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Ukraine faces its darkest hour

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In a command post near the embattled eastern Ukrainian city of Pokrovsk, soldiers of the Separate Presidential Brigade bemoan the dithering in Washington about whether Kyiv can use western missiles to strike targets inside Russia.

If only they were able to fight “with both hands instead of with one hand tied behind our back”, then Ukraine’s plucky troops might stand a chance against a more powerful Russian army, laments an attack drone operator.

Surrounded by video monitors showing the advancing enemy, the battalion’s commander says his objectives have begun to shift.

“Right now, I’m thinking more about how to save my people,” says Mykhailo Temper. “It’s quite hard to imagine we will be able to move the enemy back to the borders of 1991,” he adds, referring to his country’s aim of restoring its full territorial integrity.

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Once buoyed by hopes of liberating their lands, even soldiers at the front now voice a desire for negotiations with Russia to end the war. Yuriy, another commander on the eastern front who gave only his first name, says he fears the prospect of a “forever war”.

“I am for negotiations now,” he adds, expressing his concern that his son — also a soldier — could spend much of his life fighting and that his grandson might one day inherit an endless conflict.

“If the US turns off the spigot, we’re finished,” says another officer, a member of the 72nd Mechanised Brigade, in nearby Kurakhove.

Ukraine is heading into what may be its darkest moment of the war so far. It is losing on the battlefield in the east of the country, with Russian forces advancing relentlessly — albeit at immense cost in men and equipment.

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Members of the Kharkiv regional recruitment office check a civilian’s documentation
Members of the Kharkiv regional recruitment office check a civilian’s documentation. Millions of Ukrainian men have been compelled to register for possible service or face hefty fines © Narciso Contreras/Anadolu/Getty Images

It is struggling to restore its depleted ranks with motivated and well-trained soldiers while an arbitrary military mobilisation system is causing real social tension. It is also facing a bleak winter of severe power and potentially heating outages.

“Society is exhausted,” says Oleksandr Merezhko, chair of the foreign affairs committee of the Ukrainian parliament.

At the same time, Ukrainian President Volodymyr Zelenskyy is under growing pressure from western partners to find a path towards a negotiated settlement, even if there is scepticism about Russia’s willingness to enter talks any time soon and concern that Ukraine’s position is too weak to secure a fair deal right now.

“Most players want de-escalation here,” says a senior Ukrainian official in Kyiv.

The Biden administration is aware that its present strategy is not sustainable because “we are losing the war”, says Jeremy Shapiro, head of the Washington office of the European Council on Foreign Relations. “They are thinking of how to move that war to a greater quiescence.”

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Most threatening of all for Kyiv is the possibility that Donald Trump wins next month’s US presidential election and tries to impose an unfavourable peace deal on Ukraine by threatening to withhold further military and financial aid. Trump repeated his claim last week that he could rapidly bring an end to the war.

Ukraine’s staunchest supporters in Europe may wish to keep it in the fight but lack the weapons stockpiles to do so and have no plan for filling any void left by the US.

Kyiv confirmed it was laying the groundwork for future talks in spectacular fashion when its troops seized a swath of Russia’s Kursk region in a surprise cross-border incursion in August. Zelenskyy said the land would serve as a bargaining chip.

And last week, in an attempt to shape the thinking of his allies, Zelenskyy visited the US to market his so-called “victory plan”, a formula for bolstering Ukraine’s position before possible talks with Moscow. Zelenskyy described it as a “strategy of achieving peace through strength”.

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President Volodymyr Zelenskyy meets Donald Trump at Trump Tower in New York
The Ukrainian president meets Donald Trump at Trump Tower in New York last week. The Republican presidential candidate has repeatedly claimed that he could quickly end the war © Shannon Stapleton/Reuters

Stepping into the maelstrom of the US election campaign, he held separate talks with President Joe Biden, vice-president Kamala Harris and her Republican opponent, Trump, to make his case.

At one point, Zelenskyy’s US mission veered towards disaster after he was criticised by Trump for resisting peace talks and censured by senior Republicans for visiting a weapons factory in the crucial swing state of Pennsylvania accompanied only by Democratic politicians. But in the end, he persuaded Trump to grant him an audience and salvaged his visit.

