How the chancellor can satisfy pension funds’ hunger for infrastructure October 31, 2016 Death and taxes are said to be the only two certainties in life, but you could now add “rumours about increased government infrastructure spending” to the list. Infrastructure captures the imagination as it literally provides the building blocks of the nation. It can be a contentious topic, as seen with HS2 and the Heathrow-Gatwick debate, [...]
Repeat after me: Post-Brexit tariffs would primarily hurt UK consumers – not European exporters October 31, 2016 Tariffs primarily hurt the consumers of the country imposing them on imported goods. That is such an important insight that it deserves reiterating, nay, repeating ad nauseam until everyone understands it: *tariffs hurt consumers in the importing country*. Both the Remainers who want us to stay within the EU’s protectionist customs union, as well as [...]
As he commits to stay until 2019, have political attacks on Mark Carney undermined the Bank of England’s independence? October 31, 2016 Kathleen Brooks, research director at City Index, says Yes. While the Bank of England’s decision-making has not been affected by recent political attacks, the fact that the government thinks that the Bank is fair game for criticism could undermine the perception of the Bank’s independence in future. Although it’s unlikely that it will take political [...]
Luxury firms should stop blaming macro trends for poor sales and become more sophisticated October 31, 2016 The latest batch of earnings reports from the luxury giants were showstoppers – with stunning double-digit gains from Kering, the owner of Gucci, versus no growth from Burberry. The polarised results raise the question: is it time for the luxury sector to move on from a tale of woe after the crackdown on Chinese consumption [...]
We can renew London once again post-Brexit – if we channel the can-do spirit of our ancestors in facing up to our housing and infrastructure challenges October 31, 2016 London has always risen again. This is the 350th anniversary of its greatest resurrection. Our ancestors in 1666 reacted to the Great Fire with a speed and coordination that defies belief. They tax-incentivised developers, ran the first national charitable appeal, invented modern fire insurance, and worked day and night for free. Compared with the Great Fire, [...]
The subscription economy: An end to ownership? October 31, 2016 The subscription economy always used to be about magazines – but not anymore. It now varies from long-term car rentals, to websites that allow consumers to have flowers, steak, and even socks delivered regularly to their doorstep. Today consumers are more likely to subscribe to services than ever before, thanks to the likes of Spotify [...]
The Philippines’ pivot to China is just the start: America is sleepwalking into disaster in tinder box Asia October 31, 2016 Give him his due. At the very least, Filipino President Rodrigo Duterte is never dull. Beyond calling Barack Obama names that would naturally lead in another setting to a brawl behind the schoolyard, the canny if vulgar Duterte is surprisingly effective at doing what smaller powers are supposed to do in a multipolar setting: playing [...]
Reflections on my year as lord mayor – and why London will remain the world’s greatest city October 31, 2016 As I enter my final fortnight as lord mayor, I have spent some time reflecting on my year in office. I have been privileged to witness and support many areas of commercial progress during my international visits, domestic travels, and here in the City of London. I am also greatly looking forward to a number [...]
Brexit is a chance to reboot Britain’s stagnant productivity performance – as long as we also return monetary policy to normal October 31, 2016 Productivity is the key driver of economic prosperity. From 1945 to 1980 Britain performed poorly on productivity growth, particularly in the 1970s when the UK joined the European Community. The 1980s saw a sharp improvement in UK productivity growth, sustained for much of the 1990s and early 2000s. Alas, the UK’s productivity performance has since [...]
Would likely election winner Hillary Clinton be better for the US economy than her predecessor Barack Obama? October 31, 2016 Molly Kiniry, a consultant at the Legatum Institute, says Yes. On their first day in office, US Presidents are handed the nuclear launch codes, but not a magic wand for the economy. Their commercial role is largely about projecting confidence and building trust. The US economy is inextricably linked to global markets, which are unwilling to [...]