Fewer MPC meetings? The Bank’s new plans are likely to backfire December 11, 2014 Yesterday, the Bank of England’s Monetary Policy Committee (MPC) announced a wide-ranging package of reforms to its meetings, processes and communications. The objective is sound – to enhance accountability and transparency. The proposals build on a report by Kevin Warsh, a former US Federal Reserve governor. His report was triggered by concerns that records of [...]
As Ed Miliband says he’ll make sensible cuts, are Labour’s deficit reduction plans credible? December 11, 2014 Chris Leslie, shadow chief secretary to the Treasury, says Yes. The only credible approach to getting the deficit down is one which is tough and balanced. George Osborne has failed to deliver the rising living standards needed to get the deficit down. And now he is making £7bn of unfunded promises, while pledging even deeper [...]
The FCA’s reputation has been dealt a serious blow – change is needed December 10, 2014 The Financial Conduct Authority (FCA) has had a tough week. The findings of the Davis report, an investigation into a botched, market-sensitive media briefing on the life insurance market, yesterday described the regulator’s reaction to the error as “seriously inadequate”, and “short of the standards expected of those it regulates”. The regulator spent a total [...]
In support of Boris Johnson: The US’s imperialistic foreign tax law helps no one December 10, 2014 The mayor of London and potential future Conservative leader and Prime Minister, Boris Johnson, has joined the army of voices against America’s controversial global tax law, the Foreign Account Tax Compliance Act (FATCA). During his recent book tour, Johnson was characteristically forthright, describing FATCA as “outrageous”, and a “terrible doctrine of taxation.” Born in New [...]
The Japanese general election: Shinzo Abe has history on his side December 10, 2014 The Japanese proverb “nanakorobi yaoki” roughly translates as: fall over seven times and stand up eight. It urges perseverance, and may be some comfort for Japanese Prime Minister Shinzo Abe ahead of this Sunday’s election. It has been a busy few months for Japan watchers – fresh QE, another slide into recession, and the calling [...]
Could the Eurozone soon see a wave of anti-austerity rebellion? December 10, 2014 Adam Memon, head of economic research at the Centre for Policy Studies, says Yes. In Greece, a disastrous combination of sheer incompetence and an inability to grasp the severity of the Eurozone crisis has meant that Syriza, a party of the hard-Left, could soon form a new government. Syriza’s economic programme, which calls for a [...]
The Quindell share price fiasco should not dent faith in the robust Aim market December 9, 2014 The AIM market, the London Stock Exchange’s junior market, has been subjected to an unprecedented level of criticism over recent weeks. The fiasco at Quindell, which saw another twist this week, as the company called in PwC to review its accounting practices, has seen blame apportioned to Aim itself, and those who regulate it. In [...]
Islington’s war on foreign investors will do nothing to solve the housing crisis December 9, 2014 ISLINGTON Council has just declared war on overseas investors. It has even coined a catchy little phrase, “buy-to-leave” investors, citing them as the cause of new homes standing empty. Under new proposals, under consultation until 30 January, owners of new builds will be unable to leave their homes empty for longer than three months or [...]
Why bond market yields imply a gloomy future for Europe’s economies December 9, 2014 VERY strange things have been happening in government bond markets. The yield on 10-year US government bonds is currently around 2.25 per cent. It makes intuitive sense that the Germans, with their longstanding reputation for fiscal prudence, are enjoying a much lower rate, of some 0.7 per cent. Similar levels obtain in most of the [...]
Is the OECD right that inequality has significantly curbed economic growth? December 9, 2014 Lord Wood of Anfield, a shadow cabinet minister and adviser to Ed Miliband, says Yes. The OECD report confirms that inequality is not just a social problem, but a serious economic problem. It estimates that, over a 20-year period, high and rising inequality cost Britain almost 9 percentage points of growth, while policies designed to [...]