Business
Baroness Mone-linked PPE firm misses deadline to pay £122m

A company linked to Baroness Michelle Mone has failed to meet a deadline to repay £122m for breaching a Covid-19 personal protective equipment (PPE) contract.
The Department of Health and Social Care (DHSC) won a legal case earlier this month against PPE Medpro, a consortium led by Lady Mone’s husband Doug Barrowman, over claims the PPE did not comply with relevant healthcare standards.
A High Court judge ruled some of the company’s gowns they supplied were not “sterile”.
Health and Social Care Secretary Wes Streeting said the government would “pursue PPE Medpro with everything we’ve got to get these funds back” after the company failed to pay the damages cost by 16:00 BST on Wednesday.
PPE Medpro entered administration on 30 September, the day before the court judgement.
Streeting said: “At a time of national crisis, PPE Medpro sold the previous government substandard kit and pocketed taxpayers’ hard-earned cash.
“PPE Medpro has failed to meet the deadline to pay – they still owe us over £145 million, with interest now accruing daily.”
The firm was ordered to pay interest of £23.6m, which means the total sum owed is £145.6m.
According to the DHSC, this sum will accrue interest at 8% per year from Thursday until it is fully paid.
Forvis Mazars, one of the joint administrators appointed to take control of the business and recover money owed to creditors, declined to comment.
The National Crime Agency (NCA) previously said it was investigating the PPE Medpro case.
Mr Barrowman’s spokesman had said £83m of the government deal was paid to other companies but it is unclear whether they are being looked at by the NCA.
PPE Medpro was awarded a government contract in 2020 to supply PPE after being recommended by Baroness Mone.
However, after ordering 25 million sterile gowns from PPE Medpro, the government later launched legal action in 2022 through the High Court, claiming the gowns did not comply with the agreed contract.
PPE Medpro argued it had complied with the contract and that the gowns were sterile.
According to the company’s most recent accounts for the period ending 31 July, the business had £666,025 in net assets.
The document filed to Companies House also mentioned how the firm had used about £4.2m in reserves to fight the legal dispute.
Since the court judgement, Baroness Mone has faced cross-party calls for her to be stripped of her peerage.
However, peerages can only be removed by an act of Parliament.
Business
Galeries Lafayette sets foot in India with Mumbai store – The Times of India

MUMBAI: Parisian luxury department store Galeries Lafayette is tapping India for growth, a market it said lacks luxury retail avenues for high spending consumers who shop for a spate of labels across pricey fashion houses and shopping stores abroad.The retailer’s flagship store in Paris’s Boulevard Haussmann is the second most-visited tourist spot in the French capital after Eiffel Tower and attracts 35 million visitors a year, half of which are foreigners.Galeries Lafayette, which is launching in India through partnership with the Aditya Birla Group, will open its first store in Mumbai early next month, after eight years of studying the local market and consumer nuances.“India is a key and strategic country. It also has great opportunities in terms of growth. Indian consumers are already very interested in buying luxury brands and products. They consume them not only in India but also abroad — Dubai, Singapore, the UK, Paris and especially in Galeries Lafayette. Clearly, there is a lack of offer inside India…there are no (luxury) department stores here,” Galeries Lafayette CEO Arthur Lemoine, told TOI in an interview here.The India foray, announced three years back, comes at a time when US tariff turmoil has clouded global growth prospects, nudging companies to review strategies.Of the 67 Galeries Lafayette stores globally, 58 are in home market France with the rest of the nine outlets spread across Asia including China, Indonesia and Dubai.The luxury brand has stitched a 20-year licensing agreement with the Aditya Birla Group. “Beyond the year which are written in the contract, we are here to build the future together,” said Lemoine. The four-storey department store in south Mumbai will house a broad range of global products — from bags to beauty, apparel and accessories. From a Rs 25-lakh bag to a Rs 3,000 lipstick, the idea is to cater to the luxury consumers but also tapping into the premium cohort who are willing to upgrade to high-end brands.“Luxury in our country today stands at the threshold of transformation,” said Aditya Birla Group chairman Kumar Mangalam Birla, adding that “In the span of less than a decade, the market is set to grow over four-fold from $20 billion to almost $90 billion by 2030.”The brand play will be omni-channel to give access to a wider set of affluent consumers, many of whom are sitting in non-metros. “In India, we have pockets of consumption all across the country,” said R Sathyajit, CEO, international brands at Aditya Birla Fashion & Retail adding that the company’s own website will be launched in a couple of months.Delhi will house the next Galeries Lafayette store. Currently, the assortment at the store is global with a tilt towards French and Parisian brands. “Over a period of time, we would also like to be a platform for emerging designers in India as well. The beauty of a department store is that it evolves with time, reflecting changing generations, tastes,” Sathyajit said.
Business
Netherland’s renewables drive putting pressure on its power grid

