Jason Palmer (2:57)

But still the terror came.

Mark Gali (2:59)

An apparent arson attack on a disused

Jason Palmer (3:01)

synagogue in East London in March. 4 Jewish volunteer ambulances were set on fire in Golders Green. Last October in the city of Manchester, two people were killed in a terrorist attack on a synagogue. The list goes on. Britain's Jews have endured serious bouts of antisemitism and violence over the centuries, reckoning that much longer stretches of quiet outweighed them. For some, this time may prove different.

Shira Aviona (3:28)

According to the most recent census of England and Wales, there are fewer than 300,000 people who describe themselves as Jewish. For context, Hindus in Britain are more than three times as numerous and the same census counted just under 4 million Muslims.

Jason Palmer (3:44)

Shira Aviona has been investigating antisemitism in Britain.

Shira Aviona (3:49)

Although the Jewish community is quite small, it experiences a disproportionate share of hate crimes. Especially in recent months, a series of attacks on either Jews themselves or Jewish institutions has left the community feeling quite afraid.

Jason Palmer (4:06)

And understandably so. I mean, let's look into why the those attacks are on the rise. What do we know about motivation?

Shira Aviona (4:13)

Several of the recent attacks have been claimed by a new group called Harakat Ashab Al Yamin Al Islamia. Not the Golder Screen attack, but several of the previous incidents, including at synagogues in Britain and indeed in Europe. And the group doesn't have any formal confirmed links to Iran, but its presence online has a lot of overlaps with what we know about the social media presence of Iran linked groups. This is not just an issue with Islamism. So one thing that Sir Mark Rowley of the Metropolitan Police has said recently is that one reason why antisemitism has been such a difficult issue to tackle is that hatred of Jews sits at the center of a kind of Venn diagram. Jews have been targeted in Britain by the far left, by the far right and indeed by Islamists. And hatred of Jews has been quite a mutable conspiracy theory that's been adopted by different groups. Britain's Chief Rabbi, Sir Ephra Fran Mirvas has said recently that it's not just that extremist groups have taken up anti Semitism, it's that the rest of society has normalized and failed to attack these ideas. And we know that in the years since the October 7th attacks in Israel in 2023 that there's been a rise in anti Semitic incidents. The monthly average has doubled since the period before the October 7 attacks. Incidents that we know are driven by Islamic extremism represent a relatively small share of that total. And that kind of supports what Mark Gali is saying about the multi pronged nature of this issue.

Jason Palmer (5:54)

And so how is the government trying to deal with this rise?

Shira Aviona (5:57)

So after the incident in Golder's green. The Prime Minister, Sir Keir Starmer, has said first that he will pledge more visible policing in heavily Jewish areas and in addition, an extra 25 million pounds in funding for security. There's been a visibly stepped up police presence in areas with a large Jewish population. But he's also pledged to fast track the sentencing of those who have committed anti Semitic hate crimes and to put forward to Parliament legislation that will allow the government to tackle state sponsored terrorism and organizations which have links to it.

Mark Gali (6:35)

In Britain, I brought together criminal justice

Dell Advertiser (6:38)

agencies because I feel very strongly that

Mark Gali (6:41)

we have to show that justice is swift, it's visible, it's effective to restore confidence.

Shira Aviona (6:47)

Frequent protests that are anti Israel and in fact anti the war in Gaza have made anti Semites bolder. Many British Jews themselves have said that the war in Gaza clashed with their Jewish values. But at the same time, the boundary between criticism of Israel and its actions and Jew hatred, they feel, has been blurred, especially through slogans such as globalize the Intifada.

Jason Palmer (7:14)

But when it comes to dealing with slogans, though, it gets really sticky. You get into illiberal territory, you get into impossibility territory in today's social media driven world.

Shira Aviona (7:24)

Indeed. And in fact, Britain's record policing speech as of late has been quite mixed. So for example, legislation such as the Online safety Act of 2023 or indeed the Prescription of Palestine Action, a protest group, not only have they overstretched the resources of the police, but they've also, as we've seen from the attack, failed to stop the issues that they were designed to target. Starmer has said that he both wants to possibly ban protests in some cases to think about ways to address not individual protests, but their cumulative effect while protecting freedom of speech as a kind of core British value.

Jason Palmer (8:06)

And what evidence is there that banning protests would succeed?

Shira Aviona (8:11)

I think the evidence is limited. Right now, we don't know exactly what the government's new steps might look like. After the Manchester attacks in October, the government has commissioned a review of public order legislation. At the same time, Ofcom, the regulator, is looking into how it might stop the spread of hatred online in a more effective way. But I think that history tells us that this is quite a difficult challenge and in fact that the law's ability to stop the spread of ideas is very flawed.

Jason Palmer (8:44)

Well, at the mention of looking to history, antisemitism goes pretty far back in history. What lessons might apply to trying to tackle this now?

