The real fiscal ‘black hole’ is government debt The City View When one of the most senior figures in investment banking was asked at a private event last week what keeps him awake at night, he replied “government debt”. A recent House of Lords report will not help him sleep any easier. The Economics Affairs Committee has warned of the “grim reality” that at £2.74 trillion [...]
Tedium alone won’t restore confidence in the economy The City View The theory of Ricardian Equivalence posits that financing public spending out of taxes or borrowing will have the same overall economic consequences. This, David Ricardo argued in 1820, was because rational consumers understand that debt will eventually have to be paid off. They will therefore set aside current income in anticipation of future tax rises. [...]
Which is the real party of business? City View Rishi Sunak has won praise from political strategists for finally distancing himself from his short-lived predecessor, saying “I was right when I warned you about Liz Truss”. But what should the City make of the Conservative leader drawing such a firm line under his party’s experiment with free market ideology? To answer that question, it’s [...]
A new business group lands at just the right time July 10, 2023 Lost amongst the ifs and buts of whether the CBI could survive the phalanx of governance failings it stood accused of was the question of whether it, or the other business groups, were doing their job in the first place, or what they were for. A corporate human shield for business leaders that didn’t want [...]
Net zero is a noble cause, but we must be honest about the costs June 15, 2023 There is something in the air: a pushback against the charge to net zero, come hell or highwater. Yesterday, Shell said it would ‘stabilise’ its production; Exxon Mobil, separately, said they didn’t think society would bear up to the sacrifices necessary to hit net zero by 2050. Others in government have expressed scepticism about the [...]
London is full of talent, but that will soon change if we don’t build for the future May 15, 2023 Like a solid lower-league football manager, business secretary Kemi Badenoch recognises that the most important thing in life is talent. In her interview with us today, she says the capital will remain at the top table of global finance on the grounds that London will continue to be a magnet for the world’s best and [...]
Transport upgrades are vital to keep London at the top of the financial table May 11, 2023 Ask most of those who are yet to come back to work three or four or five days a week what the biggest barrier is and the answer is usually either the commute being a pain in the neck or being too expensive. So it won’t necessarily shock you to learn that in the aftermath [...]
The City View: As we close the door on the CBI – it’s time to ask what’s next April 24, 2023 An inordinate amount of ink has been employed discussing the future of the CBI. At the heart of it is a question; if not them, whom? There is no question that medium to large businesses wish for a collective voice; regrettable though it may be, too many CEOs are wary to put their head above [...]
Central banks need to steady their course despite choppy weather March 22, 2023 Much ado about nothing? Hardly. The loss of Credit Suisse, and the wipeout of Coco bond holders, will have consequences for years to come – but for now at least it appears as if the guardrails are holding. Attention will now inevitably turn to the Federal Reserve and, the day after, the Bank of England. [...]
Crown Estates sues Twitter over unpaid rent of its Piccadilly Circus HQ January 24, 2023 Twitter is being sued by the Crown Estates over unpaid rent relating to its Piccadilly Circus-based headquarters building. The Crown Estates manages property for King Charles III and the monarchy, which includes the 10m sq Twitter headquarters in central London. The estate filed the claim against Twitter Inc, which is also facing legal action over [...]