Higher defence spending will weaken Europe finances without counter steps, says Scope Ratings
LONDON, June 27 (Reuters) - Higher defence spending will weaken European governments' credit profiles unless they are able to cut spending elsewhere or increase their revenues, ratings agency Scope said on Friday.
NATO allies agreed on Wednesday to raise their collective spending goal to 5% of output over the next decade, citing the long-term threat posed by Russia and the need to strengthen civil and military resilience.
"Higher defence expenditure will lead to higher borrowings and deteriorating debt-to-GDP trajectories in most EU countries, and thus weaker sovereign credit profiles, unless governments reduce spending elsewhere or increase revenues," Scope analysts said in a note due to be published on Monday.
The additional spending burden will significantly raise pressure on countries such as France, Belgium and Italy that already face disciplinary measures from the European Union due to their high budget deficits, Scope added.
Such fiscal constraints means defence spending could shift towards the European level, the analysts said.
"Centralising EU security and defence financing could provide more sustainable and coordinated financing across member states while also creating economies of scale in defence and security procurement," they added.
The EU is already creating an up-to 150-billion-euro ($175.85 billion) fund financed by joint borrowing for defence, but economists have said more common funding will likely be necessary.
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Daily Mail
an hour ago
- Daily Mail
EXCLUSIVE The 461-billion dollar wedding: How riches of the Lauren Sanchez and Jeff Bezos' guest list tot up to more than the GDP of South Africa, Bangladesh or Denmark
It has been described as the 'wedding of the century', with Michelin star food, foam parties and more stars than the Oscars. But as 200 VIP guests descended on the the church at Giorgio Maggiore, the one kilometre square island would host a total wealth worth more than the entire GDP of South Africa, Bangladesh or Denmark. Bride and groom Jeff Bezos and Lauren Sanchez alone are worth a staggering $263.8billion, more than the total value of all goods and services produced in New Zealand. And as the world's wealthiest men and women gathered in the 16th-century basilica to celebrate the Amazon mogul's nuptials, they brought together a total wealth of more than $461billion. The GDP of South Africa is a lowly $380billion by comparison - while Denmark is $407billion and Bangladesh is $437billion. Greece, at $243billion, is only just more than half as much. They included tech billionaires, reality TV dynasties and legends of film and TV - who danced away among the glittering Venetian canals until the early hours of this morning. Reportedly costing $20million and stirring fury among the local residents, stars were treated to a $1,000-a-head meal while there was a strict no-phone policy at the 'extremely intimate' affair. Here MailOnline looks at some of the top big-hitters, and how the world's wealthiest man managed to attract more than ten times the wealth needed to end world hunger to the pews of an Italian church: As 200 VIP guests descended on the the church at Giorgio Maggiore, the one kilometre square island would host a total wealth worth more than the entire GDP of South Africa , Bangladesh or Denmark Bezos' $461bn guestlist: Jeff Bezos and Lauren Sanchez: $263.8bn Bill Gates: $117bn Miguel Bezos: $30bn Francois-Henri Pinault: $18.5bn Barry Diller: $4.2bn Josh Kushner: $3.8bn Oprah Winfrey: $3.1bn Domenico Dolce: $2.4bn Stefano Gabbana: $2.4bn Lachlan Murdoch: $2.1bn Kim Kardashian: $1.7bn Sam Altman: $1.7bn Diane von Furstenberg: $1.2bn Jerry Seinfeld: $1.1bn Scooter Braun: $1bn Ari Emanuel: $1bn Jared Kushner: $900m Crown Prince of Jordan, Hussein bin Abdullah: $750m Kylie Jenner: $670m Tom Brady: $530m Tommy Hilfiger: $450m Brian Grazer: $400m Leonardo DiCaprio: $300m Kris Jenner: $200m Ted Sarandos: $200m Usher: $180m Wendy Ding: $100m Gayle King: $80m Barack Obama: $70m Khloe Kardashian: $60m Kendall Jenner: $60m Ivanka