Good morning. Today we're talking about the cost of hosting the Olympic Games, Ryanair’s tough summer and Revolut’s breakthrough.

Big Stories

Let the Games begin

The Paris 2024 Olympics, aiming to be the most cost-effective Games in history, carries a projected price tag of approximately $9.8bn. While this figure represents a significant reduction compared to previous Olympics, the financial burden remains substantial. Historically, the Olympics have been associated with financial strain for host cities. Montreal's 1976 Games resulted in decades of debt, and Athens' 2004 event contributed to the country's debt crisis. Even Beijing's 2008 and Sochi's 2014 Games, despite massive investments, were marred by corruption scandals. Paris aims to buck this trend by maximising the use of existing infrastructure and relying heavily on private funding. Yet, the true economic impact of the Games will only be fully realised in the years following the event. The International Olympic Committee has introduced reforms to encourage cost-conscious bidding, but the financial risks for host cities remain significant. As the world grapples with economic challenges, the question of whether the benefits of hosting the Olympics outweigh the costs continues to be a subject of intense debate.

Ryanair’s turbulent times

Budget airline Ryanair has lowered its expectations for summer ticket prices, warning of a "materially lower" fare outlook compared to last year. The announcement comes as the airline reported a 46% drop in profits for the first quarter, blaming a combination of factors including increased fuel costs, a "frugal" consumer environment, and the timing of Easter holidays. Despite carrying 55.5m passengers, a 10% increase year-on-year, Ryanair's average fare fell by 15%. Ryanair said that its performance over the rest of the summer is "totally dependent" on more last-minute bookings and those in August and September in particular. Customers are typically waiting longer than usual to book summer holidays, which is thought to be partly a result of the ongoing effects of the cost-of-living crisis. This news has sent shockwaves through the industry, with shares in Ryanair and its competitors tumbling.

Revolut breakthrough

London-based fintech giant Revolut has finally secured a UK banking licence, marking the end of a three-year regulatory journey. The authorization, while initially restricted, paves the way for Revolut to offer a wider range of financial products, including loans, overdrafts, and savings accounts, to its nine million UK customers. The licence comes amidst rumours of a potential $40bn valuation for the company, making it worth more than the likes of Standard Chartered and NatWest. This milestone is significant as it allows Revolut to compete directly with established high-street banks and further solidify its position as a leading financial technology provider.

Elsewhere...

Home retailer: John Lewis has the green light to build homes in a ground-breaking first for the department store chain.

Heirs at war: Reports claim the Murdoch family is locked in a legal battle over the future of 93-year-old patriarch Rupert’s empire, in scenes likened to those in TV drama Succession.

Luxury pain: The value of some of the world’s best-known luxury companies is plunging as Chinese consumers pull back on spending.

BBC woes: Around 500,000 households cancelled their BBC TV licence fee last year with the number of payers falling to 23.9m.

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Number of the Day

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How much the cybersecurity firm CrowdStrike gave in Uber Eats vouchers to thank workers who tackled the recent global IT outage.

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