in inflation, analysis has suggested, as economists have raised concern over Britons’ inflation expectations. Reeves’ move to delay a hike in fuel duty beyond September and offer VAT relief for businesses giving families reduced prices could strip 0.2 percentage points off CPI inflation, according to JP Morgan. The analysis suggests that two-thirds of the £300m package would pass through to lower prices for consumers. The Treasury previously refused to disclose the extent to which measures would delay a rise in price growth expected due to trade disruption across the Strait of Hormuz as a result of the Iran war. The package features a cut on VAT, going from the standard 20 per cent to five per cent for “Summer attractions” and children’s meals over July and August, as well as free bus rides for under-16s. The Chancellor said the package would be funded by targeting oil and gas companies’ UK trading profits. Government ministers have suggested they are considering a larger energy support package as the winter months approach, after Ofgem raised the energy price cap by 13 per cent to £1,862 from July. The energy price cap will be reset in September, around the time inflation is expected to peak as a result of the slow pass-through of the energy price shock. Reeves warned about inflation spike The government has been warned that a number of policies to be introduced could add to inflation pressures. The Bank of England warned that the packaging tax will add around 0.5 percentage points to inflation, while officials have warned that extra business costs from higher national insurance contributions (NICs) and minimum wage hikes has added to price growth. Energy experts have also urged the government to lift restrictions stopping companies from extracting more oil and gas across the North Sea, arguing that maximising supply could strengthen the pound sterling and tax receipts, thereby slowing price growth. Sir Keir Starmer has insisted that allowing further oil and gas extraction would “not take a penny off bills”. Economists are also waiting on further inflation expectations data to figure out whether second-round effects, whereby prices spiral based on people’s economic behaviours, could push costs higher. In the worst-case scenario for second-round effects, the Bank said inflation could surge by six per cent. Pantheon Macroeconomics analysts have warned that expectations are “already de-anchored” as a recent Bank survey showed that price growth predictions were at a record high. “The Monetary Policy Committee does not have the luxury of assuming anchored expectations and will need to keep policy restrictive to ensure inflation returns to target,” analysts said. Governor Andrew Bailey said in a speech that the scenarios set out by the Bank had to “balance the costs” of both weaker and more unpredictable behavioural effects. He added that the Bank had upgraded its analytical resources since it admitted to failing to tame a spike in inflation after Russia’s full-scale invasion of Ukraine.
Natwest and Barclays sweeten mortgage costs as Iran peace hopes ease interest rate fears
Natwest and Barclays have become the latest lenders to sweeten up their mortgage deals, as hopes remain high that a peace deal will be reached in the Middle East that would bring calm to the interest rate environment. Both lenders have unveiled reductions in mortgage rates, with Barclays cutting its rates across the board by [...]
Natwest and Barclays have become the latest lenders to sweeten up their mortgage deals, as hopes remain high that a peace deal will be reached in the Middle East that would bring calm to the interest rate environment. Both lenders have unveiled reductions in mortgage rates, with Barclays cutting its rates across the board by up to 0.43 per cent. Meanwhile, Natwest has cut its rates by up to 0.54 per cent with its two-year tracker cut to 4.42 per cent. This follows a similar move by Santander, which lowered its rates by up to 0.23 per cent. The re-pricing comes amid changes in swap rates, which serve as a primary benchmark for pricing fixed-rate mortgages and reflect market expectations for future interest rates over 2, 5, or 10-year terms. “Momentum is continuing to build across the mortgage market,” Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, said. “These latest reductions should also provide reassurance that market conditions are gradually improving.” Mortgage market hit by Middle East volatility Interest rate expectations have been brought some reprieve through slowly emerging details around a potential peace deal between Iran and the US. US and Iranian negotiators are reported to have reached an agreement on a 60-day memorandum of understanding that will extend the currently in-place ceasefire and kick off negotiations on Iran’s nuclear programme, according to Axios. Whilst Iran is reported to have rubber stamped the deal, a final green light is still expected from Donald Trump. Hopes of peace come despite the two nations exchanging strikes earlier this week, each accusing the other of violating ceasefire terms. Vice President JD Vance has hinted a deal was “very close” but added the US was “not there yet”. Economic pressures from the war have stoked inflationary fears and served as the central driver for fears of an interest rate hike. Iran’s closure of the Strait of Hormuz – a narrow waterway in the Gulf where around a fifth of the world’s oil supply flows through – has triggered a global energy shock. UK households are bracing for a £200 rise in energy bills next month after energy watchdog Ofgem’s gave its latest price cap update this week. Ofgem said the surge was driven by the conflict, with potential to climb further in October. Bank more likely to cut than hike rates, says Jefferies In March, the Bank of England held rates in a unanimous decision over fears the war would send prices spiralling. Mohit Kumar, chief European economist at Jefferies, said should a peace deal be formally inked the rates market “should see a greater reaction than equities”. He forecast that the next move from the Bank of England “would be a cut and not a hike”, with a reduction to around three per cent “by the middle of next year”. The mortgage market has been rocked by the volatility in the rate expectations with lenders pulling deals at the fastest rate since Liz Truss infamous mini-Budget amidst growing agitation around the war. Nearly 500 homeowner mortgages disappeared from the market in mere days, according to finanical information platform Moneyfacts, as average mortgage rates breezed past the five per cent mark in early March. Deal lifespans also hit a record low of just eight days in April as the overall pool available hit the lowest count in two years.
