Autumn Statement 2014: Forget a new fiscal rule – George Osborne should beef up the Office for Budget Responsibility to ensure real prudence December 2, 2014 George Osborne has made his name with a commitment to fiscal prudence, backed up by tough cuts to public services. In today’s Autumn Statement, he is expected to reinforce that reputation by announcing a formal target, backed by law, to eliminate the current structural deficit by 2017-18, a year earlier than previously forecast. There are [...]
The Ferguson riots: Economics and bias in the United States justice system December 2, 2014 THE RIOTS in Ferguson, Missouri continue to dominate headlines around the world. Even the brutal dictatorship of North Korea has got in on the act, accusing the United States of being a “human rights tundra”. The disturbances follow a grand jury decision not to indict a police officer for the fatal shooting of a black [...]
Gordon Brown made Britain stronger and fairer: He deserves recognition December 2, 2014 I FIRST joined Gordon Brown, who has just announced he is standing down as an MP at the next election, back in 1989. I left the Treasury to work for Labour in its new Economic Secretariat (consisting of me and one other), created by Gordon to increase the level of economic expertise Labour had. It [...]
As Aviva agrees a £5.6bn takeover of Friends Life, does the acquisition make strategic sense? December 2, 2014 Ben Cohen, an insurance analyst at Canaccord Genuity, says Yes. Aviva’s core strategy is “cash plus growth”, and this deal adds materially to cash flow, which will be used to pay a higher dividend and invest across the group for growth. This is not just jam tomorrow – the 30 per cent increase in Aviva’s [...]
The rise of the renminbi is a century-defining story – and London is at its heart December 1, 2014 THIS has been a momentous year for UK-China relations and the development of London as a key centre for trading in the Chinese currency, the renminbi (RMB), outside China. This progress is partly inevitable, as London is the world’s most international financial centre, trading more dollars each day than the whole US, and twice as [...]
UK energy policy is driven by populism and prejudice: Consumers pay the price December 1, 2014 I CAN imagine ministers’ horror when they read front-page stories earlier this autumn that the UK could suffer blackouts this winter. The speed with which National Grid promised that generating capacity would meet demand, no matter how low temperatures fall, shows how deep are memories of the political damage caused by the three-day week in [...]
Pork barrel spending and political gimmicks: Autumn Statement 2014 December 1, 2014 ONE HUNDRED and fifty five. That’s the really significant number for those following tomorrow’s Autumn Statement. It’s nothing to do with how much the UK government is borrowing. In fact, it’s the number of days until the general election. If early indications are anything to go by, the Statement will be packed full of small [...]
As BG reduces Helge Lund’s pay deal, should shareholders press firms to cut executive pay? December 1, 2014 Vince Cable, secretary of state for business, innovation, and skills, says Yes. The decision by BG Group to revise the package offered to Helge Lund is correct. The previous offer made a mockery of the Directors’ Remuneration Policy approved by the firm’s shareholders earlier this year. I called for shareholders to intervene and they did. [...]
The oil war has begun: The Saudis are using crude tools to hobble their rivals November 30, 2014 “Paranoia is knowing all the facts.” – Woody Allen Venezuelan foreign minister Rafael Ramirez certainly believes in my Saudi oil conspiracy theory. With his horribly-run country requiring a break-even oil price of at least $121 per barrel to balance its budget, and with the global price of crude already down 30 per cent since July [...]
London can’t build a robust UK economy alone: We must unlock the regions November 30, 2014 In my first official engagement as lord mayor outside the M25, visits to Liverpool and Manchester were ideal places to kick-start my programme for the year. While my time in each northern powerhouse city was limited, it helped to set my agenda for the forthcoming year. Politicians love the term “rebalancing the economy”. It’s kept [...]