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Why are we so obsessed with the flavour and scent?

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Why are we so obsessed with the flavour and scent?
Getty A close up photograph from above of someone's hands wrapped around a glass mug of pumpkin spice latte. It has foamed milk and a sprinkle of cinnamon on top.Getty

Pumpkin spice lattes trigger pleasure-seeking pathways in our brains

The pumpkin spice latte is back.

With temperatures dropping, nights closing in and Halloween around the corner, consumers are once more turning to the ever-present cinnamon, ginger and nutmeg-spiced drink for comfort.

But why are we so obsessed with the scent and smell of this autumn favourite?

According to scientists, it is all about our brains’ pleasure-seeking tendencies.

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The parts of our brain involved in processing smells are close to, and have strong links with, the parts that deal with memories and emotions.

This means memories can be stored and retrieved easily when they are associated with a smell.

According to science journalist Alice Gray, from Cardiff, the scent of spices like cinnamon, nutmeg and ginger can therefore trigger happy, cosy and comforting memories.

What is pumpkin spice?

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Starbucks is credited with starting the trend for all things pumpkin spice.

According to the coffee chain’s website, the idea was born in a lab on the seventh floor of its HQ in Seattle.

Researchers brainstormed ideas for seasonal flavoured coffees and pumpkin scored high on “uniqueness”.

Its key ingredients are espresso, “pumpkin spice flavour sauce” and steamed milk, topped with whipped cream and a spice blend of cinnamon, ginger, nutmeg and cloves.

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When the new pumpkin spice latte – known to its fans as the PSL – was tested with customers in 2003 it proved a hit.

But it was when consumers started sharing their love for the drink on social media that it went from a popular coffee flavour to a billion-dollar industry – featuring in candles, beer, lip balms and even dog treats.

Pumpkin spice ‘everything’ was born.

The global pumpkin spice products market was valued at $1.1bn (£823m) in 2003, and was expected to rise to $2.4bn (£1.7bn) by 2031, according to Future Market Insights.

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Michelle Huggleston/Little Bit Different A cosy scene of a pumpkin spice candle, on a wooden table in front of a blanket, a book and a pair of glasses. It is next to a gold trinket in the shape of a pumpkin.Michelle Huggleston/Little Bit Different

Pumpkin spice scents can be found in candles and lip balms as well as the traditional latte

The pumpkin spice latte is now a staple of coffee shops in the UK as well as the US.

When Chelsea Enness, 31, opened Scaredy Cats Cafe Bar in Cardiff two years ago, she quickly realised she would need to get it on to the menu.

“People were coming asking for it straight away, as soon as September started,” she said.

The café is currently getting through about six one-litre bottles of its homemade pumpkin spice syrup every week.

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With a 25ml shot used in every drink, that is 240 pumpkin spice lattes.

And it goes far beyond coffee.

Vicky Isaac, 46, owns Little Bit Different, a wholesaler that supplies homemade candles to gift shops in Wales.

Her Latte Sbies Pwmpen candle – pumpkin spice latte in Welsh – was created in 2020 and is now one of her seasonal best-sellers.

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As well as the usual spices, she adds vanilla, coffee and pumpkin to her candles.

She started making them in response to a joke she had seen on a US TV show about the popularity of the PSL.

She said: “We thought, let’s just have a laugh and see what happens. It didn’t matter if it didn’t work.

“But people really do love pumpkin spice. It’s a really good seller for us.”

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She takes orders for her pumpkin spice candles from as early as August, so shops are stocked for September.

“The moment the weather changes, the children go back to school and the tourists all go home, it’s nice to have something different to make something of the season,” she added.

The autumnal treat coffee drinkers adore

Why do we love pumpkin spice?

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Science journalist Alice Gray said the smell rather than the taste of pumpkin spice products is key.

“The spices used in the pumpkin spice latte have strong associations with holiday seasons, and likely some comforting memories,” she said.

“So when you smell those spices, it will immediately activate emotive memories of joy, warmth and happiness.”

And if you’re sipping a pumpkin spice latte, the high levels of sugar in the drink also trigger the brain’s reward system, releasing feel good chemicals making us crave more.

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But clever marketing also plays a part.

“The seasonal nature of a pumpkin spice latte hacks into the hunter-gatherer parts of our psychology,” said Alice.

“The fact that you can only get them in autumn gives them a sense of scarcity, which drives our desire to get our hands on them.”

