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Prada launches into spacesuit design

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The spacesuit seen from the side, with large boxy backpack

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Prada scion Lorenzo Bertelli was in his element alongside top executives from Axiom Space during the International Astronautical Congress in Milan on Wednesday, as the Italian fashion group and the US aerospace start-up unveiled the spacesuits that will take astronauts to the moon on Nasa’s upcoming Artemis III mission. 

The not-very-fashionable but highly engineered 200kg-plus gender-neutral white extravehicular mobility unit spacesuit comes with grey knee and elbow padding and a sizing scheme that is expected to accommodate a wide range of body shapes.

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For Bertelli, a former race car driver, space is the next frontier. He cites the £1bn investment that Prada has made over two decades in research and engineering for its competitive sailing team Luna Rossa and its apparel line Linea Rossa. “We launched Luna Rossa and then decided to compete in the America’s Cup because we wanted a new challenge. Then came the Linea Rossa line because we needed to equip sailors with the best attire possible,” he explains. “It starts with a vision . . . then we figure things out.”

Prada’s latest collaboration with Axiom Space, which is in the race to build the first commercial space station, is uncharted territory for fashion houses. Though Bertelli’s mother Miuccia Prada’s latest collection is characterised by futuristic elements, the spacesuit endeavour has taken the group’s experimental nature to the next level.  

Bertelli believes the research and technical expertise the group is acquiring through its work for the Artemis III mission will give Prada a competitive edge once commercial trips to space become more widely available. “I know anyone can go to space today, the problem is that the price ticket is too high,” says Bertelli. “Once the sector scales up, the price will go down and there will be a huge opportunity.”

Axiom Space president Matt Ondler adds that the partnership had “set a new foundational model for cross-industry collaboration, further expanding what’s possible in commercial space”. 

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The red stripes on the spacesuit are an echo of the sailors’ Linea Rossa logo. They have also been a regular fixture of Nasa’s spacesuits since Apollo 13 as a way to identify the missions’ commanders in photos and videos from space.

Following the pandemic, Bertelli reached out to Axiom, which was only a few years old, and made a bid for the Nasa contract. Russell Ralston, the executive vice-president for extravehicular activity for Axiom Space, was caught by surprise but then, he says, he realised the partnership had a “high potential”. 

The spacesuit seen from the side, with large boxy backpack
The 240kg gender-neutral spacesuit comes with grey knee and elbow padding and a sizing scheme that is expected to accommodate all body shapes

Prada’s expertise in high-performance materials, production and fibre blending contributed to the development of the spacesuits’ outer layer. Its design and product team also worked with Axiom’s engineers on customised features that would protect astronauts against the rough lunar environment while also enhancing movement.

Features of the inner layer include thermoregulation, an in-suit nutrition system, biometric monitoring, a regenerable CO₂ scrubbing system and a variable suit pressure device. The boots, which Ralston says were the most challenging part of the suit to develop, are engineered to withstand both extremely high and extremely low temperatures. 

As Nasa sets out to find water in the craters of the moon’s south pole, where the surface’s temperature can vary from freezing cold to several hundred degrees above zero Celsius, astronauts will be able to spacewalk for eight hours in the Axiom-Prada spacesuits.

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Minor tweaks to the current design are to be expected before the mission launches — “It has already changed a lot since we unveiled the prototype two years ago,” says Ralston — but executives from both companies tout the “excellent” balance they have been able to strike between mobility, performance and endurance.

Prada’s long-term objective is to participate in the development of the space suits’ internal layer too, by leveraging its sailboat engineering expertise (competitive sailboats are specially built to be resistant but light, for example).

For now, Bertelli says he’s proud that the group “has pushed beyond its limits”. He continues: “I don’t know if this will end up being strategic for Prada. For now we sell bags which enable us to invest in projects like this, but one day when going to space will be [common], we will be able [to dress space tourists] thanks to the knowledge we are building.”

