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What Germany’s new naval base means for Baltic security

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Good morning. Today, our Berlin correspondent reports on Germany’s new naval port on the Baltic — and what it means for Nato deterrence — and I have news of other issuers joining the EU in chipping in to the G7 loan to Ukraine.

Baltic fleet

Germany has stepped up its efforts to beef up Nato’s eastern flank with the opening of a new multinational naval headquarters in the Baltic coastal city of Rostock yesterday, writes Laura Pitel.

Context: In the wake of Russia’s February 2022 full-scale invasion of Ukraine, Nato unveiled plans to ramp up its presence in eastern member states. Baltic countries have warned repeatedly in recent months of growing aggression by the Russian navy in the region.

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Germany’s defence minister, Boris Pistorius, flew in by helicopter to inaugurate the new Commander Task Force Baltic headquarters. It will be led by a German admiral with deployments of naval officers from 11 other countries.

The headquarters aims to protect key supply routes, trade routes and critical infrastructure. It could lead operations for Nato during a conflict with Russia, which has heavily militarised ports in the Baltic exclave of Kaliningrad and around the city of St Petersburg.

Pistorius said the new facility was a testament to Germany’s resolve in the wake of the Zeitenwende in defence and security policy that was proclaimed by Chancellor Olaf Scholz after Russian President Vladimir Putin launched his attack on Ukraine.

“Our message to our partners and to those who threaten our peace is simple: Germany stands firmly by its commitments,” he said.

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Germany is also building a new military base in Lithuania, where a German brigade of almost 5,000 soldiers will be based in the country’s first permanent foreign deployment since the second world war.

Those efforts have been welcomed by Germany’s neighbours and its Nato allies, although large doubts persist about the combat readiness of the German navy and the wider Bundeswehr after decades of under-investment.

In a reminder of the thorny political territory for Pistorius in a country where support for pro-Russia parties has been rising, those attending the inauguration were greeted by demonstrators holding placards opposing western support for Kyiv. 

Pistorius at one point interrupted his English language speech to break into German so that he could refute a claim — circulated widely on social media — that the new headquarters would lead to Nato troops being stationed on German soil. 

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Chart du jour: Bitter divide

Moldova on Sunday voted to reaffirm its commitment to joining the EU in a referendum decided by less than 15,000 votes. In the pro-Russian region of Gagauzia, just 5 per cent backed Brussels.

Cash flow

The UK has said it will contribute $3bn to a G7 loan of $50bn to Ukraine, joining the EU and Canada in making clear their share of the initiative and leaving just the US and Japan to make up the difference.

Context: The G7 agreed this summer to assemble the loan, to support Kyiv’s financial, military and infrastructure needs, as it fights back against Russia’s invasion of the country. The loan will be paid back using profits skimmed from Kremlin sovereign assets immobilised by western sanctions.

The UK government said overnight that it would chip in $3bn (£2.3bn) for “essential military equipment.” Other G7 countries have said their money will be earmarked for various purposes.

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The EU, which includes G7 members France, Germany and Italy, has said it will contribute up to €35bn ($38bn) of the loan. But if US officials are able to fulfil their intention to provide $20bn themselves, as the FT reported last week, Brussels would only also chip in the same amount.

With $20bn each from the US and EU, $3bn from the UK and $3.6bn from Canada, that would leave Japan needing to find just over $3bn to make up the $50bn total.

The aim is to get the whole package tied up in a bow this week, during the IMF and World Bank annual meetings in Washington, officials said.

That would bring it on stream before both the November 5 US election, and the onset of what many expected to be an especially brutal winter for Ukraine, as Russian bombing of the country’s remaining heating and power facilities seeks to cripple its civic infrastructure.

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What to watch today

  1. Slovakia’s Prime Minister Robert Fico hosts Hungarian Prime Minister Viktor Orbán and Serbian President Aleksandar Vučić in Komarno.

  2. Nato secretary-general Mark Rutte visits Estonia.

  3. Russia hosts a summit of the BRICS group in Kazan.

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Travel

Finnair to offer largest ever US schedules for summer 2025

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Finnair to offer largest ever US schedules for summer 2025

The carrier will increase flights to Chicago, Dallas, LA and Seattle, and will also add frequencies to Asian destinations including Osaka, Nagoya and Shanghai

Continue reading Finnair to offer largest ever US schedules for summer 2025 at Business Traveller.