Daniel Harris Alice Gray holds up a model of a brain and smiles into the camera. She has long red hair and is wearing a ruffled white shirt.Daniel Harris

Science journalist Alice Gray says our hunter-gatherer instincts drive us to want products that are not about for long

Kiani Geldard, of Providero Coffehouse in Llandudno and Llandudno Junction, said that for many customers, pumpkin spice lattes are, “an accessible bit of joy”.

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“It’s easy to attain and doesn’t cost the world to have that little moment of enjoyment with your PSL in the day, regardless of whatever else is going on,” she added.

Do pumpkin spice lattes have pumpkin in them?

In short, yes. But this is a hotly-debated topic.

Coffee enthusiasts argue that adding actual pumpkin is unnecessary.

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Timothy Sharp, manager of Sparrow Coffee House in Cardiff, makes his own homemade syrup, adding spices like cloves, cardamom and star anise to the core PSL ingredients of ginger, cinnamon and nutmeg.

But pumpkin is not included.

“I see it as the spices that go into a pumpkin pie,” he said.

“I’m not sure I would want to taste pumpkin in my latte”.

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However, Ms Enness insists actual pumpkin should be there.

Her staff order tins of pumpkin puree from the US, and add it into their syrup, which Chelsea said gives the coffee a distinct texture.

“I don’t think it changes the flavour that much,” she added.

“It’s just knowing that it’s in there.”

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Diver, 20, left with shark’s TEETH wedged in arm after savage attack as horror pics show aftermath

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Diver, 20, left with shark's TEETH wedged in arm after savage attack as horror pics show aftermath

A DIVER who survived a savage shark attack was left with the beast’s teeth wedged in his arm as horrific pictures show the grisly aftermath.

Angus Kockott, 20, was snorkelling in the shallows off the island of Mangareva, French Polynesia when he was met with the fearsome sight of the predator swimming towards him.

Angus swimming in French Polynesia before running into serious trouble

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Angus swimming in French Polynesia before running into serious troubleCredit: SWNS
His arm, too graphic to show in full, was left in horror shape

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His arm, too graphic to show in full, was left in horror shapeCredit: SWNS
Angus still managed to sport a smile despite nearly dying

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Angus still managed to sport a smile despite nearly dyingCredit: SWNS

The suspected 2.5-metre grey reef shark clamped its jaws onto his arm in a nightmare scenario.

But quick-thinking Angus pulled a four-inch blade used for cutting diving lines from his pocket and stabbed the shark in the gills, forcing the bloodthirsty beast to release its grip.

Angus then swam to safety before an emergency military aircraft was called to fly him to the nearest hospital, where he had life-saving six-hour surgery.

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The shark’s sharp teeth severed two of the major nerves in Angus’ arm along with some tendons.

He had skin and nerve grafts – and several teeth and tooth fragments were retrieved from the injured limb.

Angus was out sailing with a friend in May and was attacked when the pair separated to do some free-diving.

Upon sighting the predator, he managed to put out his arm to protect his head and neck as it launched towards him.

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Recounting his horror ordeal, Angus said: “When the shark bit, I didn’t have time to panic – you just have to act when you have that kind of adrenaline in those situations.

“At first I felt immense pain – I really thought I would lose my arm.

“Seeing that shark right before it bit me – that was a real ‘oh sh*t’ moment.

Terrifying moment revellers come face-to-face with 11ft SHARK

“My first reaction was to get my knife used for cutting lines, and I just went for the shark as hard as I could.

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“It was only a little knife, but I’m very glad I had it on that day.

“After it released my arm, I couldn’t see anything except for a huge pool of blood around me, but I managed to stand up on a reef.

“My arm was literally squirting blood – it looked like a stripped drumstick.”

Angus tied goggles around his arm to create a makeshift tourniquet.

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His friend helped him get to safety in a nearby town, Rikitea, before he was rushed to Taaone Hospital in Tahiti.

The next day, Angus said, doctors took his him apart and had to put it back together again.

After three weeks recovering in Tahiti he flew home to East London, South Africa, for further treatment.

The nerves in his arm had been completely severed by the attack meaning he had little movement or feeling.

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He had a skin graft using skin from his left thigh and a nerve graft using nerves transplanted from the back of his heel.

