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When the McKinsey consultant Chris Bradley tries to explain the changing nature of corporate competition, he turns to the fictional universe of Harry Potter. A few exceptional “wizard” companies have emerged this century, which seemingly operate in a different dimension to their non-magical “muggle” counterparts, he says. 

Mostly US and Chinese technology giants, such as Amazon, Xiaomi and Nvidia, these magical companies are characterised by extraordinary dynamism, intense investment levels and global impact. They can reshape — or, in some cases, conjure up entirely new — markets. In so doing, they drive a disproportionate share of the world’s economic growth, which has been captured in their profits and soaring stock market valuations. Duller corporate muggles, on the other hand, huddle in older, lower growth industries, such as finance, consumer goods, construction and transport, largely unloved by investors. 

“Something strange is afoot in the industrial landscape whereby a small set of firms in a few arenas have really driven all the dynamism and value creation in the world in a way that is historically unusual,” Bradley tells me, snapping back into more traditional McKinseyese. 

His views reflect the findings of a new 213-page McKinsey Global Institute study he co-authored on the next big “arenas” of competition, trying to identify the most promising industries of the future. McKinsey defines arenas as categories of dynamic, high-growth industries that transform the business landscape and generate outsized profits.

The report starts by analysing the 12 arenas that have driven the most growth between 2005 and 2020. Including the consumer internet, biopharma, semiconductors, cloud computing and industrial electronics, they grew much faster than more traditional industries off the back of surging investment. Over this period, the 12 recorded a compound annual growth rate of 10 per cent in revenues, trebling their share of global GDP to 9 per cent.

To date, US businesses have dominated these arenas, according to the study, accounting for 65 per cent of their global stock market capitalisation in 2020. Greater China, with a strong presence in the semiconductor, ecommerce and consumer electronics arenas, accounted for 17 per cent, while Europe represented just 9 per cent.

McKinsey reckons some of these high-growth sectors, such as ecommerce, artificial intelligence software and semiconductors, will further evolve or mutate and become far bigger as new technologies are deployed, the global economy moves further online and the green energy transition unfolds. Other industries, including modular construction, shared autonomous vehicles, industrial biotech and small-scale nuclear fission power plants, may also emerge strongly over the next 15 years. In total, the report highlights 18 future arenas of competition. It forecasts they could generate anywhere between $2tn and $6tn of profit by 2040.

That range is so wide because of the uncertainties that still infest the world, not least the US presidential elections on November 5. Geopolitical tensions could further fragment the global economy. The pace of the green transition may accelerate or falter. The evolution of enabling technologies, such as AI, is also impossible to guess. 

Readers of the report might find echoes of the work of the finance professor Hendrik Bessembinder, who has long argued that a disproportionate share of stock market returns is driven by a few “outlier” companies. But they may also question how far market cap equates with an economy’s overall dynamism, especially given US equity markets are currently inflated by a tech bubble, a fiscal sugar rush and a strong dollar. 

Indeed, Michael Power, a consultant at the investment firm Ninety One, argues that high stock market valuations can sometimes result from excessive market concentration that stifles competition. “There is a high degree of monopoly power in the US that translates into high levels of market cap. But in China, they let competition rip. Every man and his dog wants to start an EV company,” he tells me.

Power argues that many analysts tend to underestimate the competitiveness of China, and increasingly India, in leading technologies. He points to a recent study by the Australian Strategic Policy Institute that found China had strengthened its global research, and now leads in 57 out of 64 critical technologies, including quantum sensors, electric batteries and advanced robotics. China will dominate the fast-growing renewable energy economy this century, he predicts, just as the US was powered by the oil economy in the 20th century.

As for Europeans, if they were depressed by Mario Draghi’s report on the region’s lack of competitiveness, they will bury their heads in their hands after reading McKinsey’s analysis — or be inspired to act. Europe boasts few corporate wizards and is over-represented in the muggle economy.

