Is the Fed’s James Bullard right to warn that Greece would flounder if it left the Eurozone? March 23, 2015 Christian Schulz is senior economist at Berenberg, says Yes Grexit would be a devastating shock, with the painful consequences including a major devaluation of the drachma, default, capital flight and a sharp recession. Greece would probably be shut out of financial markets for years. For ordinary Greeks, it would mean a big reduction in living [...]
Small businesses need big help from the next UK government March 23, 2015 This week, the chancellor answered our members’ calls for a stricter crackdown against multinational companies that avoid tax in Britain. We welcomed George Osborne’s decision to use taxation as a way to influence more ethical business practices in the UK. The chancellor’s ‘Google tax’ crackdown is a positive step towards creating a fairer system where [...]
Ukip’s economic policies fail the credibility test March 23, 2015 When Ukip released a list of 100 of its policies in January, the words “debt” and “deficit” were not mentioned once. In fact, the only time it mentioned the word “budget” was with respect to its intention to cut foreign aid spending. Of course, as today’s speeches by Nigel Farage and Patrick O’Flynn made very [...]
Israel’s elections are another nail in the coffin for Middle East stability March 22, 2015 Let us be clear. It isn’t that Prime Minister Benjamin Netanyahu managed to win an upset re-election victory in Israel’s parliamentary elections last week that spells the definitive end of the Middle East peace process; it’s the manner in which he did so. With the last opinion polls before the election showing him decisively losing [...]
The City thrives because it’s open to global talent: Don’t pull up the drawbridge March 22, 2015 This week, the City of London will host one of the UK’s major set-piece foreign affairs events. Foreign secretary Philip Hammond and I will address all the ambassadors to the United Kingdom, and other high-level Diplomatic Corps, at the Mansion House. Our focus is the “commercial diplomacy” that is at the heart of the UK’s [...]
Britons are back in love with borrowing – and it spells big trouble ahead March 22, 2015 There was a decisive shift in consumer behaviour last year, according to our latest Precious Plastic study. Published today, it charts Britons’ borrowing habits and their attitudes to debt. Over the previous five years, amid the post financial crisis recession, Britons retrenched, paying back almost a quarter of their consumer credit. However, once student debt [...]
As the Bank’s chief economist suggested, are interest rates as likely to fall as they are to rise? March 22, 2015 Adam Memon, head of economic research at the Centre for Policy Studies, says Yes. The Bank of England has kept interest rates at 0.5 per cent for six years; far longer than anyone imagined back in 2009. This extraordinary monetary stimulus has played an important role in the UK’s recovery. Nevertheless, the fact that the [...]
The one reason people trust Coca-Cola more than David Cameron March 20, 2015 Barack Obama reading trolls’ tweets on Jimmy Kimmel, Yanis Varoufakis in a lifestyle shoot in Paris Match, David Cameron on Buzzfeed (or “The Buzzfeed”, as he likes to call it). In our celebrity-obsessed world, we want to see the human side of our politicians. For this reason, a politician’s “brand” is critical. Why do you [...]
Budget 2015: George Osborne’s fiscal tricks are as bad as Gordon Brown’s: We need an umpire March 19, 2015 No New Zealander likes to be reminded of the infamous “underarm incident”. Cricketer Brian McKechnie, facing the final ball of a hard-fought series, needed six runs to clinch it for New Zealand. The Australian bowler walked in and rolled the ball – underarm – down the pitch to McKechnie. Even the Australian Prime Minister was [...]
Why you’ll need to abandon your privacy to embrace the driverless car revolution March 19, 2015 Driverless cars have hit Britain’s roads. The BAE Wildcat, a modified military jeep developed by the aerospace company, has been seen out and about in Bristol, while autonomous Lutz pods have been driving around public areas in Milton Keynes and Coventry. By 2030, autonomous vehicles are expected to reach a level of safety and sophistication [...]