The aftermath of the bite after treatment

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The aftermath of the bite after treatmentCredit: SWNS
His arm has healed but the big scars remain

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His arm has healed but the big scars remainCredit: SWNS
The tooth of the shark, taken out of Angus' arm

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The tooth of the shark, taken out of Angus’ armCredit: SWNS

He said: “If I hadn’t blocked the shark with my arm, it could have gone for my neck – my jugular vein was right there.

“I would’ve been toast.

“Or, if it had come to bite me again, I would have been too injured to fight back or get away.

“I think I would have died then in the water, or drowned.”

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He described the attack as a “defining experience” in his life – and as a an apparent memento wants to get the shark’s teeth turned into earrings.

“It’s been a defining experience in my life and that’s why I’m getting the teeth made into earrings.”

Despite suffering many swimmers’ worst nightmare, Angus holds no resentment towards sharks and says he is itching to get back in the water and continue training for a career in sailing.

He said: “My assumption was it was a territory thing – you can’t blame the animal

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“After my nerve graft and skin grafts, it’s healing well but I’m taking it day by day.”

Angus is a keen sailor

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Angus is a keen sailorCredit: SWNS
He plans to continue his sailing training despite a traumatic experience in the seas

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He plans to continue his sailing training despite a traumatic experience in the seasCredit: SWNS
Angus pictured with his parents, who nearly lost their son

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Angus pictured with his parents, who nearly lost their sonCredit: SWNS

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Israel dreams of a new order in the Middle East

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Stay informed with free updates

The killing of Hassan Nasrallah came just a few days before the first anniversary of Hamas’s October 7 attacks on Israel. With its decapitation of Hizbollah in Lebanon, the Israeli government hopes that it has finally seized the initiative in the battle with its regional enemies.

The US is urging Israel not to escalate the conflict further. But Israel is likely to see the current moment as too good an opportunity to miss. Many now want to press home the advantage, in the hope of striking a decisive blow against not just Hizbollah but Iran — and the “axis of resistance” that it leads, which includes Hamas, Hizbollah, militias in Iraq and Syria and the Houthis in Yemen.

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In the aftermath of Nasrallah’s killing, Benjamin Netanyahu, Israel’s prime minister, talked about an opportunity for “changing the balance of power in the region for years”. If Israel can gravely damage the “axis of resistance”, its achievement would be quietly welcomed in Saudi Arabia and the United Arab Emirates — which also fear Iran and have fought a war against the Houthis.

Unlike the Israeli government, the Saudis continue to insist that establishing a Palestinian state is critical to achieving lasting peace in the Middle East. The Saudi government also has good reason to fear the escalation of regional hostilities that could threaten their ambitious development plans.

For Israel, changing the balance of power also involves reversing the national narrative of defeat and confusion that set in after October 7. The Hamas attack was a humiliation for Israel’s intelligence services. The country’s reputation for always being one step ahead of its enemies was a key part of its deterrence strategy. That reputation was lost in a single day last year, when Israel was comprehensively outwitted by Hamas.

The subsequent war in Gaza has failed to restore Israel’s pride or its security. Despite an operation that has caused massive civilian deaths, Israel has been unable to free all its hostages. It is also losing the battle for international public opinion, and has been accused of genocide in hearings at the International Court of Justice.

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The series of attacks on Hizbollah — starting with the exploding pagers, which killed or maimed so many of the organisation’s footsoldiers — has restored the reputation of Israeli intelligence and the morale of the Israeli public. The fact that Hizbollah is detested by many Lebanese citizens and some in the wider Arab world, also complicates the normal condemnation of Israel.

The destruction wrought on Hizbollah potentially puts Iran’s government in the most dangerous international situation it has faced for decades. The presence of a powerful Iran-backed militant force with a huge arsenal of rockets — right on Israel’s northern border — was always regarded as key to Iran’s deterrent power against Israel. The theory was that the Israelis would avoid a direct attack on Iran — partly for fear that Tehran would unleash Hizbollah.

Now, with its proxy and ally reeling, Iran is faced with a dilemma. It has not come directly to the aid of Hamas. If it also stands to one side as Hizbollah is pummelled, its allies will feel betrayed and Israel may be emboldened to take even more radical actions — perhaps including the direct attacks on Iran’s nuclear facilities that it has been threatening for decades.