Still, predicting the industries of the future is an impossible game. It is easy to extrapolate current trends, harder to anticipate disruptive breakthroughs. The day before the first precarious flight of the Kitty Hawk in 1903, who could have predicted that aviation and space would become two of the defining industries of the 20th century? Then again, where are our flying cars, let alone our flying broomsticks?

john.thornhill@ft.com

Chancellor Rachel Reeves’ first Budget on 30 October “more than ever highlights the importance of financial advice”.

This is what Triple Point regional business development manager Lucy Dolan said on a panel at the Money Marketing Interactive conference in Leeds today (24 October).

Speaking on the same panel Moran Wealth Management founder Nicola Crosbie added that there has been a lot of “panic and hysteria” surrounding the Budget.

“The need for tax planning advice will increase” as a result, Crosbie added.

She said that at the moment it is all speculation, but “we need to have a plan in place to help clients quickly following the Budget”.

Dolan, on a more positive note, said: “We have been through a lot of change before and come out of it on the other side”.

Still, her diary is packed with post budget sessions and webinars.

Syndaxi Financial Planning managing director Robert Reid also asked the audience how many had been asked about tax-free cash in the run-up to the Budget.

The majority of those attendance raised their hands.

Dolan also spoke about venture capital trusts (VCTs) and enterprise investment schemes (EIS).

EIS and VCTs enable businesses to secure equity investment and grow rapidly, with tax reliefs helping reduce investors risk, she said.

In regards to the abolition of the lifetime allowance (LTA), Crosbie said she does not believe it will be reintroduced.

Reeves initially indicated that Labour would reverse this move, which was originally announced by then chancellor Jeremy Hunt.

However, Labour dropped plans to reintroduce the pension LTA, saying it would be “too complex”.

This move was widely welcomed by the financial services industry.

A HOLIDAY park in Devon is set to undergo a huge multi-million-pound renovation.

The planning committee at Teignbridge council has approved the next phase of a multi-million-revamp at Golden Sands Holiday Park in Dawlish, south Devon.

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Documents submitted to the council outline a series of renovations to the clubhouse, shop and reception area.

The site’s outdoor swimming pool will also get a roof, with a new crazy golf course and activity centre being built.

The pool will be for the use of holiday park guests only and not for members of the public.

Park Holidays who own Golden Sands Holiday Park also applied for retrospective approval of its 25 timber camping pods.

The timber pods were built at the Devonshire holiday park between 2018 and 2022.

When they were being built, Golden Sands had planning permission for 58 caravan and touring pitches.

In a piece in the Dawlish Gazette, Cllr Linda Goodman-Bradbury described the retrospective approval as “disappointing”.

She added: “My concern is about the footprint, and where the water is going. Dawlish Warren is very prone to flooding.”

Chartered town planner Robert Gandy, spoke on behalf of Park Holidays, countering the concerns of flooding, with the pods being less impactful in terms of drainage compared to the pitches.

Park Holidays describes the pods as “an exciting new type of accommodation designed to offer an alternative to camping and touring.”

The timber pods sleep up to four people and come equipped with double glazing, insulation and heating.

While the improvements have been given the go-ahead, a timeline has yet to be revealed, which means it is not yet known when the features will be on the site.

In the meantime, the coastal holiday park has enough to keep you occupied.

The Devonshire holiday park has both an indoor and an outdoor swimming pool.

It is also close to several beaches like the Blue Flag Dawlish Warren, Teignmouth Town Beach and Ness Cove.

Other on-site facilities include a restaurant and bar, an outdoor playground and an arcade with penny machines.

Holidaymakers can book an overnight stay in the camping pods, with prices starting from £37.50 per night.

The holiday park has been praised by visitors on TripAdvisor, with one person writing: “Another fantastic week at Golden Sands.”

Another added: “I’ve been going to Golden Sands for five years, love the staff, caravan and entertainment”.

Golden Sands isn’t the only holiday park that has recently revealed plans to renovate.

Earlier this week, Haven’s Presthaven Sands, which was visited by footballer Harry Maguire over the summer, also announced plans to renovate.

