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

Former Conservative leadership candidate Mel Stride is set to throw his backing behind James Cleverly on Monday evening, in a boost to the ex-home secretary’s bid to replace Rishi Sunak, according to party figures.

The expected endorsement will come hours before Tory MPs vote on Tuesday to eliminate one of the four remaining contenders from the race. They will vote out another candidate on Wednesday, with Conservative members being balloted in a run-off between the final two names later this month. 

Cleverly came joint third with ex-security minister Tom Tugendhat in the second round of voting last month. That ballot saw former immigration minister Robert Jenrick in pole position with ex-business secretary Kemi Badenoch in second place. 

However, Cleverly picked up momentum during the party’s annual conference in Birmingham last week, after swerving any gaffes and giving a strong performance in his keynote speech. Jenrick and Badenoch saw their conference appearances overshadowed by controversial comments, which may have dented their appeal with colleagues and party members.

Stride, who was knocked out in the second-round ballot, was a staunch supporter of Sunak and is seen as a senior centrist Tory. The backing will be another welcome boost for Cleverly, but may cement in the minds of MPs and members the sense that he is a moderate Tory in a party that is feeling threatened by Nigel Farage’s Reform UK.

Former home secretary Priti Patel, the leadership candidate who was knocked out of the race first, has so far declined to offer her public support to any of the remaining candidates. 

These have sought to project upward momentum for their campaigns with a series of high-profile endorsements in recent days. 

Badenoch won the backing of Ron DeSantis, the Republican governor of Florida at the weekend. The ex-US presidential hopeful said she would be an inspiration for conservatives “across the world”.

Earlier on Monday Andy Street, the former Tory mayor of the West Midlands, said Tugendhat best embodied “a moderate, inclusive brand of Conservatism” that “focuses on real societal issues, not ideology”.

Jenrick’s campaign is so confident of reaching the final two that it is saving significant endorsements until the back end of this week, according to one person familiar with his thinking, after MPs have knocked out two of the current contenders. Jenrick is planning a big speech in central London on Thursday in expectation of making the run-off.

At the weekend a survey of members by the ConservativeHome grassroots website suggested that Cleverly had leapfrogged Jenrick among the party faithful. However, it found that Kemi Badenoch remained in first position.

On Monday, the candidates used a debate in the House of Commons on the government’s decision to cede sovereignty of the Chagos Islands in the Indian Ocean to Mauritius to flaunt their patriotic credentials. 

Jenrick accused foreign secretary David Lammy of having “handed sovereign British territory to a small island nation which is an ally of China” in order to “feel good about himself at his next north London dinner party”. 

Tugendhat accused the government of “undermining the rights of the Chagossian people” with the deal. He has previously criticised Cleverly, who began negotiations with Mauritius when he was foreign secretary under Liz Truss in 2022. 

On Monday, Lammy insisted the deal was “strongly supported by partners” and secured the future of a UK-US military base situated on Diego Garcia, a strategically important asset.

Unlock the Editor’s Digest for free

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

The Premier League’s rules on commercial agreements between football club owners and related companies are unlawful, a tribunal has found, following a legal challenge from Manchester City that will force some of the regulations to be rewritten. 

City, which is owned by a member of the Abu Dhabi ruling family, challenged the league’s so-called Associated Party Transaction rules earlier this year, claiming that they had unfairly blocked sponsorship deals, including one with Abu Dhabi-based airline Etihad. 

The Premier League’s APT rules were brought in after Newcastle United was acquired by Saudi Arabia’s Public Investment Fund in late 2021, and updated again earlier this year.

The regulations were designed to prevent companies related to club owners from using inflated sponsorship deals to boost revenue and so give teams greater leeway to spend on players. 

Although an independent panel rejected several of City’s claims, and recognised the Premier League’s need for an assessment mechanism for related party deals, it deemed the current rules “unlawful” under UK competition law.

This was principally because the rules excluded shareholder loans from their assessment. Several Premier League clubs rely on interest-free loans from their owners but — unlike sponsorship deals — loans are not required to meet “fair market value” criteria. 

The tribunal also found that the way APTs are assessed was unlawful on a procedural basis, with clubs denied important information before decisions were made.

The ruling means the Premier League’s original assessment of two City sponsorship deals, including the Etihad deal in question, no longer stand. Etihad is already the club’s front of shirt sponsor and has naming rights over its stadium.

The Premier League said that a “small number of discrete elements” in its rule book would now need updating, but that the changes could be done “quickly and effectively”.

City’s partial victory on the APT rules comes as a separate independent committee hears the case brought by the Premier League against the club related to 115 alleged financial rule breaches stretching over many years. A verdict in that case is expected in the new year.