Shira Aviona (8:52)

You know, today's British Jewish community dates back at least 370 years and it has seen repeated bouts, even just in the last century, of anti Semitism and indeed anti Semitic violence, and many attempts and debates over how best to deal with it. So, for example, in the 1960s, thinking not just about anti Semitism but about racism in general, Parliament introduced the offense of incitement to racial hatred and the idea of stirring up hatred that remains part of the law today. But I think what history shows us is that the reason why racism has risen and fallen has not really been because of those legal measures, but rather because of a concerted effort by what we might call civil society to vigorously say that these ideas are contrary to its values.

Jason Palmer (9:50)

But the social trend you describe about anti Semites feeling emboldened and so on is talking about a civil society that is headed in the other direction. How to turn the tide is the question here.

Shira Aviona (10:01)

The fact is that British Jews have enjoyed periods of stability, tolerance and peace in what now looks like a kind of golden age. So it is possible. But I think what many British Jews have said they worry is this time will be different. And I think if we look for example to the French Jewish community in the 2010s after a series of repeated violent attacks against French Jews and rising antisemitism in French society more generally, you did see ten tens of thousands of French Jews leave the country, some in fact to Britain, which they thought was a safer place. And I think recent events have left a lot of British Jews wondering, this is my country, is it going to remain safe for me? And it's given them some very difficult choices to think about.

Jason Palmer (10:52)

Shira, thanks very much for your time.

Shira Aviona (10:54)

Thank you very much, Jason.

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Shira Aviona (12:06)

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Mark Gali (12:32)

So it's not a very good time to be a luxury brand.

Rosie Blore (12:35)

Avantika Ciocotti is a global business writer at the Economist.

Mark Gali (12:39)

After a run up in sales during the COVID 19 pandemic, sales are fancy things. Things like handbags and expensive dresses have actually gone into decline the last couple of years.

Rosie Blore (12:53)

That doesn't seem too surprising to me. The world is a pretty terrifying place. We've got wars in Ukraine, the Middle East. Is that surprising?

Mark Gali (13:02)

I'm not sure. It's so much the geopolitics as much as the state of the economy. There's a lot of economic uncertainty, especially around tariffs. The Chinese consumer, which had propped up this market for decades, is not feeling so confident anymore. And in part it's the fault of the brands, particularly European brands. They saw the surge of spending during COVID when everyone was holed up at home, they were getting stimulus checks, they were spending them on nice things, they hiked prices really quickly and a lot of shoppers now just feel ripped off. They don't want to spend £2,000 on a handbag that cost £1,000, also a ridiculous amount just a few years ago.

Rosie Blore (13:39)

So who's up and who's down?

Mark Gali (13:42)

The surprising thing right now is that American brands are doing relatively well whilst you get lots and lots of disappointing earnings announcements from the likes of LVMH and Kering, the big behemoths of Europe. But when you look at American brands, so Ralph Lauren or Tapestry, which owns Coach, people buy handbags from Coach. They're doing surprisingly well right now.

Rosie Blore (14:04)

So what are the US brands doing right that the European ones are doing wrong?

Mark Gali (14:09)

So I interviewed the CEO of Ralph Lauren, I interviewed senior executives at Coach, and they'll say it's stuff that they're doing. But the truth is it's the state of the economy right now. When people are feeling hard up, they don't want to spend, as I say, £2,000 on a handbag. American brands are basically a little bit cheaper than European ones. Europeans are quite snobbish about them. They say there's no such thing as affordable luxury, that it's an oxymoron. But the truth is there is such thing. It feels sort of special and premium. Let's say to buy Ralph Lauren shirt rather than a Gap shirt. So it's to do with the state of the economy. It's also to do with the regional balance of the economic downturn. American consumers have continued spending at a time when consumers elsewhere haven't. There's another issue with foreign exchange. So a lot of travelers used to come to Europe, have a holiday, and as a souvenir, pick up something expensive, a splashy bag, a fancy dress. But the strength of the dollar has affected that as well. That sort of tourism spending, I have

Rosie Blore (15:12)

to admit, Avantika posh frocks and fancy handbags are not really my thing. Is there a right price for that kind of thing?

Mark Gali (15:19)

So at the moment, like I say, when people aren't feeling flush with cash, they say the sweet spot, let's say for a handbag, is $200 to $500. That is exactly where a brand like Coach sits. I mean, at least for handbags, I'm told that is the sweet spot right now.

Rosie Blore (15:34)

Okay, so they've got the pricing right, but is it just the state of the economy, or are American brands actually doing something different here?

Mark Gali (15:42)

For the last 10 years, American brands have been basically rolling out a playbook that makes perfect sense for retail. Let me just start with Ralph Lauren, because that's one example that's doing very well. So, one, they have taken control of distribution. If you rewind, 10 years ago, Ralph Lauren was basically sort of a store where you get lots and lots of discounting. You'd have outlets with stacks and stacks of their products. As you might imagine, that doesn't feel very special or premium. They just took control of their distribution, which means they're selling less through department stores, but more directly, which means they control discounting. They control how the product is presented. Secondly, they've just revamped their stores. The main Ralph Lauren store in any city is incredibly nice. You know, it often has a fancy coffee shop. It looks a bit like a film set, but the outlets did not look nice. And they have basically made it a nicer shopping experience. At the same time, they have upped their marketing spend a huge amount. So you get lots of influencers wearing Ralph Lauren products.

