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Britain must launch a new green strategy to prevent business investment from bleeding into the US as a result of President Joe Biden’s massive green stimulus package, the head of the UK’s largest employers’ group has urged.
Tony Danker, director general of the CBI, has warned that the world has entered an arms race of subsidies that could hurt UK investment in green technologies if the government does not step in.
“I am really concerned that the current government is losing the race for green growth,” he told the Financial Times in an interview. It has become an aid arms race. We need to devise our own strategy.”
Brussels last week pledged “unprecedented” investments in clean technologies in a bid to counter the $369 billion US inflation bill. The groundbreaking legislation threatens to lure companies across the Atlantic by making what business leaders recently called “massive” spending commitments.
Dunker called for a package that would involve both deregulation and state funding to allow the UK to “outpace” rather than “spend” on other countries. Without it, he said, the UK was already lagging behind competing leading countries in investing in green technology that will be crucial for the future.
Five more stories in the news
1. Citadel breaks records with $16 billion in revenue Ken Griffin Castle generated $16 billion in profit for investors last year, the largest dollar gain by a hedge fund in history. Citadel, which manages $54 billion in assets, posted a 38.1 percent return in its flagship hedge fund and solid gains in other products, according to research by LCH Investments.
2. US fund managers are looking to Europe for growth Major US investment management firms, including Capital Group, JPMorgan Asset Management, T Rowe Price and BlackRock, plan to expand their long-established offices in Europe as strict anti-Covid measures and rising geopolitical tensions prompt them to redouble their search for growth outside China.
3. Urging the European Union to consider using Russian assets to rebuild Ukraine European Council President Charles Michel has urged EU leaders to explore the idea of managing the Russian Central Bank’s $300 billion expropriated assets to generate profits for Ukraine’s reconstruction.
4. UniCredit CEO cuts bill for consultants Andrea Ursell has halved the Italian bank’s bill for external advisors since taking over as CEO in April 2021, slashing it by at least 75 million euros. The biggest cuts were in fees paid to investment banks and advisory firms such as McKinsey and BCG for operational and strategic advice.
5. Airbus spins off its solar-powered drone program The European Space Group plans to spin off the Zephyr program with the aim of creating a new Earth observation and communications business that will begin commercial operations by the end of next year. Samer Halawi, who heads the programme, said the Zephyr is “now in the final design phase” and Airbus is “ready to monetize this aircraft”.
He faces Panetta from the European Central Bank European Central Bank Governing Council member Fabio Panetta appears before the Committee on Economic and Monetary Affairs of the European Parliament in Brussels.
Ambulance strike More than 2,600 ambulance workers are set to start another day of strike in the UK over their wage dispute. Separately, more than 1,000 Welsh ambulance staff are starting a second 24-hour exit, as well as paying extra salaries.
Nigerian legal trial The African country is set to conduct a high-stakes legal trial in London’s High Court. The case involves a long-running attempt to overturn an $11 billion arbitration award that left the Nigerian government owing more than a quarter of its foreign reserves to a shadowy oil and gas company.
Address of the European Space Agency Director General Josef Achbacher gives the European Space Agency’s annual address, providing an overview of its achievements in 2022 and highlighting new opportunities in 2023.
Corporate earnings Oilfield services company Baker Hughes reports results for the fourth quarter of 2022.
What else do we read
How British Council budget cuts threaten to ‘raise the bar’ While ministers in London promise to “level up” the economies of the UK’s poorer regions, funding from Westminster is getting tighter for some councils as inflation erodes the real value of public spending and even more annual budget cuts are on the cards. Funds are so tight that some councils are on the verge of bankruptcy.
The dangers of magical thinking for health policy Magical thinking is perhaps the worst feature of populist politics, writes Martin Wolf, in which politicians promote simple solutions to complex problems. Will changing the funding model reform the UK health system? And if so, how?
The luxury boom shows the staying power of the wealthy We may be heading towards a global recession, writes Rana Forouhar, but it seems the world’s richest people can’t stop spending money, with spending on luxury goods and experiences increasing by about 20 percent in 2022.
Can Big Tech Make Live Streaming Safe? Platforms such as Instagram and TikTok ban content promoting self-harm, but graphic videos are still broadcast to users in the form of live broadcasts. To better improve risky videos, tech companies are looking to stricter age verification requirements and use AI in moderation.
Forget the CBD Business areas, which are often dead in the evenings and on weekends, are becoming quieter with the advent of remote and hybrid work. Now, there’s a push to create more lively hub areas, centered around socializing rather than just going to the office.
Take a break from the news
From Berlin to Tasmania and beyond, these industrial landmarks have been transformed into chic hotels that offer sophisticated escapes from everyday life.
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