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Telegraph sale latest: Newspaper auction continues as Paul Marshall completes Spectator deal

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Telegraph sale latest: Newspaper auction continues as Paul Marshall completes Spectator deal
Telegraph Media Group for sale to Abu Dhabi

GB News investor Sir Paul Marshall has successfully acquired The Spectator for £100m. Read the full story here.

Also this month the owner of The New York Sun is said to be considering a bid for The Telegraph (see more below).

Meanwhile it was reported in August that former advertising mogul Lord Saatchi had a £350m bid to buy The Telegraph rejected.

Lord Saatchi, who had put together the bid with former Economist Group director Lady Lynn Forester de Rothschild, has not made it into the second round of the auction process.

In a statement to Sky News they said: “We are sorry RedbirdIMI overpaid with £600m for the Telegraph.

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“We are offering £350m plus further payments dependent on performance.

“Our bid is not the biggest – but it is the best.

“Whatever happens, this important national asset should end up in safe hands for the long term.”

But Redbird IMI, which is leading the sale, said in response: “They never signed an NDA [non-disclosure agreement]. They never made a serious bid.

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“And they haven’t been invited into the second round.

“So, with all due respect, no one takes Maurice or his views on any of this seriously.”

Belgium-based media group Mediahuis also reportedly made a bid but will not progress to the second round of the auction.

The open auction process to buy The Telegraph and The Spectator magazine restarted after a failed bid by the Jeff Zucker-led Redbird IMI, a joint investment vehicle between US private equity firm Redbird and Abu Dhabi-backed vehicle International Media Investments.

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The deal, which saw Redbird IMI agree to pay off more than £1bn in debts for The Telegraph’s former owners the Barclays, was ultimately thwarted when the UK Government brought forward new legislation to ban foreign governments from owning UK newspapers and current affairs magazines amid criticism of the UAE investment.

Redbird IMI is looking to recoup at least £600m from the sale of the Telegraph and Spectator (the value of Barclays debt secured against the titles).

Press Gazette will update the following story as bids are confirmed or discarded, or new information comes to light.

Any of the people or businesses mentioned could bid individually or jointly, or not at all.

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Who still wants to buy The Telegraph?

Dovid Efune

Dovid Efune, the owner of The New York Sun which he bought in 2021 to revive it as a right-leaning online brand, is reported to be considering a bid for The Telegraph.

According to The Telegraph, British-born Efune made a presentation to the newspaper’s management team and was asked to submit a second-round offer at the end of September.

Semafor reported that Efune has potential financial backers including asset managers Oaktree and Hudson Bay Capital, the family office of US hedge fund manager Michael Leffell and the investment arm of Canadian developer Beedie.

Efune is a former editor-in-chief and chief executive of New York-based international Jewish news publisher The Algemeiner.

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GB News investor Sir Paul Marshall

Sir Paul Marshall, the co-founder of hedge fund Marshall Wace, was long reported to be the frontrunner to buy The Spectator ahead of his successful bid. It is unclear whether he still wants to separately buy The Telegraph.

It was previously speculated that Marshall’s Spectator deal could value the current affairs magazine somewhere between £50m and £100m, Sky News reported on 1 August. The acquisition is understood to have taken place for the top end of that range, £100m.

Last year, amid the first auction process, Sir Paul was reported to be working with the investment bank Moelis on a potential bid to buy The Telegraph and was holding discussions with US billionaire and hedge fund founder Ken Griffin, one of the world’s richest men, to potentially take part in a consortium.

Griffin is a donor to the Republican Party in the US – although he did not contribute to Donald Trump’s 2016 campaign – and any potential involvement in The Telegraph would be his first personal entry into a media business. It would be in a personal capacity and not through his hedge fund Citadel, the FT reported last year.

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Sir Paul has been an investor in GB News in a personal capacity since before its launch in 2021. He has since renewed his investment, saying he was proud that the broadcaster is providing a space for “genuinely independent thinking, insightful discussion, and impartial analysis” but not “groupthink”.

Politically, he is known for donating to the Vote Leave campaign ahead of the 2016 Brexit referendum. The Telegraph also declared for Leave and, according to Press Gazette’s ‘Brexitometer’, was the third most biased national newspaper towards Brexit behind the Daily Express and Daily Mail.

Sir Paul is also a financial backer of Unherd, the news site set up by former Times columnist Tim Montgomerie in 2017 that says its aims are “to push back against the herd mentality with new and bold thinking, and to provide a platform for otherwise unheard ideas, people and places”.

Unherd says it is not aligned to any political party and its media pack shows a split among its audience of 34% right of centre, 29% centrist, and 21% left of centre.

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David Montgomery’s National World

In March, National World chairman David Montgomery claimed the Yorkshire Post and Scotsman publisher, which has made a series of smaller specialist acquisitions in the past two years, was still the “best qualified” candidate to buy The Telegraph.