The holiday park has now revealed new plans to upgrade the resort.

New documents submitted to the local council include a huge extended play zone, with aerial adventure courses, climbing walls and bungee trampolines.

A new inflatable arena as well as a dog-friendly “Bark Yard zone” are also part of the plans.

And Haven Primrose Valley opened a Wetherspoons on-site earlier this year, the first of its kind – and we went down.

Haven holidays for 2025 can still be found for £49 too.

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The Room Next Door will not make you cry. Among its many good qualities, the new film from Pedro Almodóvar doesn’t seek to leave you blubbering in public. Your dry eyes might surprise. The movie is about death. Sadder still, it concerns two old friends, and the exit of one from cancer, as remorseless on screen as it can be in reality. The woman on the edge is New Yorker Martha, played by Tilda Swinton, a storied former war reporter. Her friend is Ingrid (Julianne Moore), a writer with a dread of mortality, about to have to face her fears.

In your mind’s eye, Almodóvar may be forever frozen as the impish boy wonder of 1980s Spanish cinema. But The Room Next Door feels an obvious destination for a great auteur lately grown sombre. His last feature Parallel Mothers (2021) was haunted by ghosts of the Spanish civil war. Pain and Glory (2019) came shrouded in late-life regret. Still, the movie also marks a new start — his first full-length film made in English.

“So how are you?” Ingrid duly asks. The news is bad. A softer melancholy follows. The pair were once inseparables in a funky Downtown scene, but then lost touch. Now, they reconnect against a ticking clock. Then Martha asks a question that sets the whole film spinning. She has refused further treatment, and procured a euthanasia pill. Will Ingrid be her companion when she takes it?

Moore’s face is a picture. So is much else in the movie. Early scenes feel stilted, as if the actors themselves may have only just learned English. Yet Almodóvar soon makes himself at home. 

Despite the mournful context, the director slips easily into the poker-faced comic mode he has long enjoyed. Manhattan locations are knowingly precise — a reading at Rizzoli, a visit to the Lincoln Center — but the film treats the place as just one more glossy Almodóvarian soundstage. Skyscrapers in autumn join the droll catalogue of Dolce & Gabbana accessories, muscle-bound personal trainers, hyper-stylish furniture and lipsticks.

And for a dying woman, Swinton looks great, her character and the film alike sticking with a sheen of camera-ready glamour.

That might strike people as flippant. I found it touching: personal chic as a defiant middle finger to the gods. The whole movie is a little like that, slyly upending the earnest weepie another film would make from the material. That other telling would make sure to confront us with the wracking sights of terminal illness. Almodóvar trusts that many of us will already know what they look like, and what loss feels like, and we can all join the dots without Swinton having to perform physical agony for us. 

Comic as it is, The Room Next Door also feels truer in a deeper, more interesting sense than that other, well-worn version of the story. Yes, the movie says, fate is cruel and strange. The issue is: what next? As darkness beckons, the old imp might just be back. 

Almodóvar adds to the air of gentle taboo-busting by clearly having fun himself. Now 75, he is finally working in America, home to the splendid 1950s melodramas of director Douglas Sirk that shaped his early work. Here he winks their way with flashbacks filled with red Dodges and diner milkshakes. 

Of course, the film also can’t help but be a crime thriller. In the face of the urgent real-world debate around assisted dying, Almodóvar again doesn’t do quite the expected. Rather than editorialise, he treats the act as simply something people may choose to do, with potential for awful misuses and slapstick mishaps. 

It doesn’t feel accidental that Ingrid and Martha end up watching the Buster Keaton classic Seven Chances. As the great comic avoids an avalanche of boulders, the moment feels sweetly profound. We all get flattened eventually. Till then, though, we do at least have laughter, best shared together.

★★★★☆

In UK cinemas from October 25 and US cinemas from December 20

A MAJOR energy firm is giving thousands of customers free electricity this Halloween.

E.ON Next, which serves 5.6 million customers in the UK, is offering selected customers free electricity this Halloween.

