As Sainsbury’s makes a surprise upgrade to its profit forecast, could this be comeback season for supermarkets? September 30, 2015 Clive Black, director and head of research at Shore Capital, says Yes To say that the British supermarket scene has been through the “perfect storm” is to understate the size of the waves. Sales fell, margins collapsed, earnings imploded and dividends were cut. The surprise Sainsbury’s upgrade in market expectations is a welcome boost to [...]
One year in, Tesco boss has Dave Lewis no room for excuses – The City View September 29, 2015 A year ago this month, Dave Lewis was anointed Tesco’s chief executive after being parachuted in from Unilever and tasked with turning around Britain’s biggest retailer. The supertanker was sinking fast. Lewis’ predecessor Phil Clarke had overseen a disastrous reign littered with profit warnings, a collapse in the share price and falling market share. Tellingly, [...]
Market economy status for China is a disaster for Europe September 29, 2015 What is a market economy? A system in which free trade and enterprise are encouraged to thrive, or one that is closely controlled by a powerful central government, repeatedly guilty of anti-competitive conduct and hostile towards new entrants. That is the question facing Brussels policy-makers, who are currently deciding whether to recognise China as [...]
Justin Bieber and baby names: The proof that our attention spans are getting shorter September 29, 2015 Readers who either had young children or were children themselves in the 1980s will recall the Um Bongo jingle. The advert assured us that it was drunk in the Congo. A survey published last week to mark the 60th anniversary of British television advertising showed that no fewer than 32 per cent of the [...]
Jeremy Corbyn says he backs growth firms – but time will tell what his values mean in practice September 29, 2015 Mark Twain's suggestion that “there is no such thing as a new idea” is particularly true of politics. The Labour leadership campaign injected new energy into the Labour party, and plenty of new members. Jeremy Corbyn yesterday rode the crest of that wave through his first party conference speech, receiving several standing ovations. It [...]
After a turbulent two days for Glencore, could its troubles trigger a Lehman moment for miners? September 29, 2015 David Madden, market commentator at IG Group, says Yes It is getting increasingly difficult for Glencore to avoid comparisons with Lehman Brothers. Both companies expanded aggressively in the good times and, like the collapsed bank, Glencore now finds itself in an environment where its empire-building has left it highly vulnerable. Like Lehman prior to its [...]
If Jeremy Corbyn’s Labour Party ignores the rules it’ll lose the game – The City View September 28, 2015 There are many ways to win an argument. In recent years, the term “evidence-based policy” has become fashionable among those who like the facts to make their case for them. Others rely on the power of rhetoric, or on the appeal of the outsider. Some people set out to change public opinion over time. Albert [...]
Care International UK’s Lend With Care loan platform bringing capitalism to the world’s poor September 28, 2015 Most people are familiar with the Lend Lease arrangement between the US and the UK during the Second World War, wherein the US government provided Britain and other allied nations with supplies to support the war effort. Fewer will be aware of the food parcels that US citizens generously sent across the pond to [...]
Why the advent of an “expert committee” doesn’t make Corbynomics any less scary September 28, 2015 Jeremy Corbyn and his shadow chancellor John McDonnell are desperate to be seen as economically credible. As part of this, on Sunday Labour announced the creation of a new economics committee made up of the economic darlings of the left: Thomas Piketty, Danny Blanchflower, Ann Pettifor, Joseph Stiglitz, Mariana Mazzucato and Simon Wren-Lewis. Make [...]
Europe is the sick man of the globe: Britain will thrive away from its enfeebling grip September 28, 2015 In the 1970s, Britain was sick. It suffered from endemic inflation, high unemployment, volatile growth and structural decline. Eyes wandered jealously across the Channel to the fast-growing European economies. It is little wonder that some thought the patriotic cause was to join forces with the European Economic Community. Today, the economic wheel has turned [...]