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Bonfire night 2024 — The Guy Fawkes fireworks displays across England under £15

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Treat the family to a fireworks display this Bonfire Night

IT’S that time of year again, when we need to remember, remember, the fifth of November.

Britain’s annual Bonfire Night celebration goes back centuries. Here we have an essential guide to all the best fireworks displays for under £15.

Treat the family to a fireworks display this Bonfire Night

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Treat the family to a fireworks display this Bonfire NightCredit: GETTY

Every year Brits like nothing more than standing round a warm bonfire and watching a spectacular fireworks display go off.

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Steeped in history, Bonfire Night has been an annual occasion since the 1600s.

Big events are going on up and down the country, and many of them don’t break the bank to attend.

Some fireworks displays can cost no more than £15 a ticket, while others are completely free.

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Battersea Park Fireworks, London

November 2 from 6pm and November 3 from 4.30pm

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Running over two days, this incredible event is brought to you by the same people who do London‘s New Year Eve display.

This family outing is filled with entertainment, a bonfire and of course fireworks.

Wrap up warm for this event in South London, where there will also be plenty of food and drink on offer.

Cost: Adult £13.10, child £8.80, under 5s free

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Fireworks Extravaganza, Mayfield Park, Manchester

November 1 to 3 from 5.30pm (each night)

Revellers gather to celebrate the Lewes Bonfire festival

If you live in the north why not bundle up and head out to Manchester‘s Mayfield Park for their Fireworks Extravaganza.

Happening over three nights, this display always gets rave reviews, and sees thousands of revellers attend.

Another perk is all children get a free sparkler to enjoy.

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There will also be mulled wine for the adults to buy, as well as hot chocolate and candy floss.

Cost: Adult £10, child £6, under 3s free

Bonfire Night is always a family favourite

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Bonfire Night is always a family favouriteCredit: Alamy

Midsummer Common Bonfire Night, Cambridge

November 5 from 7pm

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Brought to you by Cambridge City Council, this much-loved event has been running for years and is always a big hit.

It is known for being one of the largest free displays in the local area and takes place on Midsummer Common.

Around 20,000 people are predicted to attend, so expect it to be busy.

Cost: Donations of at least £3 per person are encouraged.

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Fireworks displays are happening all of the country

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Fireworks displays are happening all of the countryCredit: Alamy

Low Noise Fireworks at Old Down Country Park, Bristol

November 4 from 5pm and November 5 from 5pm

This event is aimed at families, especially ones with young children.

The display uses special bang-free fireworks, hence the name.

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There will also be fairground rides, food stalls and live music for the whole family to enjoy.

Cost: Adult £13, child £9, under 2s free

The Tar Barrels of Ottery St Mary, Devon

November 5 from 7pm

This iconic event kicks off with a parade of flaming tar barrels carried through the streets of Ottery St Mary in Devon.

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The barrels are lit outside local pubs and put onto the shoulders of the historical “barrel rollers”.

Please be aware, this event has a bonfire but no fireworks display.

Cost: Free

London is the perfect backdrop for fireworks

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London is the perfect backdrop for fireworksCredit: Alamy

Lewes Bonfire Night, Lewes, East Sussex

November 5 from 5pm

This fireworks event has been running for over 300 years, and attracts around 80,000 spectators every year.

This traditional bonfire night includes all the trimmings and has a whole host of activities to keep the family entertained.

There are also food and drink stalls, to help make the night even better.

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Cost: Adults £10

Fireworks displays for over £15

Alexandra Palace Fireworks Festival, London

November 2 from 4pm and November 3 from 6pm

If you’re willing to splash out a bit more on Bonfire Night, head to Alexandra Palace Fireworks Festival.

This North London event has everything to keep the family entertained.

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Not only will there be fireworks, but there is also ice skating and fairground rides on offer.

There is a beer festival going on plus live music from The Cuban Brothers (Friday) and Artful Dodger (Saturday)

Cost: Adult £18, child 11-15 £12, child under 11 £6.50

Bonfire Night is steeped in history and has been celebrated for centuries

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Bonfire Night is steeped in history and has been celebrated for centuriesCredit: Alamy

Chatsworth House Firework Display, Derbyshire

November 1 to 2 from 6pm (each night)

Taking place over two nights, this family friendly event is promising a huge bonfire as well as an impressive fireworks display.