On the other hand, if Iran gets directly involved in a war with Israel, the regime’s survival would be at risk — particularly since the US might well get drawn into the conflict. The Americans have sworn off further wars in the Middle East, at least in theory. But they are also firmly committed to the defence of Israel and have demonstrated that they are capable of bringing about regime change in the Middle East. The bloody, chaotic aftermath of the US-led war in Iraq remains a recent and painful memory in Washington. But the fact that Iran is known to be very close to having the capacity to build a nuclear weapon will increase the temptation for Israel to strike now.

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Some excited supporters of Israel are comparing the current moment to the Six Day War of 1967 — a sudden and unexpected Israeli victory that changed the balance of power in the Middle East.

But while there are clearly opportunities for Israel in the current situation, there are also massive risks. Hizbollah is reeling but it may still be able to deploy what remains of its arsenal of missiles and hit Israel’s major cities repeatedly. If Israel follows through on its threats of a ground invasion of Lebanon, it could find itself in a quagmire-like conflict that runs for years — at a time when its forces are already at war in Gaza.

Over the long run, the death and destruction in Lebanon caused by Israeli air strikes is likely to create a new generation of Hizbollah soldiers. Some 60 per cent of Hamas fighters are thought to be orphans from previous conflicts.

Hizbollah and Hamas are both grievously damaged. But Israel has yet to answer how Gaza will be governed after the war is over. Lebanon’s weak caretaker government may well be incapable of moving into any vacuum left by Hizbollah, in which case Israel could have a failed state on its borders.

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Netanyahu may dream of bringing about a new regional order in the Middle East. But regional chaos — with the all the dangers that it brings — seems a more likely outcome.

gideon.rachman@ft.com

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Exact date to spot on ultra-rare 1p worth up to £200,000 at auction

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Exact date to spot on ultra-rare 1p worth up to £200,000 at auction

A RARE 1p has sold for a whopping £200,000 at auction due to its specific date.

A coin specialist has urged the public to look out for the 72-year-old penny as it could be worth 20million times its face value.

A rare 1p has sold for a whopping £200,000 at auction due to its specific date

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A rare 1p has sold for a whopping £200,000 at auction due to its specific dateCredit: tiktok@coincollectingwizard/
A coin specialist has urged the public to look out for the 72-year-old penny

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A coin specialist has urged the public to look out for the 72-year-old pennyCredit: tiktok@coincollectingwizard/

The change fanatic known as CoinCollectingWizard on TikTok recently published a video on the 1952 proof 1p, marked by an image of George VI.

This particular coin is the “rarest proof penny” of its entire series of copper and bronze pennies, and has left collectors absolutely astounded.

The TikTokker began the video by saying: “Jiminy Cricket – £200,000 for this old penny.

“The existence of this unique 1952 proof penny was not known publicly until its initial appearance at Numismatic Auctions in October of 1997, some 45 years after it was struck.

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“The British Numismatic world was astonished to see this coin appear and in proof quality as this was not known to exist.”

He also said that the coin remains an enigma as it is the “only unique proof striking” of a pre-decimal penny of the 20th century.

The expert goes on to say that the 1p is said to be so unique because it bears the face of King George VI – who died in early 1952.

London-based dealer Sovereign Rarities echoes this and states on its website: “It is perhaps understandable that the George VI 1952 Proof Penny remains a unique piece, as the King died very early in 1952 passing away on February 6.

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“Only the smaller denominations of currency coins that were in great demand were struck for circulation in 1952, with the larger denominations omitted in anticipation of a new reign and a new coinage for Queen Elizabeth II.”

Rare 2p coin that could be worth £1,000

According to BullionByPost, proof pennies are the highest quality coin a mint produces.

Issuers like the Royal Mint generally create just a small number of these per year due to the lengthy process required to make them.

Hand-finished dyes and etching by an expert are a huge part of their creation, meaning it takes around an hour to strike 50 proof coins.

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The CoinCollectingWizard added: “A lovely example went up for auction recently and sold for £200,000, so it is 100% a coin to look out for.”

It is worth keeping an eye on your spare change as it could be worth a lot more than you think.

Other rare coins which could be worth more include the One Penny which dates back to 1893, but it’s the production error which makes it a valuable find. 

The ancient coin features Britannia on the back and the reverse of the coin is the usual Queen Victoria bun head, which is a feature on many coins from this era. 

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What makes the coin valuable is an error with the number three in the date at the bottom of the coin. 

Under the number three of the error coin, it looks like there is the start of a number two.

If the coin features this it could be worth up to £600.

