Super Mario talks a good game but Italy’s entrepreneurs have lost out April 23, 2012 ITALIAN Prime Minister Mario Monti recently proclaimed “historic” labour reform and even declared the “financial aspect” of the crisis to be over. But don’t pop the Prosecco yet. Italy’s biggest impediments to business – rigid labour rules and uncertain contract enforcement – are alive and well. Monti’s upbeat attitude should be tempered by Italy’s ongoing [...]
Financial markets aren’t like casinos – but they aspire to their condition April 23, 2012 CASINOS are a triumph of human achievement – a beacon of what financial markets hope to accomplish. No, I’m not being facetious. Consider the distinction the economist Frank Knight made between risk and uncertainty. Risk is calculable because the range of possible outcomes is known. In roulette, for example, a ball is released into a [...]
A tax on heritage attacks the heart of local business April 23, 2012 THE decision to withdraw VAT relief from approved alterations to listed buildings may not just change the face of Britain by sounding the death knell for hundreds of cherished buildings, but also damage local economies and community services. Listed buildings – only three per cent of all buildings – are protected as the best surviving [...]
Do the first results of France’s presidential election represent a threat to the Eurozone? April 23, 2012 YES Vincenzo Scarpetta Almost one third of votes went to candidates who are explicitly anti-euro (Marine Le Pen), or anti-austerity and protectionist (Jean-Luc Mélenchon). Irrespective of the outcome of the second round, it’ll be hard for the next President to convince France to follow a German vision of the Eurozone – sound money and strict [...]
RAPID responses April 23, 2012 Monetary wisdom [Re: Luck-based pay makes decision making a lottery, Wednesday] Jamie Whyte’s analysis is simplified to the point of being meaningless. If a corporate banker only makes one loan and bases his analysis purely on a credit rating, I would question the wisdom of paying such a banker anything other than a basic wage. [...]
The parable of the broken traffic lights: When good signals go bad April 22, 2012 SUPPOSE on some sunny afternoon in a large city somewhere in the western world, a man discovers on awaking from a two-hour nap that several hundred car accidents had occurred in the city while he slept. He wonders why. First he considers the possibility that the weather was the cause, but the gorgeous afternoon sun [...]
The bank branch of the future will do less but better April 22, 2012 RETAIL banks face a daunting challenge: providing profitable personal banking in a climate of cost cutting and digital disruption. A popular strategy is to focus branch staff on selling high value products and services, such as mortgages, while nudging other customers into self-service, online or mobile channels. In theory, this makes branches more profitable with [...]
Maintaining the City’s strength is in the interests of the whole economy April 22, 2012 AS I WRITE this, I am in Cyprus in advance of the Cypriot Presidency of the EU, meeting business and political leaders to set out the crucial importance of the City of London and the financial services industry in creating jobs and growth right across the European Union. The City of London remains the world’s [...]
Should government make internet service providers do more to restrict adult content? April 22, 2012 YES Claire Perry I chaired a cross-party group of MPs that this week concluded that ISPs need to do more to keep children safe online and that an industry-led opt-in system for adult content would protect choice while improving safety. For years we have known that people are concerned about what children see online and [...]
RAPID responses April 22, 2012 Not so negative [Re: Hedgies march out of Mayfair as property costs bite, Tuesday] It’s worth noting that, due to the long lease terms and notice periods associated with conventional office leases, many hedge funds probably decided to leave over a year ago. We own and operate 17 serviced office buildings in the West End. [...]