There will also be food stalls which includes a delicious hog roast.

There is also the option of an adult-only two-course dinner before the firework display, which is served in the Cavendish Restaurant.

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Cost: £22 for adults; £15 for children (aged 4-16).

Leeds Castle Fireworks Spectacular, Kent

November 9 and 10 from 2pm (each day)

Leeds Castle in Kent is the perfect backdrop for a fireworks display.

Set in the moat of the famous landmark, revellers will be treated to live music and a fairground.

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Anyone arriving early can also enjoy the castle’s maze, as well as its play areas and adventure golf.

Cost: Adult £27, child £18, under 3s free

The history behind Bonfire Night

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UK to consult on ‘opt-out’ AI content scraping in blow to publishers

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The UK government is set to consult on a scheme that would allow AI companies to scrape content from publishers and artists unless they “opt out”, in a move that would anger the creative industry. 

The decision follows months of lobbying from both sides over whether online content should be automatically included in material that AI firms can use to train their algorithms.

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Big tech companies including Google owner Alphabet have argued that they should be able to mine the internet freely to train their algorithms, with companies and creators being given the opportunity to “opt out” of such arrangements.

But publishers and creatives have argued that it is unfair and impracticable to ask them to opt out of these arrangements, as it is not always possible to know which companies are trying to mine their content.

They fear such a system would create a huge administrative burden, particularly on smaller companies, and have argued instead that they should have to actively opt in for AI systems to use their content. This would allow them to formulate licensing agreements and get reimbursed for their intellectual property, they argued.

However, ministers are planning to unveil a consultation on pursuing an “opt-out” model in the coming weeks, according to two people briefed on the plans. One added that the “opt out” model was the government’s “preferred outcome”.

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The timing could slip, given that publication of the government’s much-touted “AI Action Plan” is on hold until after the October 30 budget. Others said that a growing backlash from the industry over the move might still derail the plans.

The EU has adopted a similar “opt-out” model through its AI Act, giving companies permission to mine internet content so long as the owner of the copyright and related rights has not expressly denied permission.

But media executives in the UK are deeply opposed to the proposals, arguing that it will lead to the widespread theft of their copyrighted material without remuneration.

They are concerned that the government is being too easily swayed by the arguments of deep-pocketed tech companies, with one pointing to the involvement of former and current Google executives at this week’s investment summit in London.

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In a lobbying document in September, Google said that “to ensure the UK can be a competitive place to develop and train AI models in the future, [the government] should enable [text and data mining] for both commercial and research purposes”.

Media executives also warn that there is no way to verify whether an AI company has scraped their sites unless given access to their training data, something made more difficult because some AI companies scrape archives of content before coming to market, while others offer different conditions for search rather than AI-generated summaries.

Last year, the Intellectual Property Office, the UK government’s agency overseeing copyright laws, consulted with AI companies and rights holders to produce guidance on text and data mining.

However, the group of industry executives convened by the IPO — which came from various arts and news organisations, including the BBC, the British Library and the Financial Times, as well as tech companies Microsoft, DeepMind and Stability — were ultimately unable to agree on a voluntary code of practice, handing responsibility back to the government to find a workable solution. 

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Baroness Jones of Whitchurch, minister for online safety, said this week that the government needed to “protect the rights holders”, adding that “we are trying to find a way through that is acceptable to all sides”.

She said that she thought that the answer will be “somewhere down the middle in terms of some form of partnership and understanding”.

Chris Bryant, minister for data protection and telecoms, hosted a round table with various executives to discuss the issue last week. 

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A government spokesperson said: “This is an area which requires thoughtful engagement, and as part of that we are determined to hear a broad range of views to help inform our approach.

