Support Britain’s Mittelstand to build a truly balanced economy October 25, 2015 If George Osborne has made just one ambition clear during his time as chancellor, it’s his aim to rebalance the UK economy so that we’re not overly-reliant on the South East or Canada. You’ll all be familiar with the soundbites by now – “The Northern Powerhouse”, “the March of the Makers” [...]
Is Barclays chairman John McFarlane right to say that bonuses encourage people to cut corners? October 25, 2015 Alex Edmans, professor of finance at London Business School, says Yes. High pay is indeed justified if an executive has generated long-term value. However, bonuses are typically paid according to short-term performance. They can encourage executives to “cut corners” by ignoring the long-run consequences of their actions, and focus narrowly on their impact on short-term [...]
A watchdog must do more than bare teeth October 23, 2015 It's little surprise that two of the City’s fiercest watchdogs avoided banker-bashing rhetoric at Mansion House last night. Tracey McDermott and Andrew Bailey were, after all, speaking to around 300 financial sector workers at this year’s City Banquet hosted by Lord Mayor Alan Yarrow. Both followed one of the primary rules of public speaking – [...]
Cameron’s kowtow: Submission is not the route to success in China October 22, 2015 It was 2012 when I was first asked to make a bribe in China, just shy of a year after moving there. On the counsel of a business licence consultant, I was “advised” to offer remuneration to a mid-ranking member of the local Communist Party Neighbourhood Committee for swaying a potential decision in our favour. [...]
Green bonds: London is leading the world in financing the global low carbon shift October 22, 2015 While the dominant colour in London this week has been red for the landmark state visit of Chinese President Xi Jinping, today the London Stock Exchange will be adding some green to the palette as we host our inaugural China Green Bond conference in partnership with the Green Finance Committee of the People’s Bank of [...]
EU referendum vote: Switzerland’s looming battle with Brussels could embolden Britain’s no campaigners for Brexit October 22, 2015 The tensions between Swiss banks and businesses and Swiss politics have been heightened as a result of the country’s parliamentary elections held on Sunday. They could also have significant implications for Britain’s coming referendum on EU membership. The big winner was the populist, anti-EU Swiss People’s Party (SVP in its German acronym), which is [...]
There’s no evidence to justify tough fines for taking children on holiday in term time October 22, 2015 The recent decision by Isle of Wight magistrates to throw out the case against Jon Platt, who took his daughter to Disney World in termtime, has cast doubt on the hardline policy on school attendance introduced by Michael Gove. In 2013, the Department for Education (DfE) started to get tough on school absenteeism, reducing the discretion [...]
The UK’s failure to take a strong line on China’s unfree internet is a blow to British businesses October 22, 2015 The visit of Chinese President Xi Jinping to Britain this week has proven very profitable for the UK. George Osborne has secured investment in three new nuclear power plants and potentially a high speed railway. Like other major investments in infrastructure, such as the much-anticipated Crossrail, they’ll create both short and long-term employment, skills training and [...]
After Assad’s surprise visit to Moscow, is Russia Syria’s best chance of reaching a political solution? October 22, 2015 Kamal Alam, a fellow at RUSI and a military analyst advising the British Army on Syrian affairs, says Yes It is quite clear that Vladimir Putin has shown decisive leadership – not just in Syria but also in the wider Middle East. He has outsmarted Nato by forging close ties with Egypt, Algeria and even Saudi [...]
Hinkley Point C nuclear plant deal is deferred pain to renewables’ deferred gain October 22, 2015 Yesterday, alongside the official announcement of China’s involvement in the deal, EDF said that its final investment decision on the construction of the new Hinkley Point C nuclear plant is now just weeks away. Given that the company and its Chinese partners are positioned to extract up to £80bn of cash dividends from the project [...]