The inability of the Conservatives to project a more positive image of Britain’s economic and financial progression is hugely frustrating.
Headlines are dominated by failure, as Royal Mail mismanagement and the escalating cost of nuclear at Hinkley in Somerset, managed by state-owned French power firm EDF, is down to lack of leadership on Downing Street.
The polls show the public still has the impression the UK is in a unique cost of living crisis when inflation, the odd blip notwithstanding, is tumbling along with borrowing costs.
Britain’s purchasing managers’ index continues to strengthen, aided by buoyant services.
There is much that Britain, the fifth-largest economy in the world, does better than its competitors.
Enterprise: Foreign direct investment in UK finance rose 68% in 2021-22 with asset managers and fintechs opening offices and creating 15,000 jobs
A more alert Government machine would have been all over the airwaves over the last 24 hours trumpeting the annual review of Britain as a leader in financial and business activities compiled by the City Corporation and Treasury.
Excellence, in a part of the economy many forecast would be eviscerated by Brexit, is intact.
The report, which marks the City’s performance against those of other world centres using 101 gauges, found London top of the league. New York is second, Singapore third and Frankfurt and Paris trail.
This is not say that everything is wonderful. The London stock market has lost ground in attracting overseas listings.
But there is much to shout about from the rooftops. Foreign direct investment in UK finance rose 68 per cent in 2021-22 (the latest numbers) with asset managers and fintechs opening offices and creating 15,000 jobs. Who knew?
Some £4.2trillion of assets for overseas clients are run from the UK. Pity is, that with so much investment firepower in Britain, so little finds its way into London-listed equities.
Moreover, even though Britain has 138 unicorns – start-ups valued at $1billion (£784million) or more – there are real questions as to how many will go on to be national champions and avoid overseas predators.
Unlocking pension assets is going to be a key issue for the next government whatever its political colour.
One of the difficulties with British enterprise is that business services, at which we are winners, are hard to see. There are no magnificent wind turbines, gleaming factories, cranes or robotic-picking warehouses.
But they generate vast income – management consulting £42billion, other business services £62billion. That’s before other fields such as travel, telecoms and data are counted.
There is a view that services consist of haircuts and coffee shops, and only contribute marginally to prosperity.
The Tories, if they could communicate better, have a formidable tale to tell. Instead, they’re intent on self-immolation.
Travel bug
Here is a puzzle. Shaking off the memory of 2022-23 cost of living pressures is seen as the biggest impediment to incumbent governments in Britain and the US returning to power.
Yet, in spite of supposedly squeezed household budgets, there is an insatiable demand for overseas travel.
Easyjet is a case in point. The no-frills carrier has written off £40million as a result of suspension of flights to Israel and Jordan because of the Gaza conflict. However, the shares spurted up 5 per cent early yesterday.
The jump reflected a smaller first-quarter loss than projected and optimism from boss Johan Lundgren about ‘travel remaining a priority’.
The stock is up 57 per cent since January last year in spite of geopolitical turmoil and worries about jet fuel prices.
Confidence is reflected in a decision to press ahead with 16 new aircraft.
A decision to use CFM engines, made by GE and Safran, underlines the imperative for UK engine maker Rolls-Royce to get back into narrow bodied jets.
Jet streaming
Much excitement about Netflix acquiring 13m new subscribers in the fourth quarter.
As fascinating, is the £3.9billion deal between Netflix and WWE to broadcast the Raw and Smackdown wrestling franchises.
Sports aficionados may regard WWE as less exercise and more entertainment. But the writing could be on wall for cable broadcasting of sport.
Amazon Prime is investing in Major League Baseball in the US. Next in line for a big streaming payday is the National Basketball Association. Can subscription cable withstand the onslaught?
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