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The eerie thrill of a haunted hotel

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A scene from The Shining

In Eimear McBride’s novel Strange Hotel, the unnamed protagonist arrives at a hotel and finds the sense, more than the sight, of other people. There are cigarette butts in the courtyard and the sound of someone next door zipping up a suitcase and boiling the kettle. When she meets up with men in her room, they are fleeting, nameless exchanges: tonight, he is hers, tomorrow he will be someone else’s. The hotel seems to belong only to the protagonist, but we are aware that it is hosting countless other people and happenings. She can feel their shadows.

It is this ghostly space of busy isolation that we enter into when we stay at a hotel. They have this feeling of insectile activity; as if too many people’s memories are occurring one over the top of another.

When I began writing my new collection of short stories, I knew almost immediately that I wanted to set it in a hotel. I was interested in exploring what it means to be a woman moving around in the world, attempting to find some sort of safety within unsafe spaces. Taking the reader into a hotel felt like asking them to enter a place that they would instinctively feel cautious or uneasy about. I wanted them to expect, subconsciously, some darkness. In the stories in The Hotel, which are linked by their shared location, the land itself is haunted and the process of building the hotel is cursed from the start. People are drawn there; some leave without occurrence, but many find themselves, for a long time afterwards, unable, quite, to forget it. In one story a lonely girl staying with her parents discovers a new friend who she later bricks up inside a wall; in another, a resident monster falls in love. 

A scene from The Shining
A scene from The Shining © Alamy

While I was researching and writing, I read a lot of books, rewatched films and thought about the space. Why is it so often portrayed as a haunted space, filled with ghosts and danger?

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I haven’t always seen hotels as sites of unease. I don’t remember ever staying at one as a child, and so they took on a sort of mythic status in my mind. Compared to the familiar stone cottages on the Isle of Wight, with their gardens filled with long orange slugs, the crumbling houses in France or the dormitories on school trips, with their stink of teenage shoes, hotels seemed enormously luxurious, the height of sophistication. They were, for me, Lucy Honeychurch’s long hair lit with soft Florence light in A Room with a View; mysterious and very grown-up.

The author’s latest book
The author’s latest book

But the first time I stayed in one I began to see their potential for discomfort. I was around 23 and had won a writing competition, the prize for which was a few nights’ stay in a hotel in the Lake District. It had a long winding drive and glowing soft stone. The room was enormous and my partner and I cavorted around, jumped on the bed, filled the vast bath to the top. The next morning, when we returned after breakfast, it had changed. Someone – we never saw who – had come in and filled it with their presence. The heavy curtains had been tied, the bed was made, even our clothes had been tidied away. We felt ashamed of our messy suitcase, our unmade bed, and also unnerved. The thought occurred to me that the door could open at any time and someone could come in and move us around the way they had moved our things. They could come in when we slept and fill the bath with milky water, open all the windows, tuck the bedding in around us so tight that we could not move. Some illusion and pretence of solitude and privacy was shattered. Perhaps we had thought we had the only key. 


This sense that a hotel is simultaneously empty and filled is no clearer than at the Overlook Hotel in Stephen King’s The Shining. Danny and his parents are travelling to the Overlook for the winter off-season. The enormous hotel, located high in the mountains, will be empty of guests and other staff and the family will be snowed in.

Already, here is the sense that something is wrong: a cavernous empty hotel is not a suitable home for a small family. Except, because this is a horror novel, the emptiness is an illusion. The Overlook is bustling with the dead, with fragments and flashes of trapped memories that fill not only the corridors, the baths and the gardens but also the fragile, violent mind of Danny’s father. 

The house of Norman Bates in Psycho
The house of Norman Bates in Psycho © Getty Images

These themes echo through Joanna Hogg’s film The Eternal Daughter. Tilda Swinton plays both a middle-aged filmmaker, Julie, and her elderly mother, Rosalind. It is Rosalind’s birthday and they have travelled together to a rural hotel to celebrate. The hotel has all the hallmarks of a classic horror location: a too-long driveway, gardens filled with low-floating mist, an unfriendly receptionist. There seem to be no other guests, but Julie is kept awake by noises from the floor above. 