Shira Aviona (16:39)

Now, I really, really love a polo hat. It's just a polo hat, not any other brand. It's got to be a polo hat. A simple hat can really finalize a look. And polo gets it right every time. So these are two new hats I got in Ralph Lauren. They're not cheap, but they're great investments.

Mark Gali (16:56)

It's that simple. 1 2, 3, control distribution so you control pricing. Spend on making your stores feel nice, spend on marketing, and presumably you have a fair product, your sales will go up. It's sort of a formula in retail and the American brands followed it. You know, when it comes to this idea of affordable luxury, I think Europeans are too quick to dismiss this as beneath them. The truth is it's really hard to do. It's really hard to be seen as a premium brand that can charge more for your products while still appealing to the masses. I think, again, take Ralph Lauren. They've done this in a really clever way because they have segmented their client. They have Polo, which is their more affordable brand with polo shirts, say, and the little caps with ponies on it that everyone's wearing right now. But then they have a really, really expensive range and they have a catwalk and it's that really, really expensive premium range that gives them this air of exclusivity. And dividing up their sub brands that way is a really clever way to maintain your image of luxury. And it's something European houses really haven't managed.

Rosie Blore (18:01)

Dare I ask a very European question? What about style?

Mark Gali (18:05)

So right now, American brands are benefiting from two big trends. One is this trend for preppy fashion. Gen Z, love what we would see as incredibly east coast American preppy looks. Things I haven't seen anyone wearing probably since school. And Secondly, a massive 90s throwback. So, you know, oversized sweatshirts and things, those are exactly the things that European brands don't do as well as American brands. So yeah, there's also sort of a headwind for European brands that they just aren't really tapping current fashions the same way.

Rosie Blore (18:37)

So you and all your friends are heading to America for your next luxury purchase then?

Mark Gali (18:42)

Sadly, I'm not Gen Z, so too old.

Rosie Blore (18:46)

Thank you very much.

Mark Gali (18:47)

Thanks for having me.

John Fazman (19:04)

The parade that greeted Argentina's football team after it returned home From Qatar in 2022 with the World cup trophy in hand was a sight to behold.

Jason Palmer (19:14)

John Fazman is our senior culture correspondent and is counting down to this summer's FIFA World cup by introducing us to 10 of the teams taking part.

John Fazman (19:24)

Around 4 million people throng the streets of Buenos Aires and the celebration pretty quickly crossed the line from enthusiasm into utter pandemonium. The team was on an open topped bus. Fans tried to jump on. The bus was supposed to take them to the Obelisco monument in central Buenos Aires, but the route was impassable and the players had to be evacuated by helicopter. The team beat France on penalties. It was their first World cup victory since 1986, and they're hungry. To repeat back to back titles isn't unheard of. Italy and Brazil have done it before, but this year, one big question Will Lionel Messi, one of the greatest football players of all time, be on the pitch?

Jason Palmer (20:12)

And Lionel Messi writes another chapter in a fabulous story.

John Fazman (20:17)

Messi has won the Ballon d', or, given to the player demonstration, the world's best in the past year, a record eight times he scored or assisted on 1300 goals, also a world record. You can see why he's often compared to another Argentine great, Diego Maradona. The two players have a similar style. They're both short, quick, agile and masters of ball control, which lets them anchor squads that play a fast, technically skillful style of football. But Messi is 38 years old, and it's unclear whether he'll play in this year's World Cup. He had previously said 2022 would be his last one, but he left the door open. Either way, Argentina enters the tournament with high hopes. They won the Copa America convincingly in 2024. As with football, so with politics. Argentina's president, Javier Milei, ran for office against the entire Argentine political establishment. During campaign appearances, he wielded a chainsaw on stage, symbolizing his desire to cut ministries, regulations and red tape. Voters loved it. He trounced the establishment candidate, and earlier this year he passed almost his entire legislative agenda, which focused on cutting costs and liberalizing Argentina's labor laws. But his polling numbers have since collapsed due largely to a struggling economy. However, Wise is liberalizing reforms in the long run in the short, they've caused pain. He has made workers easier to fire and exposed domestic firms to foreign competition. Hundreds of thousands of jobs in manufacturing, retail and construction have been lost, and inflation has risen for 10 straight months. But even if he manages a turnaround, his supporters probably won't be singing in the streets. In Argentina, celebrations that enthusiastic are reserved for football.

Jason Palmer (22:45)

That's all for this episode of the Intelligence. We'll see you back here tomorrow. From globalization to innovation, sustainability to market volatility, there's always more than one side to a story. Explore different perspectives on today's most important business and economic issues with the Flipside podcast from Barclays Investment Bank. Hear two research analysts in a lively debate and get insights from every angle to further inform your view. Listen to the flip side on your favorite platform.