Plenty of City minds are in overdrive at present. They like to stay on top of things, preferably ahead, it’s how they make their money.
They’re trying to make sense of the current crisis. Rather, to phrase that another way, they’re trying to figure if it’s as bad as is being claimed or if it's a blip that will shortly correct itself.
The usual indicators are difficult to read. The Prime Minister has chosen this moment to go on holiday, to allegedly paint like Winston Churchill while catching the end of the summer sun in Marbella. Yes, but that’s the way Boris Johnson is.
The image management subtext is clear. Even if his house were burning down, he would still be sitting finishing the end of a classical text or, as is his wont, putting the final touches to one of those cardboard model buses he likes to make.
But the government, seemingly, is content to allow them to suffer and is not prepared to come up with a meaningful rescue plan.
Business counting long-term cost of Covid
Yes, but that’s because, having spent a colossal amount on keeping the wheels spinning during Covid, there is no public money available, not on the scale that would be required here.
Who knows how long the cost increases will last – this may not be a short-term phenomenon but one that will last a while, pushing the level of bailout required even higher.
This, too, is without labour shortages causing problems, the lack of delivery drivers and other workers, and the difficulties of trading with the EU caused by the Brexit bureaucracy.
And did someone mention the pandemic? Is it going away for good, or are we in a holding pattern until a vaccine-defying variant emerges?
A dearth of delivery drivers led to UK petrol stations running dry. PA
Meanwhile there is the apparent emergence of a white knight. The Indian-born tycoon Sanjeev Gupta, who recently held a spectacular 50th birthday celebration on Mykonos, has pumped £50 million ($68.1m) into firing up his Liberty Steel factories in Rotherham and Stocksbridge in South Yorkshire.
Talk about contrarian. It’s difficult to assess who is more doom-defying: Johnson or Gupta.
The City likes those who go against the flow. After all, they are the ones who frequently appear on the other side, having made a substantial bet and won.
Liberty is the UK’s third-biggest steelmaker, employing 3,000 people in precisely the sort of areas that Johnson’s Conservatives are keen to woo
This, however, is something else. There’s Gupta partying like there’s no tomorrow on a Greek island, the metals tycoon’s helicopter (call sign M-INES) ferrying guests back and forth.
At the same time: his main source of finance, Greensill Capital, has collapsed; Gupta’s GFG Alliance conglomerate owes more than $5bn, much of it to Greensill; creditors are circling and legal battles are under way; he’s split with Jay Hambro, his long-time right hand; US private equity firm American Industrial Partners, which is holding debt secured on GFG plants in France and Belgium is declaring it has seized control of a Gupta jewel, GFG’s French aluminium smelter.
Liberty is the UK’s third-biggest steelmaker, employing 3,000 people in precisely the sort of areas that Johnson’s Conservatives are keen to woo. Gupta has put in £50m, thanks to the refinancing of his Australian business.
Liberty Steel furnaces are firing up again – but for how long? Reuters
Gupta’s people are maintaining the Mykonos extravaganza was paid for by his wealthy industrialist father. OK. Second, he remains committed to the future of steel and to the UK, despite the Serious Fraud Office move which he intends to fight.
The two Liberty Steel plants can begin producing again. Their employees have been on furlough for months. But what if it goes wrong, if £50m is not enough, what then? Here they are, about to recommence working exactly as production may be curtailed due to spiralling energy prices.
It was only six months ago that GFG’s request for a £170m emergency loan from the government was rejected. GFG wanted the money to replace cash lent by Greensill.
The reasons given for the refusal were that ministers were concerned about the complex structure of GFG; that they were fearful the UK taxpayer could end up funding another, overseas part of Gupta’s empire; and the £42m cost of a house bought by Gupta and his wife in August 2020 would absorb a chunk of the £170m.
Then, the government let it be known there was a package in place should Liberty Steel pack up completely.
Businesses face up to survival of the fittest
That was back in March. An awful lot has happened since. The government is today facing storms on several fronts and as last week’s Tory party conference highlighted, against that backdrop favours a script that says businesses must sink or swim. This is an administration that is setting its face against involvement anywhere.
We’ve got used to previous leaders jumping in at the first sign of trouble. But as Johnson has made clear that is not going to happen – the business community must sort out its own problems.
It’s not only about a lack of Exchequer cash. Partly, it’s ideology.
This is a regime led by a libertarian, instinctively hands-off premier.
It’s a government, too, that is heavily influenced by focus groups. If the private polling they conduct says the public believes business should stand on its own feet, that its bosses pay themselves fortunes so they can sort out their own problems, so be it.
Where does that leave a contingency for the demise of Liberty Steel? It’s not clear. What is known is that Johnson is on a sun-lounger, while Gupta has just returned from the beach. All must be well with them both, except it isn’t.
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid When: April 25, 10.45pm kick-off (UAE) Where: Allianz Arena, Munich Live: BeIN Sports HD Second leg: May 1, Santiago Bernabeu, Madrid
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid When: April 25, 10.45pm kick-off (UAE) Where: Allianz Arena, Munich Live: BeIN Sports HD Second leg: May 1, Santiago Bernabeu, Madrid
MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma When: April 24, 10.45pm kick-off (UAE) Where: Anfield, Liverpool Live: BeIN Sports HD Second leg: May 2, Stadio Olimpico, Rome
Who has lived at The Bishops Avenue?
George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
Land was originally the Bishop of London's hunting park, hence the name
The road was laid out in the mid 19th Century, meandering through woodland and farmland
Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany - At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people - Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed - Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest - He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book:I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
February 2, 2018 Bodytree will host its 4th annual yoga market.
