The City’s high standing remains undiminished in spite of recent troubles November 4, 2012 WHEN I took over as lord mayor 361 days ago, I half-jokingly said that my background as an oarsman would help me steer a course through the choppy waters facing the City. As it happens, the past 12 months have proved a real test of City fortitude. The financial services industry has had to navigate [...]
US energy policy is thriving despite a quiet campaign November 4, 2012 HOW do free market economies respond to scarcity? They innovate. And while the presidential candidates haven’t said anything particulary interesting about energy policy – despite mayor of New York Michael Bloomberg’s endorsement of Barack Obama for his climate policies – US businesses have been showing us just how it is done. State governments have been [...]
As RBS again raises its PPI liabilities, are there reasons for concern about the claims system? November 4, 2012 YES Stephen Gilchrist Lloyds now claims that its liability against payment protection insurance (PPI) misselling will hit £5.3bn, and has set aside a further £1bn, while RBS is expected to confirm that its total bill will increase by £400m to reach £1.7bn. Have world-ranking financial institutions grossly underestimated the scale of their original faults, or [...]
Rapid responses November 4, 2012 Risky business [Re: Financial regulation is worsening Europe’s demographic time bomb, Thursday] Bruno Pfister’s argument that financial regulation makes things worse is one that too often gets forgotten in the current discourse of “too big to fail” orthodoxy. This discourse has now effectively become “businesses must not take any risk they cannot afford” in the [...]
The fiscal cliff looms dangerously over the US presidential campaign November 1, 2012 AS THE US presidential election approaches, one issue has been singularly absent from the campaign. And it’s the issue that worries US investors the most. According to a recent survey by Macro Risk Advisors, Americans are increasingly concerned about a looming “fiscal cliff”, over which the US is set to hurtle on 2 January 2013. [...]
When disaster strikes the most valuable response comes at a local level November 1, 2012 DISASTERS don’t need leaders. In the blacked out streets of Manhattan this week, after superstorm Sandy hit, traffic is reportedly flowing despite the absence of traffic lights, with drivers behaving more cautiously and coordinating with their fellow road users. It’s the sort of local, spontaneous solution that tends to follow catastrophic events. Politicians, of course, [...]
It takes more than publicity to create employee-owners November 1, 2012 IT IS not surprising that the government is trying to encourage more employees to take a significant stake in their company. Firms with employee shareholders tend to have higher productivity, greater levels of innovation and better employee engagement. But while it is good that the government is recognising the benefits of the model, the measures [...]
As Comet heads towards administration, is the traditional UK high street on the ropes? November 1, 2012 YES Dan Wagner The recent problems plaguing Comet have stemmed from the fact that it considered the internet to be a threat. As a result, it was sluggish in developing adequate online and mobile commerce strategies, and lost its position in the highly competitive consumer electronics market. Successive managements failed to grasp the importance of [...]
Rapid responses November 1, 2012 Cost of care [Re: The real reasons why living costs are still going up, yesterday] As someone who has used childcare for the last seven years, I feel qualified to comment on Ryan Bourne’s article. There is a deep irony in the sector – although childcare itself is very expensive (as Bourne says, due to [...]
Financial regulation is worsening Europe’s demographic time bomb October 31, 2012 THERE is more to Europe’s current challenges than debt, stagnation and unemployment. There is an elephant in the room that could become the biggest issue of all: an ageing population. Europe’s baby boom started in the 1950s and the proportion of retirees relative to the working population, therefore, is beginning to rise. This will inevitably [...]