Tag: news

The slow painful walk back from Brexit…

~ Julian Samways ~ Leave a comment

Why are politicians of many mainstream parties not coming clean? I am thinking of Labour, the LibDems and exiled Tories. They shy away from support for joining the single market or full scale EU membership for fear of opening old Brexit wounds.

A bold move on closer EU alignment might just be what this government needs…

Grow a backbone. Recent opinion polls are damning of Brexit. Only 31% of voters now think it was the right decision to leave the EU. 61% of voters say Brexit has been more of a failure than a success. Johnson and the Conservative Party take the most blame followed by a host of former Tory leaders and, of course, the lovely Nigel Farage. This is why it will be a long road back to power for the Conservatives and why this blog believes we are ‘enjoying’ peak support for Reform UK who have flatlined on 27% of the vote share.

Just pop the impact of Brexit into AI. UK GDP is 6-10% lower than it would have been without Brexit, business investment is 12-18% lower, productivity 3-4% lower, jobs are 1.8 million fewer, UK trade has fallen relative to our economy’s size. The list goes on. Brexit has been a disaster. And that is before the changed national security environment where the whole of Europe is threatened by Russia.

The Labour government are tip toeing back into the EU’s ambit. It is called a ‘pragmatic reset’ apparently. Ties are deepening through agreements on trade such as a veterinary agreement, recognition of professional qualifications etc. but it is painfully slow. It has just been announced that the UK is finally set to rejoin the Erasmus student exchange scheme from 2027. Whoopee!

Government is painfully slow. It is why Labour is being so punished in the polls. Surely aligning with the EU at least in terms of the single market would be a bold and mostly popular move, particularly as leaving the EU has hardly curbed immigration…

Of course there is one major blockage. The EU currently really doesn’t want the psycho drama of Britain rejoining the EU, particularly with Reform UK riding high in the polls. And I guess, who could blame them?

What a mess. The UK political system has done huge damage to our economic future and national security, from the referendum itself to the way we left the EU. Moderate politicians of all parties should make this clear and move fast to correct the impact. You never know, it might even help them at the polls…

P.S. One more blog this year. I promise it will be festive…😁

Trump appalls at almost every level

~ Julian Samways ~ Leave a comment

A wise Sky News commentator said about Trump before his election that his world view was just to carve up the globe between three admirable (in his eyes) strongmen; Xi, Putin and himself. This amoral/immoral approach with little role for democracy appears to be the driving force behind the Trump administration’s new national security strategy published last Friday.

It trashes Europe, warning the continent is ‘subverting democracy’ and faces ‘civilisational erasure’ from high migration. What a load of nonsense and all this coming from a government that is domestically subverting the rule of law, issuing pardons to murderers (January 6th) and drug traffickers. And that is before wide scale state capture as Trump and his cronies enrich themselves at home and abroad, mixing foreign affairs with private business interests.

This sorry national security strategy goes on to attack the EU generally but depicts Russia as no longer a security threat. Selling out Ukraine seems to be a priority, reinforced by a disgraceful interview with Trump yesterday. Meanwhile, China is pushed down America’s list of priorities and consequently, its power grows ever stronger. Lastly, not covered by this document is the mismanagement of India, a future superpower in its own right which is being driven into the arms of Putin via sanctions. And what is the obsession with Venezuela?

The US under Trump and JD Vance can no longer be seen as a friend of democracy or a remotely reliable ally of the UK or Europe. Perhaps the Sky News commentator was too cautious in his assessment of Trump…

It all makes grim reading and grimmer listening. I am a news junky but during my recent trip to the US felt the need to avoid any television, being sick of the sight and sound of Trump.

Sick of the sight and sound of him…

Then back at home, culturally, as the Trump administration seeks to row back from any form of political correctness on the grounds of ‘freedom’, Trump not only threatens universities, museums and media outlets, but has starkly seized control of the Kennedy Center now referring to it as the Trump Kennedy Center. At the weekend, Trump personally hosted the Center’s annual honors gala, politicising the whole event, rewarding his cronies in front of a MAGA friendly crowd. No wonder ticket sales generally at this venerable institution have plummeted.

