Is Facebook’s decision to pay more tax in the UK a victory for the government’s diverted profits tax? March 7, 2016 Chas Roy-Chowdhury, head of taxation at ACCA, says Yes. It looks as though the Diverted Profits Tax is starting to have the desired effect, as the threat of its higher rate is shepherding multinational corporations back into the corporation tax fold in the UK. But that isn’t working in isolation. The impacts of the OECD’s Base [...]
Just like Tidjane Thiam’s departure from Prudential for Credit Suisse showed us, chief executives are becoming increasingly important to share prices March 4, 2016 You can't put a price on a life – or so we’re told. A new study, published recently in the Strategic Management Journal, begs to differ. Its authors studied 631 deaths of chief executives between 1950 and 2009, of which 240 were considered to be sudden and unexpected; they then monitored the reaction in the [...]
President Trump or Clinton? Both would be a disaster for the American economy March 4, 2016 Donald Trump is not inevitable. Despite his spectacular wins on Super Tuesday, he sits fewer than 100 delegates ahead of his closest competitor, senator Ted Cruz, and still needs to win over 900 more to secure the nomination. But his continuous victories – not only in primaries but across a wide range of demographics – [...]
Canada shows why aspiring to a free trade deal with the EU post-Brexit would be a huge gamble March 4, 2016 Campaigners for Britain to leave the EU won’t say what our trading relationship with Europe would be like after a Brexit. This is in part because they don’t know, but also because they would rather not say. None of the alternatives that have been established by other nations are that appealing. Norway, for example, has [...]
Will Project Fear swing the EU referendum in favour of the Remain campaign? March 4, 2016 Tom Mludzinski, director of political polling at ComRes, says Yes. Negative campaigning works. Voters may say that they don’t like it, but the reason it is employed by campaigns is that it does succeed in influencing the outcome. Negative messages tend to stick in the minds of voters more sharply. A campaign must not be solely [...]
Barclays, HSBC, Lloyds, RBS and Standard Chartered have lost billions since the start of the year – the British economy needs a vibrant banking sector March 3, 2016 Spare a thought for Britain's banks. Between them, Barclays, HSBC, Lloyds, RBS and Standard Chartered have lost almost £40bn in value since the start of the year. A savage cocktail of market volatility, increased costs, low interest rates, fines, regulatory burdens and sluggish global growth is taking its toll. In a dramatic illustration of the [...]
Donald Trump is right: The Federal Reserve has created the conditions for another financial crisis March 3, 2016 Following Super Tuesday, it’s time to start taking “the Donald” seriously, as the improbably-coiffed, globally-lampooned businessman now seems nearly certain to win the Republican nomination. Trump’s frequently bizarre outbursts, together with his left-field initiatives in foreign and domestic matters, have led many to disregard any remark he makes. However, and at the risk of losing [...]
The morning after Brexit: Why the UK should embrace free trade whatever deal it gets March 3, 2016 Quick recap. Last week I examined the three key aspects of our economic relationship with the EU (direct payments to the EU financed through higher UK taxation, the customs union, and the Single Market). Direct payments to the EU are obviously a cost. I also argued that the common external tariff (customs union) was negative [...]
Why the City of London Corporation should not abandon neutrality over Brexit and endorse a vote for Remain March 3, 2016 Today, at 1pm precisely, a quaint and rather gorgeous ceremony will take place in Guildhall. Preceded by a swordbearer and a macebearer, the Lord Mayor of London will sweep majestically into the “Court of Common Council” to preside over the meeting of one of the world’s oldest democratic bodies continuously in existence, the City of [...]
London risks taking its global status for granted if housing crisis carries on unabated and cost of living continues to rise March 2, 2016 It's awards season, and from the Oscars to the Grammys gongs are being handed out left, right and centre. It’s an opportune time, therefore, to reflect on the accolades bestowed recently on our capital city. London cleaned up last year, taking the top spot in a clutch of surveys including EY’s European Attractiveness Survey, MasterCard’s [...]