BUSINESS WITH PERSONALITY CHUKA’S CHALLENGE NEW MONEY MATTERS IMF AND WORLD LIB DEM EYES TOP TORY CITY BANK GATHERING SEAT AT NEXT ELECTION P17 IN WASHINGTON P8 MONDAY 14 OCTOBER 2019 ISSUE 3,477 CITYAM.COM FREE CAREER GUIDANCE Jobs market robust despite political uncertainty CBI£196BN ATTACKS ‘EYE-WATERING’ COST OF LABOUR’S PLAN TO BRING RAIL, ENERGY AND ROYAL MAIL IN HOUSE JAMES WARRINGTON estimated £2bn per year. The latest figures come after the In addition, renationalisation could Centre for Policy Studies (CPS) esti- @j_a_warrington reduce the holdings of savers and mated Labour’s renationalisation THE LABOUR party’s plans to rena- pensioners by roughly £9bn — equiva- scheme would cost at least £176bn. tionalise water and energy utilities, lent to £327 for every household in Robert Colvile, CPS director, said the train companies and the Royal Mail the country. CBI’s analysis vindicated this figure would cost at least £196bn, new analy- CBI chief economist Rain Newton- and highlighted the need to “raise the sis by the country’s biggest employer Smith said the plan’s price tag was alarm” over Labour’s plans. organisation has revealed. “close to £200bn — and that’s only the “John McDonnell’s continued refusal The huge sum is equivalent to the starting point”. to recognise the scale of additional total amount of income tax paid by “There are so many other genuine borrowing involved in renationalisa- UK citizens in a single year, and is priorities for public spending right tion, or to provide adequate estimates almost as much as the government’s now, from investing in our young peo- for it, is deeply worrying. It is clear to annual budget for health, social care ple to the transition to a low carbon everyone that there is more to do to and education combined. economy and connecting our cities improve the performance of these Under leader Jeremy Corbyn and and communities. These issues are companies, but many of the problems shadow chancellor John McDonnell, what keep businesses up at night and stem from an absence of competition, Labour has outlined proposals to what they want to see the govern- rather than the lack of public owner- ANNA MENIN cent during the period. But despite bring key privately-run industries ment get on with addressing.” ship. Renationalisation remains a solu- this uptick in positions and demand, under public ownership if it wins a The CBI said while the government’s tion in search of a problem.” @annafmenin year-on-year comparisons for City General Election. assets would increase from nationali- Previous estimates have also warned THE NUMBER of financial services jobs are stark. In a report published today, the CBI sation and there would be potential that Labour’s so-called inclusive own- jobs available in London increased The third quarter witnessed a 37 said the upfront cost of this move, for increased revenue, the confidence ership fund, which would hand a during the third quarter, alongside per cent decrease in jobs available, which it described as “beyond eye-wa- of international investors would be tenth of shares to workers, would cost the number of job seekers, but year on year, and a 25 per cent tering”, would be compounded by severely hit if Labour refused to pay investors £300bn and would effec- political uncertainty is still casting a decrease in job seekers. ongoing maintenance and running market value for the industries. tively raise UK corporation tax to the cloud over the capital’s job market. Hakan Enver, Morgan McKinley UK’s costs, as well as a hefty impact on the The party has already suggested it highest rate in the developed world. Between July and September, the managing director, said businesses UK’s public finances. would not necessarily pay market A Labour party spokesperson said number of new financial services continued to put off “all but essential The business group said debt could prices for Britain’s energy networks, the report “sadly reveals that [the roles increased 12 per cent on the hiring” as they await a resolution on surge more than 10 per cent to the while a proposed £15bn offer for the CBI is] more interested in protecting previous quarter, according to a the UK’s exit from the EU. highest level since the 1960s, while UK’s water industry is less than half shareholders than in creating a fair report by Morgan McKinley. servicing this debt would cost an its estimated market value of £44bn. economy.” New job seekers also rose 12 per £ CONTINUES ON P3 Plans to ‘keep City ahead of the pack’ will form part of Queen’s Speech EXCLUSIVE Financial Services Bill in its “long term market access” for It will propose the UK should deemed to be responsible for SEBASTIAN MCCARTHY legislation as part of an effort to financial