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Archive for the ‘UK economy’ Category

UK: Independent reveals extent of foreign takeover

Posted by seumasach on November 22, 2014

This is a tendency that can only intensify as Britain devolves control of finance. This effectively means we’re giving up our credit card since no regional or devolved administration is sovereign and will not be able to issue sovereign bonds as before. Nor will the UK government itself since it no longer controls its tax base. The SNP has already  pointed out that Scottish government borrowing will be within a context of a balanced budget rather than the traditional rolling over of debt and coverage of interest charges only. This end of  Keynesianism is accompanied, logically, by the demise of the Labour Party and the left.The UK is and has been for  years totally dependent on capital inflows. However, the form these take is changing: rather than going into government bonds they are going into direct investment and purchase of assets.

Revealed: How the world gets rich – from privatising British public services

Independent

20th November, 2014

Foreign governments are making hundreds of millions of pounds a year running British public services, according to an Independent investigation highlighting how privatisation is benefiting overseas – rather than UK – taxpayers.

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No more bailouts

Posted by seumasach on November 11, 2014

BoE chief says banks won’t be saved by taxpayers

RT

10th November, 2014

New rules are being proposed that will force creditors, not taxpayers, to carry the losses of banks deemed “too big to fail.” The plans come after Western taxpayers were asked to pay trillions of dollars to bail out banks in the 2008 financial crisis.

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New cultural exchange centre planned for Cumnock

Posted by seumasach on November 8, 2014

“All of this will help to support the Scottish Government’s China engagement strategy that is already forging important links with the world’s most populous country.”

With new devolved powers on the way I expect the SNP, now beyond question Scotland leading political force, to hit the ground running in opening up Scotland to incoming Chinese investment. Of course, the UK has been totally dependent on incoming Chinese investment anyway in the form of government bond purchase but this is unsustainable and is being replaced by direct investment in real and industrial estate, infrastructure and ultimately, re-industrialization. Scotland already has a five-year plan( a nice touch I think), its Five Year Strategy for Engagement between Scotland and the People’s Republic of China which envisages, for example, the following scenario:

China‟s Foreign Direct Investment has increased dramatically in recent years and has mainly involved the acquisition of mineral resources and energy. Whilst this mergers and acquisitions trend will continue, we expect more Chinese companies to become Global companies either through acquisition or by themselves through natural expansion.

To facilitate inward investment from such companies, we will position Scotland as the ideal European base for Chinese companies with a focus on our pro-innovation business environment.

Scotland has, and will continue to have, a range of high quality investment opportunities suitable for funding from China. These vary from the low carbon sector to 5-star tourism destination developments. SDI will build relationships with Chinese investment companies and entrepreneurs, utilising cultural opportunities, to fully promote these and help create further investment opportunities in Scotland.

SNP

15th October, 2014

A major investment that will see Glaisnock House in Cumnock transformed into a language and cultural centre for Chinese students and entrepreneurs has been welcomed today.

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China’s investors go on global property buying spree

Posted by seumasach on November 8, 2014

“London was the most popular destination for Chinese institutional investors, with a total of $2.3 billion (1.35 billion pounds), as efforts by the city to draw Chinese capital into major infrastructure projects spilt into residential and commercial markets, JLL said.”

…in first-half, London, U.S. most popular – JLL

Reuters

30th July, 2014

(Reuters) - China‘s institutional investment in property overseas rose 17 percent in the first six months of this year, with residential investment surging 84 percent, real estate services firm Jones Lang LaSalle (JLL) said on Wednesday.

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Government issues first Islamic bond

Posted by seumasach on September 23, 2014

Gov.uk

14th August, 2014

The government has today (25 June 2014) cemented Britain’s position as the western hub for Islamic finance by becoming the first country outside the Islamic world to issue sovereign Sukuk, the Islamic equivalent of a bond.

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UK hints at next reserve currency

Posted by seumasach on September 17, 2014

To Issue Chinese Yuan-Denominated Bond

Zero Hedge

15th September, 2014

Yuanification continues around the world. As The USA attempts to corral its allies in a ‘broad coalition’, an increasing number of people - including domestic economic policy advisors - are shifting away from the USD as primary reserve currency. However, the move by British Chancellor of the Exchequer George Osborne, announced Friday, is likely the most notable yet in the world’s de-dollarization. As Xinhua reports, the British government intend to be the first nation (ex-China) to issue Renminbi denominated bond and to use the proceeds to finance the government’s reserves of foreign currency. Osborne described this dialogue outcome as “a historic moment” and a statement of British confidence in the potential of the RMB to become “the main global reserves currency”.

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City speculates on Chinese buyer for Balfour Beatty

Posted by seumasach on September 14, 2014

Global Construction Review

Rumours have been circulating in the City of London that an Asian company, possibly Chinese, may be interested in buying Balfour Beatty, the UK’s biggest contractor, since talks over a merger with Carillion broke down.

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UK banks ‘still vulnerable to global shocks’

Posted by seumasach on June 13, 2014

The idea of bailing out the banks in perpetuity is totally devoid of realism. Neither the pound sterling nor the British people would survive such a policy. The only answer is to allow the banks to fail, to put them through bankruptcy.

HITC

Britain’s financial sector remains vulnerable to further global shocks and the Bank of England must be ready to rescue banks that run short of funds, Threadneedle Street warned on Thursday.

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China’s poorest beat our best pupils

Posted by seumasach on February 18, 2014

The terrible truth about educational levels  is another aspect of contemporary Britain which we refuse to confront along with the real state of our banks, our infrastructure, our industrial base, our public health and so on.

Telegraph

17th february, 2014

British schoolchildren are lagging so far behind their peers in the Far East that even pupils from wealthy backgrounds are now performing worse in exams than the poorest students in China, an international study shows.

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British exit from EU may scare off foreign investors

Posted by seumasach on January 19, 2014

British exit from EU may scare off foreign investors, admits Vince Cable

Guardian

18th January, 2014

Vince Cable has admitted that the government is battling to reassure foreign investors who are increasingly worried about a potential British exit from the European Union.

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Li: Britain and China “indispensable and equal partners”

Posted by seumasach on December 3, 2013

Li said Britain and China were indispensable and equal partners, noting the prime minister’s recent approach to Beijing by acknowledging the territorial integrity of China – diplomatic code for accepting Beijing’s rule over Tibet.

Li said: “We have become indispensable partners for each other’s development. China and the UK must treat each other as equals.”

From Guardian, 2nd December, 2013

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