“It was not a triumph. It was not a catastrophe,” the senior Ukrainian official says of Zelenskyy’s US trip. “It would be naive to expect the applause we got two years ago,” the official adds, referring to the president’s address before Congress in December 2022, for which he received multiple standing ovations and declared that Ukraine would “never surrender”.


Yet the Ukrainian leader left Washington empty-handed on two central issues: US permission to use western weapons for long-range strikes on Russian territory; and progress on Ukraine’s bid to join Nato. The Biden administration has resisted both, fearing it could encourage Moscow to escalate the conflict, potentially drawing in the US and other allies.

US officials were unimpressed by Zelenskyy’s “victory plan”, which includes requests for massive amounts of western weaponry.

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An adviser who helped prepare the document says Zelenskyy had no choice but to restate his insistence on Nato membership because anything else would have been perceived as a retreat on the question of western security guarantees, which Ukrainians see as indispensable.

Despite Washington’s misgivings, the ability to strike Russian territory is also central to Zelenskyy’s victory plan, says the adviser. While US officials have argued that Russia has already moved strike aircraft beyond the range of western missiles, Ukrainian officials insist there are plenty of other targets such as command centres, weapons caches, fuel depots and logistics nodes.

Destroying them could disrupt Moscow’s ability to wage war, show Russian leader Vladimir Putin that his objectives of seizing at least four whole provinces of Ukraine are untenable and disprove his conviction that the west will lose interest in supporting Ukraine.

“Russia should not be overestimated,” says Andris Sprūds, Latvia’s defence minister. “It has its vulnerabilities.”

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Although Zelenskyy’s victory plan restated old objectives, its real significance is that it shifts Ukraine’s war aims from total liberation to bending the war in Kyiv’s favour, says the senior Ukrainian official.

“It’s an attempt to change the trajectory of the war and bring Russia to the table. Zelenskyy really believes in it.”

Multiple European diplomats who attended last week’s UN General Assembly in New York say there was a tangible shift in the tone and content of discussions around a potential settlement.

They note more openness from Ukrainian officials to discuss the potential for agreeing a ceasefire even while Russian troops remain on their territory, and more frank discussions among western officials about the urgency for a deal.

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Ukraine’s new foreign minister, Andrii Sybiha, used private meetings with western counterparts on his first trip to the US in the post to discuss potential compromise solutions, the diplomats said, and struck a more pragmatic tone on the possibility of land-for-security negotiations than his predecessor.

“We’re talking more and more openly about how this ends and what Ukraine would have to give up in order to get a permanent peace deal,” says one of the diplomats, who was present in New York. “And that’s a major change from even six months ago, when this kind of talk was taboo.”

Ukrainian public opinion also appears to be more open to peace talks — but not necessarily to the concessions they may require.

Polling by the Kyiv International Institute of Sociology for the National Democratic Institute in the summer showed that 57 per cent of respondents thought Ukraine should engage in peace negotiations with Russia, up from 33 per cent a year earlier.

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The survey showed the war was taking an ever heavier toll: 77 per cent of respondents reported the loss of family members, friends or acquaintances, four times as many as two years earlier. Two-thirds said they were finding it difficult or very difficult to live on their wartime income.

Locals pass an installation with a power transformer damaged by a Russian strike in Kyiv
Locals pass an installation with a power transformer damaged by a Russian strike in Kyiv. The Kremlin has already destroyed at least half of Ukraine’s power-generating capacity © Alina Smutko/Reuters

Life is about to get even tougher. Russia has destroyed at least half of Ukraine’s power-generating capacity after it resumed mass drone and missile strikes against power stations and grid infrastructure this spring.

Ukraine faces a “severe” electricity deficit of up to 6GW, equivalent to a third of peak winter demand, according the International Energy Agency. It is increasingly dependent on its three remaining operational nuclear power plants, the IEA noted. Were Russia to attack substations adjacent to these plants — despite all the obvious dangers — it could cause Ukraine’s power system to collapse, and with it heating and water supply. Central heating facilities in large cities such as Kharkiv and Kyiv are also vulnerable.

Another source of tension is mobilisation. Under new legislation, millions of Ukrainian men have been compelled to register for possible service or face hefty fines. At the same time, many Ukrainians know of men who have been randomly stopped at metro or train stations, often late at night, and carted off to mobilisation centres, a brief period of training and then the front line.

