Alex Brommer says the IMF has no right to interfere in Britain’s domestic politics
The IMF should have learned its lessons by now. As a watchdog of the global economy, it does not have the necessary powers to poke its nose into British domestic politics.
French chief economist Pierre-Olivier Gourincha could not resist the temptation, telling the media that Chancellor Jeremy Hunt should “try to rebuild fiscal margins” rather than offering more tax cuts beyond the £20bn mark in his autumn statement.
How the Minister of Finance chooses to use the available space and surplus resources in the public finances is a political choice, not just an economic decision.
Gworinsha’s intervention is grotesque interference in the UK’s internal affairs in an election year, and is bound to be exploited by opposition parties.
It’s also wildly unfair. The UK’s fiscal position compares favorably with most G7 countries, including the US, Japan, Italy and France, all of which have higher levels of debt to national output than Britain.
FALSE: French chief economist Pierre-Olivier Gourincha said Chancellor Jeremy Hunt (pictured) should “try to rebuild fiscal margins” rather than deliver tax cuts
Reducing the burden of taxes on consumers and businesses, at a time when these taxes amount to 37% of national income, the highest level ever in peacetime, is essential if we are to encourage entrepreneurship.
It may also tempt some of the seven million or so citizens who have left the workforce to deny benefits and return to jobs.
As the IMF’s updated World Economic Outlook makes clear, falling inflation should allow interest rates to fall.
This would reduce the cost of servicing the national debt, and create more room to reduce the tax burden.
The IMF’s credibility has been sorely tested recently by dodgy forecasts and data.
Former Managing Director Christine Lagarde (current head of the European Central Bank) famously intervened in the 2016 EU referendum to declare that a Brexit would be “very bad, very bad” for the UK.
Lagarde jeopardized the IMF’s independence and was wrong.
Debra Crowe faces baptism of fire at Diageo. Shares fell amid failed governance in Latin America and rapidly changing consumer tastes. Crowe describes Latin America as a “perfect storm.”
Stunning sales growth in Brazil and Mexico has been followed by chaos. Ambitious demand for premium brands led to widespread overstock and a catastrophic 23.5 per cent drop in sales in the six months to December.
The most disturbing aspect of the whole debacle is how little visibility the Crew and Diageo have.
These systems were not in place to get early warning of the problem, raising questions about the robustness of the data elsewhere in the group. The crew insists checks and balances are good elsewhere.
In the United States there is clear day-to-day visibility through the company’s major distributors. In China, QR codes on ancient spirit Baijiu help provide real-time information.
Diageo believes it is well positioned amid the trend toward non-alcoholic beverages. Success stories include Seedlip, Captain Morgan Spiced Gold and Guinness 0:0.
Premium brands are seen as somewhat immune to changing tastes and moving forward in high-growth markets, such as India, where Johnnie Walker does a booming business.
There are signs of tension in the US, as consumers switch single malts and George Clooney’s Casamigos tequila to less expensive brands.
Investment in Guinness’s new brewing industry is paying off as sales in Europe rise by 24 percent and women in particular are enamored with the stout.
Crowe is confident Latin America will right itself by the end of 2024. Meanwhile, the group is doubling its investment in Scotch by reopening its Port Ellen distillery in Islay, which closed in 1985. And it’s not letting up. Luxurious yet.
Poor banking services
Under Noel Quinn’s leadership, HSBC sought to move beyond the blunders of the past.
The Bank of England’s £57.4m fine for failing to provide data on customers eligible for compensation (in the unlikely event the bank goes bust) is an embarrassment.
This sin may not be comparable to historical violations, most notably money laundering for Mexican drug cartels, but it shows a blatant disregard for regulations.
This has been exacerbated by hasty and incorrect deposits made by the ring-fenced UK bank.
This sloppy approach, which resulted in around 70 per cent of clients being excluded from the scheme, does not reflect well on the effectiveness of HSBC’s broad compliance teams. get ready.
(tags for translation) Daily Mail