The damage Trump is now doing to the fabric of this nation is incalculable. Collapsing approval ratings for Trump’s actions are no protection and focus turns increasingly to the mid-term elections next year to curtail his power. Democrats, responsible for Trump’s victory in the first place and currently in disarray, are not guaranteed to win. Incalculable damage may turn into irreversible damage and that is very bad news for all of us.

Starmer is back, and Labour is the only option… for now…

~ Julian Samways ~ Leave a comment

Reasonable, reasonable, reasonable. That is the only way to describe Labour’s conference. My, the government has had a grim start and needs to deliver, but it is the only game in town.

Two speeches stood out for me. Wes Streeting, a gifted orator, seems to be making waves in the NHS. In a good way. His embrace of technology, cutting bureaucracy, and forcing GP surgeries to be more flexible is convincing. The NHS has had a ton of money thrown at it, so Streeting better deliver, but it feels a reasonable start.

Then, Starmer’s speech. He had a spring in his step, possibly because his stalker, Andy Burnham, blew up at the conference. An interview telling voters he would not be dictated to by bond markets just emphasised his trouble making naivety. He is a lightweight, and it showed.

Starmer had a good week… finally…

Starmer was finally passionate about the country he leads, ripped into Farage, and Reform with legitimate force and comprehensively outlined what his government was seeking to achieve. He was moderate but passionate. Above all, reasonable, a rare trait in democratic politics currently.

The reason I have never voted Labour is its management of the economy. The state always gets bigger when a Labour government is in power, public expenditure runs out of control, and aspiration never seems to be a priority. But even this government knows we can not continue in this direction. It needs business, it needs to free up the economy, it needs to get people off benefits and back into work. Delivery is key, the next budget crucial and backbenchers surely now realise they have to fall into line when tough decisions are required.

Farage and Reform are vile. You can understand the frustrations that has put this merry band ahead in the polls, but they would tear the country apart. The LibDems remain irrelevant, and the Tories are only just beginning to understand their route back to power is the economy, stupid.

If your politics are mainstream, Starmer’s government is the only game in town for now. Labour reassured this week.

Panic over Starmer’s judgement; calm down and carry on…

~ Julian Samways ~ Leave a comment

It’s the media at its worst, and it’s Starmer at his worst.

All the right-wing media and quite a selection of other media too are circling the government with a little help from Starmer’s enemies in the wider Labour Party. Stop it. If not Starmer, then it will be Farage, not Badenoch (the Tories are currently dead in the water until they find a new long-term leader with real ability), Davey, or anybody else. If that’s not what you want, Starmer is pretty much the current best hope of preventing populism from succeeding in this country. For those who think Farage won’t be a problem, be very careful what you wish for. A Reform government in any shape or form would be a disaster and a betrayal of all the moderate values this country is known for and has worked so hard to defend. That is what we should be proud of, not the damn flag and the 110,000 out and proud Tommy Robinson racists who despoiled the streets of London at the weekend.

Give him a break, he has Donald Trump in the UK to contend with…

Starmer has got things wrong and has seemed hopelessly flat-footed, but he is hardly responsible for Rayner’s tax affairs. He certainly got Mandelson’s appointment wrong, but it is not impossible to see why you might want Britain’s best trade negotiator in Washington and that bit of the equation probably paid off.