After being acquired by Sheikh Mansour bin Zayed Al Nahyan in 2008, City has become the dominant force in English football. The club has won the Premier League six times in the past seven years, and last year won the Uefa Champions League for the first time.

Monday’s ruling is the latest in a string of legal challenges against football’s rulemakers.

On Friday, the European Court of Justice said the current rules set by global governing body Fifa regarding football transfers were unlawful, while the same court ruled late last year that Fifa and its European counterpart Uefa had breached competition law during their response to the aborted European Super League.  

City’s battle against the league is another example of how football clubs are increasingly taking the legal route to determine the rules that underpin the competition. It is a recognition of how the rules off the pitch — not just star players — can influence winners and losers on the pitch.

The Premier League said the verdict “endorsed the overall objectives, framework and decision-making of the APT system”. The league said it would now add shareholder loans to its assessments and remove some of the amendments brought in earlier this year. 

“The tribunal upheld the need for the APT system as a whole and rejected the majority of Manchester City’s challenges. Moreover, the tribunal found that the rules are necessary in order for the League’s financial controls to be effective,” it added. 

City said it welcomed the findings of the tribunal. “The club has succeeded with its claim: the Associated Party Transaction rules have been found to be unlawful and the Premier League’s decisions on two specific MCFC sponsorship transactions have been set aside,” it said.

Adviser investment platform Transact has announced a new integration with fintech provider Moneyinfo to help streamline adviser-client communication.

The collaboration is part of Transact’s plan to integrate with technology providers to enhance efficiency and client engagement for the 2,000 adviser firms using the platform.

The integration with Moneyinfo simplifies document delivery, which is often a time-consuming process.

Through the integrated Moneyinfo portal and app, advisers can automatically deliver key client communication, including valuation reports and statements.

Removing this previously manual process will improve the operational efficiency of advisers, providing more time to focus on providing advice.

Plannr and Transact team up to ‘supercharge’ efficiency of advisers

Transact chief development officer Tom Dunbar said the platform’s overall strategy is to “make financial planning easier”.

“A key priority in doing this is to improve the technology ecosystem available to our adviser firms,” he added.

“By integrating with client portals like Moneyinfo we help advisers operate more efficiently and improve the client experience.”

Moneyinfo managing director Tessa Lee said the firm is “passionate about pushing the boundaries of technology” to benefit the wealth-management industry.

“Our collaboration with Transact is a direct response to what advisers have been asking for – greater efficiency and peace of mind,” she added.

“Through simplifying document delivery, this integration allows advisers to focus on their core business, knowing the technology is working behind the scenes to support them.”

In a statement, the companies said that, for adviser firms, the benefits of this integration go beyond time savings as the automation of documentation also provides a “seamless client experience”.

Advisers now have a choice in how they manage document distribution, with an option for Moneyinfo’s platform to handle everything from encrypted delivery to audit trails.

Chris Riley, MD at Seventy Financial Planning – a firm participating in the pilot – said: “It has transformed our processes and vastly improved the client experience. We no longer worry about chasing documents – it’s taken care of.”

Dunbar added: “We’re committed to empowering our clients with the tools they need to succeed in a competitive, fast-changing industry and working with like-minded firms like Moneyinfo helps us stay ahead of the curve, ensuring our adviser firms benefit from the latest innovations.”

A HUGE new waterfront development is set to transform a Brit-loved winter sun hotspot.

Ras El Hekma is a new waterfront megaproject being built in Egypt, which will be twice the size of Barcelona.

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Ras El Hekma will be on the North Coast of Egypt between Alexandria and Marsa Matrouh.

It will also be just a few hours from Cairo, with plans to have both flights and cruise ships from Europe.

This means a new international airport will be built, along with a cruise terminal and high speed rail links.

Brits can currently fly to Cairo in just under five hours, with flights to the the development expected to be slightly shorter.

Resorts expected to be built there include Accor – who own Ibis and Novotel – and Ennismore.

The luxury golf courses will be created by Valderrama, one of the most famous golf resorts in the world.

The main waterfront area will be the tourist resort with a main downtown that has beach resorts, public beaches and “coastal communities”.

Another district will promote “local culture”.

Images also show a cable car network as well as restaurants right on the beach.

Some of the first stages will be complete by next year, such as some of the beach apartments, amusement facilities and the seafront with construction starting next month.

The project is being developed by Abu Dhabi based Modon Holding as well as other UAE and Egyptian developers including ADQ subsidiary Ras El Hekma Urban Development Project Company.

As much as $110billion (£84billion) investment is expected by 2045.

His Excellency Jassem Mohamed Bu Ataba Al Zaabi, Chairman of Modon Holding, said, “Ras El Hekma is destined to become a regional crown jewel in a country already famed for its rich and diverse attractions.

