Banking

If Ikea were a constituency, it would be a three-way marginal. That was my thought one morning last week as I walked a mile and a half round the Batley branch of the great Swedish retailer behind two keen shoppers (one wearing a pedometer) whom I had driven there as a birthday treat. Here are middle-aged parents buying nursery stuff for pregnant daughters, engaged couples fitting out first flats, Polish families bickering over bargain kitchenware, Muslim housewives chattering behind niqab facemasks, and even what I thought might be a transsexual under a blond beehive. There’s a Scandinavian sense of equality: no fast track through the labyrinth, no exclusive luxury floor.

The interesting thing about Labour’s pledge to abolish non-dom tax status — a squib designed to trap Tories into expressing sympathy for the rich, in the knowledge on the part of Ed Miliband and Ed Balls that it might cause loss of tax revenues and inward investment — is that it has been welcomed by influential voices in the City. The Eds must be astonished to find Sir Roger Carr, chairman of BAE Systems and former deputy chairman of the Bank of England, bang on message: he told the FT that non-dom rules are ‘a relic of the past that unfairly favours the few at the expense of the many’.

The FTSE100 index has at last breached 7,000, surpassing its peak of 30 December 1999 and provoking moderate celebration among investors who have enjoyed such poor returns all these years. A thousand pounds invested in FTSE100 stocks on Millennium Eve, with dividends reinvested, was worth £1,670 by last month, an annual return of 3.4 per cent compared to inflation over the period of around 2.9 per cent. The same sum invested in a London house would have been worth £3,200, nearly twice the return on shares if we ignore running costs and the leverage effect of mortgage borrowing; invested on the rollercoaster of gold bullion, it would have been worth

Of all the measures talked up ahead of the Budget, the reannouncement of a ‘radical’ review of the business rates was the least concrete in content but the most important in potential impact on the domestic economy, and especially on business investment. This column has banged on for years about the iniquity of a system that imposes the highest local taxes on businesses of any EU country, based on pre-crash rental assessments and bearing no relation to the value of diminishing local authority services. It’s a system that, on top of other economic woes, has brought devastation to town centres — and gets away with all this because it has

In my Yorkshire town of Helmsley the NatWest branch, originally an outpost of Beckett & Co of Leeds, has closed down — collateral damage of its crippled parent RBS’s continuing struggle for viability. Our branch of the Australian-owned Yorkshire Bank, descendant of the West Riding Penny Savings institution, became an antique shop some time ago. HSBC, formerly Midland, is now a hairdressing salon. When they arrived a century ago, all three were ‘challenger banks’ of their day. But now they have gone, no challengers have ridden in to replace them — unless we count Handelsbanken, the progressively old-fashioned Swedish retail bank that has a thriving franchise down the road at

One day you’re an elder statesman, chairing top committees and pontificating on Question Time, and the next you’re out in the cold, reading terrible headlines about yourself in the newspapers you’re trying to sleep under on a park bench. Well, perhaps not as bad as that — but as it is for former foreign secretaries, so it is for overseas bankers. Standard Chartered chief executive Peter Sands, I wrote in 2012, was ‘one of the few British bankers whose reputation has actually risen in recent years’; his bank was a ‘dull old dog’, but it was also steadily profitable and sensibly managed. Then came sanctions-busting scandal, unwise expansion, slipping profits

Ever since European Central Bank president Mario Draghi declared himself ready, in July 2012, ‘to do whatever it takes to preserve the euro’, the likely disintegration of the single currency — as predicted by pundits such as yours truly over the preceding years — has all but disappeared from the comment agenda. The combination of a persuasive ECB leader with reform in some bailed-out eurozone states (notably Ireland and Spain) and an easing of bond market pressures, plus the iron will of Germany to see the euro survive, drove the break-up argument into retreat. Indeed it seemed for a while to have been vanquished, and that ex-president Valéry Giscard d’Estaing

You might recall a column I once wrote about a party at the Wallace Collection. It took place in late 2008, the host was the US investment bank Morgan Stanley, and I compared the assembled financiers — who saw the crisis then raging as just one more opportunity to make money out of volatility in markets that were bound to swing round again — to the circle of dancers in Poussin’s ‘Dance to the Music of Time’, which hangs in the Great Gallery there. Far-fetched perhaps, but I have a weakness for allegories. On a pre-Christmas visit to the Wallace, I found the gallery splendidly refurbished and re-hung. The ‘Dance’

For decades, interventions of the Archbishop of Canterbury in national debate were like a sporadic bombardment of small pebbles against the door of Downing Street. Justin Welby has changed all that. This week, payday loan companies are facing reform (or in some cases oblivion) as new caps on interest payments come into effect. That the industry finds itself in this position is thanks, in no small part, to it having been hooked around the neck by the Archbishop’s crosier. Welby has inspired reform of the industry not by trying to set himself up as the leader of the opposition in a cassock, but by acting as an effective leader of

Continuing last week’s theme, it was the Italian banks — with nine fails, four still requiring capital injections — that bagged the booby prize in the great EU stress-testing exercise, followed predictably by Greece and Cyprus, while Germany and Austria (with one fail each) fared better than some of us had feared. The most delinquent European bank turned out to be the most ancient, Banca Monte dei Paschi di Siena, which was judged to have a capital shortfall of €2.1 billion as a result of a very modern set of problems. Founded in 1472 as a kind of charitable pawnbroker, the bank which eventually became Italy’s third largest had a

This dispatch comes to you from Venice — where I arrived at sunset on the Orient Express. More of that journey on another occasion, I hope. Suffice to say that if you happen to have been wrestling with the moral choice of bequeathing what’s left of your tax-bitten wealth to ungrateful offspring or spending it on yourself, don’t hesitate to invest in a last fling on this time capsule of elegant extravagance. Made up of rolling stock built in the late 1920s, the train itself symbolises everything that 20th-century Europe was good at — engineering, craftsmanship, style, cross-border connections — when not distracted by political folly and war. Views from

October is always a turbulent month, and I’m feeling uneasy about this one. The FTSE100 index, which looked set to break through 7,000 in September, has lost more than 500 points since then — and would have lost more but for manoeuvres in the mining sector. Pessimism stalks the bond markets, and even a falling oil price is read more as a harbinger of faltering growth than a stimulus for further recovery. Ebola is the new volcanic ash cloud, and attention is focused on the apparently incorrigible weakness of the eurozone — where the biggest problem is what was long seen as the most potent solution, namely the German economy.

Four years ago, I wrote that I knew no dark rumours about Santander, the rising force in UK high street banking, but that history taught me banks which expand rapidly and globally ‘always come unstuck in the end… partly because the challenge of risk control across such vast portfolios becomes impossible… Banks that have been driven by one powerful personality also tend to lose management grip, and start finding skeletons in cupboards, as the big man comes to the end of his tenure.’ The big man in question was third-generation chairman Emilio Botín — who died in post last week, aged 79. Santander is now Europe’s largest financial group, but