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 [...]
The other FCA concern: Why its new rules for bankers would hurt the UK economy December 8, 2014 IT’LL be a busy week for the Financial Conduct Authority (FCA). Yesterday, the regulator announced a new strategic approach for the organisation, with key personnel changes and a “sharper focus” on the challenges ahead. A review by Clifford Chance partner Simon Davis into the FCA’s handling of an insurance probe earlier this year is also [...]
Britain needs Multinational Monday – not yet more arbitrary tax hikes December 8, 2014 BRITAIN has just celebrated “Small Business Saturday”. Perhaps yesterday should have been declared “Multinational Monday”. Multinationals are often the engine of poverty reduction in under-developed countries; and they promote technology transfer and transform lives all around the world. Indeed, it is difficult to imagine what life would be like without them. Of course, multinationals deserve [...]
Why the Salmond surge won’t happen – and the Scots will back Labour in 2015 December 8, 2014 ALEX Salmond just won’t go away. The politician, who first became an MP in 1987 – and who is no stranger to holding mandates in different parliaments at the same time (while criticising others for doing the same) – has announced he will seek to re-enter the House of Commons in May, after resigning as [...]
As the Bank says borrowers can cope with rate hikes, are fears of a repayment crisis overdone? December 8, 2014 Rob Wood, chief UK economist at Berenberg Bank, says Yes. Some households will be poorly prepared for a rise in rates, but this is a question of magnitude. The Bank of England yesterday showed that, if wages grow, even a 2 percentage point rise in rates would just increase the number of vulnerable households to [...]
The drunken gambler syndrome: Why the West never learns from its failures December 7, 2014 Let's call it the drunken gambler’s theorem. It’s the reason casinos in Las Vegas stay in business, no matter what the economy does. “Just one more bet: this time will be the one to do it.” Gamblers delude themselves that, rather than throwing money away, they are making investments, and they’re certain to win because [...]
Business has a patriotic duty to speak out on the economic benefits of the EU December 7, 2014 As Labour, we believe that the prospect of Britain leaving the EU poses the biggest risk to British national prosperity in a generation. That is why Labour will continue to make the case for reform in Europe, not exit from Europe. This is a campaign that unites all of us who know that we simply [...]