“We continue to work closely with a range of stakeholders including holding recent roundtables with AI developers and representatives of the creative industries and will set out next steps as soon as possible.”

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Martin Lewis urges everyone to do quick check as they could get FREE insulation – The Sun

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Martin Lewis urges everyone to do quick check as they could get FREE insulation – The Sun

MARTIN Lewis’ MoneySavingExpert (MSE) has revealed how a quick check could help thousands of Brit households get free insulation this winter.

Many households in the UK could be eligible for a range of freebies offered by energy providers and local authorities under a government scheme.

Martin Lewis's MoneySavingExpert website has shared with customers how to get free insulation for your homes this winter

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Martin Lewis’s MoneySavingExpert website has shared with customers how to get free insulation for your homes this winterCredit: PA

And these could help bring down your energy bills this winter.

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The finance guru’s website MoneySavingExpert (MSE) has urged people to check if they qualify for the Great British Insulation Scheme which is open to a further 400,000 households.

The scheme is open to households in council tax bands A-E across England, Wales and Scotland.

You also must have an Energy Performance Certificate (EPC)rating of D or lower.

An EPC rating tells you how energy efficient a building is, with A being the most efficient and G being the most inefficient.

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F-rated homes are some of the leakiest homes in the country, meaning the heat produced by gas boilers quickly escapes the building.

They’re also unlikely to have double glazing or insulation.

The incredible scheme offers households free insulation, including loft, roof, cavity wall and other types of insulation – which could cut your annual energy bill by £100s.

Martin Lewis issues warning to anyone aged under 22 – do you have £2,000 in a forgotten account

Low-income households can also get new boilers and heating controls through the Energy Company Obligation (ECO) scheme.

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Under the ECO scheme, suppliers have a legal obligation to implement energy-saving measures in your home.

Help is offered on a case-by-case basis, but it can mean having a new boiler fitted, or loft or cavity wall insulation put in, often for free.

You can find more details about the scheme here.

The ECO was first launched in January 2013 and has been extended four times.

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Not all energy companies are signed up to the ECO scheme. Here is the list of ones that are:

  • British Gas
  • E (Gas and Electricity) Ltd
  • E.ON
  • Ecotricity
  • EDF
  • Octopus Energy
  • Outfox the Market
  • OVO
  • Scottish Power
  • Shell Energy
  • So Energy (including ESB Energy)
  • The Utility Warehouse
  • Utilita Energy

You only qualify for the ECO under certain circumstances, such as claiming certain benefits and living in private housing.

You also could be eligible if you live in social housing.

Also, just because you are eligible for the ECO scheme, that doesn’t mean you are guaranteed help.

Meanwhile, you may have to fund part of the energy-improving measures in your home.

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You can apply by contacting either your local council or energy supplier.

SOCIAL HOUSING DECARBONISATION FUND

The government recently confirmed fresh funding to help thousands of homes with poor insulation and outdated heating systems are in line for upgrades.

It has boosted the Social Housing Decarbonisation Fund (SHDF) by £75million.

The funding will be offered to 42 councils and housing associations across England to help them co-fund installations in up to 8,000 homes.

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Under the scheme, council houses will be retrofitted with wall and loft insulation, double glazing, heat pumps, and solar panels.

They will not be limited to one installation and could get their home insulated, have doors and windows upgraded to reduce heat leakage and cut their energy bills.

If eligible, those living in social housing will not need to do anything, as their housing provider will contact them.

Other households will need to check what their local authority has on offer, and they may need to apply for help.

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Local authorities will deliver the funding in different ways.

Therefore, you will need to check directly with your council.

BOILER UPGRADE SCHEME

Meanwhile, through the Boiler Upgrade Scheme, you might be able to get a grant to help with the cost of installing a heat pump.

The grant was first launched in 2022 and was originally worth £5,000 or £6,000, depending on the type of heat pump.

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But as heat pumps are typically expensive to purchase and install, costing between £5,000 and £8,000, the government boosted the grant in October to £7,500.

The grant can be used towards both air-source heat pumps and ground-source heat pumps.