John LaurensonBusiness reporter, Rotterdam

In a Dutch government TV campaign called “Flip the Switch” an actress warns viewers about their electricity usage.
“When we all use electricity at the same time, our power grid gets overloaded,” she says. “This can cause malfunctions. So, use as little electricity as possible between four and nine.”
It is the sign that, in one of the most-advanced economies in the world, something has gone wrong with the country’s power supply.
The Netherlands has been an enthusiastic adopter of electric cars. It has the highest number of charging points per capita in Europe.
As for electricity production, the Netherlands has replaced gas from its large North Sea reserves with wind and solar.
So much so that it leads the way in Europe for the number of solar panels per person. In fact, more than one third of Dutch homes have solar panels fitted.
The country is also aiming for offshore wind farms to be its biggest source of energy by 2030.
This is all good in environmental terms, but it’s putting the Dutch national electricity grid under enormous stress, and in recent years there have been a number of power cuts.
The problem is “grid congestion”, says Kees-Jan Rameau, chief executive of Dutch energy producer and supplier Eneco, 70% of whose electricity generation is now solar and wind.
“Grid congestion is like a traffic jam on the power grid. It’s caused by either too much power demand in a certain area, or too much power supply put onto the grid, more than the grid can handle.”
He explains that the problem is that the grid “was designed in the days when we had just a few very large, mainly gas-fired power plants”.
“So we built a grid with very big power lines close to those power plants, and increasingly smaller power lines as you got more towards the households.
“Nowadays we’re switching to renewables, and that means there’s a lot of power being injected into the grid in the outskirts of the network where there are only relatively small power lines.”
And these small power lines are struggling to cope with all the electricity coming in from wind turbines and solar panels scattered around the country.

Damien Ernst, professor of electrical engineering at Belgium’s Liege University, is one of Europe’s leading experts on electricity grids. He says it is an expensive problem for the Netherlands to solve.
“They have a grid crisis because they haven’t invested enough in their distribution networks, in their transmission networks, so they are facing bottlenecks everywhere, and it will take years and billions of dollars to solve this.”
Prof Ernst adds that it is a Europe-wide issue. “We have an enormous amount of solar panels being installed, and they are installed at a rate that is much, much too high for the grid to be able to accommodate.”
At Eneco’s headquarters in Rotterdam, Mr Kees-Jan Rameau highlights a large control panel that the company calls its “virtual power plant” and “the brain of our operations”. It is used to help balance the grid, avoiding blackouts.
When electricity generation is too high across the Netherlands, it enables Eneco to turn wind turbines out of the wind and turn off solar panels.
As for when demand for electricity is too high, it lowers the power to customers who have accepted to allow Eneco to stop or reduce their electricity supply when the network is under strain in exchange for lower prices.
But for homes and companies who want to scale-up their use of electricity with a new or larger grid connection, that, increasingly, is just not possible.
“Often consumers want to install a heat pump, or charge their electric vehicle at home, but that requires a much bigger power connection, and increasingly they just cannot get it,” says Mr Kees-Jan Rameau.
He adds that it is worse for businesses. “Often they want to expand their operations, and they just cannot get extra capacity from the grid operators.
And it has got to the point where even new housing construction in the Netherlands is becoming increasingly difficult, because there’s just no capacity to connect those new neighbourhoods to the grid.”
Those people, and companies, end up on waiting lists for a number of years. At the same time there are also waiting lists for those who want to supply the grid with power, such as a new home fitted with solar panels on its roof.

Tennet, the government-owned agency that runs the Netherlands’ national grid, says that 8,000 companies are currently waiting to be able to feed in electricity, while 12,000 others are waiting for permission to use more power.
Some sectors of the Dutch economy are warning that it is hampering their growth. “Grid congestion is putting the future of the Dutch chemical industry at risk… while in other countries it will be easier to invest,” says the President of the Dutch Chemical Association Nienke Homan.
So, was all this avoidable? “In hindsight I think almost every problem is avoidable,” says Mr Kees-Jan Rameau.
He adds that following the 2015 Paris Agreement on trying to tackle climate change, “we were very much focussing on increasing the renewable power generation side. But we kind of underestimated the impact it would have on the power grid.”
Tennet is now planning to spend €200bn ($235bn; £174bn) on reinforcing the grid, including laying some 100,000km (62,000 miles) of new cables between now and 2050.
That’s a huge amount of money, but there is also a big cost to not spending it. Grid congestion is costing the Dutch economy up to €35bn a year, according to a 2024 report from management consultancy group Boston Consulting Group.
Eugene Beijings, who is in charge of grid congestion with Tennet, says that patience is sadly required. “To strengthen and reinforce the grid, we need to double, triple, sometimes increase tenfold the capacity of the existing grid.
“And it’s taking on average about 10 years to do a project like that before it goes live, of which the first eight are legislation and getting the rights to put cables in the ground with all property owners. And only the last two years are the construction period.
“And meanwhile the energy transition is going that fast that we cannot cope with it, with the existing grid. So every additional request [to connect] is adding to the waiting list.”