Trump: $50m Tony Gonzalez: $50m Orlando Bloom: $40m Karlie Kloss: $40m Sydney Sweeney: $40m Queen Rania of Jordan: $35m Ellie Goulding: $30m Corey Gamble: $15m Jewel Kilcher: $14m Edward Enninful: $9m Sarah Staudinger: $3m Sara Foster: $3m Sarah Jane Nader: $2m Guilherme Siqueira: $1.5m The celebs With glamour and gliz the key factors of the Venice spectacular, hoards of celebrities descended on the historic centre for the big day. Oprah Winfrey, 71, showed off her slimmed-down figure as she travelled across with her pal Gayle King. The TV personality, worth $3.1billion, flaunted her toned curves after dropping the pounds using weight-loss drug Ozempic. Gayle, 70, is herself worth $80million and seems to have been brought as the media mogul's plus one. Orlando Bloom, worth $40million, set pulses racing as he travelled to Venice as one of the world's most eligible bachelors, having recently split from fiancée Katy Perry. The star, whose former partner is putting on a brave face while touring Australia with their daughter Daisy, four, was spotted smiling with a series of glamorous women as he made the most of the celebrations. Jerry Seinfeld, worth $1.1bn, looked smart in black tie as he was seen leaving The Gritti Palace and joining fellow A-list guests on a water taxi alongside his glamorous wife Jessica. DiCaprio, worth $300million, covered his face with a black cap throughout the weekend as he attended the wedding with his stunning girlfriend Vittoria Ceretti The cookbook author beamed in a sparkling gown as they patiently waited outside the 15th century palazzo. Tom Brady, who has a net worth of $530million, risked an awkward-run in with his former flame Brooks Nader as they were both among the flocks of A-listers arriving in Venice. But the NFL star - who is also currently single - was seen enjoying a swim, cocktails and lunch during a lads' day out at the Hotel Cipriani - alongside Bloom, Leonardo DiCaprio, Scooter Braun and Edward Enninful. The group ordered tequila, did laps of the pool and stayed under the radar as they seemed in good spirits at one of Venice's most luxury hotels. DiCaprio, worth $300million, covered his face with a black cap throughout the weekend as he attended the wedding with his stunning girlfriend Vittoria Ceretti. The model, 27, who has been dating the 50-year-old Hollywood actor for two years, was all smiles as she left the Gritti Palace Hotel before being helped into a water taxi in an elegant black dress. And American sweetheart Sydney Sweeney, 27, is said to have stolen the show as a source claimed she was the 'most sought after person' during the festivities. Worth $40million, she confirmed her split from fiancé Jonathan Davino earlier this year. Brady was reportedly seen chatting her up at the hotel bar over the course of the multi-day lavish wedding extravaganza while she wowed guests with her 'down to Earth' and 'fun' personality, in addition to her stunning looks Pregnant Karlie Kloss, worth $40million, exhuded summery glamour as the 32-year-old supermodel also alighted on the Italian city, while expecting her third child by her husband Joshua Kushner The hitmaker, who is worth $30million, looked nothing short of sensational in a plunging nude gown covered in royal blue sequins in an intricate floral pattern Brady was reportedly seen chatting her up at the hotel bar over the course of the multi-day lavish wedding extravaganza while she wowed guests with her 'down to Earth' and 'fun' personality, in addition to her stunning looks. Wearing a strapless pink dress that featured a ruched bodice, she styled her signature blonde locks with beachy waves on the big day. Pregnant Karlie Kloss, worth $40million, exhuded summery glamour as the 32-year-old supermodel also alighted on the Italian city, while expecting her third child by her husband Joshua Kushner. And Ellie Goulding, 38, made an unexpected arrival at the first day of the highly-anticipated three-day nuptials, surprising fans as no connection between her and the bride and groom has been made publicly known. The hitmaker, who is worth $30million, looked nothing short of sensational in a plunging nude