services firms in implement an Australian-style human rights abuses. AND STEFAN BOSCIA ensure the sector stays at the Gibraltar. points-based immigration system The act, signed into law by then forefront of international trading The source said: “We’re post-Brexit, which ranks visa US President Barack Obama in @SebMcCarthy @Stefan_Boscia after it leaves the EU. determined the City will stay ahead applicants based on characteristics 2012, is named after Russian PLANS to safeguard the City’s A Whitehall source said that of the pack after Brexit.” such as education, language skills accountant Sergei Magnitsky who global pre-eminence after Brexit chancellor Sajid Javid will reveal The Queen’s Speech will also and work experience. died in custody after making will be laid bare later today in the measures including the outline plans to reform the Mental Today’s speech is also expected corruption allegations against state Queen’s Speech. simplification of rules around the Health Act, implement tougher to include a law similar to the US officials in 2008. City A.M. understands the sale of overseas investment funds prison sentences and replace the Magnitsky Act, which allows visa government will include a in the UK as well as the delivery of current rail franchising system. bans and asset freezes on people £ CONTINUES ON P5 FTSE 100▲7,247.08 +60.72 FTSE 250▲20,041.71 +805.99 DOW▲26,816.59 +319.92 NASDAQ▲8,057.04 +106.26 £/$▲1.264 +0.200 £/€▲1.145 +0.015 €/$▲1.104 +0.044 02 NEWS MONDAY 14 OCTOBER 2019 CITYAM.COM TYPHOON HAGIBIS Japan sends in tens of thousands of troops as deadly typhoon kills at least 30 and leaves towns under water THE CITY VIEW Markets have shown what a deal may yield HIS IS the week in which it will become clear whether Boris Johnson’s government has secured an agreement Twith the European Union. If he has (and the signs are encouraging, if not yet cause for celebration) then he’s only half way out of the woods. MPs will sit on Saturday — the first weekend sitting since the Falklands War — when they will either accept or reject the government’s proposals. Wavering Brexiters are being offered warm words by Jacob Rees-Mogg while between 20 and 30 Labour MPs are poised to back a deal, against Jeremy Corbyn’s command. The DUP will be hard to please and some anti-Brexit MPs, including those slung out of the Tory party by Johnson, will try to ensure that any deal is put to a “confirmatory referendum”. So, hurdles remain. A glimpse of what life could be like on the other side of a deal-signing JAPAN has sent tens of thousands of troops and rescue workers to save stranded residents and fight floods caused by one of the worst typhoons to hit the country in recent history. At least 30 people were killed and vast sections of towns were left under ceremony emerged at the end of last week, when news first water, public broadcaster NHK said. Another 15 were missing and 177 injured, while 100,000 homes were left without power. emerged that Johnson and Ireland’s Leo Varadkar had If MPs are offered enjoyed positive and a deal at the end of productive talks. When JP the week, they Morgan declared on Friday afternoon “we now expect a must take it deal” (having previously British financial services given such an outcome a mere 35 per cent chance), sterling spiked to a three and a half- month high against the dollar while the FTSE witnessed some tremendous gains. RBS, Lloyds, Barclays and HSBC all closed higher as did Bovis, Persimmon, Taylor Wimpey and Berkeley leads way on automation Homes as investors contemplated a housebuilding sector free ANNA MENIN from the risks of a no-deal exit. Analysts also attributed large some human oversight alongside embedded the technology. @annafmenin access to a human adviser for key deci- However fintech is driving job cre- gains in the utilities and energy sectors to the fact that a Brexit sions,” said Hayer. ation within financial services in the deal reduces the likelihood of a Labour government after the FINANCIAL services firms in the UK This dilemma appears to be preoccu- UK, with the majority (63 per cent) of next election — the costs of which are laid bare on our front are integrating robo-advisers into pying firms, with 27 per cent of UK firms creating new positions as a their ranks faster than their global firms reporting they do not think they result of the technology. page today. While more and more City voices claim they would competitors in a bid to harness the are meeting customer expectations Yet despite the majority of UK finan- reluctantly prefer no-deal to yet more delay, a negotiated technology to retain customers — or with the right balance of digital and cial services firms hiring from both outcome remains infinitely preferable.