Arsenal Champions League final tickets on resale sites for £200,000
Tickets for Saturday’s Champions League final between Arsenal and Paris Saint-Germain are being sold for £195,000 as ticket holders look to cash in on interest. Arsenal can win a first ever Champions League title in Budapest this weekend but will need to overcome defending champions PSG at the Puskas Arena in Hungary. The Gunners received [...]
Tickets for Saturday’s Champions League final between Arsenal and Paris Saint-Germain are being sold for £195,000 as ticket holders look to cash in on interest. Arsenal can win a first ever Champions League title in Budapest this weekend but will need to overcome defending champions PSG at the Puskas Arena in Hungary. The Gunners received an official allocation of just over 16,000 tickets and the desire for Arsenal fans to watch their team potentially make history is leading to ticket holders charging extortionate rates. There are a pair of tickets on Live Football Tickets available for £390,000 – £195,000 each – consisting of a £150,000 flat fee and an additional £45,000 in service fee and tax on each individual ticket. While resale tickets at this level are rare, the cheapest available ticket on the same site was over £2,000 – a hike of over 1,000 per cent on the category three ticket cost lucky Arsenal fans were able to pay as part of their allocation. Arsenal on the brink Arsenal are thus far unbeaten in the Champions League, winning all eight of their matches in the group stages before getting aggregate wins – without a one-leg defeat – against Bayer Leverkusen, Sporting CP and Atletico Madrid. PSG, on the other hand, lost two of their 16 matches on the way to the final – falling to 2-1 defeats to Sporting CP and Bayern Munich in the group phase. The match in Budapest will be Arsenal’s first European final since the 2019 Europa League final – which they lost 4-1 against Chelsea – and their first in the Champions League since 2006, when they were beaten 2-1 by Barcelona at the Stade de France in Paris. “There will be some restricted view seating within the allocation that may have partial views blocked by safety rails, pillars, or crowd barriers,” an Arsenal ticketing statement read when their allocation was announced.
KPMG Australia boss resigns amid whistleblower scandal
The boss of KPMG Australia has resigned after the firm admitted to severely mishandling a whistleblower report on client confidentiality breaches. The scandal was prompted by a whistleblower who alleged that client documents were inappropriately shared with the senior leadership team, including the chief executive, which prompted an internal investigation. But the investigation did not [...]
The boss of KPMG Australia has resigned after the firm admitted to severely mishandling a whistleblower report on client confidentiality breaches. The scandal was prompted by a whistleblower who alleged that client documents were inappropriately shared with the senior leadership team, including the chief executive, which prompted an internal investigation. But the investigation did not substantiate the claims, and an external law firm also supported the outcome. However, after the whistleblower raised further complaints with the board, a different external law firm, Allens, was appointed to complete another investigation into the claims, which is ongoing. On Friday, the firm released a statment confirming its treatment of the whistleblower and the probe “fell short” of the firm’s expectations. As a result, chief executive Andrew Yates and the national managing partner of audit and assurance, Julian McPherson, have resigned effective immediately. In his statement, Yates said: “I have been committed to a speak-up culture in our firm, it is clear that in this case we have let ourselves down and I take accountability.” McPherson added: “Matters have arisen for which I am responsible, and I take accountability.” The findings have been shared with impacted clients, professional bodies, regulators, and the Parliamentary Joint Committee. The board appointed Stan Stavros as interim chief executive of KPMG Australia while continuing its process to appoint a permanent successor to Yates. Chair apologised ‘unreservedly to the whistleblower’ Chairman Martin Sheppard issued a lengthy apology saying they ‘apologise unreservedly’. “KPMG apologises to the clients whose information was not handled with the care and respect they expect from us. We also apologise to our people, as these matters do not reflect on the contribution they make to KPMG and our clients,” said Sheppard. He added that KPMG would also engage an ethics consultant to review its “speak-up culture” and has promised to publish the findings. The Big Four giant is now contacting affected clients, reinforcing data controls, and reviewing audit clients to ensure these conduct issues did not impact audit quality. “We acknowledge we have work to do to rebuild trust. That’s why we are not asking anyone to take our word for it, and we are inviting scrutiny and challenge on our remedial actions,” Sheppard added. The firm was in the headlines in February after a KPMG Australia partner was fined $10,000 for using AI to cheat in an internal training course meant to test knowledge of the technology.
