Six things from the last few weeks you should be really angry about

Forget Snowden.

For those people who prefer to live their lives in a state of permanent opposition to pretty much everything, Edward Snowden’s decision to leak classified information through The Guardian newspaper about US and UK government internet surveillance techniques has been manna from heaven. No matter the rights and wrongs of Snowden’s actions it keeps the idea going that there is another ‘Watergate’ moment out there if only we could find it.

But to me, if you really do want to live your life in a perpetual state of internet-based emotional froth, then there is plenty enough truly shocking information out there, released every day, to have you bouncing up and down on your chosen hand-held or desk-based device whilst punching the air and exclaiming "I told you so!!!!" without you necessarily having to go down the road of believing that the moon landings were fake. 

So here are six things from the past two weeks you should really be puce with indignation about, but probably aren’t.

  1. Venezuela is falling to pieces Inflation is nearly 50 per cent, driven mainly by food prices, and President Nicholas Maduro is slipping back into old school South American Marxist language. ‘Yankees go home’ he proclaimed in a television broadcast last week. Rich Venezuelans have reacted to the lack of US dollars by going to the US and borrowing currency on credit cards and bringing it home to buy goods. The economic chaos is worsening as Venezuela increases its dependence on oil – a suicidal policy in itself.  But it is the urban poor who have been hit hardest as food prices rocket. The last time this happened, in 1989, 2,000 people died in the ensuing "Caracazo".
  2. Follow the Yellen Brick Road Job creation in the US is trundling along at a predictable pace and by the end of April 2014, at the current trajectory, all of the jobs lost in the 2007-2008 melt down will have been regained. Should Janet Yellen survive the process of becoming the Chair of the Federal Reserve then her first task may be to consider whether to signal the end of US pump priming known as Quantitative Easing. It may have already occurred by then of course but given the appalling mess that the Fed made of their last attempt to test the water in the disastrous May/July period this year, sending mortgage interest rates up by 1.5 per cent and stopping bank lending in its tracks, you would expect them to be a bit clearer next time.
  3. The financial crisis has moved to its fourth stage It started in personal finances, moved into the banks, caused local government to contract and now finally it is reaching national governments. Watching the US go through the ritualised partisan wrangling over increasing the debt ceiling reminds us that the loudest echoes of the financial crisis have not faded, we have just been deafened to them. This new form of democracy – one with a gun to its own head – seems to be saying "Give me what I want or I’ll shoot" to the financial markets. One day someone will miscalculate and this will go very wrong. 
  4. The markets are calmer when there is no information being released It’s been rather pleasant doing this job in the past couple of weeks. Days go by and nothing major happens because many of the data gathering and releasing departments in the US are shut. Stock markets, bond markets and currencies still move but with nothing like the ferocity seen in the past. It is a reminder of how reactionary markets and news sensitive the system has become. It almost feels like an argument to reduce news flow rather ‘increase transparency’ which is the modern mantra and one that appears to do little but "increase anxiety".
  5. Help to Buy has nothing to do with helping people to buy houses The UK needs another housing bubble like it needs a hole in the head. The fact is the UK banking system is shrinking and no capitalist system based on borrowed money can propel itself without a fully functioning banking system. If you add together the outstanding loans of Barclays, the Royal Bank of Scotland and Lloyds then you can see that although deposits continue to rise, the value of loans is declining. To be fully functioning, systems like ours need both trust and confidence which just so happen to be the two major ingredients missing from our society. Help to Buy is a psychological scheme designed to get people back into the idea of borrowing money from banks.
  6. The Bank account of China swelled to USD3.7trn last month Whilst we have been tightening our belts as part of the latest of our episodic crises, China has continued on with its 30-year plan.  Their collective bank account swelled by another $165bn last month. UK Chancellor George Osborne has announced he is going to relax visa application rules to make it easier for Chinese visitors to come to the UK  - you can understand why given our own collective bank account is empty.

I shall now return to my hollowed out volcano somewhere in the South Pacific to discuss the future with John F Kennedy, Jimmy Hoffer and Lord Lucan and hope the US and UK governments aren’t hacking my router. It would be embarrassing to know they can see me catching up on "Strictly – it takes two’".

Photograph: Getty Images

Head of Fixed Income and Macro, Old Mutual Global Investors

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.