What are the most rare and valuable coins?

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How to spot rare coins and banknotes

Rare coins and notes hiding down the back of your sofa could sell for hundreds of pounds.

If you are lucky enough to find a rare £10 note you might be able to sell it for multiple times its face value.

You can spot rare notes by keeping an eye out for the serial numbers.

These numbers can be found on the side with the Monarch’s face, just under the value of £10 in the corner of the note.

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Also if you have a serial number on your note that is quite quirky you could cash in thousands.

For example, one seller bagged £3,600 after spotting a specific serial number relating to the year Jane Austen was born on one of their notes.

You can check if your notes are worth anything on eBay, just tick “completed and sold items” and filter by the highest value.

It will give you an idea of what people are willing to pay for some notes.

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But do bear in mind that yours is only worth what someone else is willing to pay for it.

This is also the case for coins, you can determine how rare your coin is by looking a the latest scarcity index.

The next step is to take a look at what has been recently sold on eBay.

Experts from Change Checker recommend looking at “sold listings” to be sure that the coin has sold for the specified amount rather than just been listed.

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People can list things for any price they like, but it doesn’t mean it will sell for that amount.

We explain further how you can find out if you have a rare coin worth thousands sitting around the house.

How do I safely store valuable coins?

HERE are some tricks to keep your valuable coins safe from toning:

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  • Store your coins in individual containers
  • Put it in a clear, air tight holder that lets you see the coin from both sides
  • Avoid putting them in clear plastic sandwich bags because they can still rub against each other an may cause scratches or marks
  • Store your collection in a folder or album, although tarnishing may occur quicker than in an airtight container
  • Keep them out of a damp environment. You can use silica gel to help prevent damp
  • Wear clean, white gloves when handling the coins
  • Steer clear of using PVC materials as it traps moisture and releases acidic gases which can damage the collection.

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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Old EU capital 2 hours on train from UK is new coolest place for a city break – thanks to hit Netflix show & festival

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Paris is back in vogue, and no longer just considered a destination for rich oldies

MY friend and I are lounging by the pool at the Hotel Molitor when a message comes through from her mum: “Are you at the Emily In Paris hotel?”

All she’d done was share a snap of the lido on her Instagram, with zero mention of the Netflix comedy drama that stars a US twentysomething living her best life in the French capital.

Paris is back in vogue, and no longer just considered a destination for rich oldies

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Paris is back in vogue, and no longer just considered a destination for rich oldiesCredit: Getty
Fred Again at the Rock en Seine festival

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Fred Again at the Rock en Seine festivalCredit: AFP
Try Pantobaguette, the hip little eaterie that fuses French and Japanese cuisine.

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Try Pantobaguette, the hip little eaterie that fuses French and Japanese cuisine.Credit: Instagram/pantobaguette

The Parisians might loathe the series but the rest of us love it — it’s one of the streaming giant’s most popular.

In fact, it’s one of the reasons we decided to book ourselves into the five-star hotel to the west of the city, which had a starring role in season three as Emily spent the afternoon sipping drinks by the pool.

It’s hardly in the centre of the action — the Molitor is in the fashionable 16th arrondissement, about 25 minutes on the Metro to the Eiffel Tower — but as a result, it’s a peaceful haven.

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The rooms are small but stylish with large, space-age beds, Clinique toiletries and floor-length windows that look out over the huge art-deco outdoor pool.

Hotel guests lounge in Molitor-branded deckchairs and bathrobes poolside, making you feel simultaneously in and out of Paris — this was, after all, where the bikini was first introduced to the world in 1946.

Paris has always been the fashion capital of the world but, when it comes to fun, the city had felt like in recent years like it was losing its mojo.

Millennials looking for city breaks opted for cool Berlin, fun Amsterdam or chic Copenhagen, while Paris was considered better for rich oldies, with its brasseries, pricey department stores and museums.

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We were seated next to the DJ decks and served Michelin-quality gourmet food but without the fuss

But it’s now back in vogue, experiencing a a renaissance.

Yes, that is in part because the spotlight is back on Paris, thanks to the recent 2024 Olympics, and Emily In Paris, but it’s also because young Paris has found its voice.

Places like the 11th and 18th arrondissements — the cool, Shoreditch-like parts of the city — are packed with restaurants and bars that have a distinctly Parisian edge but without the old-school fustiness.