Former Local World/Trinity Mirror boss Montgomery re-entered the market at the start of 2021 when he bought the former JPI Media newspaper titles through new company National World Plc.

The company first confirmed its interest last August, telling investors: “National World notes media speculation that it is a possible participant in the sale process surrounding Telegraph Media Group and its associated titles.

“As the Company has previously announced, its growth strategy is rooted in actively exploring opportunities to build its business through acquisitions and implementing its new operating model for owned assets.

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“The Board continues to evaluate accretive opportunities to grow the business and will consider participating in a sale process for Telegraph Media Group as and when such a process formally commences. There can be no certainty that an acquisition will take place nor as to the terms of such an acquisition.”

Sky News subsequently reported that Montgomery is “close to appointing Cavendish Capital Markets and Peel Hunt to help raise the financing” to buy both Telegraph titles. The firms would work alongside “Rothschild, which is providing corporate finance advice to Mr Montgomery, and Dowgate Securities, its existing broker”.

Then in March Montgomery said: “In the second half of 2023 National World competed in the aborted auction for The Telegraph. The conclusion of its ownership change is still in doubt but the opportunity was in line with both the founding principles of National World – that it would be a consolidator in the sector – and its ability to leverage both its infrastructure to extract significant synergies and its proven management expertise.

“Our view remains that National World remains the best qualified among the various candidates for such a deal both in terms of industry qualification and also editorial independence, as well as the absence of any competition issues.”

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Nadhim Zahawi

The former Conservative MP is reported by Sky News to be approaching billionaire backers including the Reuben brothers with a view to assembling a £600m bid for the Telegraph titles and The Spectator.

Sky News reported on 12 August that the bid is now “fully financed” but no further details have emerged.

Sky also revealed that the idea of former prime minister and Telegraph columnist and Brussels correspondent Boris Johnson as editor-in-chief was “floating around” in preparation for the eventuality that Zahawi’s bid is successful. Preliminary and informal talks are said to have been held. Zahawi was chancellor under Johnson.

CVC

Investment firm CVC Capital Partners is considering a bid for The Telegraph, the news outlet reported on 17 July.

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If any bid was ultimately successful, The Telegraph would become the first UK national newspaper to be owned by a private equity firm.

Last time The Telegraph was up for sale in 2004 CVC teamed up with DMGT but they pulled out when the price went higher than they were willing to pay.

This time CVC is said to be interested alone. DMGT has separately said it is no longer interested in taking part.

CVC has investments in a range of industries, notably in the UK in Six Nations and Premiership Rugby, but in terms of media it has Authentic Brands Group, which owns the intellectual property for Sports Illustrated.

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News Corp

Multiple reports last year claimed Rupert Murdoch wanted to buy The Spectator, potentially to expand it further in the US where it first launched a dedicated offering in 2018 and where it could align with right-leaning News Corp brands like Fox News and the New York Post.

Murdoch stepped down as chairman of News Corporation in November.

But The Guardian spoke to a source with knowledge of the initial sale discussions who said: “People still think Murdoch is the frontrunner and can outbid everyone else. He’s got so much cash, it’s a trophy prize he’s always wanted. You can see it like the end of his career.”

Ultimately that did not happen with Marshall winning out.

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Conrad Black

Conrad Black, who initially sold The Telegraph to the Barclays in 2004 for £665m, has reportedly been “approached about a potential bid”, according to Jane Martinson in The Guardian on 11 July.

Who was interested in buying The Telegraph but has pulled out or had their bids rejected?

Lord Saatchi and Lady Lynn Forester de Rothschild

Sky News first reported on 6 July that former Conservative co-chairman Lord Saatchi, responsible for some of the party’s major advertising campaigns, was considering a bid alongside Lady Lynn Forester de Rothschild, a former director of The Economist Group.

“City sources said they had approached a number of potential financial backers in recent weeks, although neither could be reached for comment, and people close to the process cautioned that it was far from certain that they would ultimately participate in an offer,” Mark Kleinman reported for Sky News.

However a month later Kleinman revealed Lord Saatchi and Lady de Rothschild’s bid had been rejected.

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Mediahuis

European media group Mediahuis, which owns titles including Belgium’s De Standaard, Dutch daily De Telegraaf, and the Irish Independent, reportedly made a bid to buy The Telegraph.

However it was not high enough to progress to the second round, according to the Financial Times.

Lord Rothermere’s DMGT

The Times reported on 10 July that Lord Rothermere’s DMGT, which owns the Mail, Metro, i and New Scientist titles, had told bankers overseeing the sale that it had decided to pull out of the race.

DMGT feared a “protracted regulatory process” amid potential competition concerns if it won the auction and said this could affect its ability to grow its own existing business.

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It also warned that a ban on foreign governments investing in UK newspaper titles passed by the last government had curbed its ability to raise capital. The law was rushed through in the wash-up process before the general election and turned out to be more restrictive than had been expected, banning foreign sovereign wealth funds and state pension funds from having any stake at all in a UK newspaper business.

