Under The Radar – 22 October

By Hert Niks for UnSplash

This week, we discuss:

1. Britain Strikes Free-Trade Deal With New Zealand

2. Qatar Sovereign Wealth Fund Looking To Buy Selfridges

3. BBC Newsbeat Staff Reject Relocation To Birmingham

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Britain strikes free-trade deal with New Zealand

What Happened?

Ministers have sealed the UK’s second bespoke trade deal of the post-Brexit era by striking an agreement with New Zealand, which will see the UK phase out quotas on lamb, beef, and dairy.

What does it mean?

Whilst ministers have claimed that the deal will not pose a threat to domestic producers, British farmers have raised concerns that higher costs of production and enhanced animal welfare standards in the UK could lead to an influx of low-cost meat. The standards conundrum facing the UK as it strives to strike new trade deals with its newfound economic freedoms is one that has yet to fully play out due to the slow pace at which bilateral negotiations are being undertaken. Additionally, the extent to which any economic benefits are felt will be minimal; a previous government analysis suggested that at best it would increase GDP by only 0.01 per cent; whilst other estimates show it could even result in the economy contracting. For a country wanting to improve its level of global exports, the deal struck with New Zealand appears to fall short of the desired mark. Nonetheless, what the deal may lack in economic weight it arguably makes up for in political significance for the government, especially when the prospect of a UK-US trade deal remains a distant one under a Biden administration. Just don’t ask how importing cheap beef from the other side of the world fits into the government’s net-zero commitments.

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Qatar sovereign wealth fund looking to buy Selfridges

What happened? The Qatar sovereign wealth fund has emerged as the frontrunner to purchase iconic department store Selfridges from the billionaire Weston family in a reported £4bn deal.

What does this mean? The Weston family launched a formal sales procedure for the department store chain back in July, but no purchase has yet been agreed. Other parties rumoured to be interested include Adia, the Public Investment Fund of Saudi Arabia, and Lane Crawford, the Hong Kong based department store business. Unlike many other department stores that have been suffering from a lack of investment and declining sales due to the rise of online shopping, Selfridges’ profits have doubled in the past decade and the Weston family have heavily invested in the business – the subsequent interest this sale has attracted isn’t surprising and simply underlines how high-end retail remains a lucrative bet. Selfridges boasts twenty-five stores worldwide, including its flagship London outlet on Oxford Street. It is understood that the Weston family are looking for a buyer not only for the UK stores, but for property in Dublin, the Netherlands, and Canada. Of the proposed £4billion price tag, it is thought that property assets make up £2billion of this. If the sale goes through, it would be the second major London department store to be acquired by the Qatari state, after they acquired Harrods from Mohammed Al Fayed for £1.5bn in 2010. Following the controversial Saudi-led takeover of Newcastle United this month, the sale of a more esteemed British institution to another oil state looking to diversify their assets in the age of net-zero only underlines the need for more stringent regulation of foreign takeovers.

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BBC Newsbeat staff reject relocation to Birmingham

What happened?

Three quarters of the staff at BBC Radio 1’s Newsbeat have refused to relocate to Birmingham amid the corporation’s ongoing efforts to restructure and relocate its services. What does it mean?

Earlier this year the BBC announced a major restructuring plan as part of an ongoing effort to diversify its newsroom, as well as loosen London’s grip on its services.

The BBC’s restructuring efforts line up with the wider government agenda of levelling-up and creating a more even media landscape within the UK. And with many of the staff reluctant to move, the end result may be that more journalism and broadcasting jobs in the Midlands and the North will become available – although at the cost of losing the majority of current staff.

Staff are fearful to leave because relocation will require a pay cut and potentially fewer alternative media outlets to work for, which is an issue that Channel 4 also faced when trying to move staff to Leeds. Additionally, employees have voiced concerns that moving the newsroom outside of London would mean losing influence over the industry’s leading figures.

Ultimately, whilst diversifying the BBC’s output is vital, it won’t be achieved by moving existing staff to the Midlands. There’s no shortage of talent in places like Birmingham, Manchester, and Leeds, which already offer some of the best media degrees in the country – perhaps it’s time for the BBC to reconsider its recruitment strategy.