gown covered in royal blue sequins in an intricate floral pattern. The reality dynasty The stunning wedding was a prime location for the Kardashians - who united to celebrate their billionaire friends with suitable eccentricity. Late last night as the party wrapped, photographers captured Kim and Khloe Kardashian making a speedy getaway in a waiting water taxi. The bleary-eyed sisters, true to form, posed for the cameras as the boat set sail - throwing up peace signs and making duck faces at the awaiting lenses. A little while later, their supermodel sister Kendall Jenner made her own escape, weaving through the city's canals and posing against the breathtaking backdrop of Italy's finest architecture. This morning Kim and Khloe were spotted wearing casual ensembles as they made a low-key exit from the Italian city, presumably to board a private flight back to Los Angeles. She gave herself a few extra inches in a pair of white stiletto heels as she strutted her stuff to board a boat They both snapped selfies as they made the most of their time in Venice, though they dashed off the next day Kendall Jenner (pictured) made her own escape from the wedding, weaving through the city's canals and posing against the breathtaking backdrop of Italy's finest architecture Their mother Kris, 69, and sisters Kendall, 29, and Kylie, 27, were nowhere in sight as the duo headed out of Venice, as they appeared to be staying in the city for longer. It comes despite the celebrations are far from over, with the festivities slated to continue at the Arsenale di Venezia on Saturday night. The reality star family hit the shops as they celebrated Khloe Kardashian's 41st birthday in Venice. And Kim was mocked as she couldn't seem to stay off her phone, snapping selfies nonstop throughout the day. She even slipped in a sizzling SKIMS promo, flaunting an animal print bikini on social media. Kim Kardashian is worth $1.7billion, with Kylie Jenner close behind at $670million. Kris Jenner has a reported $200million while Kendall and Khloe are worth $60million. The tech billionaires Among the wealthiest guests at the Gates-Sanchez wedding were Jeff's fellow tech billionaires, who made soaring profits from revolutionary new computers and systems. Bill Gates - the inventor of Microsoft and the world's third richest man - was among the masses, lending his $117billion fortune to the total. Before the big day the 69-year-old was spotted in a casual black polo shirt and shorts as he explored the lagoon city with his girlfriend Paula Hurd, 62. For the wedding itself he shed the Silicon Valley-esq dress and looked smart in black tie, mingling outside the church entrance. Third on the rich list is Miguel Bezos - Jeff's adoptive father - who gave their son $245,573 in the mid-1990s as he crowdfunded to start his now-famous online store. Their fortune is now said to be worth £30billion as Amazon rocketed to success. Third on the rich list is Miguel Bezos - Jeff's adoptive father - who gave their son $245,573 in the mid-1990s as he crowdfunded to start his now-famous online store. Pictured: Leaving the Aman Hotel on his wedding day Barry Diller, who founded the internet and media conglomerate IAC, is now worth $4.2billion - with successes including the launch of online travel giant Expedia and The Daily Beast. OpenAI founder Sam Altman also made the list despite being just 40. As one of the leading figures in the AI boom, he has made an estimated $1.7billion. Ted Sarandos, the co-CEO of Netflix, was a further addition, with a less considerable $200million dwarfed by his fellow tech-bros. The fashion moguls Amazon billionaire Jeff Bezos is said to have 'gasped' when he set eyes on Lauren Sanchez in her stunning bespoke Dolce & Gabbana gown. So it perhaps made sense that both Domenico Dolce and Stefano Gabbana - both worth $2.4billion - were in attendance to see their creation in action. The elaborate wedding dress contained lacy, floral sleeves, a tight bodice, high neckline, long flowing skirt with an enormous train, and buttons down the front. Dolce looked classy as he attended the wedding, pairing a black jacket and shirt with a