A spokesman for Daily Mail and General Trust told The Times: “DMGT believes the new statutory regime governing the ownership of UK newspapers is overly restrictive, and could curtail our ability to raise capital for our news publishing and other media businesses — both now and in the future.

“With a new government in place, we would face a heightened risk of a protracted regulatory process if we were to win the auction. This would cast further uncertainty over the Telegraph and could disrupt our plan to grow DMGT’s diverse stable of news titles.”

DMGT first confirmed in August 2023 it was considering a bid for the Telegraph alongside investors – but later decided to go it alone.

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It said the two potential benefits of a takeover were learning from The Telegraph’s subscriptions business and the potential of growing it in the US.

A spokesperson said last year: “The Rothermere family has a unique record as a custodian of newspapers, and since Lord Rothermere took DMGT private, its focus as a consumer news business puts it in an ideal position to provide the resources, management expertise and long-term decisions the Telegraph needs for its journalism to thrive.

“The Telegraph’s success in building a subscription model will help us reinforce the strength of our existing business.”

They added: “We do believe there is a strong potential to scale the Telegraph abroad, particularly in the US, just as we have very successfully done with the Mail.”

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Rothermere took DMGT private at the end of 2021, with him and his family paying close to £1.6bn for the part of the company they did not already own.

DMGT initially held talks with Middle Eastern investors, though emphasising it would only do a deal if it kept economic and editorial control. But it later decided to pursue the bid alone.

In a rare interview with The Times, Rothermere explained why: “We went down the road of talking to people both in the Middle East and in the US. In the end I just thought to myself, ‘You know, it’s just too difficult.’

“If you’re in bed with a financial investor, their normal term time frame is three to five years, they want to know how they’re going to make more money over that period. I think a lot of the fruits are going to be born over a much longer period of time.”

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Rothermere described The Telegraph as “a great brand, it also attracts great journalists. And after all, that’s what a news organisation is”, adding: “The Telegraph is one of the great newspapers of the world. It is impossible for me just to walk by.”

And he said existing parts of DMGT could learn from its subscriptions business: “I think we can carry on being mostly advertising, but we can also build a premium subscription product as well.”

The size of DMGT’s existing empire would likely have meant a challenge from the Competition and Markets Authority if it attempted to buy the Telegraph titles.

Press Gazette analysis last year showed that if DMGT bought The Daily Telegraph, it would control more than 50% of the daily national newspaper market in the UK.

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A takeover of the Sunday Telegraph would take it to about 32% of the Sunday market – less than the 40% controlled by News UK incorporating The Sun on Sunday and The Sunday Times.

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Rothermere told The Times: “I have faith that the CMA is going to look at this in a proper way and I don’t really want to front-run their answers or make them feel in any way that I’m trying to influence their judgment.” But he emphasised the independence given to his editors at the Mail, i and Metro titles, saying: “Do I want to get involved? No I don’t. I genuinely don’t. It is not my remit.” i editor Oly Duff told Press Gazette last month Rothermere was “known for letting editors edit”.

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Rothermere previously expressed an interest in buying The Telegraph in 2004 and said of that time: “It was a complex transaction. In the end the Barclays bought it and paid a higher price than I was willing to pay anyway.”

Axel Springer

German publisher Axel Springer pulled out of the running in the initial auction, according to the FT on 17 November, after deciding it was not willing to pay the likely £600m price tag.

Axel Springer had registered its interest to buy The Telegraph titles with Goldman Sachs.

The publisher previously attempted to buy The Telegraph in the 2004 race that was ultimately won by the Barclays.

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Axel Springer was founded by the publisher of the same name in 1946 with ambitions to create the biggest newspaper publisher in Europe. Its biggest German titles include Bild and Die Welt but it is now active in 40 countries and major acquisitions have included Insider in 2015 and Politico in 2021. It also created curated news app Upday as part of a strategic partnership with Samsung, on whose phones the app appears.

Ex-Telegraph editor William Lewis

Ex-Telegraph editor Sir William Lewis told Bloomberg in September he had lined up funding to take over his former employer.

He said in an interview: “I love the Telegraph. It’s a fantastic journalistic organisation. I would be really interested in trying to find a way to buy it. We have the support to do it,” although he added that the title “needs a digital product and services refresh”.

However in November he was appointed chief executive and publisher of The Washington Post, seemingly thwarting those plans.

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Lewis did not share who had been involved or how much funding they had offered, saying only he had received “significant expressions of interest from a wide range of potential backers”.

He added that he would not unilaterally reject Middle Eastern support, but that there are currently no Saudi Arabian business partners involved.

Lewis edited The Daily Telegraph between 2006 and 2009 and led a major period of its digital transformation.