As far as who might replace Starmer, the much mooted Andy Burnham is a blow hard who’s alleged successes as mayor of Manchester were brought down to earth in the Sunday Times at the weekend. Why on earth would a so-called ‘soft left’ politician solve our current problems? I met a Labour peer relatively recently who was my opponent in Manchester Withington when I stood for parliament many years ago. He damned Burnham with very faint praise, saying he was only as good as the people around him. Umm…

Let alone the Trump visit this week, the budget in November must be relatively error free, and Starmer also needs to acquire some emotional intelligence in dealing with his colleagues. That would go a long way to easing some current resentments. But make no mistake about it. Labour colleagues and even many in opposition parties should wish him well because the current alternative according to opinion polls is not a refreshed Labour government under a new leader but something very unpleasant indeed. It would make divisions over Brexit seem like Halcyon days…

Oh dear: Moderates seem to be failing everywhere…

~ Julian Samways ~ Leave a comment

How bad can it get? The centre-right has collapsed or is collapsing in the USA, UK, France, Italy to name just a few countries. To be fair, centre-right, centre-left moderates are hanging on in Sweden, Norway, Poland, Germany, Australia, and Canada, but the populist threat is rising across the board. Picking a row with Donald Trump seems to be the short-term route to salvation.

As for the UK, bloody hell! This blog welcomed Starmer’s pragmatism, but if that is a substitute for absolutely no core beliefs, we have a problem.

Starmer, like Sunak, seems to be deaf politically and cuts an unsympathetic figure. I have repeated this before, but he needs to be brutally honest on taxes, cut through on housing, the NHS, and small boats. Actually, just get things done. Otherwise, this government is toast and currently it is our last hope. After Rayner’s departure, I think he might have the cabinet he wanted even if by accident. Let’s see. Umm… as I write this Starmer has just lost his US Ambassador, Peter Mandelson, over his friendship with Jeffrey Epstein. Did nobody check these links, particularly when we had a good Ambassador already in situ who had built close ties with Trump’s administration? It smacks of general incompetence laced with hypocrisy guaranteed to infuriate voters.

One law for moderates, another law for voters…

Despite day to day errors, the unpopularity of moderates generally has come about because of their fundamental incompetence in relating, managing expectations and delivering for voters. You can combine this with a fair amount of dishonesty, as mainstream politicians treat politics purely as a career rarely built on a set of consistent beliefs which chime with the electorate. Often self-serving and easily judged as hypocritical (see above), why shouldn’t voters go for populists? They feel there is nothing left to lose (until they have lost big time as they would be worse off on every front), as little seems to change, living standards have plateaued or gone backwards, and nobody is levelling with them. Respect for state institutions and indeed democracy itself is disappearing. Just look at how it is playing out in America. The self-serving, grotesquely incompetent Trump destroys government but incredibly moderates having nothing to offer except to self-flagellate over whether they should stay moderate or not.

We need clever, politically astute (not the same thing), brutally honest, perhaps even charismatic politicians (a change of view here) with gravitas to cut through and deflate the populist balloon before it is too late.

Where are they?

P.S. An uncomfortable UK state visit for Trump. If Mandelson has to resign because of his ties to Epstein, what does it say about the US President’s past and the company he kept…

It’s Irregular Migration, Stupid…

~ Julian Samways ~ Leave a comment

As a news junky, I rarely tune out of the news. But this summer with the exception of the Putin/Trump summit on Ukraine, I have.

Probably not surprising. Whether it is Israel/Gaza, Ukraine or Trump’s actions generally, the news agenda is uniformly depressing. Nothing gets resolved, the aggressors make ground and, with Trump, there seems no checks and balances on his increasingly authoritarian presidency.

But, closer to home, it is the furore over the small boats crisis which makes grim reading/watching. As the number of irregular migrants rises (still a small percentage of overall immigration), it is the worst face of Britain on show. Racist thugs besiege migrant hotels (if only we could deport them…) and Nigel Farage makes hay proposing all sorts of impossible policies whilst Starmer’s government seems rudderless.

The worst face of Britain on display…

Whether you like it or not a meaningful solution has to be found to ‘stop the small boats’ otherwise Farage’s momentum may not stall through to the next election. He is currently 8 percent ahead of Labour in the polls. Just look what the issue of irregular or illegal immigration did for Trump. Liberals in the broadest sense of the word need to form a consensus that action needs to be taken and support increasingly bold initiatives from Starmer, otherwise the consequences electorally for their agenda will be far worse.