statement, bedazzled necklace. Gabbana, dressed down as he left the Gritti Palace, was immaculate in a matching black polo shirt and trousers, with a smart black belt. CEO of Kering Francois-Henri Pinault, who was once married to Hollywood bombshell Salma Hayek, also looked smart in black tie as he paired the look with black sunglasses. Domenico Dolce travels on a boat on the second day of the wedding festivities of Amazon founder Jeff Bezos and journalist Lauren Sanchez Gabbana, dressed down as he left the Gritti Palace, was immaculate in a matching black polo shirt and trousers, with a smart black belt CEO of Kering Francois-Henri Pinault, who was once married to Hollywood bombshell Salma Hayek, also looked smart in black tie as he paired the look with black sunglasses Tommy Hilfiger nearly took a tumble during Jeff Bezos and Lauren Sanchez's wedding extravaganza in Venice on Friday Read More The WORST dressed celebs from Lauren Sanchez and Jeff Bezos wedding day in Venice Pinault, who is worth $18.5billion, took the reins of his father's retail conglomerate Pinault-Printemps-Redoute in 2005, with the company owning brands including Yves Saint Laurent, Gucci, Balenciaga and Alexander McQueen. Tommy Hilfiger left fellow guests worried as he nearly took a tumble during the celebrations on Friday. The fashion designer, 74, who is worth $450million, tripped while trying to get into a water taxi and narrowly avoided falling into the water in front of the newlyweds and all of their other A-list wedding guests. In the video, he is seen walking ahead of quarterback Tom Brady and chatting with those around him before stumbling and nearly falling face first into the canal. An assistant helped steady the designer who then laughs off the misstep and continues on his way. He appeared to have lost his footing more than once but shrugged it off and threw up a peace sign to onlookers. Ex-editor of British Vogue Edward Enninful, who is worth $9million, was also seen laughing and joking with other celebrities as they enjoyed the long weekend. It comes after a heady week for the title - who today shared the insider interview with new bride Lauren Sanchez. On Thursday, Anna Wintour announced she was stepping down from one of her roles at Vogue after 37 years. The statesmen And among some of the wealthiest in the world, some of the biggest names in global politics. Barack Obama was on the guest list, despite having last year been at loggerheads with the groom over how his plans for space travel will affect the Earth's future. The former President, who is worth a reported $70million, chastised Silicon Valley's huge rocket projects, saying 'I would rather us invest in taking care of this planet here.' Members of the Trump family attended the event, including the First Daughter Ivanka and husband Jared Kushner She threatened to steal the show with a bridal dress that retails for $9,990 Donning the Oscar de la Renta outfit for the rehearsal dinner, she ignited security concerns after she posted a photo of her hotel room number alongside several pictures of herself and husband Jared Kushner in their formal attire The Crown Prince of Jordan, Hussein bin Abdullah also made a rare appearance to go to the Bezos wedding with their baby daughter He was joined in Venice by members of the Trump family, including the First Daughter Ivanka, who threatened to steal the show with a bridal dress that retails for $9,990. Donning the Oscar de la Renta outfit for the rehearsal dinner, she ignited security concerns after she posted a photo of her hotel room number alongside several pictures of herself and husband Jared Kushner in their formal attire. Ivanka is with $50million, while Jared's wealth tops $900million. Jared's younger brother, businessman and investor Josh Kushner who is worth $3.8billion, was also in attendance. Meanwhile, the Crown Prince of Jordan, Hussein bin Abdullah also made a rare appearance to go to the Bezos wedding with their baby daughter. Worth an estimated $750million, the future King of Jordan looked stylish in a relaxed fit as he left the airport while little Iman looked adorable in a special white summer dress.
