India rising: The re-awakening of this sleeping giant is the best news of 2015 March 1, 2015 “The Indian economy is a super giant, which moves slowly but surely.” – Arun Jaitley, Indian finance minister. After starting the year perpetually commenting on the gloomy tidings of the Greek crisis, Isis, and Putin, it is with palpable relief that I turn to what remains the single most positive international development of recent months [...]
Two cheers for Jean-Claude Juncker: The process of EU reform is already underway March 1, 2015 The business view of Britain’s membership of the European Union is clear: the UK needs to be in the EU and to be fully engaged. While this view is not unanimous – there are those businesses that legitimately have a different perspective, either because of the nature of the business or the priorities of the [...]
Dark side of the sharing economy: Don’t let short-lets ruin life for Londoners March 1, 2015 There has been much trumpeting of a change in legislation in the government’s Deregulation Bill that will allow Londoners to participate more fully in the “sharing economy” by renting their homes out on a short-let basis for up to 90 days a year. While many may be excited at the prospect of earning some extra [...]
As Lloyds resumes dividends, have UK banks now turned a corner from the financial crisis? March 1, 2015 Steve Davies is co-manager of the Jupiter UK Growth Fund, says Yes. Lloyds Bank’s return to dividend payments is a very significant step forward, and RBS may not be as far behind as people think either. The most encouraging news from Lloyds is that its capital position is now extremely strong, which not only gives [...]
Forget secular stagnation: America shows why the pessimists are wrong February 26, 2015 The US economic recovery is gathering momentum. January’s impressive labour market report showed that the US is in the midst of a long, sustainable upswing that could surpass any other business cycle in the post-1945 era. QE has proved to be a powerful monetary policy tool in the US. Low short- and long-term interest rates [...]
Growth and investment: The unintended victims of financial crime regulation February 26, 2015 It is perhaps the starkest example of the unintended consequences of regulatory reform that it is now so difficult to open a bank account at any UK financial institution, particularly for foreign investors. What began as a challenge to money launderers is now a palpable threat to the City’s position as one of the world’s [...]
London should take a cue from Paris to build transport of the future February 26, 2015 The Chancellor and mayor of London set out a long-term economic plan for the capital last week, challenging London’s transport authority and business community to make the case for much-needed infrastructure investment ahead of the next spending review. This commitment is hugely welcome. We desperately need to future-proof our transport network, as London’s population is [...]
As RBS reports a £3.5bn loss, is George Osborne right that senior executives should not get bonuses? February 26, 2015 Steve Davies, education director at the Institute of Economic Affairs, says Yes The question is not whether bonuses are the correct way to remunerate people. It is whether RBS should be making such payments when the bank is incurring serious losses. Clearly, the answer should be no. When a business is in financial straits, the [...]
Creativity makes a vast contribution to business: We ignore it at our peril February 25, 2015 The Academy Awards have become a (not especially accurate) measure of the UK’s cultural standing in the world. Thanks to Eddie and co, the Brits officially had a good Oscars, with four wins from nearly 40 nominations, but we need not obsess over the results of this dubious annual assessment. Our film stars are just [...]
Britain’s legal sector is world-beating – but the Tories are putting it all at risk February 25, 2015 In these pages on Tuesday, the justice secretary Chris Grayling celebrated the way Britain’s legal sector is leading the world. Let me publicly join him in that celebration. London is the destination of choice for people and companies settling their legal disputes, a testimony to the hard work of the city’s legal firms and lawyers. [...]