Don’t blame the global slowdown for Brazil’s economic ruin May 25, 2016 If the diverging fortunes of Africa make it palpably clear that the Brics hysteria about the inevitable rise of most emerging markets is intellectual fool’s gold, what is going on in South America definitively drives a stake through the heart of that argument. For yesterday’s darling Brazil continues to fall off the table, just as [...]
Building an economy of the future: Why the Conservative government needs to change its fiscal mandate May 24, 2016 Since the Conservative's won their majority government in 2015, our economy has begun to waver. In the first quarter of this year growth slowed, with construction output falling by 0.9 per cent. The OECD has downgraded forecasts, as has the CBI. In addition, 10-year gilts hit an all-time low in February and foreign investment is collapsing, [...]
The power of emotional intelligence: Why AI and robots will never compete with human creativity May 24, 2016 There have been an increasing number of reports about the rapidly developing world of AI, where computers can learn to use big data independently. Most recently, Google yesterday announced it would begin exploring whether automated machines are capable of creativity and producing original artwork and music. Many people's gut reaction to this is that nothing, not even the [...]
Is the Stock Spirits activist investor rebellion an omen of things to come? May 24, 2016 The shareholder showdown that has broken out between Stock Spirits and family office Western Gate Private Investments in the last two months may seem unusual from the outside. Western Gate Private Investments, led by Portuguese tycoon Luis Amaral, is an almost 10 per cent shareholder in the European drinks company. It successfully overrode the board to appoint [...]
Why Brexit won’t be a disaster (and as former City minister, I should know) May 24, 2016 As someone who spent 25 years working in finance, four years scrutinising the Treasury as a backbencher, and then two years first as City minister, now as Energy Minister, I've seen at first hand the economic cycles, the disasters and triumphs. These experiences tell me that the UK has an outstanding future as a free trading global [...]
Storm clouds are gathering – but Osborne hasn’t fixed the roof May 24, 2016 Uncertainty caused by a potential Brexit in the run up to June's crunch vote may be creating a smokescreen as far as the UK economy is concerned: the reality could be far worse than a few pre-referendum jitters. Recent economic data and surveys reveal some worrying signs about the economy's underlying performance. Profits at the UK’s [...]
Forget the Treasury’s short-term Brexit paper: Put rubbish in and you’ll get rubbish out May 24, 2016 The anti-Brexit Project Fear reached its zenith yesterday. Having published a paper suggesting GDP per household would fall by £4,300 in the long term (by 2030) if Britain left the EU, the Treasury yesterday turned its guns on the short-term implications of leaving. And guess what? Research produced by a department run by a chancellor who [...]
Reform Openreach’s relationship with BT or public anger at the UK broadband market will only rise May 24, 2016 Anyone who read the papers last week might be forgiven for thinking that Britain’s broadband troubles are over. After years of rising anger about poor reliability, speed and coverage, a new piece of legislation is on the way, aiming to deliver universal coverage. Unfortunately, this is not a panacea and, while the recently announced Digital [...]
Brexit threatens London’s world beating tourism industry: Don’t let the capital become a museum May 24, 2016 Tourism is one of our biggest exports – and London is the most-visited city on earth. But the industry is worried that this world-beating ranking could be at risk if Britain cuts itself off from Europe. In fact, Europe is our biggest tourist market, with more than 60 per cent of visitors to the UK [...]
Will Axa’s decision to quit investing in tobacco have a negative impact on the industry? May 24, 2016 Jasper Lawler, a markets analyst at CMC Markets, says Yes. Axa stubbing out its £1.3bn in tobacco investments could have both short and long-term negative consequences for the industry – a physical overhang of shares, and setting a precedent among insurers. In the short term, pouring its holdings onto the market will create a supply of [...]