55%Share of Ukrainians who remain opposed to any formal cession of territory as part of a peace deal, down from a peak of 87 per cent last year

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“It is perceived as abusive, worse than if you are a criminal, where there is at least due process,” says Hlib Vyshlinksy, director of the Centre for Economic Strategy in Kyiv. “It tears people apart. The real enemy is Russia, but at the same time they fear a corrupt, abusive enrolment office doing the wrong thing.”

If Ukrainians have warmed to the idea of negotiations, a majority — 55 per cent according to a KIIS polling in May — remain opposed to any formal cession of territory as part of a peace deal.

“People want peace but they are also against territorial concessions. It is hard to reconcile them,” says Merezhko, the chair of the foreign affairs committee.

However, the KIIS survey shows the share of respondents opposed to any territorial concessions has dropped sharply from a peak of 87 per cent early last year. It also found that Ukrainians might be open to a compromise whereby, in return for Ukrainian membership of Nato, Russian maintains de facto control over occupied parts of Ukraine, but not recognised sovereignty.

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Other polls suggest Ukrainians are still confident of winning and will be disappointed by anything other than total battlefield victory. The biggest domestic problem for Zelenskyy might come from a nationalist minority opposed to any compromise, some of whom are now armed and trained to fight.

Nato secretary-general Jens Stoltenberg, left, meets Zelenskyy during the UN General Assembly in New York
Nato secretary-general Jens Stoltenberg, left, meets Zelenskyy during the UN General Assembly in New York. Ukraine has continued to push for security guarantees from the alliance © Ukrainian Presidential Press Service/AFP/Getty Images

“If you get into any negotiation, it could be a trigger for social instability,” says a Ukrainian official. “Zelenskyy knows this very well.”

“There will always be a radical segment of Ukrainian society that will call any negotiation capitulation. The far right in Ukraine is growing. The right wing is a danger to democracy,” says Merezhko, who is an MP for Zelenskyy’s Servant of the People party.

As the KIIS polling shows, making any deal acceptable that allows Russia to stay in the parts of Ukraine it has seized since its first invasion in 2014 will hinge on obtaining meaningful western security guarantees, which for Kyiv means Nato membership.

“The most important thing for us is security guarantees. Proper ones. Otherwise it won’t end the war; it will just trigger another one,” says a Ukrainian official.

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“Land for [Nato] membership is the only game in town, everyone knows it,” says one senior western official. “Nobody will say it out loud . . . but it’s the only strategy on the table.”


Nato membership remains Ukraine’s key goal, but very few of the alliance’s 32 members think it is possible without a full, lasting ceasefire and a defined line on the map that determines what portion of Ukraine’s territory the alliance’s mutual defence clause applies to. The model floated by some is West Germany’s membership of the alliance, which lasted more than three decades before the fall of the Berlin Wall and reunification with the east.

“The West German model is gaining traction particularly in the White House, which has been the most sceptical about Nato membership,” says Shapiro of the ECFR. “The Russians would hate that, but at least it could be some opening gambit for a compromise.”

But even that would require a vast force deployment by the US and its partners that any US administration, Democratic or Republican, would likely balk at, given Washington’s focus on the threat from China. One question would be whether European powers would be willing to shoulder more of the burden.

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Zelenskyy signs a shell during a tour of an ammunition plant in Scranton, Pennsylvania
Zelenskyy signs a shell during a tour of an ammunition plant in Scranton, Pennsylvania. His visit to the swing state accompanied by Democratic politicians drew criticism from Republicans © Ukrainian Presidential Press Service/AFP/Getty Images

And would Russia accept Ukraine’s entry into the alliance, an alignment with the west it has been trying to thwart militarily for a decade? Many on both sides of the Atlantic say it is unlikely.

“I don’t think Russia would agree to our participation in Nato,” says a senior Ukrainian official.

Anything short of full membership is unlikely to be enough to stop the Kremlin’s military aggression. “Even if we get a Nato invitation, it will mean nothing. It’s a political decision,” adds the senior Ukrainian official.

In what could be his last trip to Europe before standing down as president, Biden will chair a meeting of Ukraine and its allies in Germany on October 12.

A western official briefed on Zelenskyy’s talks in Washington said there were tentative signs that Biden might agree to advance the status of Ukraine’s Nato membership bid before he leaves office in January.