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This week’s must reads

1. The harsh truths of partition in Ireland can’t be avoided in the name of reconciliation’ by Brian Hanley for The Guardian

2. ‘How Hong Kong’s elite turned on democracy’ by Timothy McLaughlin for The Atlantic

3. ‘No matter who’s the prime minister, the Treasury always win’s’ by John Elledge for The New Statesman

4. ‘Cop26 will fail unless rich nations keep their promises to the vulnerable – we cannot afford to be divided’ by Gordon Brown for The Independent

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Under The Radar – 15 October

By UnSpash

This week, we discuss:

1. Pentagon Tech Chief Quits

2. Housing – Millions of Private Renters Suffering

3. Chilean President Threatened with Impeachment

Pentagon Tech Chief quits – claims US cybersecurity is too weak

What Happened?

The Pentagon’s first software chief, Nicolas Chaillan, has left his position, citing frustrations over the US’s lack of preparedness for internet warfare. He stated cybersecurity was at a ‘kindergarten level’ in the States, adding it is ‘no match’ for China. 

What does it mean?

The resignation of Chaillan once again draws attention to the prominence of cybersecurity and internet warfare after allegations of foreign interference during the 2016 US Presidential election saw the issue receive global attention. According to Chaillan, however, not enough is being done to improve defence software ahead of the likelihood of further such cyberattacks in the years to come. In an interview with the Financial Times, Chaillan called America’s decision to spend three times as much as China on defence and cybersecurity investment ‘useless’, on the grounds of the funds being misallocated. In stark contrast, it appears China’s hopes of being the leading AI superpower by 2030 may well become reality. Ethics also play an important role: whereas Google allegedly refuses to work with the Pentagon on moral grounds – their contribution to AI development would mean having to work on refining the accuracy of drone attacks – China’s tech firms and AI experts have no such concern. Whilst the US has not yet lost the cybersecurity war, Chaillan’s resignation is no doubt one of alarming concern to those who recognise the growing influence of China in every facet of geopolitics. At this rate, the price to pay – for a country desperately trying to reestablish its credibility as a world leader – may well be a considerable one.

Housing – millions of private renters suffering

What happened? Housing charity Shelter has revealed that poor housing standards are harming the health of one in five renters in England. Their polling of private renters suggests that approximately 1.9m households could be suffering physical and mental problems as a result of their housing situation.

What does this mean? As those suffering from the poor conditions of privately rented accommodation know all too well, housing is inextricably linked to health outcomes. A lack of enforced standards and a willingness to exploit tenants through uncontrolled rents is now commonplace in the private rental sector.  With waiting lists for affordable housing set to double to as many as 2.1m households next year, the impact of the pandemic on house-building will only compound this. One in ten of those in the queue for affordable housing have already been waiting for over five years, with many of them likely living in the private rented homes currently causing physical and mental harm to occupants. Even prior to the pandemic, the UK was failing miserably to provide good-quality, affordable housing required to meet rising demand. This is a damning policy failure – a low-income household typically saves £37 a week renting in social housing compared to the private rental sector, whilst benefitting from a secure tenancy agreement. Not insignificant in the midst of a cost of living crisis.  Whatever the merits of social housing, and irrespective of an exploitative and unregulated private rented market, until the government is willing to build the supply homes required this is the new normal in modern Britain.

Chilean president threatened with impeachment

What happened?

Following new details from the Pandora Papers’ leak, Chilean opposition lawmakers have moved to launch impeachment proceedings against President Sebastián Piñera over questions relating to a 2010 deal involving the sale of a mining company. What does it mean?

The official impeachment proceedings follows on from the country’s public prosecutor stating that they were investigating potential bribery and corruption charges, as well as tax violations related to the sale.  The sale had previously been examined and dismissed by courts in 2017. However, last week’s Pandora Papers’ leak stirred up controversy by suggesting that the deal, which involved a firm tied to Piñera’s family, benefitted from his position as President. The deal was conditional on the location the mining project was due to be developed not being declared an environmental protection zone, or being transformed into a national reserve. At the time of the sale, Piñera was in his first year in office. One of the opposition figures driving the impeachment proceedings has said that the President has “openly infringed the Constitution” and risks “seriously compromising the honour of the nation”.   The controversy comes just ahead of Presidential and legislative elections scheduled for November 21. Whilst Piñera is not standing as a candidate, the allegations are likely to cast a shadow over the campaign.