He was until last year chief executive and co-founder of The News Movement, a social-led start-up focusing on reaching Gen Z audiences, alongside former BBC editorial director Kamal Ahmed who is editor-in-chief.

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Why is The Telegraph being sold?

In June last year Lloyds Banking Group effectively repossessed Telegraph Media Group and The Spectator over the Barclays’ outstanding debts. The value of The Telegraph was put at around £600m.

The formal sale process then began on Friday 20 October. It ended abruptly after Redbird IMI made its deal with the Barclays although the transaction was put on hold by competition inquiries ordered by then-Culture Secretary Lucy Frazer. It was then ultimately stymied altogether and Redbird IMI withdrew rather than continuing to fight.

The latest financial results for Telegraph Media Group have since been published: although it is profitable, with a 35% rise in operating profit in 2023, it saw a record £244.6m loss due to mystery loans apparently extracted by the Barclay family. Turnover was up 5% to £268m.

The latest results for The Spectator, for 2022, showed revenues up 2% to £20.8m with operating profit down 10% to £2.6m, attributed to investment in the US, Australia and sister fine art magazine Apollo.

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The post Telegraph sale latest: Newspaper auction continues as Paul Marshall completes Spectator deal appeared first on Press Gazette.

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Civil Liberties at Risk Under Vietnam’s Tô Lâm

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On May 25, 2023, a Vietnamese court in Danang sentenced 39-year-old noodle vendor Bui Tuan Lam to six years in prison for posting an online clip deemed anti-government propaganda. Detained since 2021, Lam was isolated from his wife and children for two years before his trial drew international attention for its bizarre background and questionable legality. The dangerous video in question? A TikTok-style parody video mocking then-Minister of Public Security Tô Lâm’s extravagant culinary selection at a steakhouse in London.

One year into the food vendor’s sentence, now-President Tô Lâm’s political fortunes changed dramatically. On August 3, the former top security official was unanimously elected as Vietnam’s next Communist Party General Secretary, the most powerful position in the country. It was the culmination of his meteoric political rise, facilitated by the death of his mentor and longtime party boss Nguyen Phu Trong, in July. Pledging to build on his predecessor’s legacy, Tô Lâm made it clear that he will continue prioritizing the anti-corruption policies and security measures that defined his tenure at the Ministry of Public Security. 

However, as Bui Tuan Lam and the other 160 Vietnamese political prisoners have come to realize, Tô Lâm’s extrajudicial definition of a security threat includes public dissent, civil liberties, and even lighthearted comedy. 

Born on July 10, 1954, Tô Lâm has always prized security. After graduating from the People’s Security Academy in 1979, he held various law enforcement roles until his elevation to the Ministry of Public Security in 2016. There, he defined himself as an excellent political enforcer, leading an impressive anti-corruption campaign under Trong’s direction. Together, Lâm and Trong’s “Blazing Furnace” campaign targeted over 20,000 government officials in 2023, a dramatic increase from previous efforts. 

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“Tô Lâm was appointed one of five deputy chairmen of the Central Steering on Anti-Corruption that was the spearhead of Trong’s blazing furnace campaign,” Carl Thayer, an emeritus professor of politics at the University of New South Wales, told me. “As Minister of Public Security, Tô Lâm was also responsible for the harassment, intimidation, arrest and imprisonment of political and civil society activists.”

To General Secretary Trong, Tô Lâm’s role in Hanoi as an enforcer quickly became apparent. In Lâm’s first week at the Ministry, the former law enforcement officer oversaw the brutal suppression of protests against Formosa Ha Tinh Steel, the company responsible for arguably the worst environmental disaster in Vietnamese history. 41 protesters were arrested, including activist Hoang Duc Binh, who was sentenced to 14 years in prison for advocating on behalf of local fishermen affected by the disaster. 

Two years later, Tô Lâm’s Ministry of Public Security significantly expanded government surveillance powers. The Law on Cyber Security, passed by the National Assembly in 2018, required telecommunication providers to record and store their users’ private data, including “full name, date of birth, place of birth, nationality, profession, position, place of residence, contact address.” Despite widespread condemnation and international outrage, the law continues to undermine Vietnamese civil liberties and online privacy. 

It’s not just democratic organizers and human rights advocates who have been targeted under Tô Lâm’s security regime. Le Trong Hung, a former middle school teacher, was arrested in 2021 after challenging General Secretary Nguyen Phu Trong to a nationally televised debate. Another teacher, 43-year-old Bui Van Thuan, was also arrested that same year and sentenced to nearly a decade in prison for publicly criticizing the Communist Party. Even Lâm’s own police officers, such as Captain Le Chi Thanh, have been prosecuted for exposing corruption within the Ministry of Public Security. 

