I take it as a given that every CEO public pronouncement is a lie. I saw Rich McGinn on bubblevision talking his book with great enthusiasm, only a few months before Lucent was exposed as a long running fraud. I remember all the happy talk from Compaq, while the company stuffed it’s distribution channels to inflate it’s numbers. I remember honchos from Wordcom and Enron being hailed on bubblevision repeatedly, before their operations were exposed as frauds.
When I see a CEO, or his water carriers, crying about a regulation, and the pols are moving to remove that regulation, I take it as a given the regulatory change is for the benefit of the CEO, regardless how much the CEO denies it.
Additionally the best part of 10000 of Britain’s highest paid jobs lost. Less than expected but still a huge hit to the London economy and national economy.
If you know of any gains to London finance from Brexit, that are guiding your views, please do let me know, I will be very happy to be informed of that.
I should probably point out that I didn’t say “CEOs”, I said ‘senior and chief bankers’.
And that your ‘instincts’ do not in any way cause me to feel I should disregard 8 full years of reading newspapers on this topic…
Steve, in a parliamentarian system the bankers would be frank and honest. Even here Dimon is out there frankly saying it wants fewer regs. It is not a trick. Just not honest.
The UK is not going to benefit from a depreciated pound. The input costs will go up. It kills the UK’s economy. The bond market and forex laid that out very clearly. It was about the dumbest thing the conservatives could have done. A dunce move.
Shiny-land has been doing the same thing for forty years. Round after round of unpaid for tax cuts for the “JCs”. What was the net cost of the one in 17? Net $1T added to the national debt over 10 years, from one piece of tax legislation? In 2019 the US economy was supposedly going full steam, low unemployment, high stock market, and a $1T deficit for that one year. Why wouldn’t the Tories think they could get away with the same sort of banana republic fiscal policy? After all, it was what they wanted to do, so, of course, they would look at the Shiny-land example for confirmation.
As for what Jamie Dimon says, he thinks he is God. He openly says he is not intimidated by laws and fines. They never directly impact him. He writes out a check of the shareholder’s money, to settle the latest suit, then sets to work on his next fraud. Besides, saying you want deregulation, and describing exactly how you are paying out bribes to put backdoors in legislation that you can exploit to cheat more, are two different things. It’s like a carny magician, that does things in plain view, but knows how to distract the mob, so they don’t see that one hand slipping into his pocket, or palming an egg.
Keep in mind, if a banker tells you to get out of the way, a bus is going to hit you, he’s probably not just saying it to make a quick buck.
When UK bankers were saying ‘you know, ending our most favourable trade agreement with our biggest and closest trading partners, might have a somewhat negative impact on trade’, it wasn’t hard to believe they were speaking their true thoughts.
When the long term trend in interest rates was down there was some room for the conservatives to mess around with cronyism. Now the US would get hammered for such actions.
In the EU Germany has surpluses, inflation is rising, the real Volcker moves will be with the ECB not the FED. The FED is just putting out a brushfire for a series of months. The ECB faces long term disinflation as central Europe goes to supply side econ. The first round of which is a good important effort to recapitalize. Then it becomes all about corruption.
Well, it’s been over four months and the ‘extreme right-wing’ government seems to be doing okay. The Italian yield curve has risen over the last year (as elsewhere in the world) but has not inverted.
The spread between German and Italian bonds has actually decreased, from 235 to 185 basis points. Italy-Germany 10 Year Bond Spread.
Meloni toned down on belligerent campaign statements soon after being voted in. At least for now. Perhaps Truss‘ disaster helped making up her mind:
Analysts say the government’s tactical retreat reflects its awareness that it cannot afford to antagonise Brussels, as its confronts headwinds from slowing growth, and the European Central Bank’s plans for aggressive monetary tightening.
“The commission had been very tough, and [the government] probably figured it was not worth a big battle, given that they will be facing lots of problems in a few months,” said Lucrezia Reichlin, economics professor at the London Business School. “They are pragmatic — that has been clear from the start. They don’t want to rock the boat.”
Fresh from freeing Madrid from lockdown, Isabel Díaz Ayuso is waging a war on woke and seeking to turn Madrid into the “Florida of Europe”…With two crunch elections on the horizon, Madrid’s president is ready for the political fight of her life: to topple the socialist-communist coalition government of Pedro Sánchez…
Last week, she travelled to London to meet international investors she hopes to attract to Madrid with low taxes and a business-friendly environment – in the same way Ron DeSantis, the frontrunner for the Republican candidacy in the US, has helped turn Florida into an economic powerhouse.
Like her American counterpart, she used devolved powers to make Madrid the first Spanish region free from lockdown and herself one of her party the Partido Popular’s biggest stars. Madrid was gripped by “Ayusomania” as it enjoyed an economic boost that outstripped shuttered Spanish regions.
Since then she has cut taxes and red tape in a suite of open market policies that has been rewarded with growth two points above the national average. She cut income tax in the region by 20% and introduced deductions to reward businesses hiring new workers. Madrid has overtaken Catalonia as Spain’s richest region, attracting £12.8 billion in foreign investment.
Yup.
“Since then she has cut taxes and red tape in a suite of open market policies that has been rewarded with growth two points above the national average. She cut income tax in the region by 20% and introduced deductions to reward businesses hiring new workers.”