After 103 business leaders came out in support of the Tory Party, were they right to intervene? April 1, 2015 Ben Page is chief executive of Ipsos MORI, says Yes The views of business leaders and major employers do matter, and we know that 86 per cent of the FTSE 500 think that a Conservative government would be best for business. It’s a free country and freedom of speech matters. But despite the party having [...]
Labour’s corporation tax plans would be a disaster for investment and growth March 31, 2015 The most important challenge facing the British economy today is finding ways to increase productivity growth. So it was particularly disappointing to hear shadow chancellor Ed Balls confirm yesterday that Labour would increase corporation tax to 21 per cent if it wins the General Election. Even worse, instead of then pledging to keep the tax [...]
Zero inflation is the new normal: The world can’t evade its debts forever March 31, 2015 Zero inflation is trending. The consumer price index in the UK was at the same level in February as it was a year earlier. The reporting of this figure on the BBC website created some unintended amusement, however. The drop to zero, we were told, was “sharper than many analysts had expected”. And what was [...]
As deflation eases and unemployment falls, has the Eurozone finally turned a corner? March 31, 2015 Christian Schulz is senior economist at Berenberg, says Yes The tailwinds of cheap oil, an undervalued euro and aggressive ECB monetary easing have already propelled business, investor and consumer confidence indices across the Eurozone to multi-year highs, even though this is only beginning to filter through to the real economy. Above-trend growth is now baked [...]
Ignore Brexit scaremongers: We will thrive outside the EU if Britain embraces free trade March 30, 2015 Forget the scaremongering that so often accompanies debate about Britain’s EU membership. Leaving the European Union could be a win-win for the UK. We could have more international influence, create more trade and jobs, and regain sovereign control over our own laws and borders. These are the advantages that would flow from the Global Britain [...]
Don’t fear the deflation bogeyman: It’s unlikely to harm the UK economy March 30, 2015 As flat as a pancake. Last week’s inflation figures showed that the Consumer Price Index (CPI), the main measure of the prices of goods and services bought by households, was the same in February as it was a year earlier. This has led many to ponder the likely economic implications of deflation – if the [...]
Muppet money: Investors are losing out on billions by parking savings in cash March 30, 2015 In the UK today, £729bn of the nation’s savings is sitting in cash. That is half of our total financial wealth. What is more, a mind-boggling one quarter of that total wealth is idling in instant access accounts, currently earning less than 0.4 per cent a year. With rates that low, you would think people [...]
General Election 2015: Would an increasing likelihood of a Tory electoral victory see equity markets surge? March 30, 2015 Simon French, senior UK economist at Panmure Gordon, says Yes Over the next 37 days, much of the commentary surrounding the UK election will be deeply biased. So let us just stick to what history can tell investors. In General Elections since 1965, UK equities have on average returned 2.5 per cent in the 30 [...]
Kate Robertson: In a digital era, politicians must start a dialogue, not waste time on negative ads that come back to bite them March 30, 2015 Negative "attack advertising" has a great pedigree in British politics. Think of the snaking dole queue of 1979, proclaiming "Labour isn’t working", or the image in 2001 of William Hague adorned with the hair of Margaret Thatcher. "Be afraid, be very afraid", the caption read – aggressive, but with wonderfully British "edge" you never [...]
Ed Miliband: David Cameron’s divided party is now a clear and present danger to UK business March 29, 2015 ELECTION COUNTDOWN 38 DAYS TO GO Today the Prime Minister is going to Buckingham Palace. Parliament is dissolved and the General Election is finally underway. This election is not simply a choice between parties and leaders but between different visions of our country, of how we succeed, of the kind of country we [...]