This week’s must reads

1. ‘The Tories’ plan to ‘level up’ Britain can’t be taken seriously. Here’s why’ by Aditya Chakrabortty for The Guardian

2. ‘It’s a make or break winter for Kwasi Kwarteng’ by Iain Martin for The Times

3. ‘The legacy of Covid: A much bigger state’ by James Forsyth for The Spectator

4. ‘The net-zero crusade is futile without China’ for The Telegraph

Chart of the Week

Wealth of Premier League Club’s Ownership

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Digital Digest – 13 October

Jonas Augustin for UnSplash

In this week’s digital digest we look at BT’s partnership with Rio Ferdinand and Marcus Rashford, and the DVLA’s digital licence plans.  

We then take a look at big tech as Facebook changes the way it measures accounts, Twitter rolls out a ‘soft-block’ feature and Netflix is sued by ISP provider following the success of Squid Games. 

Closer To Home

BT celebrates Black British history with Rio Ferdinand and Marcus Rashford

BT’s Hope United has partnered with Rio Ferdinand and Marcus Rashford to release a series of short films over the course of Black History Month. The videos will feature Ferdinand and Rashford discussing the legacy of the Windrush generation, and the impact their descendants and continued migration from the Caribbean have had on football and culture.

The series kicks off with both footballers discussing ‘Standing Firm: Football’s Windrush Story’ and will be disseminated on social media before being followed by a standalone documentary released on BT later this year.

DVLA promises driving licence changes as new digital alternatives explored by government

DVLA plans to launch a new digital licence that could launch in 2024.

Transport secretary Grant Shapps said the move is part of ‘exciting new post-EU freedoms’, as EU rules had previously stopped the introduction of digital licences.

However, the possibility of an app-based drivers licence increases the amount of personal data we store on our phones, making them more tempting targets for thieves and hackers. 

Big Tech

Facebook Changes the Way It Measures Accounts for Advertisers

Facebook is changing the way it counts user profiles for advertising purposes in a move that goes into effect on Monday. In effect, they will start counting Facebook and Instagram as standalone apps – instead of linking accounts – unless users opt in.

The change will increase the number of total accounts an advertiser can reach. Facebook hinted on its blog that the measure was intended to adapt to anticipated regulatory changes.

Twitter rolls out feature that allows users to quietly remove followers

Twitter is rolling out a new feature that lets users remove a follower without blocking them. The so-called ‘soft-block’ allows users to remove followers without notifying the account. However, such users can follow you again if they realise they’ve been removed.

The feature is just the latest in a series of moves the social media company has taken to increase user privacy and give users more control over their experience on the platform.

Squid Game’s success reopens debate over who pays rising internet traffic

The success of South Korean Netflix drama Squid Game has re-ignited the dispute between broadband providers and the streaming giant over who should carry the burden of increased data costs. The South Korean ISP provider SK Broadband has sued Netflix to help cover the costs of increased network traffic and maintenance due to a surge in viewers.

Demand for internet capacity has undergone unprecedented growth as a result of the pandemic. An overwhelming majority of day-to-day usage is accounted for by only a handful of companies such as YouTube, Facebook and Netflix, however, ISP providers are increasingly turning to them to help cover their costs rather than turning on end users.

Also In The News

1. Cybercriminals from Russia and its neighbours are the source of the majority of online extortion against UK business and organisations, says Lindy Cameron, CEO of the National Cyber Security Centre (NCSC). See here.

2. Brands’ failure to accurately represent the lives of older women is a reflection of them underestimating the cultural power of this demographic as influencers on younger generations. See here.

3. A Facebook whistleblower who accused the tech giant of putting profit ahead of safety, is due to give evidence to the Online Safety Bill committee on 25th October 2021. See here

4. Deep divides over proposed EU regulation of Big Tech is likely to trigger long delays in attempts to curb their powers and ensure fair competition. See here.

5. Venture capital funding into British technology start-ups has topped a record £20bn this year, despite warnings about Brexit. See here.

Worth A Read:

1. Marketing Week: Trust in brands is illusory, just look at Facebook’s continued growth

2. BBC News: Google gives security keys to 10,000 high-risk users

3. FT: A global AI bill of rights is desperately needed

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