Plan to ringfence banks will leave us all in the dark December 20, 2011 THE government has announced it will implement the recommendations of the Independent Commission on Banking (ICB). The two headline proposals are to “ring fence” the retail banking parts of universal banks from their supposedly riskier investment banking parts, and to roughly double banks’ regulatory minimum equity ratios. Many bankers are complaining. They claim the ICB [...]
RAPID RESPONSES December 20, 2011 Europe’s agenda Roland Rudd is a respected enthusiast for the European project [The City of London needs a Europe strategy that does not lead to it being sidelined, Monday]. But he is mistaken in our relationship with Europe and it is time for fundamental review. Rudd highlights Margaret Thatcher’s acceptance of qualified majority voting, driven [...]
2011 saw an Arab Spring and the euro in crisis – get ready for even more drama in 2012 December 19, 2011 IT’S been quite a year: the Eurozone is in crisis and the US lost its AAA credit rating from S&P. But economists warn that next year could be worse. There might be a repeat of 2008 – a credit crunch and another recession. Worse, the head of the IMF Christine Lagarde warns of a “lost [...]
HMV’s last stand has new toys but not much future December 19, 2011 SIX years ago, David Cameron famously taunted Tony Blair in the House of Commons by saying “He was the future once”. And at that point, ahead of Christmas 2005, the HMV Group seemed to have a future. Annual profits were still well over £100m, the age of digital downloading seemed a distant threat and HMV’s [...]
Santa’s red coat hides true Christmas magic December 19, 2011 THIS Christmas, my wife and I plan to watch a DVD of The Polar Express with our baby. It is a well-crafted, charming and magical film that we first saw in 2004. As we came out of the cinema into a cold, snowy Christmas Eve she asked if I’d enjoyed it. “Yes”, I said, “but [...]
RAPID RESPONSES December 19, 2011 US independence I greatly enjoyed Matt Ridley’s article on shale gas [In America, the shale gas revolution is creating jobs and growth. It can here too, last Thursday]. I believe it to be an important part of the USA’s strategy for becoming self sufficient in energy once more. The implications of America weaning itself off [...]
The City of London needs a Europe strategy that does not lead to it being sidelined December 18, 2011 FEAR is stalking parts of the city that Brussels is determined to undermine its competitiveness. But ask any senior banker or businessman what particular measure it is that Britain needs saving from, they draw a blank. The implementation of a Financial Transactions Tax (FTT) in the EU alone, and not on a global level, would [...]
Eurozone’s bank sector is facing a wintry new year December 18, 2011 IT’S hard to be optimistic about European banks: they are operating in a highly volatile economic environment that still seems a recipe for trouble ahead. To start with, take rising capital requirements and mix with new liquidity standards. Then add in constrained economic growth alongside the need for future restructuring and significant cost cutting. Combined, [...]
It’s a good time for the City’s taxes to pour in December 18, 2011 AT A time when the City’s value is being questioned, both in the UK and in Europe, it is more important than ever that we highlight the huge contribution it continues to make – even in this extremely challenging economic environment. It was timely therefore that last week a new City of London Corporation report [...]
RAPID RESPONSES December 18, 2011 Fire and ice Benny Peiser argues “the green agenda will remain firmly on ice for the rest of this decade”. [Durban’s climate conference puts green deal on ice, last Wednesday]. What’s true for inter-governmental climate treaties may also be coming true for the green energy movement, as governments realise they can’t afford the costly subsidies [...]