Margaret Thatcher alighted on the issue of legal versus illegal immigration years ago and warned of the fallout from unfettered access to the UK. It has been the Achilles heel of successive governments and now a potential fatal wound for Starmer if he doesn’t get numbers down.

And let’s be clear, many voters, not the ones demonstrating outside hotels, have a valid point. There are genuine fears, even if hardly justified by the facts or exaggerated, about large numbers of young men from different cultural backgrounds being housed in small towns. The cost of the hotels to accommodate migrants as armies of lawyers appeal nearly every deportation is outrageous, particularly when there is such a housing shortage in the UK and the government is short of money generally. Every government initiative is too little, too late and we will end up leaving the ECHR and other international agreements if nothing can be done.

Immigration is vital to the health of the UK economy. Migrants enrich our life but irregular migration washes out many of the perceived benefits. Fears whipped up by Farage and the vile Robert Jenrick, Shadow Justice Secretary, (shame on the Tory Party for letting his agenda run) dominate the headlines. The political agenda and public life generally is becoming ugly which can only benefit populists. Starmer has to park his international activities and focus on his domestic ones whatever the cost otherwise he will be a one-term premier.

Against this backdrop, when indoors, no wonder this summer has been dominated by the likes of Netflix rather than the news…

Trump’s balance sheet: the good, the bad and the very ugly…

~ Julian Samways ~ 1 Comment

So, lucky us. We get Donald Trump twice this year. First, playing golf in Turnberry with Ursula von der Leyen and Keir Starmer rushing up to Scotland to pay homage and then the State visit in September. Umm…

Trump has dominated the headlines since day one of his presidency, hitting the ground running with a highly competent far-right team behind him, introducing some ground-breaking and irreversible domestic and international policies. You might not like him, but as with Farage, he is a transformative politician.

Trump swings into Scotland…

So, how does the balance sheet of Trump’s actions look as we head off for the summer holidays? Well, first the good, as it is the shortest part.

Trump was right to goad and threaten Europe into paying more for its own defence. Previous US presidents have urged this but have then done nothing to force Europe’s hand. There has always been a strong isolationist streak in America, and Trump has played this beautifully to get a 3.5 per cent of GDP defence spending commitment from European countries (ex-Spain). Second, immigration. Illegal immigration across the Mexican border has now fallen by 90 per cent on a month on month basis. Whatever you think of the merits of migration or the way Trump has treated this issue, the scale of illegal border crossings was storing up huge tensions in the US, even amongst many Democrat voters as southern states sent immigrants north to be housed. Obama was actually the toughest US president to curb numbers before Trump. Biden was hopeless. In thrall to his left-wing, he totally failed (as did Harris) to understand the strength of feeling on this issue across a majority of voters. Take note, Starmer.

OK, that’s enough ‘praise’. Now the bad. Tariffs do not work. They will potentially cause huge market inefficiencies and drive up prices. The consequences have yet to be felt. The rates are illogical across countries, although the overall impact might not be as great as earlier predictions indicated. Second, the recent tax bill. It strips Medicaid from 16m Americans whilst shovelling cash to the rich. Shame on the Republican Party who pushed it through, ballooning the deficit in the process. What happened to fiscal conservatism? One senses the next global economic crisis might be driven by a fear of America defaulting on its debt, evidence demonstrated by the current weakness of the US Dollar.

Then the very ugly. There could be an entire book on this. Regardless of policy, it is the morality of leaders and their probity, which provides the bedrock to democracy. Trump simply lies, lies, lies. Perhaps an unsurprising trait in a convicted felon. Americans either don’t notice or don’t care about the State capture blatantly on view, whether it is Trump’s crypto-currency deals, the acceptance of a jet from Qatar or the fact that he, his family and ‘friends’ constantly trade on the broader influence of the presidency to enrich themselves. Next is the undermining of state institutions, the bullying of universities and arts generally in a drive to eradicate ‘political correctness’, the attempt to compromise an independent judicial process. The list goes on, but the ugly is also a fair description of fawning Western leaders who have swallowed their pride to accommodate Trump.

