Is M&S’s decision to offer current accounts for a fee a sign that no-charge banking is dying? July 18, 2012 YES Stephen Whitehouse “Free banking” in the UK is nearing an end. Regulators view the current banking model as unfair to consumers and might well force the end of the UK phenomenon of free in-credit banking. Our research suggests that customers are willing to pay for services that add real and lasting value to their [...]
RAPID RESPONSES July 18, 2012 In praise of Mervyn [Re: Somebody needs to guard the City of London’s guardians, yesterday] To me the story comes across a little differently. The recent facts on Libor point to regulators knowing that the rate was rigged, but doing nothing – or at least nothing in a timely fashion. But Mervyn King succeeded where our [...]
Many banks are at fault – but we still need a strong finance sector July 17, 2012 OPEN almost any paper and you will read at least one editorial or comment piece slamming the financial sector. Of course, the banking industry has given its critics plenty of ammunition: HSBC failed to stop the laundering of billions of dollars of Latin American drug money; JP Morgan’s mammoth losses; the Libor scandal; mis-selling payment [...]
Ignore the IMF: Economic forecasts have a history of being unreliable July 17, 2012 THE International Monetary Fund (IMF) has slashed its growth forecasts for the UK economy. This august body has just pronounced that Britain’s economy will come to a virtual standstill. Growth in 2012 will be just 0.2 per cent, compared with the IMF’s April forecast of 0.8 per cent growth. It cut its 2013 growth forecast [...]
Berlusconi turns Eurosceptic in bid to return to power July 17, 2012 THE JUBILANT chanting and cork-popping in Rome last November now looks premature. In a sensational U-turn, Silvio Berlusconi has decided to run for Prime Minister in next year’s elections. His comeback may have huge implications for Italy’s future in the single currency. Over the past few weeks, the 75-year-old former Italian Prime Minister has outlined [...]
After inflation fell to 2.4 per cent in June, is the risk of deflation now of greater concern? July 17, 2012 YES Victoria Redwood Inflation is heading rapidly back towards its target and, by the end of the year, it should be close to just 1 per cent. Indeed, the UK has more to fear from the risk of deflation than a renewed spike in inflation. The temporary factors that have supported inflation have waned and [...]
RAPID RESPONSES July 17, 2012 Fluid populations [Re: Britain’s booming population has reinforced London’s power, yesterday] This is correct. Few in the UK grasp the need for educated and experienced immigrants. Even fewer UK companies know how to employ and capitalise on the educated and well-connected people who move here. Thank goodness for UK-based international multinationals. Alan Fourie Many young families [...]
The government is off track with its uneconomic transport policy July 16, 2012 IS ELECTRIFYING branch lines in Wales a top priority for transport investment? It seems unlikely. But then again the government’s plans to invest £9.4bn in rail infrastructure show scant regard for economics. Cynical political calculation seems to be the driving force. Regional interests have long complained that London receives a disproportionate share of transport spending. [...]
Creative destruction means corporate giants rarely outlast their usefulness July 16, 2012 I LIVE just outside Hemel Hempstead, where one of its most famous landmarks has recently been converted into an apartment complex. Kodak Tower, as it is commonly known, was built in the 1960s as Kodak Eastman’s European headquarters. It’s a beaming symbol of the company’s presence in the town. Designed by Thomas Bennett, it was [...]
Why Britain must not veto banking union for Europe July 16, 2012 DAVID Cameron risks facing his own personal European groundhog day. A watershed European summit last month advanced proposals for a Eurozone banking union. Final approval is due in December. The aim is to break the fatal link between euro area banks and sovereigns. Less painful for Germany than eurobonds, but seen as credible by financial [...]