Investors have been obsessed with the notion of “Grexit” - Greece’s exit from the euro. But “Brexit” - Britain’s exit from the European Union - is as likely if not more so. The country has never been at ease with its EU membership. It refused to join its predecessor, the European Economic Community, in 1957; it was then blocked twice from becoming a member by France’s Charles De Gaulle in 1960s; and shortly after it finally entered in 1973, it had a referendum on whether to stay.
from Lawrence Summers:
It is the mark of science and perhaps rational thought more generally to operate with a falsifiable understanding of how the world operates. And so it is fair to ask of the economists a fundamental question: What could happen going forward that would cause you to substantially revise your views of how the economy operates and to acknowledge that the model you had been using was substantially flawed? As a vigorous advocate of fiscal expansion as an appropriate response to a major economic slump in an economy with zero or near-zero interest rates, I have for the last several years suggested that if the British economy – with its major attempts at fiscal consolidation – were to enjoy a rapid recovery, it would force me to substantially revise my views about fiscal policy and the workings of the macroeconomy more generally.
from Jack Shafer:
This piece originally appeared in Reuters Magazine.
Rupert Murdoch has endured more crises during his 80-plus years than Richard Nixon and Odysseus combined, so the CEO and chairman of News Corporation can be forgiven for seeming nonplussed by his current predicament. He took over the family newspaper business in Australia at 21, when his father died, and expanded it. He fought the British unions in 1986 and won. He repelled the bankers in 1990, when he was close to insolvency. He has survived two divorces, the purchase and sale of MySpace.com, a bunch of other digital disasters, and even the predations of John Malone, who threatens Murdoch family hegemony with his purchase of News Corp stock. And now, referencing his media empire’s latest fiasco, the British Parliament has deemed Murdoch “not a fit person” to run an international company.
from John Lloyd:
Julian Assange, a fallen angel, remains, as of this writing, a guest of the Ecuadorian Embassy in London. There he has sought asylum to avoid extradition to Sweden, where he faces rape charges that he denies, and, he believes, possible extradition to the U.S., where he fears he may be tried and found guilty of espionage and sedition, for which death is still the extreme penalty.
from The Great Debate:
Every marriage goes through its bumpy patches. Just ask British Conservative Prime Minister David Cameron and his Liberal Democratic coalition partner, Nick Clegg. They have just gone through the most serious spat since they cobbled together their civil union two years ago, when British voters removed Gordon Brown’s Labour government but didn’t give the Tories a clear mandate. The coalition is a marriage of convenience, a dynastic coupling where neither side is under any illusion that love or affection is involved.
from John Lloyd:
The last few days of Queen Elizabeth’s Diamond Jubilee celebration have prompted the outpouring of patriotism and affection. But it did not faze Britain’s most determined protester. Peter Tatchell generally campaigns against homophobia and for gay rights: In one of his many (and one of his best) public projects, he tried to make a citizen’s arrest of Zimbabwe President Robert Mugabe when the latter came shopping in London in 1999, drawing attention to the president having called gays “pigs and dogs”. (London’s finest arrested Tatchell, not the dictator, for that episode.)
ABI warns over Barclay’s pay deal
Shareholder unease about the pay deals granted to bosses at Barclays intensified on Tuesday as a leading group of big UK institutional investors flagged its concerns about the bank’s pay policy ahead of its annual meeting in a fortnight. (FT)
UK back on track, OECD claims
Britain is on the brink of a lasting recovery, according to the Organisation for Economic Co-operation and Development (OECD), as momentum builds in the global economy. (Telegraph)
Unilever end stand-off over pensions
Unilever has struck a deal with two of the biggest unions representing its employees to cut pension benefits after a seven-month stand-off with workers that saw the Anglo-Dutch multinational suffer its first nationwide strikes. (FT)
Rothschild eye cross-channel unity
The Rothschild family plans to secure “long-term control” over its international banking empire by merging its French and British assets into a single entity and implementing a new form of governance that provides immunity from hostile takeover. (FT)