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As he left the US this weekend, Zelenskyy said that October would be “decision time”. The Ukrainian leader will once again plead for permission to hit targets inside Russia with western-supplied munitions, knowing that it is one of the few options for bringing hostilities to an end.

“It’s about constraining Russia’s capabilities” and piling on pressure to get them to open talks, says the senior Ukrainian official. “It’s a real chance if we are thinking about resolving this war.”

Cartography by Cleve Jones

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Robert Jenrick likely to be the next Tory leader

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This article is an on-site version of our Inside Politics newsletter. Subscribers can sign up here to get the newsletter delivered every weekday. If you’re not a subscriber, you can still receive the newsletter free for 30 days

Good morning from Birmingham. This is a very odd conference in many ways, in that the Tory party is in a state of flux, yet, barring some kind of unexpected shock, the race to become the next Conservative leader is very predictable.

Inside Politics is edited by Georgina Quach. Read the previous edition of the newsletter here. Please send gossip, thoughts and feedback to insidepolitics@ft.com

Badenough for you

The big picture at Conservative party conference is that unless something changes, the next party leader will be Robert Jenrick. Tory MPs will vote next week to narrow down the field to a final pair, who will then be put before the members in an online ballot, with the result announced on November 2.

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As ever with the Tory party leadership, there are really two routes to the membership — the establishment lane and the rightwing lane. Jenrick, who resigned as immigration minister from Rishi Sunak’s cabinet, has done a remarkably effective job of locking up that rightwing lane. And the polls suggest he will defeat almost anyone who might come up the establishment lane.

Kemi Badenoch, meanwhile, would beat anyone she might face in the vote by Conservative party members, but she has no guarantee of reaching that stage. The former business secretary sparked confusion over her suggestion that maternity pay was “excessive”, which she later rowed back on but appeared to double down on her position yesterday, signalling that the UK’s minimum wage and maternity pay rules are among regulations “overburdening businesses”. She is struggling to get enough support among MPs and the gaffes of recent days have, if anything, aggravated her difficulties among her parliamentary colleagues.

Meanwhile, James Cleverly and Tom Tugendhat, the candidates who are seen as pitching for votes from the left of the party, are not going to beat Jenrick unless something changes to shift opinion among party members. Jenrick’s claim in his campaign video that UK special forces are “killing rather than capturing terrorists” was criticised by his rivals — with one military official telling the FT it was an “outrageous accusation” — but it’s the kind of message that Conservative activists want to hear.

Nothing Badenoch has done has won over wavering MPs, and thus far nothing Tugendhat nor Cleverly have done has changed the minds of party members. It may be that one of the 20-minute speeches tomorrow can change the dynamic of the contest — but it is more likely, I think, that the Tory party is just in a holding pattern until Jenrick takes over.

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Now try this

This week, I mostly listened to Katy Perry’s 143 while writing my column.

Top stories today

  • Case steps down | Simon Case, Britain’s top civil servant, quit yesterday after four years in the job and a job ad was swiftly posted for the £200,000-a-year role. George Parker takes us through potential successors.

  • Ofcom: ‘we have got some pretty strong powers’ | Britain’s media regulator will take “strong action” against tech companies that break new rules on content moderation, even if it has limited powers to stop the spread of lies online, the agency’s head has told the FT.

  • Donor revealed | Robert Jenrick is facing further questions about donations totalling £75,000 to his Conservative leadership campaign from a company that was loaned money via a tax haven, after businessman Phillip Ullmann revealed himself to be the ultimate source of the funding, reports The Guardian’s Rowena Mason.

  • Scores on the doors | In a head-to-head the Conservative membership would choose Kemi Badenoch by 52 per cent to Robert Jenrick’s 48 per cent, according to a YouGov/Sky News poll of 802 Tory members conducted over nine days to Sunday night. The gap was 18 points just six weeks ago, showing a surge in support for Jenrick.

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Full list of shops and brands making a comeback including 90s high street icons – is your favourite returning?

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Full list of shops and brands making a comeback including 90s high street icons - is your favourite returning?

DELIGHTED shoppers will see iconic brands return to the high street including 90s favourites Toys R Us, Topshop and Cath Kidston.

It’s been a tough few years for the high street with many brands shuttering sites or disappearing altogether.