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The energy firm has begun emailing chosen customers, encouraging them to take advantage of this special offer. 

Customers who download the E.ON Next app can receive a £5 credit on their electricity bill for Halloween.

The email sent to participants reads: “No tricks this Halloween, just a treat on us.

“Here’s a scarily good deal! Get a day’s worth of free electricity on us, just by following three simple steps.”

To claim the reward, customers who receive the email must first download the E.ON Next app, available on both the Apple App Store and Google Play Store.

After downloading the app, they need to log in to their E.ON Next account within 48 hours.

Once these steps are completed, customers can claim a free £5 energy credit, which will be applied to their electricity bill on October 31.

E.ON Next states that the £5 credit is equivalent to the average daily cost of electricity in the UK, meaning it will cover a full day’s electricity usage for most customers.

However, customers with a prepayment meter will not be eligible for this offer.

Reacting to the news of the offer on Facebook, one customer said: “Decent, that’ll cover boiling the kettle.”

Another said: “This can be really helpful for those who are struggling!”

“I downloaded their app, and it’s the first thing that pops up once signed in,” said a third.

Eligible customers have until 10am tomorrow (October 25) to redeem the offer before it closes for good.

E.ON Next said that the £5 credit will appear as ‘Free energy credit’ on online accounts, paper statements, and bills.

Customers who aren’t with E.ON Next can still get access to free bill credits by taking part in a number of energy-saving schemes.

OTHER WAYS TO GET FREE ENERGY CREDITS

A number of energy suppliers reward customers with discounts or credit when they change the way they use their gas and electricity usage.

These schemes, offered by the likes of British Gas, EDF, Octopus and Ovo Energy, can help customers save money this winter.

Here’s everything you need to know.

British Gas

British Gas‘ Peak Save Sundays scheme offers millions of customers half-price electricity for using their energy during certain hours.

It offers qualifying customers half price electricity between 11am and 4pm every Sunday.

The energy firm said over 650,000 customers had already signed up to the scheme, saving a combined £13million between them.

You can sign up to the scheme by visiting britishgas.co.uk/energy/peak-save.html.

The supplier will then be in touch with you if your application is successful.

After that, your savings will appear as “PeakSave Credit” on your next energy bill or online statement.

Be aware that you can only sign up to the scheme if you have a smart credit or prepayment meter that can send half-hourly meter readings.

If you don’t have a smart meter, don’t worry, British Gas will install one for free in your home.

EDF Energy

EDF offers customers the opportunity to run their homes for no cost if they take part in a new challenge.

To get the hours of free electricity, customers must cut down on using electrical devices during “peak hours”, which tend to be between 4pm-7pm Monday to Friday.

In return, EDF will give customers free electricity on Sundays when demand to the energy grid tends to be lower.

The more electricity customers shift to off-peak times, the more free electricity they can earn.

Customers who manage to cut back their usage by 40% during the week can earn up to 16 hours of free electricity to use on a Sunday.

To take part, customers need a smart meter.

To find out more, visit edfenergy.com/energy-efficiency/sunday-saver-challenge.

Octopus Energy

Octopus Energy customers who are signed up to the “Octoplus” can take part in free electricity sessions when wholesale prices fall below zero.

The sessions last an hour, and customers can use electricity for free and receive credits for using more than they typically would.

All customers with a smart meter, including smart prepay meters, receive an alert the day before each session.

When the session begins, they can ramp up their electricity usage – whether it’s charging gadgets, running a laundry marathon, or any other household activity.

Any extra electricity consumed beyond their normal usage will be credited back to their account.

Find out more by visiting octopus.energy/free-electricity/.

Ovo Energy

Ovo Energy also offers a scheme which rewards customers for reducing their energy consumption during peak times.

Power Move offers customers up to £10 a month if they use 8.50% or less of their home’s total electricity between 6-9pm, Monday to Friday.

For example, by using the dishwasher in the morning or waiting until after 9pm in the evening to catch up on TV.

