[Re: Osborne should have done more to fight EU’s cap on bonuses, yesterday]
Once this cap is put through, a firm based in Singapore will find it easier to headhunt local talent, not with higher salaries, but just with uncapped bonuses. Teams could be plucked from London to foreign shores. Bankers who earn seven figures usually spend most of that on housing, entertainment, holidays, cars, schools, universities and luxuries. All that spending will happen elsewhere (not to mention the lost tax revenue). Add vacated houses and offices, and you begin to understand the effect. Just like when the unions destroyed the UK car industry, it may take 50 years to get financial services back on track.
[Re: The NHS is losing global arms race to offer better healthcare for less, yesterday]
Thomas Cawston effectively deflates the myth that the NHS is the envy of the world. To illustrate his point further, government spending on health increased by 97 per cent in real terms between 1997 and 2007, but output only rose by 36 per cent. The whole system is flawed. Administration eats up 14 per cent of all funding, outcomes are worse than our European rivals, and yet all parties still call for increased spending to fix all this. The NHS urgently requires wholesale reform, and we should look elsewhere in the world for models to mimic. It’s not a straight choice between “free” healthcare and the poor dieing on the streets.
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Instead of the EU’s legal restrictions on what firms pay their staff, we should adopt the Swiss approach and empower shareholders.
China is worried about Venezuela relations post-Chavez. It fears it doesn’t have the level of state engagement as it does across Africa.
Hyper-inflation in socialist Venezuela led to widespread food shortages. Over the decade of Chavez rule, inflation was 1,800 per cent.
If breaking up RBS was the right thing to do, then why didn’t Sir Mervyn King say that in 2008, 2009, 2010 or 2011?