A hatred normalised: antisemitism in Britain

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1:53Shera Avi-Yonah:The Economist.

2:00Shera Avi-Yonah:Hello and welcome to The Intelligence from The Economist. I'm Jason Palmer. And I'm Rosie Blore.

2:09Shera Avi-Yonah:Today on the show, the surprising boom among American luxury brands and our series on World Cup contenders continues with Argentina.

2:24Shera Avi-Yonah:First up, though.

2:33Shera Avi-Yonah:What might have once been considered rare and isolated hate crimes in Britain have become a grim pattern. Two people have been stabbed in a Jewish neighborhood. It follows a series of anti-Semitic attacks in the city. Last week's attack in Golders Green, a neighborhood of London with a long-established Jewish community, put the whole country on alert. The UK has raised its terrorism threat level to severe. But still the terror came. An apparent arson attack on a disused synagogue in East London. In March, four 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.

3:14Shera Avi-Yonah:The list goes on. Britain's Jews have endured serious bouts of anti-Semitism and violence over the centuries, reckoning that much longer stretches of quiet outweighed them. For some, this time may prove different. 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. Shira Avigona has been investigating anti-Semitism in Britain. Although the Jewish community is quite small, it experiences a disproportionate share of hate crimes.

3:54Especially in recent months, a series of attacks on either Jews themselves or Jewish institutions has left the community feeling quite afraid.

4:06Shera Avi-Yonah:And understandably so. I mean, let's look into why those attacks are on the rise. What do we know about motivation? Several of the recent attacks have been claimed by a new group called Harakat Ashab al-Yamin al-Islamiyah. Not the Golders Green 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 anti-semitism 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 many different groups.

5:11Britain's chief rabbi, Sir Efraim Mirvis, has said recently that it's not just that extremist groups have taken up antisemitism, 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 7th 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 Ghaly is saying about the multi-pronged nature of this issue.

5:54Shera Avi-Yonah:And so how is the government trying to deal with this rise? So after the incident in Golders 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 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 in Britain.

6:36I brought together criminal justice agencies because I feel very strongly that we have to show that justice is swift, it's visible, it's effective to restore confidence. 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 globalized entifada.

7:14Shera Avi-Yonah: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. 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.

8:06Shera Avi-Yonah:And what evidence is there that banning protests would succeed? 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. Well, at the mention of looking to history, antisemitism goes pretty far back in history.

8:48Shera Avi-Yonah:What lessons might apply to trying to tackle this now? 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 antisemitism and indeed antisemitic 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.

9:50Shera Avi-Yonah:But the social trend you describe about anti-Semites feeling emboldened on is talking about a civil society that is headed in the other direction. How to turn the tide is the question here. 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 anti-Semitism in French society more generally, you did see tens of thousands of French Jews leave the country, some in fact to Britain, which they thought was a safer place.

10:38And 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.

10:52Shera Avi-Yonah:Shira, thanks very much for your time. Thank you very much, Jason.

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11:51So it's not a very good time to be a luxury brand. Avantika Chilcotty is a global business writer at The Economist. After a run-up in sales during the COVID-19 pandemic, sales of fancy things, things like handbags and expensive dresses, have actually gone into decline the last couple of years.

12:13That 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? I'm not sure it's so much the geopolitics as much 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.

12:47They 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. So who's up and who's down? 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 Caring, 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. So what are the US brands doing right that the European ones are doing wrong?

13:29So 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 a 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. You know, 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 a Ralph Lauren shirt rather than a Gap shirt.

14:04So 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 travellers used to come to Europe, have a holiday, and as a souvenir, pick up something expensive, a splashy bag, you know, a fancy dress. But, you know, the strength of the dollar has affected that as well, that sort of tourism spending. I have to admit, Avantika, posh frocks and fancy handbags are not really my thing. Is there a right price for that kind of thing?

14:39So 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 a sweet spot right now. 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? 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.

15:12So 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.

15:42You 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 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 Ralph Lauren. They're not cheap. but they're great investments. It's that simple one, two, three.

16:18Control 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 have 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.

16:54They 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. Dare I ask a very European question? What about style? So right now, American brands are benefiting from two big trends. One is this trend for preppy fashion.

17:32Gen 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. So you and all your friends are heading to America for your next luxury purchase then? Sadly, I'm not Gen Z, so too old. Avantika, thank you very much. Thanks for having me.

18:24The 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.

18:34Shera Avi-Yonah:John Fassman 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. Around 4 million people thronged 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.

19:14And they're hungry to repeat.

19:19Back-to-back titles isn't unheard of. Italy and Brazil have done it before. But this year, one big question looms. Will Lionel Messi, one of the greatest football players of all time, be on the pitch? And Lionel Messi writes another chapter in a fabulous story. Messi has won the Ballon d 'Or, given to the player deemed the world's best in the past year, a record eight times. He's scored or assisted on 1 ,300 goals, also a world record.

19:53You 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.

20:31As with football, so with politics. Argentina's president, Javier Malay, 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.

21:14In the short, they've caused pain.

21:22He 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.