Those wishing to install a biomass boiler can also apply for a £5,000 grant.

You must find an MCS-certified installer to claim the grant on your behalf.

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MCS is the certification scheme for energy-efficiency product installers.

You can find the nearest ones to you by visiting www.mcscertified.com/find-an-installer, but it is worth shopping for a few quotes.

Once you agree on a price, the installer will apply for the grant and you will then be contacted by Ofgem, the energy regulator, to confirm that the work is being done on your behalf.

You must pay the difference if the pump costs more than the grant.

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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.

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

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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 varies depending on the supplier and the amount you can get depends on your financial circumstances.

For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £1,500.

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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.

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

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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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Part variety show, part sermon: inside Mexico’s presidential briefings

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A man holding a plate of food faces a scrum of journalists

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After tears, a raffle and a song sung by his wife, Mexico’s former president Andrés Manuel López Obrador finally said goodbye to his loyal audience at the end of September. The last edition of La Mañanera, the daily marathon news briefing he created, ended with live son jarocho music and tamales and barbacoa for the reporters attending.

Part variety show, part sermon, part propaganda exercise, the conferences often ran more than three hours long and were central to keeping the former leader’s approval ratings above 60 per cent.

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Now his handpicked successor Claudia Sheinbaum has taken up the mantle. As a former academic energy engineer, however, her delivery is notably more direct. There are fewer insults and the first conference was wrapped up in 90 minutes without a single laugh. It was capped with a video promoting the virtues of healthy eating.

The stark change in tone illustrates the difficulty Mexico’s first female president faces in matching her predecessor’s popularity.

López Obrador would crack jokes and give winding Mexican history lessons. He would push his “us against them” narrative and loudly attack critics, often publishing their personal information.

Across Mexico, pensioners eating breakfast and workers on the bus would watch live or see catch-up highlights on social media. López Obrador’s personal YouTube channel has 4.5mn subscribers, more than former US President Donald Trump.

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A man holding a plate of food faces a scrum of journalists
López Obrador attends a breakfast with journalists following his last press conference at the National Palace on September 30 © Harry Romero/Reuters

“It was a reality show . . . completely raw, what you see is what you get,” said Luis Antonio Espino, a communications consultant who wrote a book about the president’s conferences. “For his followers . . . it was more important that he was authentic, showing himself as he is, than telling the truth or accountability.”

In Mexico, this regular access to power was new. The previous president, Enrique Peña Nieto, gave just a handful of press conferences in six years. López Obrador opted to follow in the footsteps of other left-wing leaders in Latin America who hogged the airwaves. Venezuelan President Hugo Chávez, for example, used to take calls on a Sunday show called Aló Presidente!

López Obrador’s conferences dominated Mexico’s news agenda. Cabinet secretaries watched to find out the latest government line. He gave almost no interviews and fomented a new crop of political coverage from admiring YouTubers.

Calling their craft “militant journalism”, YouTubers usually occupied the front rows. They would ask soft questions, offering up opportunities for the president to lambast his “adversaries” or talk up a government policy.

“You are like a Kenyan runner . . . many of us ask how do you do it?,” was one such question asked. “You are a giant . . . you will leave 50mn orphans, what is your message to them?” was another.

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“No one that watches one of us expects neutrality,” said Manuel Pedrero, a 21-year-old with his own popular YouTube channel. “That clarity has allowed us to reach a lot of people, because the same thing happens with right-wing channels that don’t get criticised.”

As a reporter with “traditional media” it could be unnerving to witness a room of reporters so openly divided.

Some would hiss and laugh at López Obrador’s jokes and attacks on fellow journalists. Sometimes reporters on each “side” would publicly insult one another.

Sheinbaum is under pressure to continue her predecessor’s format. A section López Obrador called “the who’s who in lies” — where an official provided a contemptuous run through of critical stories about the government — has become the “lie detector”.

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“She has a different style to López Obrador but deep down it’s the same thing,” Espino said.