Finally, the lowest of the lows was how President Zelenskyy was treated in the White House in February. This was an iconic moment. Surrounded by individuals who had never fought, been under any military threat, and, in some cases, had dodged the Vietnam draft, it was a shameful episode. JD Vance’s behaviour was on this occasion, even worse than Trump’s. How dare they speak to a fellow president like that, representing a country under existential threat. This spectacle alone should be enough to justify a damning analysis of Trump’s presidency. The one silver lining is that Trump hasn’t had the opportunity to hand Ukraine to Putin and now understands the Russian leader isn’t quite the pal he thought he was.

The future? Who knows, as the Democrats sink to record levels of unpopularity and irrelevance. Will the presidency and federal institutions recover from four years of Trump? Will anyone realise the damage done by ineffectual checks and balances on centralised power? One doubts it. In a few years, which can’t come too soon, Trump’s emperor-like reign will end. But the hangover will be enormous.

The US: an increasingly foreign country for Europeans…

~ Julian Samways ~ Leave a comment

I went to Chicago, Boston, and New York last week on business. It included a mock listing for my company, JPES Partners, on Nasdaq courtesy of our partners, eVestment. Thank you. It was fun.

When in the US, focus on the positives such as Nasdaq’s brilliant self-promotion…

I stayed on to see close friends at the weekend. That was fun, too. But they are worried.

The politics of this country is dark, very dark. Like Brexit in the UK, Trump is toxic. Half of the electorate loathe him and are simply embarrassed or alarmed. The other half feel he is a slightly unpleasant necessity. A small minority of course love him but, even amongst the latter, few would want him round for dinner…

Trump’s presidency is sinister, and his presence makes the country increasingly foreign to Europeans. I was warned to take any anti-Trump material off my phone before entering the country as border security could ask to see it and send me home if it offended. What??? Federal institutions are under attack, including the judiciary. Cultural and educational institutions seen as liberal are also under attack or are usurped. Trump taking over the Kennedy Centre and the attempted crushing of Harvard by withdrawing federal grants are just two painful examples.

Trump threatens NATO, bombs Iran, swears at Israel and lies on the international stage. It is too early to address the impact of his chaotic foreign policy, but it is splitting his isolationist supporters. They will bend the knee in the end. They have nowhere else to go. Just listen to the pathetic and vile Steve Bannon grovelling to Trump on the Middle East.

Domestically, Trump also happens to be forcing through a tax bill stripping Medicaid from 16m Americans whilst shovelling cash to the rich. Shame on the Republican Party.

Yet, the Democrats in response are hopeless. Either stunned into inaction or busy in-fighting. A new generation of activists believe a lurch to the Left is the solution to Trump with Democrats in New York electing a privileged self-described socialist to be their candidate for mayor. Take note, you muppets. Corbyn’s experience in the UK should be a guide. It may feel good, but you will never win elections nationally from this position. Voters are mostly centrist, and your failure to offer a decent alternative to Trump re voters’ core concerns handed him victory in the first place.

Trump was underestimated, and the US Constitution overestimated. Checks and balances feel illusionary. Against this background, I know many Europeans who have withdrawn from holidaying in the US until Trump has gone. Public life has become too wild. My response? I walked past Trump Tower on 5th Avenue, forgetting to look. You just have to focus on the belief that Trump will never define this country, whatever current damage this man does. Just ignore him and keep on walking…

Nice to be home, though.

‘Logical’ Conservatism is the way to defeat populism

~ Julian Samways ~ Leave a comment

As writer of this blog, I have to make a confession. I am a member of an organisation that represents an extremist minority in UK politics. It is called the Conservative European Forum (CEF) which amongst other things represents pro-EU Conservatives…

It believes the Conservative Party should anchor itself on the centre-right and no further, focusing on strong relationships with our European partners, economically and in relation to defence. Add to that respect for institutions of state, social liberalism but supporting family structures in whatever form they take, fiscal prudence but always aiming for lower taxes when they can be afforded, aspiration, a comprehensive but fair (to everyone) social security net to name a few other beliefs and you have the best of a Conservative Party that has today lost its bearings.

