The Great Debate UK
In the aftermath of Liverpool and Uruguay footballer Luis Suarez biting an opponent yet again, and with such aggression that he scarred the player’s arm and hurt his own teeth, FIFA has banned him for nine games, and psychologists are trying to justify his behaviour by saying that Suarez must have been humiliated and frustrated in his youth. I, in contrast, am asking whether Mark Carney and co. should learn to be a little more like Suarez?
Let me make this clear, I am not advocating that members of the Bank of England’s Monetary Policy Committee give each other a good bite if they disagree on policy (imagine the bite marks at the ECB if that was socially acceptable), but they should metaphorically pull a few Suarez’s from time to time.
Earlier this week was a classic example. Mark Carney was testifying to parliament on the May Inflation Report. A mere two weeks before, Carney had been rather candid at the annual Mansion House dinner, and stated that the markets were mis-pricing the potential for a rate hike. This triggered a huge market reaction, pushing GBP-USD to its highest level for 5 years. Interest rate traders wasted no time shifting their expectations for a rate rise from Q2 2015 to January 2015.
Carney would have known that his Mansion House comments would be widely reported in the press, yet, he changed his tune when he was speaking to the politicians. Rather than play up the prospect of a rate hike, as he had done a couple of weeks’ before, he talked down the chance of one, saying that his comments at Mansion House were his own personal views, and that wages were too low to hike rates.
–Vashi Dominguez is founder of Vashi.com. The opinions expressed are his own.–
“Fancy”, coloured, diamonds have been in the news recently on the discovery of an enormous 122.5 carat blue diamond at Petra Diamond’s famous Cullinan mine. They account for just one in every 10,000 diamonds produced, and have long been cherished for their beauty and rare form, retaining value and making prized and valuable jewels within the diamond industry. But recently, there has been even greater fascination than usual.
–Irfon Watkins is CEO of Coull. The opinions expressed are his own.–
London Tech Week created some interesting conversations and predictions. The stand out being a claim from Oxford Economics that in the next decade London’s tech scene will increase by over 11,000 businesses, creating 46,000 new jobs and generating £12 billion. There are signs that London is on the verge of becoming Europe’s tech hub and that it may even overtake Silicon Valley. The calls for Europe’s tech talent to migrate have gone out. However, while the figures suggest this will bolster the city’s economy, it could end up doing more harm than good when it comes to Europe’s technology sector overall.
For me, bringing all of the Europe’s talent together in one city and placing them around one roundabout goes entirely against the new working world that technology has created. Isn’t it meant to be about “anywhere working”? Technology has allowed us to do meetings from home and secure billion dollar contracts while lying on a beach. Yet to be a successful start-up we’re now making out that you have to be in London. Worse still, you have to be at Silicon Roundabout. It just doesn’t make sense.
from Anatole Kaletsky:
John Maynard Keynes famously said that his highest ambition was to make economic policy as boring as dentistry. In this respect, as in so many others, Federal Reserve Chair Janet Yellen is proving to be a loyal Keynesian.
Yellen’s second news conference as Fed chair conveyed no new information about the timing of future interest rate moves. She gave no hints about an “exit strategy” for the Fed to return the $3 trillion of bonds it has acquired to the private sector. She told us nothing about the Fed’s expectations on inflation, employment and economic growth -- not even about the board’s views on financial volatility, regulation, asset prices or bank credit policies.
–Stephen Evans is a former Senior Policy Advisor for HM Treasury and Director of Employment and Skills at Working Links. The opinions expressed are his own.–
Asking prices for London houses have risen by £80,000 since the start of 2014 according to Rightmove. A three-bedroom house in London increases in value more each day than the average Londoner earns, a sobering thought on your daily commute. These are just the latest startling figures on house prices, particularly in London and the South East, prompting concern from Mark Carney and all three major political parties.
from The Great Debate:
Iraq was a bold U.S. experiment in nation-building. It turned out to be a flop.
That's what we're learning as we watch what the United States achieved there evaporate after nine years of war, after nearly 4,500 Americans were killed, 32,000 wounded and $800 billion in U.S. taxpayer money spent.
from The Great Debate:
The Iraq created in large part by the United States after the 2003 invasion appears to be collapsing.
The U.S. military disabled Saddam Hussein’s forces in short order. Then the straightforward part of the war ended. The American-led Coalition Provisional Authority made some fateful choices soon after Saddam’s government collapsed: to disband the Iraqi Army -- one of Saddam’s main methods of keeping the nation together -- and remove all Baathists from the government. Since the Baathists previously had a monopoly on power, they were the only ones who knew how to keep the country running.
By Dominic Elliott
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Brazil’s corporate squad pales beside its soccer stars. The country’s national football side has unquestioned world-class quality in almost every position on the pitch. Yet if there were a World Cup for businesses, Brazil would struggle to get past the group stage.
–Martha McKenzie-Minifie is Editor of International Consumer Economics and Ian Bright is Senior Economist at ING. The opinions expressed are their own.–
In the 2009 film Confessions of a Shopaholic, Rebecca Bloomwood remembers herself as an enchanted seven-year-old, watching shoppers hand over their credit cards and walk out of the store with new shoes, dresses and other shiny, sparkly splurges: “They were beautiful, they were happy. They didn’t even need any money. They had magic cards.”
–Tim Dolan is a Partner in the Financial Markets team in King & Wood Mallesons SJ Berwin’s London office. The opinions expressed are his own.–
With the Financial Services Authority (FSA) already replaced by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), what use does the UK have for another new financial sector body, the Banking Standards Review Council?