KBRA Releases Research – Spanish RPL RMBS: Resilient Performance and an Established Asset Class
KBRA releases research that examines the key characteristics of Spanish reperforming loan (RPL) residential mortgage-backed securities (RMBS) transactions rated by KBRA, focusing on factors that may influence credit performance as the transactions season. The report also discusses the composition of the underlying mortgage portfolios, including restructuring profiles, arrears trends, pay rates, leverage, seasoning, and kept-rate [...]
KBRA releases research that examines the key characteristics of Spanish reperforming loan (RPL) residential mortgage-backed securities (RMBS) transactions rated by KBRA, focusing on factors that may influence credit performance as the transactions season. The report also discusses the composition of the underlying mortgage portfolios, including restructuring profiles, arrears trends, pay rates, leverage, seasoning, and kept-rate performance, as well as the structural features designed to mitigate liquidity risk and credit losses. Key Takeaways Spanish RPL portfolios typically include a high proportion of restructured loans, which generally carry higher re-default risk than loans with no restructuring history. The share of restructured loans is therefore an important portfolio characteristic, alongside restructure type, time since restructuring, kept rate, arrears status, and pay-rate performance. Restructure type helps indicate the nature of prior borrower financial stress. Grace period restructures may indicate more acute prior stress and create payment shock risk when scheduled payments resume, while term extensions may provide a more durable reduction in monthly debt service where affordability has weakened. Restructure age and kept rate are most informative when the post-restructure observation period includes borrower stress, such as the higher interest rate environment in 2023-24, elevated cost-of-living pressure, or the payment shock that can follow the end of a grace period. Arrears data are most useful when considered alongside pay rates. Sustained pay rates above 100% can indicate curing behaviour, while weaker pay rates in deeper arrears may signal continued deterioration and a higher likelihood of foreclosure. Spanish RPL RMBS structures use liquidity and deleveraging features—including reserve funds, principal-to-interest mechanisms, interest rate hedges, target amortisation, arrears-based provisioning, and junior interest subordination triggers—to address payment shock risk, basis risk, and limited excess spread. Together with seasoned collateral and ongoing amortisation, these features support KBRA’s expectation for broadly stable performance over the next two to three years. Performance data show transaction-level dispersion, with arrears trends varying by vintage and portfolio profile. While some transactions have experienced higher arrears, pay-rate trends indicate that many borrowers continue to make payments, and cumulative losses remain low across the transactions. Click here to view the report. Related Publications Fondo De Titulización RMBS Miravet 2023-1 Surveillance Report Jeronimo Funding DAC Surveillance Report Lugo Funding DAC Surveillance Report Clavel Residential 4 DAC New Issue Report Miravet 2025-1 DAC New Issue Report Lura Funding DAC New Issue Report About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. Doc ID: 1015203 View source version on businesswire.com: https://www.businesswire.com/news/home/20260529043683/en/ Contact Kali Sirugudi, Managing Director +44 20 8148 1050 kali.sirugudi@kbra.com Isha Changde, Associate +44 20 8148 1014 isha.changde@kbra.com Karl Cummins, Senior Director +353 1 588 1240 karl.cummins@kbra.com Hrishikesh Oturkar, Director +44 20 8148 1070 hrishikesh.oturkar@kbra.com Media Contact Matt Turner, Associate Director +353 1 588 1231 matt.turner@kbra.com Business Development Contact Miten Amin, Managing Director +44 20 8148 1002 miten.amin@kbra.com Company Logo