There is market failure at the heart of the City: The lack of superfast broadband July 27, 2014 Information technology has revolutionised the way that business is done in the City over recent decades. Cross border transactions are now completed with a click of a button. New models of finance such as crowdfunding are increasingly popular. Smartphones and cloud computing are making remote working a reality. These developments are reshaping the way that [...]
Don’t be gloomy – but there are still risks to the strong UK recovery July 27, 2014 Friday’s GDP data took us past a very symbolic landmark. The level of output in the UK is now slightly above its pre-recession peak. However, we should bear in mind that the UK population has risen by more than 4 per cent since early 2008. Average income per person is therefore still some way below [...]
Forget fancy schemes – government borrowing is holding back UK exporters July 24, 2014 There is no shortage of concern about the UK’s large balance of payments deficit. Many in the government are trying to solve it by cajoling British companies to export more with lots of new fancy schemes and initiatives. Speaking before the opening of the Commonwealth Games this week, for example, David Cameron said this should [...]
Supermarket price wars: Money can’t buy me love…or can it? July 24, 2014 As another CEO falls on his multi-million pound sword this week; the convenient simplification of the problem into pricing and the rampant value-retailer onslaught seems to deliver a somewhat myopic view of the task facing the brooding monoliths that are the big retailers. While Mr. Clarke was seemingly handed a metaphorical deuce to seven [...]
Why I’m on a mission to open up London’s iconic skyscrapers to the public July 24, 2014 This is an exciting time for Londoners; we live in one of the world’s great cities, and one that is changing more rapidly than at any time in its history. This change is evident all around us, as new places and spaces appear, new buildings replace old, and London’s parameters are re-defined. I launched Open [...]
Britain’s digital skills crisis is jeopardising our competitiveness July 24, 2014 The digital skills agenda has become a hot topic in Britain. But if we thought adding computer science to the national curriculum would be a silver bullet solution to the UK’s chronic digital skills shortages, we were wrong. A report out this week from the Digital Skills Taskforce confirms just how much still needs to be done [...]
Will financial sanctions on Russia significantly damage the City of London? July 24, 2014 Rob Wood, chief UK economist at Berenberg Bank, says Yes. Russia’s economy matters, even for the UK where only a small fraction of financial services activity is tied directly to Russia’s fragile petro-economy. The UK economy dances to the beat of world events because of confidence, uncertainty and financial market spillovers. The crisis in the [...]
Interest rate hikes risk a household debt tragedy if we don’t act now July 23, 2014 Beware the economist bearing forecasts. The only thing that’s ever certain about economic predictions is that they’ll turn out to be wrong. But this one’s nailed on: interest rates are going to rise. Hardly the riskiest punt – the current emergency base rate of 0.5 per cent can’t be sustained forever and, as yesterday’s Monetary [...]
BSkyB built its empire on live football – ignoring that could cost it dear July 23, 2014 WHEN BSkyB reports its results tomorrow, most expect them to be well received. The fast-moving satellite group will likely report strong profits and growth prospects, and will have much to say about innovative new products like Sky Go, Sky Store and Now TV, all intended to make it easier to consume its broadening content. However, [...]
China meat scandal: Why consumers are turning on Western fast food brands July 23, 2014 TRUST lies at the heart of any company’s reputation, but its importance is amplified when the product being delivered is food. This is the hard truth facing the likes of Starbucks, Yum Brands – owner of KFC – and other leading Western fast food retailers, which have all pulled products from their outlets, after allegations [...]