Shoppers have been delighted by the return of several much-loved brands to the high street

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Shoppers have been delighted by the return of several much-loved brands to the high streetCredit: PA

But, a number of big-name retailers have announced they will be returning to the high street, in a move that’s sure to delight shoppers.

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Many of the brands including Toys R Us, Cath Kidston and M&Co are returning under new ownership having previously fallen into administration.

It has been a tough time for retailers since Covid and many have struggled.

The rising cost of living, expensive rents and lower footfall have all played a part in the demise of some of our much-loved high street names.

However, here is a full list of the much-loved brands making their return:

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Cath Kidston will make its return to high streets next month

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Cath Kidston will make its return to high streets next monthCredit: Alamy

Cath Kidston

Fashion and homeware chain Cath Kidston will open its first new store next month as it returns to UK high streets.

Renowned for its charming floral designs and quirky vintage-style homeware, Cath Kidston had been a beloved fixture on the British high street since 1993.

However, the retailer crashed into administration last year and the last of its bricks-and-mortar stores closed in June 2023.

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Next acquired the Cath Kidston brand, meaning people could continue to buy online and at the retailer’s stores.

Now it is due to open a new store on October 18 at Westfield White City, London.

Cath Kidston has teased the return on Instagram with images of the hoardings branded with its familiar florals.

In the post, it said: “Why yes. Yes, you guessed right.”

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Fashion brand Topshop could make its return to the UK high street

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Fashion brand Topshop could make its return to the UK high streetCredit: Alamy

Topshop

Topshop could be making a dramatic comeback to the British high street in a welcome boost for fashion-lovers who mourned its loss.

Earlier this month ASOS announced plans to sell a 75% stake in the brand to Bestseller, a Danish retail group that owns Jack & Jones.

Bestseller, which is also ASOS’s largest investor, has around 2,800 retail stores in more than 30 countries.

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Asos had bought Topshop out of administration for £265million in 2021.

As part of the £118million joint venture deal with Bestseller, ASOS will be relaunching Topshop.com as a standalone website.

However, in news that will thrill millennial shoppers, ASOS’s boss also suggested a return to bricks and mortar shops .

Ramos Calamonte said: “It is very early to say that there will be physical stores, but there is no question that they [Bestseller] have a big present presence on the high street.

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“We think that they have a lot of potential.”

Industry rumours have suggested they have already started scoping out potential sites for Topshop’s revival, including London’s famous Carnaby Street.

Toys R Us has made a successful return to UK high streets

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Toys R Us has made a successful return to UK high streetsCredit: Alamy

Toys R Us

Toys R Us’ return to the UK high street has been been warmly welcomed by delighted fans.

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Following a rapid roll out of concessions in the last year the iconic 90s toys retailer has announced it will launch in 23 more shops before Christmas.

The new stores are not standalone sites, but are “shop-in-shops” located inside WHSmith stores across the country.

Toys R Us was founded in 1957 by American businessman Charles P Lazarus.

It grew to 100 stores across the UK, but collapsed in 2018 and closed all branches.

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Plans for a relaunch were announced in in October 2021 and the first store to open in a WHSmith branch was in York (Monks Cross retail park) on June 10 last year.

Managing director of WHSmith High Street Sean Toal said: “Nearly 40 years ago, Toys R Us first came to the UK, and we take great pride in being the steward of this much-loved brand in the UK.

“We’ve had queues around the block for many openings in the last year which tells you just how much people are loving seeing Toys R Us back again.”

M&Co is making its return a year after falling into administration

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M&Co is making its return a year after falling into administrationCredit: Alamy

M&Co

Fashion retailer M&Co closed all of its stores after collapsing into administration in 2022, but has now announced it will return to the high street.

The new store in Newton Mearns, Scotland, will be opening where a previous store was located before the brand fell into administration.

The store opening follows the troubled brand’s acquisition by AK Retail Holdings in May 2023.

The new store will be opening where a previous store was located before going into administration.

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Sandra McPherson, head of retail for M&Co stores, said: “We are thrilled to welcome back our loyal customers in-store.

“This expansion symbolises our commitment to bringing stores back to the high street and connecting with customers.”

M&Co fell into administration in December 2022.

Fellow retailer Yours Clothing bought the M&Co brand and intellectual property the following year.

