Editor’s diary: Threats to the City’s dominance come from home and abroad
This week one of our front page stories caused quite a stir in parliament. Wednesday's paper reported on the growing levels of unease in the City regarding the way in which some people in government view financial services and its place in upcoming Brexit negotiations.
We quoted a number of senior sources, all of whom have been in discussion with ministers to varying degrees, and reflected their concern that the City wasn't being taken seriously enough by the new government. Specifically, it's been claimed that while the Treasury – with its eye on the tax revenues, if nothing else – has a much firmer grasp of the City's importance than the two new departments set up after the referendum: one for international trade and one for exiting the European Union.
Not for the first time, Morning Wire was used by MPs on the Treasury Select Committee to press for answers from the chancellor. London MP Stephen Hammond, who has worked in fund management and investment banking, noted that the City’s concerns had been "loudly trumpeted by Morning Wire" and demanded to know whether the chancellor, Philip Hammond, understood the issues raised in our front page story.
Read more: Chancellor Philip Hammond reassures the City over its post-Brexit prospects
Hammond assured the committee that he did, and that helping the City through the coming period of Brexit negotiations would be "a very high priority." Glad to have helped put that on the record. However, according to one extremely highly-placed City source, the process of Brexit itself is only the second largest danger facing the City. In his opinion, the primary threat to the City’s place as a global hub now comes from the political positioning of the government itself.
This is an extraordinary allegation, but my source is adamant that May’s flirtation with anti-immigrant politics, combined with a view in some ministerial offices that the City ought to have its wings clipped, is the number one threat facing the Square Mile.
Philip Green in the dock as MPs let off some steam
MPs lined up yesterday to bash their favourite panto villain, Sir Philip Green. If honourable members had their way he would be reduced to plain old Philip Green. The handful of MPs who turned up to the debate voted (without any legislative force) to strip him of his knighthood. I understand that Green tuned in to watch proceedings, and was heard to say "I thought a debate was between people with different opinions…" Meanwhile, the argument around pensions goes on, with calls for the pensions regulator to have the powers to block takeovers. One player in the current dispute despairs at the idea, saying : "The pensions regulator couldn't find its arse in the dark – with both hands." Some work needed to win over critics….
Brexit could be the boost Dublin needs
There's plenty of chat doing the rounds about where firms might choose to base themselves should the UK no longer offer them what they need. Consensus is that New York would be the beneficiary, not the EU – but this hasn't stopped Dublin trying to woo the banks. A source familiar with such overtures says the Irish have a very clear reason for the charm offensive: they need the investment to fund major improvements to the city's creaking infrastructure.
Trump inspires a new approach to football
To Winfield House, the residence of the US Ambassador, for a reception to celebrate the Premier League. It turns out America's top diplomat in the UK is something of a soccer fan. Among the guests was Richard Scudamore, top dog at the Premier League, who told the audience of club owners, managers and players that Donald Trump's latest approach to the US election provides a potential lesson for clubs: "If you lose, you don't have to accept the result."
A case of deja vu in the immigration debate
When Osborne was chancellor he had heated rows with then Home Secretary, Theresa May, on whether students should be included in the migration figures. He felt they shouldn't be, but she felt they should. Now May is PM and a new chancellor, Philip Hammond, suggested yesterday the government was looking at the issue again. The response from No 10? "We are categorically not reviewing whether or not students are included." Nothing changes.
Edward's good side
If you were to have your head on a coin you'd want it to be of your best side, too. That's what King Edward VIII insisted upon when reviewing designs for new coinage. In a sign of things to come he broke with Royal convention and demanded he face left so that his side parting could be seen. The new coins never made it into circulation, for obvious reasons, and have just been unearthed by the Royal Mint. They're on display now.
Can I quote you on that?
"They were 10 years old when Lehman collapsed" – a lecturer at Greenwich University tells me about my audience (and makes me feel old) before I addressed students at their business school on Wednesday night.