Avoid these common holiday booking mistakes for a stress-free vacation

Try Pantobaguette, for instance, the hip little eaterie that fuses French and Japanese cuisine.

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We were seated next to the DJ decks and served Michelin-quality gourmet food but without the fuss.

We dined on ajitsuke eggs with wasabi mayo, aubergine with white peaches and anchovies with smoked butter to a background of Nineties hip-hop.

Or how about Folderol, selling only gelato and natural wine, where locals sip their evening aperitif while lounging on the kerb.

Oysters and wine

When we’d finished our ice creams, we headed to Bambino, a chic restaurant-cocktail bar where records line the walls and you can enjoy a terrace view of the Eiffel Tower.

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Nobody does casual sipping like the French — they’ve turned it into an art form.

In Paris, the cool younger bars we went to were all serving affordable but great wine by the small glass, often out of a pump.

Back at a small neighbourhood bistro in the 18th arrondissement, we joined the locals for an early-evening pitstop at the stripped-back La Trincante, where they had a deal of six oysters and a glass of white wine for €14.

Add to that one extra glass of wine for my friend, and the free basket of bread you get in every French restaurant, and our bill came to less than €10 each.

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The city’s flea markets are legendary, especially the Marche aux Puces de Saint-Ouen, which features in the new series of Emily In Paris

Equally astonishing prices could be found at one of Paris’s best flea markets, Marche aux Puces de la Porte de Vanves.

The city’s flea markets are legendary, especially the Marche aux Puces de Saint-Ouen, which features in the new series of Emily In Paris.

But we headed to the 14th arrondissement for a market that’s mainly frequented by cool locals, and browsed jewellery, furniture and handbags.

The prices — maybe 25 euros for a painting, five for a broach — were impossible to resist.

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Equally classy were the Parisians who we met at Rock en Seine, a day festival in the west of the city, who in the midst of the main-stage crowd were sipping their afford-able rosé out of dainty plastic wine glasses .

It really was a very cool crowd, who had assembled to see Fred Again, one of the most exciting artists to emerge from the British dance scene in years, play a headline set.

Among other huge stars were Lana del Rey and LCD Soundsystem. Aside from the Reading and Leeds Festivals, he is doing zero UK gigs this year — but is gracing Parisians with his presence. Clearly, Fred knows the city is where it’s at.

I’ve been to a lot of festivals but this one must be the friendliest I’ve attended — forget the French reputation for snootiness, by the end we were on first-name terms with everyone within ten metres.

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In fact, we even bumped into some of our new friends at the Eurostar station the following day, on our return to London.

It seemed a fair number of festival-goers had the same idea as us, to head over for Fred Again’s set and spend a couple of days exploring the city.

And why not, because swapping a short-haul flight for a two-hour train journey makes all the difference when on a weekend break.

We arrived in Paris feeling fresh and pulled back into King’s Cross St Pancras feeling, frankly, very well rested.

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The city’s flea markets are legendary, especially the Marche aux Puces de Saint-Ouen, which features in the new series of Emily In Paris

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The city’s flea markets are legendary, especially the Marche aux Puces de Saint-Ouen, which features in the new series of Emily In ParisCredit: AFP
Netflix hit Emily In Paris

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Netflix hit Emily In ParisCredit: Netflix © 2022
Sun writer Caroline takes some time out by the pool

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Sun writer Caroline takes some time out by the poolCredit: Supplied

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GO: PARIS

GETTING THERE: London to Paris Eurostar fares start from £39pp and kids under four travel free. See eurostar.com.

STAYING THERE: Double rooms at Hotel Molitor cost from around £280 per night, on a bed and breakfast basis. See all.accor.com.

OUT & ABOUT: Tickets to Rock En Seine typically go on sale in December and cost from £63. See rockenseine.com.

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Mercedes Evaluates Fate of Best-Selling SUVs as Chinese Competition Grows

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Mercedes Evaluates Fate of Best-Selling SUVs as Chinese Competition Grows

The automotive market is undergoing a rapid transformation, and it appears that even established giants like Mercedes-Benz are not immune to these changes.

Rise of Chinese Manufacturers

In a surprising development, the luxury automaker is reportedly considering discontinuing two of its most popular and best-selling SUVs, the GLE and GLC.

This shift is primarily driven by the remarkable rise of Chinese manufacturers, which have rapidly captured a significant share of the global automotive market. Brands such as BYD, XPeng, and NIO have emerged as formidable competitors, offering reliable and cost-effective vehicles that appeal to a wide audience, according to Motor.