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RWMDTA Sign outside a Wilkinson Wilco store in Chippenham Wiltshire England UK

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RWMDTA Sign outside a Wilkinson Wilco store in Chippenham Wiltshire England UKCredit: Alamy

Wilko

Wilko is back on the high street having closed 400 stores in 2023 after going into administration.

Brits were heartbroken when beloved Wilko announced it would be closing all of its shops back in October last year.

However, a glimmer of hope was given when the brand name was scooped up by The Range, in a £5million deal – meaning that the name would live on.

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Customers were overjoyed after learning the store was being relaunched online, and even more so when in a surprising turn of events, physical branches started to open up again.

Locations have since popped up Plymouth, Exeter, Luton, St Albans and Rotherham and its roll out is spreading across England, Scotland, Wales and Northern Ireland.

The stores offer customers all the essentials across home and garden, as well as the usual value Wilko own-brand products, alongside popular named brands.

Chris Dawson, owner of Wilko, is said to be targeting 300 stores over the next five years, and said that all the new shops so far are making a profit.

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Paperchase has made its return as a concession in Tesco stores

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Paperchase has made its return as a concession in Tesco storesCredit: Alamy

Paperchase

In October 2023, Paperchase also made a return after closing all of its 134 shops and concessions earlier in the year.

Fans of the brand were devastated when the retailer disappeared from the high street in April 2023.

It had collapsed three months earlier and failed to find a buyer for the business.

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Doors were shut on a total of 106 standalone shops, and 28 concessions within Next and Selfridges stores.

However, supermarket giant Tesco later stepped in and bought the rights to the brand and then went on to launch it in some of its stores.

A total of 261 Tesco stores now stock Paperchase products – see the full list here.

There is a chance Ted Baker could also make a return

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There is a chance Ted Baker could also make a returnCredit: Alamy

Ted Baker

Ted Baker is to operate as an online shop following its collapse.

Ted Baker fell into administration in March when a deal collapsed between its American owners, Authentic Brands, and a Dutch operating partner which was meant to run the store operations.

Its final UK high street shops shut their doors in August and its original website stopped accepting orders.

But later that month US-based Authentic Brand Group, said it had secured a deal with a new business partner United Legwear & Apparel Co.

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They will now run the brand’s online platform in the UK and Europe.

We wait to see if it will follow others in returning to the high street.

What is happening to the British high street?

The news comes amid a challenging time for the whole of the UK’s retail sector. 

High inflation coupled with a squeeze on consumers’ finances has meant people have less money to spend in the shops. 

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Also the rising popularity in online shopping has meant people are favouring digital ordering over visiting a physical store. 

Unseasonably wet weather has also deterred shoppers from hitting the high street. 

This ongoing issue has seen brands such as Paperchase, and The Body Shop.

Why are retailers closing stores?

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RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.

High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.

The high street has seen a whole raft of closures over the past year, and more are coming.

The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.

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Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.

It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.

The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.

Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.

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“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.

“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”

Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.

The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.

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However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.

The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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Rotana to launch 43 new properties across the MENAT region by 2026

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Rotana to launch 43 new properties across the MENAT region by 2026

Rotana, one of the leading hotel management companies in the Middle East, Africa, Eastern Europe, and Türkiye (MENAT), will be developing 43 new properties in 26 cities in the Middle East, Africa, Europe, and Türkiye by 2026

Continue reading Rotana to launch 43 new properties across the MENAT region by 2026 at Business Traveller.

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Shy Creatures by Clare Chambers — art and psychiatry in postwar Britain

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Unlock the Editor’s Digest for free

Nobody in Helen Hansford’s family understands why she’d accept a job at Westbury Park, not least as an art therapist. But Dr Gil Rudden, one of the mental-health facility’s senior psychiatrists, understands completely. The two are initially attracted by a mutually progressive attitude towards mental health and to the patients in their respective care. It’s 1964, and homosexuality, for example, is still considered an illness to be treated. As Gil points out, “most so-called mental disorders are just behaviour that society doesn’t approve of.”

Within weeks their fledgling relationship has become all-consuming. Although, married as Gil is with two children, “he could hardly be more unavailable.” Their connection deepens when they’re called out to a dilapidated home where an elderly woman, Louisa, lives in squalor with her adult nephew William. The latter either cannot or will not speak, and he doesn’t appear to have left their Croydon house in two decades. Louisa and William Tapper are Westbury Park’s newest patients, and to Helen’s delight, it emerges that William possesses a rare artistic talent.

