Three myths that require a rebuttal December 8, 2011 Myth number one: Tesco is becoming larger and larger. Fact: it is (very) gradually losing market share in the UK grocery market, according to Kantar. Its share peaked at 31.2 per cent in December 2007 and is now back at 30.5 per cent, a market share last seen in 2006. When it comes to UK [...]
S&P move would make EU stability history December 6, 2011 WITH member states coming to the grim realisation that if the Eurozone situation gets any worse they are going to be inflicted with Bob Geldof staging a charity concert for it, the S&P ratings agency drew that nightmare one step closer. I DON’T LIKE MONDAYS On Monday, the ratings agency put the bulk of the [...]
George Osborne has to hold his nerve – the UK economy needs vision, not populism November 21, 2011 EVERY day the pressure grows for the government to do something about growth. Usually this translates into calls for more borrowing and spending, special rules for struggling businesses, or other eye-catching initiatives. The government should resist. Recent history has taught us such quick wins often end up being own goals. They make the business environment [...]
RAPID RESPONSES November 16, 2011 Ponzi pottiness The German government criticising the UK for not doing enough for the Eurozone really brings to mind a Ponzi scheme. Assume I don’t join a Ponzi scheme because I think it’s a Ponzi scheme but my colleague does in spite of my warnings. When the scheme goes wrong, if my colleague criticised me [...]
FTSE falls as Italy’s bond sale reduces investor confidence November 14, 2011 BRITAIN’S top shares fell yesterday as the latest Italian bond auction dented investor confidence in the ability of new governments in Italy and Greece to tackle Europe’s debt crisis. An Italian five-year government bond auction delivered an early market view on former European Commissioner Mario Monti’s leadership after he was installed as Prime Minister of [...]
Setting a match to the debate on petrol inflation November 14, 2011 INFLATION is now rising faster than wages, and Britain faces a cost-of-living crisis. Astronomical fuel prices are the number one issue in my constituency: they are creating a poverty trap, and are a major brake on economic growth. In real terms, adjusted for inflation, motoring fuel has never been this expensive – except for just [...]
Politicians fiddle while Rome burns October 20, 2011 SO Angela Merkel and Nicolas Sarkozy agree – there is a problem in the Eurozone, apparently, and something needs to be done about it. But as to what that should be, forget it. With this weekend’s get-together bound to fail, the EU’s so-called leaders may call yet another summit on Wednesday. The situation would be [...]
America’s solar scandal is a warning: Bankrupt climate policies boost tax, not jobs October 11, 2011 IN SEPTEMBER 2009, the United States Department of Energy gave a $530m (£339m) loan guarantee to the solar company Solyndra. President Barack Obama said at the plant: “It’s here that companies like Solyndra are leading the way, towards a brighter and more prosperous future.” In September 2011, the company collapsed, the jobs which the Vice [...]
Barnier leak may hang the Big Four out to dry October 10, 2011 RECENTLY a leaked document from the European Commission’s (EC) Michel Barnier made front pages, including that of City A.M.. The details of what could come to be concrete proposals threaten the Big Four accountancy firms – PwC, KPMG, Deloitte and Ernst & Young. The stakes are high: one of London’s, and the UK’s, most successful [...]
Why Dexia’s bailout is a big mistake October 9, 2011 GET ready to short the euro, Eurozone banks’ equity and their subordinated debt. That was the advice contained in a note from David Roche’s Independent Strategy emailed out last night – and no wonder. Yesterday saw another outing of Merkozy, that fabled two-headed Franco-German super-politician. Some people got quite excited about the October deadline they [...]