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Tô Lâm’s self-styled campaign to root out “corruption” and enhance state security also coincidentally targeted political opponents within his own party. “Tô Lâm used the Investigative Police Department of the Ministry of Public Security to gather evidence of corruption by the President Vo Van Thuong, the Chairman of the National Assembly Vuong Dinh Hue, and the Permanent member of the party Secretariat Truong Thi Mai,” says Thayer. “These were the three most powerful figures in the leadership under General Secretary Trong. All were pressured into resigning in turn.”

Since taking office in August, General Secretary Lâm has moved quickly to solidify his position on the international stage. Last week, the Vietnamese leader visited Beijing to meet with China’s Xi Jinping, marking his first official overseas trip. The visit came nearly a year after Vietnam upgraded its diplomatic relations with both Japan and the United States. However, this continuation of former President Trong’s “Bamboo Diplomacy” should not be interpreted as a sign that Lâm intends to govern as a carbon copy of his mentor. Tô Lâm’s particularly abysmal human rights record distinguishes him as a unique threat to civil liberties and basic freedoms, further cementing a decade-long trend of increasing censorship and political persecution in Vietnam.

[Ting Cui edited this piece.]

The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

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Record Indian gold imports help drive bullion’s rally

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A surge in demand among Indian consumers for gold jewellery and bars after a recent cut to tariffs is helping to drive global bullion prices to a series of fresh highs.

India’s gold imports hit their highest level on record by dollar value in August at $10.06bn, according to government data released Tuesday. That implies roughly 131 tonnes of bullion imports, the sixth-highest total on record by volume, according to a preliminary estimate from consultancy Metals Focus. 

The high gold price — which is up by one-quarter since the start of the year — has traditionally deterred price-sensitive Asian buyers, with Indians reducing demand for gold jewellery in response.

But the Indian government cut import duties on gold by 9 percentage points at the end of July, triggering a renewed surge in demand in the world’s second-largest buyer of gold.

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“The impact of the duty cut was unprecedented, it was incredible,” said Philip Newman, managing director of Metals Focus in London. “It really brought consumers in.”

The tariff cut has been a boon for Indian jewellery stores such as MK Jewels in the upmarket Mumbai suburb of Bandra West, where director Ram Raimalani said “demand has been fantastic”.

Customers were packed into the store browsing for necklaces and bangles on a recent afternoon, and Raimalani is expecting an annual sales boost of as much as 40 per cent during the multi-month festival and wedding season that runs from September to February. 

Raimalani praised India’s government and “Modi ji”, an honorific for Prime Minister Narendra Modi, for reducing gold duties.

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Column chart of tariff cut triggers import leap last month showing Indian gold imports

Expectations of rapid interest rate cuts by the US Federal Reserve have been the main driver of gold’s huge rally this year, according to analysts. Lower borrowing costs increase the attraction of assets with no yield, such as bullion, and are also likely to weigh on the dollar, in which gold is denominated.

The Fed cut rates by half a per cent on Wednesday, pushing gold to yet another record high, just below $2,600. 

But strong demand for gold jewellery and bars, as well as buying by central banks, have also helped buoy prices. 

India accounted for about a third of gold jewellery demand last year, and has become the world’s second-largest bar and coin market, according to data from the World Gold Council, an industry body.

However, that demand has meant that domestic gold prices in India are quickly catching up to the level they were at before the tariff duty cut, according to Harshal Barot, senior research consultant at Metals Focus. 

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“That entire benefit [of the tariff cut] has kind of vanished,” said Barot. “Now that prices are going up again, we will have to see if consumers still buy as usual.”

Jewellery buying had been flagging before the cut in import duty, with demand in India in the first half of 2024 at its lowest level since 2020, according to the World Gold Council.

India’s central bank has also been on a gold buying spree, adding 42 tonnes of gold to its reserves during the first seven months of the year — more than double its purchases for the whole of 2023. 

A person familiar with the Reserve Bank of India’s thinking called the gold purchases a “routine” part of its foreign exchange reserve and currency stability management.

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Line chart of  showing Rate cut expectations send gold to record high

In China, the world’s biggest physical buyer of gold, high prices have meant fewer jewellery sales, but more sales of gold bars and coins, which surged 62 per cent in the second quarter compared with a year earlier.

“We observed strong positive correlation between gold investment demand and the gold price,” wrote the World Gold Council, referring to China.

All of this has helped support the physical market and mitigate the impact that high prices can have in eroding demand. 

“It acts as a stable foundation for demand,” said Paul Wong, a market strategist at Sprott Asset Management. “In parts of Asia, gold is readily convertible into currency,” making it popular for savings, he said.

Western investor demand has also been a big factor in bullion’s rally, with a net $7.6bn flowing into gold-backed exchange traded funds over the past four months. 

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After hitting a fresh high on Wednesday, analysts warn there could be a correction in the gold price.

“When you have this scale of anticipation [of rate cuts], for this long, there is room for disappointment,” said Adrian Ash, London-based director of research at BullionVault, an online gold marketplace. “I think there is scope for a pullback in precious alongside other assets.”

