After retail sales rose strongly in July, did the Bank of England jump the gun by cutting interest rates? August 18, 2016 Tim Price, manager of the VT Price Value Portfolio, says Yes. Brexit hasn’t even happened yet, but Bank of England governor Mark Carney went out on such a limb on behalf of Project Fear that he had no alternative but to cut interest rates, irrespective of our economic condition and the already sharp decline in sterling. [...]
The time has come for the Olympic Games to be held in the same venue every four years August 18, 2016 Team GB are having quite a party in Rio, grabbing medals left, right and centre. After last night’s events, our men and women sat near the top of the overall medal table, second only to the USA. Unfortunately the Olympics hasn’t been such a success for the host city. Rio is a wondrous location in [...]
Why Brexit won’t take away London’s fintech crown August 17, 2016 The vote for Brexit may not have led to the economic meltdown we were told to fear, but it certainly gave rise to a feeling of disbelief, as the political models and expert commentators many had put their faith in were proven to be way off the mark. Bankers and fintech entrepreneurs alike looked on with [...]
“Brexit means Brexit” means something very different to what people think August 17, 2016 What does “Brexit means Brexit” mean? When Theresa May uttered these words, she almost certainly didn’t know what they will actually mean in practice, and she probably still doesn’t. The conventional wisdom says there are four potential ways forward for the UK. First, stay in the Single Market by remaining in the European Economic Area [...]
Banning diesel cars is essential to tackling London’s pollution crisis August 17, 2016 Writing in Morning Wire on Friday last week, Trevor Raymond from the World Platinum Investment Council argued that the phasing out of diesel cars from London’s roads, as recommended in a recent report we published, was a “blunt policy response to a complex and evolving [air pollution] problem”. We totally agree. There is no single [...]
Will government plans to fine firms who give advice on aggressive tax avoidance backfire? August 17, 2016 Mark Davies, managing director of Mark Davies & Associates, says Yes. HMRC’s proposals will fail because they don’t address the fundamental issues. First, consider motive. Nobody likes to pay tax and it is lawful to arrange our affairs to pay the least amount of tax. Second, there is an opportunity to avoid tax because our tax [...]
Rough & the smooth: Sadiq Khan’s first 100 days as mayor of London August 17, 2016 London mayor Sadiq Khan has celebrated his first 100 days in City Hall. So, how’s his mayoralty shaping up? Khan was elected on 5 May, after his rival Zac Goldsmith sank in a pit of his campaign’s own making. The Tory candidate would probably have made a perfectly decent and thoughtful mayor, but his campaign [...]
BT Sport could be bruised as Sky bending it like Beckham to woo football fans August 17, 2016 In past years, I’ve discussed BT Sport’s gradual journey from new challenger to a genuine force in televised sports. As the new football season starts, it’s a good time to look at how Sky Sports, its principal rival, has adapted its campaigns and messaging in an attempt to dissuade subscribers migrating to BT. Once again, [...]
In praise of hedge funds: Why short-term activists create long-term value August 16, 2016 Activist hedge funds are often seen as the epitome of all that’s wrong with capitalism. They cut investment, fire employees, and break contracts to boost the short-term stock price, and cash out before the long-term value destruction comes to light. It’s certainly possible to find examples of this. And such stories make for good journalism [...]
Blame Jeremy Corbyn for the increasing number of public sector strikes August 16, 2016 The total number of working days lost through labour disputes last year was, at just 170,000, the second lowest annual total since records began in 1891. What a difference a year can make. Southern Rail commuters have endured months of misery due to the prolonged series of strikes called by the RMT. Union members on Eurostar [...]