As the FSA proposes changes to listing rules, will it be enough to help the London market? October 2, 2012 YES Daniel Bellau The FSA proposals are a timely example of tightening regulations in order to protect investors and attract quality issuers. Seeking to ensure independence at board level if there is a powerful majority shareholder, and regulation of that shareholder’s relationship through a relationship agreement, already reflects the market. Codifying this within the regulations [...]
Rapid Responses October 2, 2012 Cost of statistics [Re: Time for MPs to summon statisticians over endless revisions, Friday] There are two main reasons why GDP is now revised more than it used to be. Allister Heath is right that the initial estimate comes out too quickly. But this is at the insistence of ministers, not statisticians. Secondly, ministers now [...]
Ed Miliband’s populist policies will make the UK’s bad position worse October 1, 2012 OUR political climate currently mirrors our economic situation – bleak and shockingly uninspiring. At a recent breakfast for business leaders in London, a veteran newspaper journalist spoke of the challenge faced across the West as one of “unpopular governments and unconvincing oppositions”. The polls in Britain bear this out. A ComRes poll for the Independent [...]
It takes more than well-intentioned legislation to truly help the poor October 1, 2012 THE government has just increased the UK’s minimum wage to £6.19 an hour for anyone over 21. Few readers of this newspaper would be able to live on such low wages, especially with the cost of living for essentials going up so much. But this doesn’t mean that increasing the minimum wage further is the [...]
The euro crisis has exposed Europe’s interest rate flaws October 1, 2012 THE Eurozone is currently engulfed in a combined banking and sovereign debt crisis that threatens to unravel the single currency. The good news is that the essential pieces of a lasting solution are well understood: a banking union, recapitalisation of key banks, some debt write-offs and an inevitable transfer of wealth from creditors to debtors. [...]
As Xstrata and Glencore move closer to a merger, is it a good deal for shareholders? October 1, 2012 YES Jeff Largey Commodities remain a growth story, and there is industrial logic behind a merger between the world’s leading commodities trading house and one of the world’s largest mining companies. The deal will create a vertically-integrated mining giant, with industry leading copper volume growth, and the ability to increase margins in Xstrata’s existing operations. [...]
Rapid Responses October 1, 2012 GDP manipulation [Re: Time for MPs to summon statisticians over endless revisions, Friday] This article misses the point. The problem is not with statisticians, but with politicians and the media (and through them, the markets). They all give disproportionate attention to GDP figures which are, inevitably, far from a precise reflection of what is really [...]
Disruptive technology can rebuild manufacturing for the internet age September 30, 2012 BRITISH manufacturing is not finding it easy. Output shrank once again in the second quarter of 2012, having failed to deliver any significant growth in over a year. Once the workshop of the world, the UK has slipped down the manufacturing league tables. Does it matter? A few years ago, the answer from many economists [...]
More diverse financial services are critical to restoring trust in UK banking September 30, 2012 THE business of politics and the politics of business are rarely more intertwined than during the party conference season. Last week, Canada was in the crosshairs of the Liberal Democrats, and it is likely to remain in sharp focus as Labour takes the stage in Manchester today. We all know that the [...]
Restraints on high frequency trading may hurt liquidity September 30, 2012 IT IS surprising that an event that took place in the US is causing a regulatory backlash in Europe. The now infamous 2010 flash crash, in which the Dow Jones plunged by about 9 per cent, is the main justification for various European regulatory initiatives against electronic market-making firms .These initiatives may, however, cause more [...]