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Shy Creatures establishes a laser-like focus on extraordinary lives set against the suburban postwar setting, just as she did in her novel Small Pleasures. That 2020 novel was a “personal resurrection story” for Chambers, some of whose previous books were out of print when it was published to wide acclaim. Now, her latest and 10th novel is published to real demand.

Chambers’ dialogue is particularly strong, as is the precise study of human interactions in all their subtlety and shades. Her world-building speaks to extensive research but displays a light touch, imbuing the atmosphere of the story and its inhabitants with the smoke of Woodbines, the soot of coal scuttles and bomb shelters not long out of commission. The Tappers’ house reveals “a long, dark hallway with bulging wallpaper the colour of raw liver”, while public attitudes are laid bare in all their double standards: Helen hears with a “jolt” the “venom” directed at Christine Keeler, the “vitriol her parents reserved for women who took up with married men”. Woven throughout is the risk of the facility’s closure, as the mid-20th-century drift towards de-institutionalisation begins with patients soon to be “turf[ed] back out” in a “revolving-door effect”.

Book cover of ‘Shy Creatures’

We follow Helen as she attempts to unravel the mystery of the silent patient. Interspersed among her chapters are those of William himself. “It’s difficult to get an accurate picture of their life together,” Gil observes of the man and his aunt. “Was he a prisoner or a recluse? Was she?” This picture develops gradually via snapshots of formative experiences, moments of fear and ostracisation, past friendships, school days. The central mystery hinges on William’s past and the origin of his impressive creative skill. His drawings are born from quiet contemplation and observation — in much the same way as he, at Westbury Park, is now observed. Structurally, however, while the first two-thirds linger compellingly on vignette-like scenes, taking their time, the final chapters feel rushed and too busy with revelation.

William’s past, as it unfolds, enables Helen to react against the corset-like confines of a society that turns inward all too often and shuts its doors, one where the threat of “busybodies” and “interference” are a constant fear, and “nervous collapse” the ultimate shame. Through subplots involving her niece, Lorraine, and a lonely downstairs neighbour — “of whom she knew so little, and the other inhabitants of the flats, strangers all” — she observes the “curious bond” needed to create true community and, ultimately, a sense of the bonds she herself must break or make to find her own.

Shy Creatures by Clare Chambers Weidenfeld & Nicolson £20, 390 pages

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Money

Key Benefits and Risks to Consider

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Luxury real estate has an undeniable appeal, whether it is for the prestige, the lifestyle, or the investment potential. For example, real estate in Limassol offers stunning waterfront properties with breathtaking views and proximity to vibrant city life, making it an attractive option for those looking to combine luxury living with a solid investment.

But before you dive headfirst into this high-end market, there are some important factors to consider. Yes, luxury real estate can offer significant financial rewards, but it’s not without its challenges. Let’s break it down with a touch of practicality.

What Makes a Property “Luxury”?

Essentially, it refers to properties at the top end of the market in terms of price, features, and location. True luxury homes often include a prime location (think beachfront or city centre), top-quality finishes, and unique design elements.

The word “exclusive” is key—whether it’s a gated community, a secluded mansion, or a penthouse in a highly sought-after building, luxury real estate is meant to offer something rare and coveted.

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The Financial Benefits of Investing in Luxury Real Estate

Capital Appreciation

Luxury properties often hold their value well—especially in prime locations with limited availability. Over time, these homes can appreciate significantly, making them an attractive long-term investment. This is particularly true in markets with high demand and little room for expansion.

Rental Income Potential

A major draw of luxury real estate is the potential for rental income. High-net-worth renters often seek premium properties for short or long-term stays—vacation homes, corporate rentals, or even long-term residences. For instance, if you own a villa in a vacation hotspot like Cyprus or Ibiza, you can charge top dollar for weekly rentals during peak season.

Tax Benefits

In some places, you may be able to deduct mortgage interest, property taxes, and even certain maintenance costs. Additionally, if you rent out your property, you might qualify for further tax breaks related to rental expenses and depreciation.

