NEW YORK WHOLESALE

THE euro crisis could trigger a bonanza for savers – but with a sting in the tail for borrowers, Britain’s biggest building society has claimed.

The Nationwide added to warnings that the mounting turmoil could force up wholesale funding costs.

If that happens, banks would try getting more money from retail deposits – which would push up savings rates.

Chris Rhodes, the mutual’s head of products and marketing, explained: “So far it has had no impact on our wholesale funding costs or our cost of retail savings, but it clearly could.

“If the cost of funds rose because of what is going on in the eurozone, savers would get better rates. Clearly, new borrowers will pay the price for that.”

Nationwide gets 75% of its funding from retail deposits and the rest from wholesale markets.

The mutual has 10.5million savers and around three million borrowers. But with £8,000 in a typical savings account and an average mortgage balance of £100,000, a rate rise would hit borrowers hard.

The claim came as Nationwide revealed profits tumbled 36% to £203million after it was hit with a number of costs, including £75m for a bank levy and its contribution to the Financial Services Compensation Scheme. On an ­underlying basis, profits were up 10% £304m. Nationwide trounced rivals on mortgage lending which surged 44% to £18.4billion, while the market was up just 5%. Lending to first-time buyers rose 9% to 24,000.

About 700,000 mortgage borrowers who are on its base mortgage rate – which is pegged at 2% above the Bank of England’s base rate – saved £750m last year, or £1,000 each, the mutual said.

But put another way, that’s £750m extra it could have earned if it was able to charge those borrowers the market average rate. Rhodes admitted: “That commitment is the key reason why Nationwide’s margin is a lot lower.”

The mutual also attracted a stampede of new savers, with deposits rocketing 67% to £1bn. And it jacked-up its payment protection insurance ­compensation bill from just £16m to £121m.

And there are hundreds of them, in convoluted mazes: cave-like spaces in which men hammer, weld, sculpt wood, sew and, of course, cajole and seduce passers-by. For the first day or so, getting lost in the maze, taking in shelves stacked with intricately inlaid cedar boxes, glimmering silk babouche slippers, bottles of spices, tribal jewellery, and carefully wrought iron lamps, is a treat. But then confusion sets in. How to tell real from fake? Just where does one find the best?

For the past decade or so, most serious shoppers have relied on a band of fashion-conscious expats – Laetitia Trouillet, Elena Masera, Maryam Montague – to guide them through the souks and source delectable, not-too-ethnic wares. Trouillet is the best-known, the woman called on to take visitors such as Gwyneth Paltrow and Sarah Jessica Parker round the most elegant stores, who knows where to get soft-as-butter shoes in the style of Tod's or Prada (Atika); cool cowboy boots patched with Berber weaving (Michèle Baconnier); understated modern kaftans in rough white and cream silks (Moor); and seriously hip bags (Trouillet's own boutique).

But since the official local guides recently took exception to foreigners muscling in on their well-paid patch, these expat shopping experts have been legally restricted to running just their own shops or riads and dispensing advice on a non-official basis. Which is why the publication of a new book by American writer Susan Simon, Shopping Marrakech, is a godsend to visitors wanting advice from non-partisan sources rather than the official guides, many of whom are paid by touristy shops to bring in custom.

The little book is split into seven walks, each listing a range of shops to stop off at, a recommended lunch stop, and clear directions. It's utterly brilliant. For those who have just one day, I would recommend Walk No 3, into the heart of the old souk. For fashionistas who want high-class fashion, No 7 is best.

Having spent four days walking the souks in search of the city's gems, taking in the advice of guides, fashion editors, local blogs and clued-up residents – as well as frequently looking at the book – I now have an idea of the very best shops [see top right]. Most will ship goods, but getting something sent home often doubles the price.

A smarter idea is simply to take a large empty suitcase.

Where to stay

At a small, owner-run riad in the heart of the city. One of the most charming is Riad El Cadi (riadelcadi.com), previously home to the German ambassador, now managed by his daughter, Julia Bartels. Made up of six former houses, three of which can be rented individually, it has shady courtyards, a plunge pool, and among the friendliest staff in the city. Double rooms cost from £120 to £260. For a riad with a private hammam, try Dar Les Cigognes (lescigognes.com) or the smaller Riad Kaiss (riadkaiss.com). Book through Cazenove & Loyd: three nights' b&b at Riad El Cadi costs from £675 per person, including flights from London and airport transfers (020 7484 2332, cazloyd.com). Gatwick/Marrakech flights cost from £125 return (easyjet.com).

Where to eat

At Le Marocain restaurant in La Mamounia hotel (mamounia.com), overlooking the 17-acre, 200-year-old gardens, serenaded by traditional instrumentalists. For lunch in the souk, head to the chic, casual Terrasse des Epices (terrassedesepices.com), where guests are cooled with fine mists from rooftop sprays.

And don't forget...

To bargain. Stallholders start high and will negotiate. Decide what you're prepared to pay – and stick to it. Get advice from Laetitia Trouillet (lalla.fr) and find your way around with the indispensable Shopping Marrakech by Susan Simon (£12.99, The Little Bookroom).