Yet even if the substance is the same, López Obrador’s fans will miss his style. The atmosphere at Sheinbaum’s conference is certainly more professional. But drama was part of what kept people interested. As one regular attendee told me: “The Mañanera could deflate.”

christine.murray@ft.com

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Home Bargains shoppers rushing to buy beauty gift set that’s ‘ideal stocking filler’ scanning for £8 instead of £31

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Home Bargains shoppers rushing to buy beauty gift set that's 'ideal stocking filler' scanning for £8 instead of £31

HOME Bargains shoppers are rushing to buy an “amazing” beauty gift set that’s scanning at tills for £8 instead of £31.

The “ideal stocking filler” features several L’Oreal products.

Home Bargains customers could save £31.00 on the beauty gift set

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Home Bargains customers could save £31.00 on the beauty gift set

Home Bargains has slashed the cost of its L’Oreal Blemish Buster Gift Set from £38.99 to just £7.99.

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That’s over 80 per cent off meaning customers save £31.00.

What’s in the set?

  • 1x Smooth Sugars Clearing Scrub 50ml.
  • 1x Pure Clay Blemish Rescue Mask 50ml.
  • 1x Hydra Genius Aloe Water 70ml.

Essentially, customers looking to exfoliate, treat and hydrate their skin for a good price, need look no further.

Read more in Deals and Sales

A Home Bargain’s representative posted a photo of deal to Facebook and wrote: “An ideal stocking filler. Just look at that saving.

“Available in store & online.”

Comments from excited shoppers flooded the comment section, along with thousands of likes.

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One shopper said: “I use the hydra genius and it costs more than that on its own so this is a fab bargain!”

While a second commented: “Just got one and it’s fab.”

And a third said: “Please can santa bring this please oh please.”

I’ve already put my Christmas tree up & I don’t care what anyone thinks about it – I’ve spent hundreds on decorations in Home Bargains & other shops

However, many shoppers also expressed their disappointment to see the set was out of stock either online or in their local Home Bargains store.

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Equally, no wonder they’re out of stock – just one of these items usually costs around the price of the whole set.

If you head to L’Oreal’s website and search for a specific set item, you will be directed to a retailers website selling the product.

For example, a 50ml pot of the L’Oreal Paris Face Mask Pure Clay Glow currently costs £7.21 on Amazon.

According to L’Oreal’s website, no retailers are selling the Smooth Sugars Glow Scrub right now, but when searched directly on Amazon it appears to be selling for £20.40 per 50ml pot.

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Similarly, a 70l bottle of the Hydra Genius Aloe Water is also selling on Amazon for £12.99.

To find your local Home Bargains store, simply head to the website and click Store Locator.

Then enter your postcode or town to find your nearest store.

How to shop for bargains

As always, we recommend shopping around to find the best deal.

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There are plenty of comparison websites out there that’ll check prices for you – so don’t be left paying more than you have to.

Most of them work by comparing the prices across hundreds of retailers.

For example, Google Shopping is a tool that lets users search for and compare prices for products across the web.

Just type in keywords, or a product number, to bring up search results.

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Price Spy also logs the history of how much something costs from over 3,000 different retailers, including Argos, Amazon, eBay and the supermarkets.

Once you select an individual product you can quickly compare which stores have the best price and which have it in stock.

How to save money on Christmas shopping

Consumer reporter Sam Walker reveals how you can save money on your Christmas shopping.

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Limit the amount of presents – buying presents for all your family and friends can cost a bomb.

Instead, why not organise a Secret Santa between your inner circles so you’re not having to buy multiple presents.

Plan ahead – if you’ve got the stamina and budget, it’s worth buying your Christmas presents for the following year in the January sales.

Make sure you shop around for the best deals by using price comparison sites so you’re not forking out more than you should though.

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Buy in Boxing Day sales – some retailers start their main Christmas sales early so you can actually snap up a bargain before December 25.

Delivery may cost you a bit more, but it can be worth it if the savings are decent.

Shop via outlet stores – you can save loads of money shopping via outlet stores like Amazon Warehouse or Office Offcuts.

