Your Sunday UK Briefing: Tories Risk ‘Civil War’; CBI Funding Fears

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(Bloomberg) —

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Hello again, from an even sunnier London. Once we put away the SPF 50 and take off the flipflops, this is what we’ll be looking at as we head into the new week.

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The big cloud: While Britain basks in sun there’s another dark cloud descending Rishi Sunak’s government. This week’s cumulonimbus is courtesy of his erstwhile Downing Street neighbour. Conservatives will now have to campaign in three by-elections and even Boris Johnson’s own seat could be vulnerable. Newly nominated knight of the realm, Jacob Rees-Mogg, warned the party could plunge into “civil war” if there’s an attempt to thwart Johnson. Energy Security Secretary Grant Shapps is not looking at the runes just yet for a prediction. “The one thing I know about Boris Johnson, is never predict what Boris Johnson will do next,” he said on Sunday.

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The big data: On Tuesday, the latest batch of labour market data will be closely monitored by the Bank of England as it contemplates how much to lift interest rates in the coming months. Bloomberg Economics forecasts the unemployment rate to increase further, along with pay growth. On Wednesday, Federal Reserve policymakers are tipped to take their first break from rate hikes that started 15 months ago and the day after the Fed decision, ECB officials are almost certain to diverge from the US and press on with rate increases. Economists expect a second consecutive quarter-point move.

The big sale: Britain’s biggest high street bank now owns two of the country’s best-known newspapers. We take a look at how the Barclay family lost control of the Brexit-backing Telegraph group after Lloyds lost patience trying to claw back £1 billion of debt. The bank now plans to sell the title. New ownership may also mean a change in support the so-called Torygraph gives the bickering Conservatives. 

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The big win: It’s been a long and expensive quest, but Manchester City finally got to hoist the Champions League trophy after beating Inter Milan 1-0 in Istanbul. After winning the FA Cup and Premier League, this makes them the second English club to achieve the Treble feat since their namesake red rivals managed it in 1999. “It was written in the stars. It belongs to us,” said Pep Guardiola.

The big exam: Bloomberg Opinion’s Howard Chua-Eoan explains just how much the UK and the US is divided by a common language. It’s come into sharp focus for him while applying for permanent residency in this Sceptred Isle. Swatting up for the “Life in the UK” exam by rote, it got him thinking that there are more practical ways of learning how to live in Blighty.

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The big shortfall: The problems are far from over for the Confederation of British Industry. Despite winning a vote majority recently for its planned reforms in the wake of a sexual assault scandal, key sponsors of the CBI’s annual conference are pulling the purse strings shut, reports Ali Asad Zulfiqar. And unlike last year, don’t expect to see Sunak or Keir Starmer addressing delegates.

ICYM Our Big Take: Sovereign funds and investment firms now control 17% of the clubs in Europe’s five biggest football leagues. This insightful feature shows why the Beautiful Game is no longer a hobby for the rich — it’s for the mega-rich. David Dein, former vice chairman of Arsenal, described the shift: “Abramovich parked his tanks on our lawn and it was firing £50 notes. New owners today are firing €500 notes.”

And finally, in this Bloomberg Originals series hosted by Emily Chang, The Circuit, we go behind the scenes with founders, influencers and innovators. Emily visits Twitter co-founders Evan Williams and Jason Goldman to get their perspective on Elon Musk’s Twitter takeover, the future of the platform and social media. Listen to the podcast on iHeart, Apple Podcasts, Spotify and the Terminal.

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