There is something special about Sunday morning, the Sunday Times, hot croissants with honey and butter, excellent. Headlines, am shocked by news of a UK Saudi bribery scandal in the defence industry, of all places! Surely, this should by subject to a D notice and kept off the front page.
No such notice for Doctor Fox, who will be called into the headmasters office on Monday for conduct unbecoming. His best man had printed some joke cards which suggested he was an advisor to the defence secretary. Even more shocked.
David Smith writes on QE and credit easing. Both David and the Sunday Times leader speak against more asset purchases at this time. We are in agreement but DS is slightly more positive about the possibilities for credit easing. Of this more later.
Economics news this week, the GDP figures are revised down for the second quarter, the good news - the downturn in 2009 was 4.5% not 4.9% and 2007 was even better than anyone realised. Comforting.
Producer prices head in the wrong direction as September output prices increase to 6.2% and input prices increase to 17.5%. Very strange, concerned about deflation, the Bank of England announced a further round of Asset Purchases as much as 75 billion sterling. What is going on?
Last week, Andrew Tyrie, the Chairman of the Treasury Select committee claimed he was unimpressed by the Big Society and the lack of a growth strategy, saying economic policy was inconsistent, incoherent, contradictory and at times irrelevant.
At the party conference, Tyrie was mugged by Steve Hilton, and given the hair dryer treatment in a side room. Tyrie emerged claiming, Big Society is the best thing since Bread Sliced and feeling a lot more positive about the growth strategy. As for the Osborne speech, Tyrie exuded praise. It is a huge step forward, a speech focussed on growth for one of the best economies in the world. What did Hilton say - if only he had been in the England dressing room at half time.
Watching the Osborne speech, at times the Chancellor appeared to stare at the auto cue with a fair degree of incredulity. Such is the danger of auto cue when ideas can be added at the last minute, even the Chancellor appeared bemused by some of the material.
This must have been the case with the idea of credit easing. This is a new idea which no one, including the Chancellor, knows anything about. The project appears to suggest SMEs will issue long term bonds with a low coupon, packaged into a series of CDOs, AAA rated by Standard and Poors, bought by the Treasury, sold to the Bank of England and placed off balance sheet in a structured investment vehicle backed by a RMBS (Rumours of Monetary Backing Somewhere) then written off over thirty years.
As one excited delegate explained on Newsnight, there is a company in my constituency that has been turned down ninety times for funding, I am so pleased - now they will be able to get some money, thanks to the new initiative from the Chancellor of the Exchequer. Excellent.
Latest : The Treasury is studying the proposal to see how best to morph into Goldman Sachs or reverse into the Lehman corpse. Credit easing - call it credit fantasy. How can this feature in the November statement?
Back to the day job, Monday, internal meetings in the morning, across town, bumped into Simon Walker, the new director general of the IOD. It is his first day in the job. I am on my way to meet with Mike Emmerich, Mike is very pleased with the 50 million pound Graphene funding announced by the Chancellor, in which the New Economy had a guiding hand. Mike explains the Graphene manufacturing process involving a food blender, four pencils and two dodgy acids. It seems straightforward. Did not realise Mike was a potential nobel prize winning physicist but he obviously is.
Tuesday, a meeting with Paul Johnson from the Institute of Fiscal Studies, Paul will join the list of great speakers for the business conference in March. In the afternoon, filming with the KPMG team as part of a senior partners presentation. I am asked what does K P M G stand for. It is a trick question, I reply KPMG is a global network of professional firms providing Audit, Tax and Advisory services. 138,000 outstanding professionals many in Manchester working together to deliver value in 150 countries worldwide. Exactly.
Wednesday, I have a Business Leadership Council Transport sub group meeting, at Manchester Airport, then a meeting with Rob Pailin from RBS. Rob and I will appear before
the AGMA employment, economy and skills scrutiny committee later this month. Tom Dempster is in from the council later that day. Tom is preparing an access to finance briefing paper to be presented to the scrutiny committee.
Thursday, Paul Smith from MCR is in for coffee to discuss a series of events. Richard Jeffery calls in to talk about the Business Growth Hub. It is a huge project for Business Solutions and for the city.
In the evening, the Institute of Directors awards dinner. Simon makes a brief speech as the new DG. I am on a great table with Clive Memmott, Geoffrey Piper, David Highams and others. Fifteen awards and a crooner later, I am heading home around midnight. Clive and I have discussed the merits of a change in title from CEO to Director General. It has legs.
Friday, I am guest speaker at the Manchester Insurance Institute Awards lunch at the Hilton hotel. I talk about economics and QE2. It is a once in a lifetime to chance to appear more boring than the insurance underwriters group. I succeed.
Finally, to close the working week, a quick check on Google Earth, to see if Greece, Portugal and Italy are still there, they are. I relax.
Saturday, up early for the rugby, England are out. Gloom. Tennis in the afternoon. I lose 6-3, check the biorhythms, I am on a physical high but Mary has played too well.
Hope all is well with all, more news next week,
John
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