Telegraph
an hour ago
- Telegraph
Ocado faces £20m loss on vertical farming start-up
Ocado is facing a potential £20m loss after a major UK farming start-up backed by the company fell into administration. The logistics group, led by Tim Steiner, had been a major backer of Jones Food, which was hailed as a game-changer for Britain's farming industry, allowing vegetables to be picked next door to delivery depots. But the farming venture fell into administration this year after Ocado signalled that it was not willing to provide more cash to the start-up and it failed to find a new backer. Ocado risks losing £21.7m on the collapse, filings for Jones Food's administration now suggest, and the company is unlikely to recoup the millions of pounds it pumped into the start-up. This includes £8.6m of initial investment in 2019 and a £3.7m cash injection in 2023. Administrators for the start-up said funds from the sale of Jones's assets would go on paying off expenses and creditors. The collapse of Jones Food is a fresh setback for Ocado, which has been battling to stem losses and churn out more cash in the face of higher debt costs. Ocado has been making heavy cuts in its research team in an attempt to help it shift into profit and was hit by a tripling of its debt interest costs after it refinanced looming bonds last month. Jones Food was among a series of investments made by Ocado into tech start-ups in an attempt to shrug off its image as an online grocer. Ocado struck a deal with M&S in early 2019 to run the online grocer Ocado Retail as a joint venture. Since then, Ocado Group has been focused on its robotic warehouses, which it sells to other companies including Kroger in the US. The collapse of Jones Food comes just over a year after the start-up opened its second vertical farm, which involves growing crops vertically in temperature controlled conditions rather than naturally on the ground. At the time, Ocado claimed the farm was a 'coming-of-age for agricultural technology in the UK' and said Jones Food had 'cracked the code for accessible, sustainable, premium food being grown all-year-round, at a super-competitive price'. The vertical farm, where fresh produce is grown indoors in shelves, provided herbs including basil, coriander and flat-leaf parsley for Ocado and Asda. However, vertical farming start-ups have struggled to become profitable. In filings for Jones Food, administrators said it was loss-making as soon as it was operational because it was running at around a third or half of its factories' capacity, and demand from customers was variable. Other vertical farming start-ups have also collapsed, including US-based Aerofarms which filed for bankruptcy in 2023. It has been seen as a sign of the bubble bursting for agricultural innovations, including cultivated meats. At the time of the administration, Ocado said: 'Jones Food is an innovative business, and Ocado Group has been a supporter and shareholder of the company for a number of years. As we await the outcome of the administration process, our thoughts are with all those involved with Jones Food.'
Telegraph
an hour ago
- Telegraph
The hunt for Britain's ‘Wolf of Wall Street'
When Ben was convinced by a financial adviser to visit a swanky new trading floor at the top of a City of London skyscraper the Heron Tower, he couldn't believe his luck. Staff promised him returns of 60pc a year if he invested, and told him that the business – Capital World Markets (CWM) – was run by a 'Svengali-type individual who was hugely well-connected'. It sounded to good too be true. That's because it was. On the surface, Anthony Constantinou – the 'Svengali-type' – had made a fortune in a remarkably short amount of time. He had all the trappings of success, spending £600,000 on just six months rent for a home in London, as well as £427,000 on private jet trips, £2.5m on his wedding in Santorini and more than £70,000 on his son's first birthday party. Luxury cars lined the driveway of his rented Hampstead home. But there was one problem: the cash was coming from a multimillion-pound Ponzi-style investment scam, which relied on ordinary savers like Ben to buy into his story. Earlier this month Constantinou, 41, was ordered to pay back £64m or spend 14 more years in prison for his large-scale fraud, but police have no idea where he is. A death certificate filed last year stated that he died of a heart attack while in Guadalajara, Mexico, but investigators have since claimed that some of the documents contain inaccuracies, according to Bloomberg. Classic Ponzi trick CWM only operated from late 2013 until early 2015, but in that time captured hundreds of victims. Most were lured through word of mouth, with those who introduced people receiving a cut of the funds – a classic Ponzi trick. Before it all unravelled, prospective investors were told that they were putting money into 'risk-free' transactions on the foreign exchange (FX) markets, usually for a minimum investment of £100,000. In reality it was all a scam, underpinned by the illusion of wealth at the top. 