Whether or not gold pulls back from its record highs, Indian jewellery demand looks set to remain strong through the coming wedding season, according to MK Jewels’ Raimalani.

Soaring prices of bullion have been no deterrent to his customers, he added. “Indians are the happiest when prices go high because they already own so much gold. It’s like an investment.”

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‘Doomsday’ Glacier Is Set to Melt Faster

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‘Doomsday’ Glacier Is Set to Melt Faster

Tidal action on the underside of the Thwaites Glacier in the Antarctic will “inexorably” accelerate melting this century, according to new research by British and American scientists. The researchers warn the faster melting could destabilize the entire West Antarctic ice sheet, leading to its eventual collapse.

The massive glacier—which is roughly the size of Florida—is of particular interest to scientists because of the rapid speed at which it is changing and the impact its loss would have on sea levels (the reason for its “Doomsday” moniker). It also acts as an anchor holding back the West Antarctic ice sheet.

Warmed ocean water melts doomsday glacier faster
Yasin Demirci—Anadolu/Getty Images

More than 2 kilometers (1.2 miles) thick in places, Thwaites has been likened to a cork in a bottle. Were it to collapse, sea levels would rise by 65 centimeters (26 inches). That’s already a significant amount, given oceans are currently rising 4.6 millimeters a year. But if it led to the eventual loss of the entire ice sheet, sea levels would rise 3.3 meters.

While some computer models suggest reductions in greenhouse gas emissions under the 2015 Paris Agreement may mitigate the glacier’s retreat, the outlook for the glacier remains “grim,” according to a report by the International Thwaites Glacier Collaboration (ITGC), a project that includes researchers from the British Antarctic Survey, the U.S. National Science Foundation and the U.K.’s Natural Environment Research Council.

Thwaites has been retreating for more than 80 years but that process has accelerated in the past 30, Rob Larter, a marine geophysicist who contributed to the research, said in a news release. “Our findings indicate it is set to retreat further and faster.” Other dynamics that aren’t currently incorporated into large-scale models could speed up its demise, the new research shows. 

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Using a torpedo-shaped robot, scientists determined that the underside of Thwaites is insulated by a thin layer of cold water. However, in areas where the parts of the glacier lift off the seabed and the ice begins to float, tidal action is pumping warmer sea water, at high pressure, as far as 10 kilometers under the ice. The process is disrupting that insulating layer and will likely significantly speed up how fast the grounding zone—the area where the glacier sits on the seabed—retreats.

A similar process has been observed on glaciers in Greenland.

The group also flagged a worst-case scenario in which 100-meter-or-higher ice cliffs at the front of Thwaites are formed and then rapidly calve off icebergs, causing runaway glacial retreat that could raise sea levels by tens of centimeters in this century. However, the researchers said it’s too early to know if such scenarios are likely.

A key unanswered question is whether the loss of Thwaites Glacier is already irreversible. Heavy snowfalls, for example, regularly occur in the Antarctic and help replenish ice loss, Michelle Maclennan, a climate scientist with the University of Colorado at Boulder, explained during a news briefing. “The problem though is that we have this imbalance: There is more ice loss occurring than snowfall can compensate for,” she said. 

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Increased moisture in the planet’s atmosphere, caused by global warming evaporating ocean waters, could result in more Antarctic snow—at least for a while. At a certain point, though, that’s expected to switch over to rain and surface melting on the ice, creating a situation where the glacier is melting from above and below. How fast that happens depends in part on nations’ progress to slow climate change.

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David Lammy seeks emergency boost to aid cash to offset rising cost of migrant hotels

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Britain’s foreign secretary David Lammy is pushing for an emergency top-up to development spending as ballooning costs of supporting asylum seekers threaten to drain overseas aid to its lowest level since 2007.

The UK government spent £4.3bn hosting asylum seekers and refugees in Britain in the last financial year, more than a quarter of its £15.4bn overseas aid budget, according to official data. This more than consumed the £2.5bn increases in the aid budget scheduled between 2022 and 2024 by former Conservative chancellor Jeremy Hunt.

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People familiar with Lammy’s thinking say he fears that if Rachel Reeves, the chancellor, resists calls to at least match Hunt’s offer, the aid budget will be further eviscerated, undermining the government’s ambitions on the global stage.

Currently, the housing of asylum seekers in hotels is controlled by the Home Office but largely paid for out of the aid budget, a set-up introduced in 2010 when spending on the programme was relatively modest.

In the longer term, development agencies and some Foreign Office officials want the costs capped or paid for by the Home Office itself.

However, such a move would be politically fraught, the people said, as it would require billions of pounds of extra funding for the Home Office at a time the government is preparing widespread cuts across departments.

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Sir Keir Starmer, the prime minister, is due to attend a string of upcoming international events, starting with the UN general assembly this month, then a Commonwealth summit in Samoa, a G20 meeting in Brazil, and COP-29 climate talks in Azerbaijan later this autumn.

