There's a weirdly upbeat mood in the city

Are we in denial?

No one seems quite certain whether these are the best of times or the worst of times for the City. Well, OK, few think these are the best of times (that accolade still belongs somewhere back in the pre-2008 boom). But while there are still major problems in the banking sector, including what to what to do on executive pay and bonuses and how to deal with the fallout from scandals such as Libor-rigging and the sale of dodgy loan insurance products to SMEs and individual, there is nevertheless an upbeat mood in the air. This is most obviously epitomised by the FTSE 100 share index, which crashed confidently through the significant 6,300 mark last month and with only a few minor blips since has continued to regain heights not previously seen since before the crash.

But there has also been a noticeable upswing in corporate finance activity, with a rash of major M&A deals either done or on the cards.

In the last week there have been announcements about the leveraged buyout of a majority stake in computer giant Dell, the acquisition of Virgin Media by Liberty Global and even rumours of a private equity backed leveraged buyout of a significant chunk of the UK’s largest mobile telecom provider EE (formerly Everything Everywhere, itself formed from a merger between Orange and T-Mobile). All these deals point to a more buoyant start to 2013.

There have been several theories hatched to explain this sudden upswing. It started with a growing belief towards the end of last year (misguided according to the more bearish commentators) that the actions of the European Central Bank (ECB) and others have done enough to make the euro crisis recede, if not go away all together.

Then the US managed to avoid dropping off the fiscal cliff (again the bears would suggest that we’re not out of the woods here either, with a no real budget agreement struck and the pain merely deferred). But all these attempts to rationalize this upswing (which has so far not been matched by any sort of similar recovery in the real economy) don’t really explain it enough. Now, there will be plenty of people keen not to ask too many questions.

So desperate have we become for good news (any good news) that it seems like heresy to even question the source of any optimism.

The rest of this article can be read here, on economia

Photograph: Getty Images

Richard Cree is the Editor of Economia.

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The economics of outrage: Why you haven't seen the end of Katie Hopkins

Her distasteful tweet may have cost her a job at LBC, but this isn't the last we've seen of Britain's biggest troll. 

Another atrocity, other surge of grief and fear, and there like clockwork was the UK’s biggest troll. Hours after the explosion at the Manchester Arena that killed 22 mostly young and female concert goers, Katie Hopkins weighed in with a very on-brand tweet calling for a “final solution” to the complex issue of terrorism.

She quickly deleted it, replacing the offending phrase with the words “true solution”, but did not tone down the essentially fascist message. Few thought it had been an innocent mistake on the part of someone unaware of the historical connotations of those two words.  And no matter how many urged their fellow web users not to give Hopkins the attention she craved, it still sparked angry tweets, condemnatory news articles and even reports to the police.

Hopkins has lost her presenting job at LBC radio, but she is yet to lose her column at Mail Online, and it’s quite likely she won’t.

Mail Online and its print counterpart The Daily Mail have regularly shown they are prepared to go down the deliberately divisive path Hopkins was signposting. But even if the site's managing editor Martin Clarke was secretly a liberal sandal-wearer, there are also very good economic reasons for Mail Online to stick with her. The extreme and outrageous is great at gaining attention, and attention is what makes money for Mail Online.

It is ironic that Hopkins’s career was initially helped by TV’s attempts to provide balance. Producers could rely on her to provide a counterweight to even the most committed and rational bleeding-heart liberal.

As Patrick Smith, a former media specialist who is currently a senior reporter at BuzzFeed News points out: “It’s very difficult for producers who are legally bound to be balanced, they will sometimes literally have lawyers in the room.”

“That in a way is why some people who are skirting very close or beyond the bounds of taste and decency get on air.”

But while TV may have made Hopkins, it is online where her extreme views perform best.  As digital publishers have learned, the best way to get the shares, clicks and page views that make them money is to provoke an emotional response. And there are few things as good at provoking an emotional response as extreme and outrageous political views.

And in many ways it doesn’t matter whether that response is negative or positive. Those who complain about what Hopkins says are also the ones who draw attention to it – many will read what she writes in order to know exactly why they should hate her.

Of course using outrageous views as a sales tactic is not confined to the web – The Daily Mail prints columns by Sarah Vine for a reason - but the risks of pushing the boundaries of taste and decency are greater in a linear, analogue world. Cancelling a newspaper subscription or changing radio station is a simpler and often longer-lasting act than pledging to never click on a tempting link on Twitter or Facebook. LBC may have had far more to lose from sticking with Hopkins than Mail Online does, and much less to gain. Someone prepared to say what Hopkins says will not be out of work for long. 

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