Productivity

October 17, 2017

Productivity, Productivity, Productivity

Today sees the publication of a comprehensive review of the state of the nation and the potential impacts of Brexit in the OECD’s 2017 economic…

August 28, 2017

Analysis: an Apple that just keeps on rising

Imagine Apple Inc. as a quintessentially huge machine fuelled by investment, converting labour into value and, via sales, into revenue and profit. John Egan looks beyond…

June 30, 2017

‘Consumptivity’: the heartbeat of a modern economy

At the heart of a modern economy there beats a pacemaker with a rhythm that in large part sets its productivity, its exchange rates and…

May 30, 2017

Globalisation: the fightback for a fairer world begins

International trade has led to an equally global backlash from citizens of advanced economies against the economic deprivation to which they feel exposed, John Egan…

April 21, 2017

Artificial knee replacement – a Brexit canary

Are your aching knees becoming rather more painful? If the answer is yes, the United Kingdom industrial strategy could have particular pertinence. John Egan traces…

April 6, 2017

Productivity blues

A slew of new United Kingdom productivity statistics were yesterday released by the Office for National Statistics (ONS). The headlines tell a familiar story, but…

January 27, 2017

Four charts, two scenarios and a dilemma

UK Prime Minister Theresa May could find herself on the horns of a dilemma She has a problem. To quell the unrest that led to…

December 28, 2016

The big read: Life under the all-seeing “I”

Stefano Ermon of Stanford University’s Artificial Intelligence Lab speaks to Chief-Exec.com about the hopes and hazards of a world populated by learning machines As…

December 14, 2016

Wherein lies the future for economic migration?

In the forthcoming trade-off between migration controls and access to European Union (EU) markets, the UK economy could be hit from both sides, leading to…

December 7, 2016

Migration fault lines revealed

Few issues stir up such strident opinion as migration. From the wish to control borders and protect jobs and communities, to the need to open…

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Consumer Inflation Rises to 3%
The Consumer Prices Index (CPI) 12-month rate was 3.0% in September 2017, up from 2.9% in August 2017; it was last higher in March 2012. The main contributors to the increase in the rate were rising prices for food and recreational goods, along with transport costs, which fell by less than they did a year ago. These upward effects were partially offset by downward contributions from clothing prices. Office for National Statistics, October 17

‘No-deal’ Brexit likely to hit low-income families hardest
Leaving the EU without a trade deal would likely result in a sharp increase in prices for food and other goods, costing the average UK household £260 and hitting low-income families hardest, according to new research. Following Theresa May’s attempt in Brussels on Monday night to unblock Brexit talks, a joint report by the Resolution Foundation think-tank and academics at Sussex University predicted that “just about managing” families in the UK’s poorer regions had most to lose from the negotiations failing. The report, titled Switching Lanes, said there would be significant price rises on a range of household goods if ministers stuck to their fallback plan of resorting to World Trade Organization tariffs on EU goods in the event of a no-deal outcome. Imposing tariffs on EU goods after Brexit would lead to an 8 per cent increase in dairy products, a 6 per cent rise in meat and a 5.5 per cent jump in the cost of motor vehicles, the report found. The Guardian, October 17

Uncertainty ‘could put 75,000 City jobs at risk’
Urgent progress is needed on a Brexit transition period to prevent City firms implementing contingency plans that could put up to 75,000 UK financial services sector jobs at risk, a leading industry lobby group has warned. In a plea to negotiators ahead of the meeting later this week, TheCityUK also said that the stakes are high for the remaining 27 EU nations, where jobs and inward investment will be at risk if a two-year transition period cannot be agreed quickly. The intervention comes as City firms start to lease office space in Frankfurt, Paris, Dublin and other EU financial centres to conduct business that they will not be able to do from London after Brexit. The Guardian, October 17