International partners will be looking at these meetings for signs that the change of government in the UK marks a change in direction on development.

Britain’s leading role was eroded by Rishi Sunak after he cut the previously ringfenced spending from 0.7 per cent of gross national income to 0.5 per cent when he was chancellor in 2020.

“When he turns up at the UN next week and the G20 and COP a few weeks later, the PM has a unique opportunity to reintroduce the UK under Labour as a trustworthy partner that sees the opportunity of rebooting and reinvesting in a reformed fairer international financial system,” said Jamie Drummond, co-founder of aid advocacy group One.

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“But to be that trusted partner you need to be an intentional investor — not an accidental cutter.”

Speaking on Tuesday in a speech outlining UK ambitions to regain a leading role in the global response to climate change, Lammy said the government wanted to get back to spending 0.7 per cent of GNI on overseas aid but that it could not be done overnight.   

“Part of the reason the funding has not been there is because climate has driven a migration crisis,” he said. “We have ended up in this place where we made a choice to spend development aid on housing people across the country and having a huge accommodation and hotel bill as a consequence,” he said.

Under OECD rules, some money spent in-country on support for refugees and asylum seekers can be classified as aid because it constitutes a form of humanitarian assistance.

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But the amount the UK has been spending on refugees from its aid budget has shot up from an average of £20mn a year between 2009-2013 to £4.3bn last year, far more than any other OECD donor country, according to Bond, the network of NGOs working in international development.

Spending per refugee from the aid budget has also risen from an average of £1,000 a year in 2009-2013 to around £21,500 in 2021, largely as a result of the use of hotels to accommodate asylum seekers.

The Independent Commission for Aid Impact watchdog argues that the Home Office has had little incentive to manage the funds carefully because they come from a different department’s budget.

In her July 29 speech outlining the dire fiscal straits that Labour inherited from the previous Conservative government, Reeves projected the cost of the asylum system would rise to £6.4bn this year.

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Labour was hoping to cut this by at least £800mn, she said, by ending plans to deport migrants to Rwanda. A Home Office official said the government was also ensuring that asylum claims were dealt with faster and those ineligible deported quickly.

But the Foreign Office projects that on current trends, overseas aid as a proportion of UK income (when asylum costs are factored in) will drop to 0.35 per cent of national income by 2028.

Without emergency funding to plug the immediate cost of housing tens of thousands of migrants in hotels, that will happen as soon as this year, according to Bond, bringing overseas aid levels to their lowest as a proportion of national income, since 2007.

The Foreign, Commonwealth and Development Office said: “The UK’s future [official development assistance] budget will be announced at the Budget. We would not comment on speculation.”

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AI translation now ‘good enough’ for Economist to deploy

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AI translation now 'good enough' for Economist to deploy

The Economist has deployed AI-translated content on its budget-friendly “snack-sized” app Espresso after deciding the technology had reached the “good enough” mark.

Ludwig Siegele, senior editor for AI initiatives at The Economist, told Press Gazette that AI translation will never be a “solved problem”, especially in journalism because it is difficult to translate well due to its cultural specificities.

However he said it has reached the point where it is good enough to have introduced AI-powered, in-app translations in French, German, Mandarin and Spanish on The Economist’s “bite-sized”, cut-price app Espresso (which has just over 20,000 subscribers).

Espresso has also just been made free to high school and university students aged 16 and older globally as part of a project by The Economist to make its journalism more accessible to audiences around the world.

Siegele said that amid “lots of hype” about AI, the questions to ask are: “What is it good for? Does it work? And does it work with what we’re trying to do?”

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He added that the project to make The Economist’s content “more accessible to more people” via Espresso was a “good point to start”.

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“The big challenge of AI is the technology, at least for us, is not good enough,” he continued. “It’s interesting, but to really develop a product, I think in many cases, it’s not good enough yet. But in that case, it worked.

“I wouldn’t say that translation is a solved problem, it is never going to be a solved problem, especially in journalism, because journalism is really difficult to translate. But it’s good enough for that type of content.”

The Economist is using AI translation tool DeepL alongside its own tech on the backend.

“It’s quite complicated,” Siegele said. “The translation is the least of it at this point. The translation isn’t perfect. If you look at it closely it has its quirks, but it’s pretty good. And we’re working on a kind of second workflow which makes it even better.”

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The AI-translated text is not edited by humans because, Siegele said, the “workflow is so tight” on Espresso which updates around 20 times a day.

“There is no natural thing where we can say ‘okay, now everything is done. Let’s translate, and let’s look at the translations and make sure they’re perfect’. That doesn’t work… The only thing we can do is, if it’s really embarrassing, we’ll take it down and the next version in 20 minutes will be better.”

One embarrassing example, Siegele admitted, is that the tool turned German Chancellor Olaf Scholz into a woman.