As of 2023, China has solidified its position as the world’s largest automotive market, surpassing both Europe and the United States in production and sales. In fact, Chinese consumers now purchase more vehicles than their European and American counterparts combined.

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Shigeru Ishiba’s election as Japan’s next leader expected to rattle stock market

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Unlock the Editor’s Digest for free

Shigeru Ishiba’s election as leader of Japan’s ruling Liberal Democratic party is expected to put pressure on the country’s stocks on Monday morning after Nikkei 225 futures fell 6 per cent following his victory this week.

Ishiba, a former defence and agriculture minister who is set to take over as prime minister on October 1, is a China hawk who has vowed to prevent the nation from falling back into deflation.

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The new LDP leader has said he supports the Bank of Japan’s plan to normalise monetary policy, but investors are concerned about his support for heavier taxes on companies and investment income.

Before the winner of the leadership race was announced on Friday, Japan’s Nikkei 225 index had rallied 2.3 per cent and the yen had fallen, suggesting the market was positioned for a win by economic security minister Sanae Takaichi. Takaichi supported stock market-friendly “Abenomics” policies of ultra-low interest rates and fiscal stimulus.

Nikkei 225 futures traded in Chicago fell sharply after the LDP election result announcement.

“The futures market tells us it’s going to be very ugly on Monday. Normally you would look to buy the dip, but on this occasion you would probably want to wait a bit for everything to adjust,” said a trader at one of Japan’s largest investment banks.

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“As more had expected Takaichi to win, the yen has been weakening as she had clearly expressed she will not support further rate hikes by the BoJ,” said Ryota Abe, an economist in the Asia-Pacific division of Sumitomo Mitsui Banking Corporation (SMBC).

The yen rebounded moments after Ishiba was announced as the winner and went into the weekend at about ¥142 against the US dollar. SMBC’s Abe predicted the yen would move in a ¥140-¥145 range after Ishiba’s win.

“Expectations for political pressures on BoJ’s future decisions are likely gone. There should be no hurdles for BoJ to deliver additional rate hikes going forward,” he added.

Masatoshi Kikuchi, chief equity strategist at Mizuho Securities, warned investors that Ishiba’s victory was likely to trigger a reversal of the pre-election rally in the Nikkei 225 index.

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Kikuchi noted that going into the election foreign investor confidence in Japan had been fragile as a result of uncertainties about the country’s political direction. In the second week of September, when campaigning for the LDP leadership began, foreign investors were net sellers of ¥1.5tn ($10.6bn) in the cash equities market — their largest week of selling Japanese stocks since 1982, according to Kikuchi.

Some investors are concerned about Ishiba’s desire to raise taxes on both companies and income from privately held financial assets, though he clarified that he would not raise taxes on Japan’s new NISA tax-free investment accounts or individual defined-contribution pension plans.

Any attempt to raise taxes on companies and investors could potentially generate major pushback and hit the new prime minister’s credibility if he were forced into a rapid compromise, equity strategists said.

“Near-term price volatility is likely to persist until Mr Ishiba can clarify his stance on areas of investor concern such as corporate governance reform and tax rates on financial asset income,” said Goldman Sachs analysts in a note.

Investors are already on the hunt for buying opportunities and compiling a basket of stocks considered likely to benefit from an Ishiba administration, including those involved in defence and disaster relief. The 67-year-old has advocated establishment of a disaster management agency in the country, which is often hit by earthquakes, typhoons and flooding.

Within hours of Ishiba’s victory, the top three most searched investment themes on Kabutan, a popular online stock-trading site in Japan, were disaster prevention, defence spending and stocks that benefit from the strong yen.

Still, investors said it was unclear how much Ishiba would actually be able to achieve given how divided the ruling party remained.

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“Whilst always popular with the LDP party members, he has finally managed to win over enough of his Diet colleagues who have been reluctant to support him before,” said David Mitchinson, a portfolio manager at Japan specialist Zennor Asset Management. “His lack of a strong personal franchise in parliament may constrain his ability to act.”

The LDP leadership race, which produced a record number of candidates, served as a reminder of how fragmented the ruling block had become.

Robert Feldman, an economist at Morgan Stanley MUFG Securities, warned that there continued to be “major economic policy differences” within the party that would not be ended by its selection of a new party leader.

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