Anthony Hilton: Bosses are sitting on their cash – or are they?
Friday 18 January 2013
Ian McCafferty, the latest recruit to the Monetary Policy Committee, noted in his maiden speech today that whole sectors of the economy were not behaving as past experience suggested they would.
Thus large companies are awash with cash and interest rates are as low as they could be, so they ought to be investing for the future. But in fact that they are not, or do not appear to be.
So here are three reasons why things might be different. First, company bosses get their bonuses on short-term performance so are reluctant to take long-term investment risks. Second, as long as the stock market is pessimistic executives do not want to make optimistic moves in case their City critics think they have lost the plot. Third, a lot of investment these days does not involve buying big items of kit. It is computer-based, where the costs do not show up in conventional statistics. In other words, no one has a clue what is going on.
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 5 Terror threat level raised to severe as PM warns Isis risk could last for decades
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Terror threat level raised to severe as PM warns Isis risk could last for decades
Isis 'A Message in Blood' video shows beheading of Kurdish man in Iraq
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- < Previous
- Next >
iJobs Money & Business
£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...