But Siegele said a French reader has already got in touch to say: “I don’t read English. This is great. Finally, I can read The Economist without having to put it into Google Translate and get bad translations.”

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The Economist’s AI-translated social videos

The Economist simultaneously launched AI-translated videos on its social platforms in the same four languages.

The videos are all a maximum of 90 seconds meaning it is not too much work to check them – crucial as, unlike the Espresso article translations, they are edited by humans (native language speakers working for The Economist) taking about 15 minutes per video.

For the videos The Economist is using AI video tool Hey Gen. Siegele said: “The way that works is you give them the original video and they do a provisional translation and then you can proofread the translation. So whereas the translations for the app are basically automatic – I mean, we can take them down and we will be able to change them, but at this point, they’re completely automatic – videos are proofread, and so in this way we can make sure that the translations are really good.”

In addition they are using “voice clones” which means journalists who speak in a video have some snippets of themselves given to Hey Gen to build and that is used to create the finished product.

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The voice clones are not essential, Siegele explained, as translations can be done automatically regardless. Journalists can opt out of having their voices used in this way, and any data stored will be deleted if the employee leaves The Economist. But the clones do mean the quality is “much better”.

They have a labelling system for the app articles and videos that can show they are “AI translated” or “AI transformed”. But, Siegele said, they are “not going to have a long list of AI things we may have used to build this article for brainstorming or fact checking or whatever, because in the end it’s like a tool, it’s like Google search. We are still responsible, and there’s almost always a human except for edge cases like the Espresso translations or with podcast transcripts…”

Economist ‘will be strategic’ when choosing how to roll out AI

Asked whether the text translation could be rolled out to more Economist products, Siegele said: “That’s of course a goal but it remains to be seen.”

He said that although translation for Espresso is automated, it would not be the goal to do the same throughout The Economist.

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He also said they still have to find out if people are “actually interested” and if they can “develop a translation engine that is good enough”.

“But I don’t think we will become a multi-linguistic, multi-language publication anytime soon. We will be much more strategic with what we what we translate… But I think there is globally a lot of demand for good journalism, and if the technology makes it possible, why not expand the access to our content?

“If it’s not too expensive – and it was too expensive before. It’s no longer.”

Other ways The Economist is experimenting with AI, although they have not yet been implemented, include a style bot and fact-checking.

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Expect to see “some kind of summarisation” of articles, Siegele continued, “which probably will go beyond the five bullet points or three bullet points you increasingly see, because that’s kind of table stakes. People expect that. But there are other ways of doing it”.

He also suggested some kind of chatbot but “not an Economist GPT – that’s difficult and people are not that interested in that. Perhaps more narrow chatbots”. And said versioning, or repurposing articles for different audiences or different languages, could also follow.

“The usual stuff,” Siegele said. “There’s only so many good ideas out there. We’re working on all of them.” But he said he wants colleagues to come up with solutions to their problems rather than him as “the AI guy” imposing things.

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Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our “Letters Page” blog

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Kentucky sheriff held over fatal shooting of judge in court

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Kentucky sheriff held over fatal shooting of judge in court

A Kentucky sheriff has been arrested after fatally shooting a judge in his chambers, police say.

District Judge Kevin Mullins died at the scene after being shot multiple times in the Letcher County Courthouse, Kentucky State Police said.

Letcher County Sheriff Shawn Stines, 43, has been charged with one count of first-degree murder.

The shooting happened on Thursday after an argument inside the court, police said, but they have not yet revealed a motive.

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Officials said Mullins, 54, was shot multiple times at around 14:00 local time on Thursday at the court in Whitesburg, Kentucky, a small rural town about 150 miles (240km) south-east of Lexington.

Sheriff Stines was arrested at the scene without incident, Kentucky State Police said. They did not reveal the nature of the argument before the shooting.

According to local newspaper the Mountain Eagle, Sheriff Stines walked into the judge’s outer office and told court employees that he needed to speak alone with Mullins.

The two entered the judge’s chambers, closing the door behind them. Those outside heard gun shots, the newspaper reported.

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Sheriff Stines reportedly walked out with his hands up and surrendered to police. He was handcuffed in the courthouse foyer.

The state attorney general, Russell Coleman, said in a post on X, formerly Twitter, that his office “will fully investigate and pursue justice”.

Kentucky State Police spokesman Matt Gayheart told a news conference that the town was shocked by the incident

“This community is small in nature, and we’re all shook,” he said.

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Mr Gayheart said that 50 employees were inside the court building when the shooting occurred.

No-one else was hurt. A school in the area was briefly placed on lockdown.

Kentucky Supreme Court Chief Justice Laurance B VanMeter said he was “shocked by this act of violence”.

Announcing Judge Mullins’ death on social media, Kentucky Governor Andy Beshear said: “There is far too much violence in this world, and I pray there is a path to a better tomorrow.”

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