Brexit negotiations should accelerate, say May and Juncker
Brexit negotiations should “accelerate over the months to come,” says a joint statement from the UK prime minister and the president of the EU Commission. Theresa May and Jean-Claude Juncker met in Brussels on Monday for a dinner they called “constructive and friendly”. The meeting comes after the latest round of negotiations, where the EU’s chief negotiator Michel Barnier said the two sides had reached “deadlock”. Downing Street sources said the dinner had “been in the diary for weeks”. Mrs May and Mr Juncker said they had had a “broad, constructive exchange on current European and global challenges”, including preserving the Iran nuclear deal and strengthening security in Europe to battle terrorism. BBC news, October 17

Airbus to take majority stake in Bombardier’s C-Series jet arm
Bombardier has agreed to sell control of its C-Series jetliner programme to Airbus in a deal which could allow the Canadian aircraft maker to circumvent tough US trade penalties and will give the European group a new ally in its battle with rival Boeing over global aircraft sales. Bombardier and Airbus said the deal would preserve jobs, securing the C-Series and its industrial operations in Canada, the UK and China while bringing new employment to the US. Under the terms of the deal Airbus will take a 50.01 per cent interest in Bombardier’s C-Series Aircraft Limited Partnership. Bombardier and Investissement Quebec will own about 31 per cent and 19 per cent, respectively. Airbus will contribute no cash for its majority stake. Financial Times, October 17

UK to tighten foreign investment rules
The government is to tighten its rules on inward investment into the UK making it harder for foreign buyers of companies that design and manufacture military products and other key technologies. But ministers have delayed plans to change the takeover regime for sensitive industries such as civil nuclear, instead calling for more consultation on the issue. Greg Clark, the business and energy secretary, said while the UK remained a “vociferous advocate” of free trade, “it is right that every so often the government reviews its mergers regime to close loopholes where they arise and this is what these proposals do in the area of national security”. Under the proposals to be put out for consultation later on Tuesday, the government will be able to intervene in mergers that “raise national security concerns even when they involve smaller businesses”. Financial Times, October 17

Weight Watchers classes help prevent diabetes
A third of obese patients sent to Weight Watchers by a GP in an attempt to prevent diabetes saw their blood sugar levels return to normal, in some of the first evidence from the NHS that such schemes can prevent serious illness. Just three per cent of patients at high risk of diabetes developed the condition in the year after being referred to cooking and exercise programmes, which the NHS wants to expand to millions of overweight people. More than half of those referred reduced their risk of developing diabetes. The Times, October 17

Councils cannot afford ‘dementia tax’
Conservative council leaders have warned that county councils cannot afford to be hit by a £308m rise in care home costs if controversial social care plans dubbed the “dementia tax” go ahead. Tory-dominated shire councils have warned they cannot afford the extra burden of the manifesto proposal that would offer state support to people with assets of £100,000 or less – a sharp increase on the current £23,250. The County Councils Network, which represents 37 councils, said new analysis showed raising the threshold would push far more people into state care than local authorities could fund under current budgets. The Guardian, October 17

New 15-year term limit in House of Lords
New peerages will have a 15-year time limit under a plan to shrink the House of Lords, The Times has learnt. The Lords has almost 800 members, making it the second largest legislative chamber in the world after the National People’s Congress of China, but pressure has grown on the government to reduce its size. There is no retirement age or limit on how long peers can serve. The Times, October 17

Nuclear industry acts on ‘no deal’ Brexit as MPs plot Euratom rebellion
The British nuclear industry is activating plans to relocate some nuclear material and components around Europe, Sky News understands. The move comes in anticipation of a failure to replace the UK’s existing trading arrangements with Europe and the globe before Britain leaves the EU in March 2019. Executives are now planning for potential legal barriers to the highly controlled movement of nuclear parts and materials into and out of the United Kingdom after Brexit. Leading figures speaking privately to Sky News have complained of “no visibility” that full arrangements will be in place by 2019 to replace existing arrangements under the Euratom nuclear safety treaty and related third country treaties – and are “planning for a world where that doesn’t happen”. The news comes as Sky News has learned Tory MPs plan a rebellion on Euratom by backing a new amendment to the EU Withdrawal Bill, stalling leaving the treaty (which is separate from the EU), until the Government reports on how it will replace every existing nuclear relationship. Sky news, October 16