“Modon Holding is proud to bring this 170-million-square-metre
visionary megaproject to life, leveraging our expertise and innovative approach.

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“With our partners, we are poised to transform Ras El Hekma into a dynamic economic powerhouse and a global model for urban development.”

Another £16.3billion beachfront attraction is set to open in Egypt as well.

The new SouthMED project is to become a “global destination on the southern Mediterranean”.

As well as 2,000 hotel rooms, there will also be an international marina and 8km beach.

Five new water attractions opening in the UK

1. Therme Manchester will have 25 swimming pools, 25 water slides and an indoor beach.
2. Modern Surf Manchester will be a surfing lagoon offering lessons to both beginners and experts.
3. Chessington World of Adventures Waterpark is set to have wave, infinity and spa pools as well as waterslides and cabanas.
4. The Cove Resort, Southport is likely to have a water lagoon and a thermal spa with steam rooms and saunas.
5. The Seahive, Deal plans to be the “surfing wellness resort” in the UK.

In Greece, a £6.8billion Dubai-like attraction is set to open with the seaside resort home to five-star hotels and marina.

And a £4.3billion beachfront attraction in Qatar is to “rival Disney” in size.

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Unlock the Editor’s Digest for free

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

Spain has proposed a faster path to closer EU financial integration among like-minded nations in an effort to end a decade-long stalemate over harmonising the bloc’s capital and credit markets.

Madrid made a formal proposal on Monday for a new mechanism to allow a vanguard of three or more countries to proceed on joint initiatives even when other EU members are wary — starting with the creation of a pan-European credit rating system.

For more than a decade, the EU has sought to tear down national barriers in capital markets to help European companies raise funds, but the efforts to forge a “capital markets union” have been scuppered by resistance from several capitals.

Spain’s move comes after policy recommendations from former Italian prime ministers Mario Draghi and Enrico Letta, who warned that the bloc risked economic decline if it could not turn its private savings into productive investments.

Carlos Cuerpo, the Spanish economy minister who will present the country’s proposal to fellow EU ministers in Luxembourg, told the Financial Times that implementing the Italian recommendations was “a huge job ahead for all of us”.

Setting out Spain’s proposal for a “competitiveness lab”, where three or more EU countries could test ideas for co-operation, he said it would help avoid the “potential danger of frustration” with the EU’s slow decision making. “We can’t wait that length of time,” he said, noting that on average the bloc’s legislation took 19 months to pass.

Spain wants to start with a harmonised credit rating system for small and medium-sized businesses, which he said found it much harder to raise finance than large companies.

Describing the idea as “an additional step towards a capital markets union”, he said it would lower financing costs in both capital and credit markets and enable a Spanish company, for example, to raise funds at competitive rates in any other participating country.

It is not the first time EU countries that are frustrated by inertia in the EU regulatory process have tried to push ahead with fewer partners.

EU law already allows for “enhanced co-operation” among at least nine member states on specific initiatives if efforts to secure support for the reforms at EU level have failed.

But the mechanism has only been used successfully four times, and failed to break a stalemate on a financial transaction tax, even after it was explored by more than a dozen countries. Spanish officials described it as outdated and insufficiently flexible to enable real change in key areas.

Paschal Donohoe, president of the Eurogroup, said on Monday that the Spanish initiative should encourage all countries to participate, but would avoid fragmenting the bloc’s already disjointed capital markets. 

“At a time when we’re all reaffirming the value of a single market and the value of a level playing field . . . I hope that ideas like this act as a catalyst to deepening our commitment for us all to take a step forward together, so we don’t have any risks of fragmentation,” he said, adding: “One person’s enhanced co-operation could be another country’s risk of fragmentation.”

A recent French proposal backed by Italy, Spain, Poland and the Netherlands to forge ahead with a capital markets union ran aground.

France said its proposal, which included centralising the supervision of banks and asset managers in the Paris-based EU agency European Securities and Markets Authority, would enable greater capital integration.

But the idea was opposed by a majority of smaller member states, which were wary of losing the right to set their own rules and sceptical of French attempts at centralising power.

Cuerpo said Spain’s proposal was an effort to move beyond “ad hoc” efforts and would enable other countries to test their own ideas for closer integration in areas ranging from securitisation to tax harmonisation. He said feedback from other member states on the idea so far was “rather positive”, but did not name any guaranteed allies.

“What we are trying to do is put on the table a fully fledged framework that can accommodate different initiatives,” he said. “It’s not just us pushing for one specific initiative or concept, it’s us proposing a catalyst for broader co-operation, which is open at any time for anyone to be brought in.”