As the days pass, it becomes clear that Rosalind has existing, and troubling, memories of the hotel; it used to be a country house owned by her family. Memories are layered one on top of the other. Rosalind herself says it: “They hold these stories. And we’re here now. And that was then. And there’s just this muddle in me, of when it is exactly.” 

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If rooms hold stories then the hotel, with its ever-changing cast of room owners, is the ultimate archive of memories. Almost all of us have experienced the moment of entering a hotel room and finding something a previous occupant has left there; some of us have had the unpleasant moment of going into the room and finding someone else asleep in the bed. My father sometimes recounts the story of the ghost at his honeymoon. In a cottage in the Lake District he saw something on the stairs: a blur of movement. There was no feeling of malevolence but only of repetition, as of someone who had been there before. 


The German word for the uncanny, unheimlich, which translates directly as unhomely, tells us something else important. The unheimlich is the place between the familiar and unfamiliar. It goes some way to explaining why horror is so often located in domesticity. 

Miranda July takes us to this hinterland in her new novel All Fours when the protagonist moves into a motel and employs a designer to decorate the room. Though the room is beautiful, the protagonist finds herself undone. “I was stuck in some terrible purgatory, neither here nor there, not home but not really anywhere else.” This in-between feeling mirrors the days in which she sits in the hospital after her son has been born, waiting to see if he will live or die. Sometimes we cannot go back home. By the end, the motel has a horror-like draw. “The finished room was hard to leave and not because it was so beautiful.” 

I wanted, in The Hotel, to show a building as if it were a person, from conception to death. Whenever I write I am aware of places, houses, forests or rivers, as bodily: as characters in a story. Sitting at my desk, writing these stories, I felt haunted myself, as if when I turned around there would be someone there, waiting. Throughout the collection, a refrain repeats itself, scrawled on walls or in diaries: “be there soon”. The Hotel draws us in and, sometimes, does not let us go again. 

The Hotel by Daisy Johnson is published by Jonathan Cape at £14.99

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Money

Bidwells adds Oliver Heywood to capital markets bench

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GoldenTree strikes £351m deal to buy abrdn Property Income Trust

Heywood has 15 years of experience in capital markets transactions having previously worked at Knight Frank, Cushman & Wakefield and Savills.

The post Bidwells adds Oliver Heywood to capital markets bench appeared first on Property Week.

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Israel launched a dozen attacks on UN troops in Lebanon, says leaked report

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Israel launched a dozen attacks on UN troops in Lebanon, says leaked report

Confidential document says 15 peacekeepers injured by white phosphorus

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Advice firms looking to grow rather than sell up

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Advice firms looking to grow rather than sell up

Over two thirds of advisers (68%) have said their firm is looking to grow by taking on new clients.

This figure is up from 50% last year.

Meanwhile, 40% plan to grow by hiring new staff, nearly double the number in 2023.

The research by NextWealth, based on a survey of 340 financial advice professionals, also reveals fewer firms are looking to sell up or exit the profession.

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This is despite the “constant drumbeat of news” about the consolidation of financial advice firms.

Nearly half (46%) of respondents said that their number of active clients has increased – up from just over a quarter (29%) in 2023.

Only 11% said they have fewer clients this year compared to 17% in 2023.

Most clients come from referrals, either from existing clients or professional connections.

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However, larger firms – those with six advisers or more – are increasingly attracting clients from digital and traditional marketing, the research shows.

It also highlights the positive sentiment people have over a career in financial advice.

Over three quarters of respondents said they are “confident” or “very confident” in the future of their role when it comes to long-term career prospects (79%) and continued satisfaction with their current role and activities (77%).

Overall, 71% of respondents said they are confident in their firm’s ability to attract new clients.

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Stand-off with bondholders threatens $23bn US satellite merger

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Stand-off with bondholders threatens $23bn US satellite merger

New correspondence between DirecTV and Dish debt investors shows the two are stuck at an impasse

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