At the Dutch energy ministry, which is actually called the Ministry for Climate Policy and Green Growth, the Minister Sophie Hermans wasn’t available for an interview. But her office gave a statement:
“In hindsight, the speed at which our electricity consumption has grown might have been collectively underestimated in the past by all parties involved. It is also hard to predict where the growth will occur first, as this results from individual companies/sectors and households.”
As for solutions, the ministry says it has a “National Grid Congestion Action Plan” focussed on adjusting legislation so grid expansion permits can be granted more quickly.
It is encouraging people to make better use of the existing grid with, for example, its Flip the Switch campaign.
And the financial incentive for people who feed their surplus solar electricity into the grid is being reduced to almost nothing. In some cases, people will even have to pay to feed solar power into the grid.
Business
Big banks like JPMorgan Chase and Goldman Sachs are already using AI to hire fewer people

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., at the Institute of International Finance (IIF) during the annual meetings of the IMF and World Bank in Washington, DC, US, on Thursday, Oct. 24, 2024.
Kent Nishimura | Bloomberg | Getty Images
The era of artificial intelligence on Wall Street, and its impact on workers, has begun.
Big banks including JPMorgan Chase and Goldman Sachs are unveiling plans to reimagine their businesses around AI, technology that allows for the mass production of knowledge work.
That means that even during a blockbuster year for Wall Street as trading and investment banking spins off billions of dollars in excess revenue — not typically a time the industry would be keeping a tight lid on headcount — the companies are hiring fewer people.
JPMorgan said Tuesday in its third-quarter earnings report that while profit jumped 12% from a year earlier to $14.4 billion, headcount rose by just 1%.
The bank’s managers have been told to avoid hiring people as JPMorgan deploys AI across its businesses, CFO Jeremy Barnum told analysts.
JPMorgan is the world’s biggest bank by market cap and a juggernaut across Main Street and Wall Street finance. Last month, CNBC was first to report about JPMorgan’s plans to inject AI into every client and employee experience and every behind-the-scenes process at the bank.
The bank has “a very strong bias against having the reflexive response to any given need to be to hire more people,” Barnum said Tuesday. The bank had 318,153 employees as of September.
JPMorgan CEO Jamie Dimon told Bloomberg this month that AI will eliminate some jobs, but that the company will retrain those impacted and that its overall headcount could grow.
‘Constrain headcount’
At rival investment bank Goldman Sachs, CEO David Solomon on Tuesday issued his own vision statement around how the company would reorganize itself around AI. Goldman is coming off a quarter where profit surged 37% to $4.1 billion.
“To fully benefit from the promise of AI, we need greater speed and agility in all facets of our operations,” Solomon told employees in a memo this week.
“This doesn’t just mean re-tooling our platforms,” he said. “It means taking a front-to-back view of how we organize our people, make decisions, and think about productivity and efficiency.”
The upshot for his workers: Goldman would “constrain headcount growth” and lay off a limited number of employees this year, Solomon said.
Goldman’s AI project will take years to implement and will be measured against goals including improving client experiences, higher profitability and productivity, and enriching employee experiences, according to the memo.
Even with these plans, which is first looking at reengineering processes like client onboarding and sales, Goldman’s overall headcount is rising this year, according to bank spokeswoman Jennifer Zuccarelli.
Tech inspired?
The comments around AI from the largest U.S. banks mirror those from tech giants including Amazon and Microsoft, whose leaders have told their workforces to brace for AI-related disruptions, including hiring freezes and layoffs.
Companies across sectors have become more blunt this year about the possible impacts of AI on employees as the technology’s underlying models becomes more capable and as investors reward businesses seen as ahead on AI.
In banking, the dominant thinking is that workers in operational roles, sometimes referred to as the back and middle office, are generally most exposed to job disruption from AI.
For instance, in May a JPMorgan executive told investors that operations and support staff would fall by at least 10% over the next five years, even while business volumes grew, thanks to AI.
At Goldman Sachs, Solomon seemed to warn the firm’s 48,300 employees that the next few years might be uncomfortable for some.
“We don’t take these decisions lightly, but this process is part of the long-term dynamism our shareholders, clients, and people expect of Goldman Sachs,” he said in the memo. “The firm has always been successful by not just adapting to change, but anticipating and embracing it.”
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