'It was like the 1980s movie Brewster's Millions. [Constantinou] was spending money to create this impression of himself, creating a legend and cult of the individual,' says a source with close knowledge of the former City boss. They likened the atmosphere in his office to the Hollywood film The Wolf Of Wall Street, which chronicled the rise and fall of real-life investment fraudster Jordan Belfort. 'Everyone who spoke to [Constantinou] came away with the view that he was a massive c---. He's an absolute t-----, but he had the chutzpah not to worry about the size of the lies he was telling.' His lies were so convincing that Ben became one of hundreds of people lured in. Many believed that Constantinou was able to personally guarantee the cash because of the supposed wealth inherited from his fashion tycoon father, who was murdered in a case that remains unsolved. Aristos Constantinou, who ran a string of shops in London, was shot dead by masked men on new year's day 1985 at his home on The Bishops Avenue in Hampstead, north London, known as Billionaire's Row. Major CWM sponsorship deals, such as with Chelsea Football Club, also helped give the company the patina of legitimacy. Everything seemed calm, organised and above board. The hospitality was flowing, with potential investors given front-row seats to major events. Constantinou was filmed showing the Princess Royal around the 2015 London Boat Show, which CWM sponsored, just months before its offices were raided. 'It was a clever scam, there's no doubt about it,' says Ben. 'Everything was designed to pull the wool over our eyes.' Staff were told that CWM's investment strategy was simply too 'long and boring' for them to understand. The word 'Ponzi' was also not to be used in the office, with one member of staff allegedly sacked for uttering it in the office kitchen. Red flags The atmosphere in the office was said to be intimidating and volatile, with workers belittled by Constantinou and alcohol featuring heavily. In 2016, he was jailed for a year for assaulting two women. A court heard how he pushed a woman up against the frosted glass of the office reception area and went on to grope and kiss her against her will. While on bail for the attack, he assaulted another woman during drinks after a business meeting, shoving a chunk of hot wasabi paste in her mouth. It was around the same time that CWM began to unravel. CWM's Square Mile office was raided by police in 2015 after a tip off and the business shut down. Ben turned out to be one of the lucky ones. Despite seeing returns of 5pc a month after initially putting his cash in, he started to grow suspicious of Constantinou's tale and pulled his money out just before. 'It was too much of a red flag generating that amount of money from the margins – if it was that good it would have been discovered by a hedge fund,' he recalls. Hundreds of others ended up losing their lifetime savings. A person close to some of the victims and their families says: 'There was a retired lorry driver who put all his money in and lost the lot, and a group of Gurkhas who put their retirement funds in and lost the whole shebang.' Constantinou first disappeared in June 2023 when he was found guilty of fraud by false representations, fraudulent trading and money laundering at Southwark Crown Court. He was convicted by a jury in his absence and sentenced to 14 years in jail. Prosecutors estimated that Constantinou made £97m from the scam and recovered a Range Rover, Porsche and CWM-branded motorcycle during their investigations. A confiscation order for £64m was handed down this month. Adrian Foster, of the Crown Prosecution Service, said: 'This was a callous scam targeting members of the public. Many people lost their hard-earned money because of Constantinou's greed and false promises in this fake investment scheme.' The fraudster, who uses the aliases Antonis Hadjicostis and Georgios Arnaoutakis, was arrested in Bulgaria in 2023 while trying to enter Turkey with false documents, but was later released. Aside from the death certificate in Mexico, the trail has gone cold. As the hunt for Britain's 'Wolf of Wall Street' continues, those whose lives have been affected by Constantinou's tricks continue to feel haunted by the experience. 'I've been the target of another scam since,' admits Ben. 'So now I do all my own investments – I will not take the advice of anybody from anywhere. There are too many scams out there.'
