ALEX BRUMMER: Britain’s brilliant future
- Mismatch between perceptions of Britain as basket case economy and reality
- AI start-up Wayze raised £800m of funding for autonomous driving technology
- If AI could do same for NHS or railways, country would have something to cheer
There is a mammoth mismatch between public perceptions of Britain as a basket case economy and the reality. Partly this reflects the state of public services with the NHS struggling, the railways unreliable and our waterways and beaches laden with sewage.
But there is another UK of science, technology and strengthening business investment which promises brighter prospects.
The laggard FTSE 100 index is picking up on this, hitting highs in latest trading of more than 8400.
The economic background plainly is improving with inflation heading towards the target of 2 per cent, the Bank of England plotting an interest rate cut and output going ‘gangbusters’ according to the normally phlegmatic Office for National Statistics.
An Investors’ Chronicle survey shows that Britain stands second to the United States among the G7 richest nations with the largest number of ‘triple A’ companies, well ahead of France and Germany.
Improving economy: There is a mammoth mismatch between public perceptions of Britain as a basket case economy and the reality
In spite of the desertion of UK pension funds from the London Stock Exchange, the best known names in the FTSE 100, including Shell, Rolls-Royce, GSK and AstraZeneca, enjoy backing from the elite league of fund managers. That is among the reasons why a move by Shell to the US, as a result of climate change compulsions and North Sea oil taxes, would be a disaster.
There is a tendency to underestimate the UK’s science base, particularly strong at the great research universities Oxford, Cambridge, Imperial and UCL. The takeover bid for cyber-security pioneer Darktrace is a compliment to Cambridge invention. It reflects badly on the country’s lukewarm attitude towards command and control of the nation’s intellectual property.
It takes overseas business leaders to recognise our strengths. Siemens healthcare is investing heavily in next generation MRI scanning near Oxford because it wants to be closer to best R&D scientists. AZ’s success with immunology treatments for cancer is down to the determination of French chief executive Pascal Soriot and so on.
Innovation continues apace. Only this week British AI start-up Wayze raised £800m of funding (much of it from overseas) for its autonomous driving technology already being tested on the roads of north London. The Wayze demonstration model may have trouble with potholes, symbol of public sector dysfunction, but had no trouble with zebra-crossings and tricky roundabouts. If AI could do the same for the NHS, as Jeremy Hunt plans, or the railways (unions permitting) the country would really have something to cheer.
Plane makers
British Airways owner IAG is flying high again as business travel across the Atlantic, its main profit spinner, recovers.
Operating profits surged in the tough first quarter and leisure travel to the Caribbean and Latin America is strong.
The pandemic may have been disastrous for Britain’s main carriers but the re-pricing, on valuable long-haul routes, means BA is on a good trajectory.
What travellers now need is more reliability. There is still an unfortunate tendency for planes to leave Heathrow to far off destinations such as Bangalore without checked baggage. The Atlantic trade is booming but war in the Middle East is hurting traffic and revenues. Nevertheless, both premium and no-frills carriers, such as Easyjet, are enjoying the revival of tourist travel. A big issue now is a shortage of newly minted, fuel efficient aircraft. Boeing is struggling with quality and Airbus is behind schedule on filling new orders. Who would have thought?
Bevis Marks
The City of London skyline has been transformed by creatively shaped tower blocks. In an age of more working from home it might be thought enough was enough.
One 48-floor tower which is definitely not needed is adjacent to Bevis Marks Synagogue, the oldest in Britain, dating back to 1701. It is effectively the Jewish St Paul’s. The sanctuary is both an operating place of worship and monument to the enormous contribution which Anglo-Jewry has made and still makes to UK success as a global financial centre.
At present the sky view is unobstructed, allowing worshippers to view the moon and the stars from the courtyard. A Corporation vote to obliterate such a sacred heavenly view would be an act of sabotage.
