Why companies fail when success becomes routine October 27, 2014 The corporate landscape is littered with companies like Tesco, HP and Sony. Once business trailblazers, they have somehow become pedestrian and their performance has suffered. But why didn’t they spot the signs before their market share and profits started to slip? The simple answer is that, when firms perform well, they try to hardwire the [...]
Is HS3 the best way to boost growth in the North? October 27, 2014 Andrew Carter, acting chief executive of the Centre for Cities, says Yes. Improving rail links between London and the north, and between our largest northern cities, is a critical step in turning the political rhetoric of building a northern powerhouse into reality. Fast and frequent transport systems enable businesses to collaborate and share knowledge and [...]
The West’s eyes are on Syria – but Islamic State is still winning in Iraq October 26, 2014 There is little doubt that Islamic State’s (IS) siege of Kobani in Syria is a gripping story. Echoing similar narratives to the Alamo and the Boxer Rebellion, a small band of brave and determined “good guys” (in this case the Syrian Kurds) miraculously seem to be holding off hordes of fanatical “bad guys” (IS). Indeed, [...]
Power to the cities: It’s not just London that needs more control of tax revenue October 26, 2014 It’s not as catchy as “Brics”, but “ManShefLeedsPool” – the latest coinage from the Centre for Cities’s Jim O’Neill, formerly of Goldman Sachs – could have an equally seismic impact here in the UK. The growing difference between London and many of the UK’s other regions is a problem for the entire country. Politicians and [...]
Draghi’s balancing act: Stress tests can’t paper over Europe’s problems October 26, 2014 European Central Bank (ECB) president Mario Draghi has faced an unenviable balancing act recently. He’s had to oversee rigorous stress tests on the Eurozone’s banks – making them sufficiently harsh that investors viewed the process as credible – while at the same time encouraging those same banks to lend to the real economy in order [...]
With more international cases of Ebola, could this be the next stumbling block for markets? October 26, 2014 Chris Beauchamp is a market analyst at IG, says Yes. News of a new case of Ebola in the US sparked a modest selloff on Friday, with investors spooked by the fact that the patient had been in contact with other people. With global sentiment still fragile following the recent market correction, it seems likely [...]
Curb “patent privateers” to protect intellectual property October 24, 2014 Effective intellectual property protections are imperative to maintaining a robust economy and promoting innovation—and patents are an important facet of this regime. Unfortunately, bad actors are exploiting loopholes for personal gain and threatening the health of the current system—one that is generally working well. Lurking in murky legal waters, “Patent Privateers” are abusing protections and [...]
Family-run firms aren’t arcane: They help populate the City with women October 23, 2014 In the past few weeks, two women took on powerful positions in the financial services. First, Ana Botin became chairman of Spanish bank Santander, following the death of her father Emilio. Then Abigail Johnson replaced her father Ned as chief executive of US fund management firm Fidelity. Botin is the sixth generation of her family [...]
West Coast main line: Has Richard Branson forgotten the virtues of competition? October 23, 2014 Richard Branson’s famous guerrilla campaign to break British Airways’s grip on Heathrow Airport is safe in history as a victory for competition and passenger choice. The tenacious campaign fought by Virgin to secure access and slots at Heathrow dominated the UK aviation scene for most of the 1990s, and ultimately led to lower fares and [...]
Dave Lewis’s shopping list: Blueprint for a Tesco turnaround plan October 23, 2014 Another update, another set of gloomy results from Tesco. The pattern is now well established, and yesterday’s weak trading numbers didn’t come as a great surprise. But one thing that did surprise was the apparent lack of a forward strategy. What is new chief executive Dave Lewis going to focus on? The issue of price [...]