Productivity

October 8, 2018

Brexit dividend discovered in Sheffield

It is proving increasingly difficult to identify the benefits Brexit might bring. Now a team of economists based in Sheffield have detected an upside in…

June 7, 2018

Capitalism blame game: politician vs expert

So it is agreed, capitalism is broken – for many. Can it be fixed to make it more “inclusive and sustainable”? Yes, says a politician…

May 28, 2018

Italian storms darken European horizon

A new “anti-system” political coalition in Italy is stirring up the relative tranquillity of the Eurozone economy. Banks and businesses are fastening their seatbelts and…

April 30, 2018

How much does your neighbour earn?

John Egan takes a look at the complexities entailed in answering the question. If you would like to know how well off you are, you…

March 7, 2018

Chief-Exec series: The iceberg of intangible capital

From running a business to managing an economy, understanding the value and whereabouts of capital assets is vital. But this isn’t as easy as it…

February 12, 2018

Chief-Exec series: Lifting the lid on UK productivity

Here is a chart that reveals a UK economy in the doldrums and shows where it could be heading. John Egan decribes the challenges this…

November 15, 2017

Analysis: Amazon and the power of capital

On the 150th anniversary of the publication of Karl Marx’s Das Kapital, we add our energy-dissipative view of the interactions of labour and capital in…

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…

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May willing to extend Brexit 2020 transition
Theresa May has told European leaders at a Brussels summit that she is willing to consider keeping Britain locked to the EU beyond 2020 in an extended transition. The move has infuriated Eurosceptic Conservative MPs, who argue that an extended transition period will leave Britain as a “vassal state”, observing EU rules but without any votes or representation on EU institutions. It would also mean further budget payments to the EU and continued free movement, along with membership of the single market and customs union – restricting Britain’s ability to strike its own trade deals. Financial Times, October 18

Tories revolt over PM’s plan to extend transition
Theresa May this morning sought to quell a growing Tory revolt over her proposal to extend the Brexit transition period by a year. The prime minister made the offer during a dinner in Brussels but today insisted that it would only last for a few additional months and may not happen at all. She conceded last night that Britain might need to remain tied to European laws for a further year as the price of finding a compromise on the Irish border, prompting a furious response from Conservative backbenchers on both sides of the Brexit question. Sir Bill Cash described it as “outrageous” and put the cost at tens of billions, while the Remain supporter Nick Boles warned it would mean the UK paying an extra €18 billion towards the EU budget. The Times, October 18

EU leaders shelve special Brexit summit plan
EU leaders shelved plans for a special Brexit summit next month, saying they were waiting for Theresa May to make a decisive move in a negotiation that could still take some “weeks or months”. The decision came at a short, low-key dinner on Brexit in Brussels, where Angela Merkel, the German chancellor, noted that talks had hit a “deadlock” and other leaders expressed frustration at political paralysis in Westminster, according to diplomats briefed on the meeting. Theresa May told the EU27 leaders meeting in Brussels for a summit that she was confident a breakthrough was close, but several leaders left the dinner saying it had achieved nothing in moving the two sides closer. Financial Times, October 18

Break ‘toxic’ link to DUP, Sinn Féin urges May
The British government must break up its “toxic marriage” with the DUP if livelihoods in Northern Ireland are to be saved after Brexit, Sinn Féin has said. Accusing their former partners in power-sharing of pursuing a “reckless, narrow agenda” over the border backstop, senior party members called on Theresa May to keep her word. Sinn Féin activists demonstrated outside Stormont yesterday before handing in a letter outlining their concerns to the offices of Karen Bradley, the Northern Ireland secretary. Three campaigners wore masks depicting Theresa May, Boris Johnson and Jacob Rees-Mogg. The Times, October 18