You can sign up by visiting ovoenergy.com/power-move.

What energy bill help is available?

There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.

If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.

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This involves paying off what you owe in instalments over a set period.

If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.

Several energy firms have grant schemes available to customers struggling to cover their bills.

But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.

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For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.

British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.

You don’t need to be a British Gas customer to apply for the second fund.

EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.

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Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).

The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.

Get in touch with your energy firm to see if you can apply.

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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

China’s coastguard has entered a stand-off with its Indonesian counterpart in the southernmost reaches of the South China Sea as it attempts to enforce Beijing’s expansive territorial claims.

Indonesia’s Maritime Safety Agency, or Bakamla, said on Thursday that it had for the second time this week driven Chinese coastguard ships out of waters under Indonesian jurisdiction, where the vessels had been disrupting resource survey work.

The agency had said on Wednesday that it “expelled” a Chinese coastguard vessel from waters north of Indonesia’s Natuna islands near the Norwegian-flagged vessel Geo Coral, which is prospecting for Jakarta’s state-owned energy company Pertamina in the gas-rich waters. According to ship tracking data, the vessel, China Coast Guard 5402, returned on Tuesday to the area.

There were no indications of violence in the incidents. But the Chinese patrol in waters in which Indonesia has exclusive economic rights under international law shows how Beijing’s sovereignty claims over almost all of the South China Sea, and its increasingly muscular enforcement efforts, are creating friction with coastal states in the region.

Chinese coastguard ships have frequently and violently clashed with the Philippines over the past two years as they have tried to obstruct Manila’s resupply missions to military outposts or patrols of reefs within its exclusive economic zone.

Manila has tried to counter Beijing’s actions by publicising the incidents. While other coastal states have been more muted in handling disputes with China, they have faced similar coercion. Several Vietnamese fishermen were severely injured in an attack this month by Chinese maritime law enforcement officials.

Indonesia is not a claimant to South China Sea islands or reefs outside its exclusive economic zone, in contrast to Vietnam and the Philippines. But an apparent overlap between Indonesia’s exclusive economic zone and the nine-dash line that China uses to delineate its sweeping claims in the South China Sea has repeatedly led to disputes over fishing and drilling.

China’s foreign ministry on Thursday called the coastguard ship’s movements routine patrols in waters under Chinese jurisdiction. A spokesperson said Beijing was willing to enhance consultation with Indonesia and “appropriately handle maritime differences”.

China in 2015 acknowledged Indonesian sovereignty over the Natuna islands. But the next year, its coastguard forcibly recovered a Chinese vessel from an Indonesian coastguard ship that had seized it for illegal fishing.

In 2021, China started sending law enforcement and maritime survey ships into waters under Indonesian and Malaysian jurisdiction after drilling started there for new oil and gas projects.

Chinese government vessels have kept up almost constant patrols near Luconia Shoals, a cluster of reefs just off the coast of Sarawak, a Malaysian state on the island of Borneo.

The current stand-off began on October 17 with the arrival of a Chinese coastguard ship near the Geo Coral, which has since been taking turns with a fellow vessel patrolling in the vicinity. Jakarta has been shadowing it with coastguard ships, backed by maritime surveillance aircraft and a naval vessel.

A video that Bakamla published on YouTube on Wednesday showed an Indonesian coastguard ship shadowing a Chinese vessel two days earlier. Indonesian officers could be heard telling China Coast Guard 5402 over radio that it was in waters under Indonesian jurisdiction and asking about its intentions.

The Chinese vessel broadcast back, claiming the Indonesian ship was in waters under Chinese jurisdiction. “China has indisputable sovereignty over the islands of the South China Sea and adjacent waters,” the broadcast said. It also claimed Chinese rights to everything including the seabed and the subsoil of those waters.

Bakamla said in a statement that it would “continue to conduct intensive patrols and monitoring in the waters of North Natuna to ensure that seismic survey activities run without interference and to maintain Indonesia’s sovereignty and sovereign rights”.