The CEF held a breakfast with Matthew Parris this week. The conversation took a gloomy turn…:

  • The Conservative Party is heading to a dead end chasing Reform
  • Kemi Badenoch is underperforming (a polite summary) and her leadership is time limited
  • The main thing saving the Conservative Party is the LibDems failing to, not wanting to, or being unable to move to the Right to finish it off once and for all
  • The route to redemption is sweeping away the recent past, regaining a reputation for economic competence. It is always the economy stupid, never immigration or cultural wars
  • That now is the time to be unpopular, advocating cutting unsustainable debt, in the process and in particular, rebalancing policies away from older voters to younger ones
  • The Party doesn’t get any of this except point two…

Rebalancing economic policies, indeed even focusing on them at all, will inevitably be hugely unpopular to the few remaining Conservative Party members let alone some Conservative inclined voters, but absolutely logical and necessary. It is needed early in this parliament to sow the seeds of redemption, even whilst understanding it will be a long road back to power over more than one election cycle, whoever is leading the Party.

Neither show the understanding or commitment to defeat populism

Which takes me to the Labour government’s spending review yesterday. One can applaud capital spending but the actual or imminent retreat on the winter fuel allowance, sickness benefits, the two children policy whilst refusing to increase core taxes is fantasy economics. There is a consensus Rachel Reeves is safe in her job for now but a UK debt crisis is around the corner if we are not beaten to it by the US.

Moderate politicians are being frequently thrashed by populists because they have promised too much and under-delivered for too long. Labour’s sums don’t add up and the lack of clarity in the overall message means it remains disappointingly business as usual for this centrist government.

If the Conservatives could have a serious, logical conversation about the huge pressures facing public expenditure and what hard, unpopular decisions need to be taken to correct the trajectory, they could start to regain a reputation for economic competence, expanding their voting base from the cul-de-sac they find themselves in now.

Sounds logical but more pain is required before such a path to recovery is taken. All on the assumption the patient doesn’t expire in the meantime…

US teeters on the economic brink…

~ Julian Samways ~ Leave a comment

The Trump presidency is a roller coaster affair, even worse than most pundits feared. You can’t argue it isn’t box office, though, perhaps deliberately so. The long expected blow-up between Trump and Musk is pure theatre.

A relationship made for theatre…

However, there is one constant. The state of the US economy and its grotesque burden of debt. On this issue, Elon Musk is correct.

The budget deficit was an incredible 6.4% of GDP in 2024. Forecasters expect this to rise above 7% in every year of Trump’s presidency. The US debt pile currently exceeds 120% of GDP. This is unsustainable.

When Scott Bessent, the US Treasury Secretary, has to reassure markets that ‘the US is never going to default’, you know there is real trouble brewing.

Trump’s big, beautiful tax bill will remove the debt ceiling. Its impact is expected to add US2.4 trillion of additional debt over the next decade. The evidence is clear. Tax cuts mainly for the better off, never pay for themselves.

Add to this tariffs cutting growth, fears over Trump’s presidency undermining the rule of law and unpredictable foreign policy initiatives in the face of geopolitical instability, and you have a recipe for economic disaster.

Longer-term US interest rates are rising, exacerbating the debt problem whilst the US dollar weakens.

Trump’s economic approval ratings are dire, but these are not yet in territory to undermine his populist presidency. He continues to play out his hugely risky economic experiment. Republican fiscal conservatives must be turning in their graves, for that is where most of them are.

Bill Clinton was the last president to balance the budget. Rather than set up his own party, perhaps Elon Musk should change sides and vote Democrat…

Meanwhile, on this side of the pond it is a key week for the Labour government as it announces details of its spending review. More on this later but if it is not ‘big, beautiful and bold’, you would have to ask what is the point of Starmer/Reeves et al.