Ten top spots

1. Mustapha Blaoui
A warehouse packed with treasures, from lanterns and shawls to leather-clad cabinets.

2. L'Art du bain
Home of beautiful handmade organic soaps scented with local flowers and spices.

3. Herboriste Avicenne
Century-old herbalist with shelves lined with oils, fragrances, herbs and spices.

4. Amira
Chic, minimalist store with candles of every shape and colour, from wax bowls to sets of tiny wax-filled coloured tea glasses.

5. Akbar Delights
For delectably embroidered, beaded or finely tucked clothing, notebooks and bags.

6. Karim Tassi
Fashionable local boutique near Katabatic, for jewel-coloured jersey and cotton separates, and Florence Teillet, for gossamer-thin cotton and silk shawls and throws.

7. Aya's Where
Sarah Jessica Parker buys kaftans in linen, cotton and silk.

8. L'Art du Bois
Tiny stall specialising in wooden implements hand-made on site: orange squeezers, spoons, moulds, and ornate kebab sticks.

9. Jardin
Majorelle Boutique by Yves St Laurent's garden and lily pond, with babouche slippers crafted from crisp blue-and-white Liberty print.

10. Atelier Moro
Quiet space selling covetable gifts, from striped silver coffee spoons to intricate bracelets.

"People are scared to consult an image consultant," Perico explains, smiling. "They think it will be expensive or embarrassing. Yes, you need money – and beautiful clothes do cost more – but expensive fabric performs very differently from cheap fabric, and the outlay brings savings in the long run. Improving your look is an incredible help in life – and everyone can do it, whatever their budget." By this time, with my coffee growing cold, I am almost begging her. Tell me the rules, Margherita! How can we all look like Italians?

"So. The secret of Italian style is simple yet complex: fit, colour and fabric," she begins. "Every client, the first thing I tell them is 'Please, keep it easy, keep it clear, keep it simple'. The first rule is to know your body. Dressing well means time in front of a full-length mirror. Stand, turn, sit and lie like a Velasquez painting in front of a mirror. Analyse and accept yourself, good points and the bad. Otherwise, you will be dressing something you don't know. It will be like having a round table and buying a square cloth. It could be nice, but it also could not."

The second rule is to restrict the colours you wear. "Italians wear just two at a time," Perico advises. "They buy only four: black, blue, brown and white. In winter, black is king; in summer, white is black."

The third and most important rule is to pay close attention to fit. "Clothes should skim the body," Perico says. "Too tight, and it is as if you are exploding. Too big, especially if you are curvy, and people worry what is underneath."

So there you are. As we stand up – in front of a full-length mirror in the café – she gently grasps the back of my jacket. "You see?" she says. As I look at my new, waisted silhouette, I feel as if my eyes have only just opened. It's my favourite jacket, but how could I have been so blind? It doesn't fit!

Take me shopping, Margherita, I implore. The surrounding streets have to be the best trying-on territory in the world: Bottega Veneta, Chanel, Armani, Prada, Gucci, the DMagazine outlet at via Montenapoleone 26… She laughs. "Women go too crazy for the shopping. Start with accessories; be the diva with those. Study more before buying more. Women should be like men, and know that the most beautiful thing can be to go not to a shop but to a very good tailor. Then you must wait, but you get perfection." On behalf of the nation: thank you, Margherita.

When to go

Avoid Sunday/Monday: shops in Milan close from 7.30pm on Saturday to 3.30pm on Monday.

Where to start

Margherita Perico (00 39 348 493 8665, www.margheritaperico.com) charges from £580 for an image consultation, including photographs.

Where to shop

For costume jewellery at brilliant prices (£60 for a necklace Versace would sell for £300), try the tiny treasure trove Anna Tarabelloni & Co (00 39 02 760 21 169) at via Gesù 15. And for the ultimate sartorial treat, visit master tailor Gianni Campagna (00 39 02 77 88 11, www.campagna.it) at via Palestro 24, where Karl Lagerfeld and Valentino go for their own hand-made suits.

Where to stay

In the centre, close to the four most famous fashion streets (della Spiga, Montenapoleone, Sant'Andrea and Manzoni), hotel options include The Townhouse, Four Seasons, The Gray, Park Hyatt and Bulgari. Ten minutes away, the grandest of all is the Principe di Savoia (00 39 02 62301, www.hotelprincipedisavoia.com), where heads of state and fashion editors stay, with marble bathrooms, one of Italy's great bars, and a complimentary limo shuttle to the centre. Rack rates start at £630, so book through a tour operator. Abercrombie & Kent (0845 618 2213, www.abercrombiekent.co.uk) is offering two nights from £530 per person, b&b, with Alitalia flights and private transfers.

Where to eat

Busy Pasticceria Cova at via Montenapoleone 8 and chic Caffè Baglioni at via della Spiga 6 are good for a pre-shop cappuccino. At lunch, fashionistas still pack Nobu (00 39 02 6231 2645, www.armaninobu.it) at Armani's store on via Manzoni. In the evening, try the coolly dramatic, two-Michelin-starred Trussardi alla Scala (00 39 02 806 88201, www.trussardiallascala.com), by La Scala opera house, or Antica Trattoria della Pesa (00 39 02 655 5741) at viale Pasubio 10, full of atmosphere and flavour.

What to read

The tiny Luxe Guide to Milan (www.luxecityguides.com, £4.99) is fun.