Brexit: Row erupts over ‘meaningful vote’
Brexit Secretary Dominic Raab has riled some MPs after appearing to suggest Parliament might not get a so-called “meaningful vote” on any deal. Some MPs want the right to amend whatever Theresa May eventually comes back with, but Mr Raab hinted it may only be a “take it or leave it” choice. The BBC’s Laura Kuenssberg says it’s a “big fat row waiting to happen”. The argument erupted as Theresa May struggled to make progress with the EU in Brussels on Wednesday. The Tory MP who led the calls for a meaningful vote demanded a “very rapid assurance” from the government that the Commons will be able to amend any potential Brexit deal. BBC news, October 18

Trump moves to quit postal treaty
The US has announced plans to withdraw from a 144-year-old postal treaty, which the White House says lets China ship goods at unfairly low prices. Under the treaty, a UN body sets lower international rates for packages from certain countries, a move originally designed to support poorer nations. But the US says the discounts put American businesses at a disadvantage. Officials said they hoped the notice of withdrawal would set the stage to agree a better deal. “We’re looking for a fair system,” a senior administration official told reporters. “We do hope that ultimately we achieve a negotiated outcome.” BBC news, October 18

US declines to label China a currency manipulator
The US Treasury again declined to label China a currency manipulator, but reiterated its concerns about recent weakness of the renminbi as the two countries spar over trade relations. In its twice-annual report on foreign exchange practices, the Treasury did not accuse any leading US trade partners of being currency manipulators, while saying it would continue to monitor Beijing’s foreign exchange policies. The department said the recent depreciation of the renminbi could boost China’s trade surplus with the US, but it acknowledged that direct intervention by the People’s Bank of China this year had been “limited”. Financial Times, October 18

Soaring debt could spark new crisis, warns BoE
The Bank of England has warned of the potential for a new financial crisis, fearing that companies worldwide are borrowing excessive amounts that they may be unable to repay. The central bank has drawn parallels between the build-up of risky debt and market conditions before the sub-prime mortgage crash a decade ago and the expansion in the number of loans made to risky companies by lenders, with the Bank noting “rapid growth” driven by investor demand. The sub-prime crisis was a result of banks loosening lending standards on US home loans, allowing Americans to borrow vast sums that in many cases they could never afford to repay. The Times, October 18

Budget airline Cobalt suspends operations
Low-cost airline Cobalt has cancelled all flights from midnight Wednesday according to a statement on its website. The carrier, which has operated flights in and out of Cyprus since 2016 – including flying UK holiday-makers to the island – has suspended operations. Local media said Cobalt had failed to reach a deal with a potential new investor. The Cyprus Mail said the airline’s main backer is China’s Avic Joy Air. The airline’s statement said future flights would not operate due to “indefinite suspension of Cobalt’s operations”, and advised passengers not to go to the airport. They should contact their credit card provider or travel agent instead, it added. BBC news, October 18

British farmers shouldn’t get cheap EU labour
Britain’s farmers should no longer get “privileged” access to low-skilled, low-paid workers from the EU after Brexit, says a top government adviser. Alan Manning, who chairs the Migration Advisory Committee, said fruit and vegetable growers would probably “go backwards”. But it would not be the “end of the earth” for the UK economy as a whole. The National Farmers Union has warned that without seasonal workers crops like strawberries will go unpicked. The government has said high-skilled workers would be prioritised after Brexit, with no preferential treatment for people from the EU compared with those from the rest of the world. BBC news, October 17

‘Golden passports’ firm consulted by govt over investor visas
Henley & Partners, the firm at the centre of the Caribbean passports controversy, was among a group of private-sector specialists consulted by the UK government ahead of changes to immigration rules that led to a surge in wealthy Russians and other non-Europeans securing the right to live in Britain. Theresa May’s Home Office redesigned its visa programme with a view to attracting rich foreign investors, after the coalition had entered government, as ministers pursued investment from global elites. The changes came as the then home secretary was introducing controversial hostile environment measures, with which she hoped to curb overall immigration. “It is possible,” May told parliament in November 2010, “to reduce numbers while promoting growth and underlining the message that Britain is open for business.” The Guardian, October 17