They work by selling returned or slightly damaged products at a discounted rate, but usually any wear and tear is minor.

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How to save money at B&M

SHOPPERS have saved hundreds of pounds a year by using B&M’s scanner app.

The scanner lets you see if an item’s price is cheaper than advertised on the shop floor label.

Products that are typically discounted are seasonal items and old stock that B&M is trying to shift.

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The app is free to download off the B&M Stores mobile app via Google Play or the Apple App Store.

According to one ex-B&M manager, you’ll want to visit your local branch at 10am on a Wednesday too.

Here’s how you can join the B&M bargain hunt:

  • Download the B&M app for free on any smartphone with an App Store or Google Play.
  • Once you’ve installed it on your device, click on the option labelled “more” on the bottom, right-hand side of the app home page.
  • You’ll then find an option that says “barcode scanner”. Click on this and you’ll open a camera screen.
  • Use the camera to hover over the barcode of the product you wish to check.
  • If the price comes up as lower, take it to the cash desk and it will automatically scan at the lower price.
  • You don’t need to sign up to the B&M app to use the barcode scanner.

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China’s investors are counting on fiscal stimulus

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Returning to their offices and workplaces last week from the National Day break, China’s investing public had just one thing on their minds: the stock market. Within 20 minutes of the market opening, Rmb1tn ($141bn) in equity had changed hands. By the end of the day, turnover had hit a record Rmb3.48tn, amid gyrations in prices. It was a display of animal spirits such as China has not seen for some time. The benchmark CSI index has pulled back over the past week, but it is still up by more than 20 per cent in a month.

The sharp market rally marks a partial success for the Chinese authorities, who triggered it with last month’s stimulus package, highlighting the continued potency of their policy toolbox. To turn the rally to good account, the authorities need to follow through in two directions. First, they need to deliver promised reforms to promote better corporate governance, which will underpin a more stable and attractive equity market. Second, they need to tackle China’s underlying deflationary dynamic, by far the greater problem. Boosting the stock market is, in itself, one part of the solution, but stock prices rest ultimately on corporate earnings — and they depend on a strong economy.

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In addition to a 50 basis point cut in interest rates, China’s recent stimulus has two elements targeting the stock market. First is a swap line, sized at an initial Rmb500bn, that will let brokers, fund managers and insurers tap central bank liquidity against the collateral of stock and bonds. The second is a Rmb300bn relending facility that will, via banks, provide cheap loans for public companies that wish to buy back shares. These measures are reminiscent of those taken by central banks such as the US Federal Reserve in the wake of the 2008 financial crisis. Together, they will provide a significant injection of funds into the stock market, and justify a degree of investor enthusiasm.

Channelling policy support towards buybacks shows there is a reform agenda at work as well as a desire to goose the market. On the same day as the stimulus, China’s securities regulator published a document on “market cap management”, a set of proposals that will put pressure on companies with shares trading below their book value to take action and boost investor returns. It follows a succession of similar actions earlier in the year.

Getting companies to take shareholders seriously and increasing institutional investment in the stock market, so it is less of a retail trader casino, are necessary for the long-term health of China’s capital markets. Beijing is making some progress.

The dramatic rally in recent weeks shows how oversold the Chinese market had become, especially by foreign investors. To sustain the revaluation, however, investors need confidence in corporate profits. There are three big obstacles. First, for foreign buyers, geopolitics remain a fundamental barrier to a big bet on Chinese stocks. Beijing cannot do much about that. Second, while Beijing may be helping the stock market, there are still big doubts about its attitude to successful private companies following the tech crackdown a few years ago. Investors need to know they can keep their profits if they back a winner.

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Third, and most fundamental, is the overhang from the stricken property sector, which is why the stock market is still counting on a large and well-targeted fiscal stimulus. With ongoing reform, and effective macroeconomic policy, equities can become an important home for China’s savings. But a market rally that peters out, leaving another group of disappointed investors, would do more harm than good.

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