Lifestyle Benefits of Owning Luxury Real Estate

Luxury real estate isn’t just about making smart financial decisions—there’s a lifestyle element to it, too. You’re not just buying a house; you’re buying into a certain way of living.

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Prestige and Social Status

Owning a luxury property is often seen as a marker of success. It’s a status symbol that reflects personal achievement and financial stability. Beyond that, living in a high-end home in a prestigious neighbourhood often comes with certain social advantages, whether it’s networking opportunities, invitations to exclusive events, or simply the sense of pride that comes from knowing you’ve “made it.”

Top-Notch Amenities

Luxury properties are synonymous with luxury amenities. We’re talking infinity pools, private gyms, gourmet kitchens, smart home systems, movie theatres, and sometimes even wine cellars or indoor basketball courts. These homes are designed for people who appreciate the finer things in life and want access to every convenience without ever leaving the house.

Customization and Uniqueness

One of the most satisfying aspects of owning luxury real estate is the level of customization available. Many luxury properties are built or renovated to suit the owner’s specific tastes, meaning you get to live in a home that’s truly your own. Whether you want an outdoor kitchen for entertaining, a sprawling garden, or cutting-edge design, a luxury home allows you to create the perfect space tailored to your lifestyle.

Risks of Investing in Luxury Real Estate

Of course, no investment is without its risks, and luxury real estate is no exception. While the rewards can be substantial, it’s important to go into the process with your eyes wide open.

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Market Volatility

Unlike the mid-tier market, which tends to move more gradually, high-end real estate can be significantly affected by economic shifts, political changes, and even global events. During a recession or housing market crash, luxury properties can take longer to sell, and buyers may have to accept lower-than-expected offers.

High Maintenance Costs

Large gardens, pools, and specialized systems like smart home technology or custom lighting require constant upkeep, and you’ll likely need to hire professionals to maintain everything. Also, insurance premiums on luxury homes are typically higher, especially if the home has unique or high-risk features (like waterfront access or a large collection of rare art).

Illiquidity

Luxury real estate isn’t the most liquid asset. It can take months, or even years, to sell a high-end property, especially in a slow market. This means that if you need to access your capital quickly, selling a property might not be the best option.

aerial photograph of building near body of water

Credit: Anthony DELANOIX on Unsplash

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How to Approach Investing in Luxury Real Estate

If you’re seriously considering investing in high-end real estate, here are some practical tips to help guide your decision:

  • Understand the market: Before making any investment, spend time learning about the specific market you’re interested in. Is it a buyer’s market or a seller’s market? Are property values on the rise or in decline? You’ll want to have a clear picture of the current market trends.
  • Location is everything: A high-end property in a desirable neighbourhood will always hold more value than a comparable property in a less popular area.
  • Think long-term: Real estate is generally a long-term investment. Don’t expect to flip a property for quick cash unless you’re extremely lucky or have a keen understanding of market timing.

Wrapping It All Up

Investing in luxury real estate offers a blend of financial rewards and lifestyle benefits that can be highly attractive, but it’s important to weigh the risks carefully. The potential for capital appreciation and rental income is significant, but so are the maintenance costs and market volatility.

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Business

Adnoc agrees to buy Germany’s Covestro in €14.7bn deal

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Abu Dhabi’s national oil company has agreed a €14.7bn deal to buy German chemicals group Covestro in one of the largest European takeovers this year.

Adnoc, which has been pursuing Covestro since last year, has offered €62 per share for the German company. It will also inject €1.17bn of new money into the chemicals group.

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Adnoc chief executive Sultan Ahmed Al Jaber said: “As a global leader and industrial pioneer in chemicals, Covestro brings unmatched expertise in high-tech speciality chemicals and materials, using advanced technologies including AI.”

The two sides have been in talks since Adnoc made an initial informal offer in September 2023.

Covestro initially rejected offers of below €60 a share and then debated whether its sustainability drive would be undermined by ownership by Adnoc. 

Markus Steilemann, chief executive of Covestro, said: “With Adnoc International’s support, we will have an even stronger foundation for sustainable growth in highly attractive sectors and can make an even greater contribution to the green transformation.”

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Adnoc said it had asked the Covestro management team to stay on after the completion of the deal. It also said it would support “the commitments made to Covestro’s employees and has undertaken to uphold existing works council, collective bargaining, and similar agreements”.

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