UK hosts Global Investment Summit; Bank of England governor warns inflation fight will be ‘hard work’ – business live | Business


UK announces £30bn boost at Global Investment Summit

Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.

The UK government will today try to woo hundreds of business leaders as Rishi Sunak hosts a major business event at Hampton Court.

More than 200 executives are set to attend the Global Investment Summit, including Goldman Sachs chief executive David Solomon, JPMorgan’s Jamie Dimon, Blackstone boss Stephen Schwarzman and Aviva’s Amanda Blanc.

Prime minister Rishi Sunak and business & trade secretary Kemi Badenoch will be hosting, with Barclays, HSBC and Lloyds Bank sponsoring the event.

With a dollop of hype, the government says the summit “marks a huge step forward for levelling up”.

This claim is based on the fact that some of the “A-list CEOs and investors” attending have collectively pledged £29.5bn in new UK projects and capital. That spending, Downing Street says, will create over 12,000 jobs.

It’s rather more than the £10bn which the UK lined up two years ago for the previous summit in 2021.

But these sums aren’t always really new money. £7bn of today’s total comes from Iberdrola, the Spanish owner of Scottish Power, which has “confirmed £7 billion of investment as part of a total £12 billion programme for 2024-28.” But, a year ago, Iberdrola did say Scottish Power would lift its capital spend to £6.7bn between 2023 and 2025.

Other deals being touted today are also focused on the energy sector, alongside tech, life sciences, infrastructure, and housing.

Australia’s IFM Investors also intend to invest £10 billion over the next four years for large-scale infrastructure and energy transition projects, the government says, adding:

IFM will sign an MoU with the Department for Business & Trade at the summit to identify commercially viable opportunities, with potential projects including Nala Renewables, a UK-based portfolio company within IFM, which is actively seeking investment opportunities in the UK as it looks to achieve a renewable capacity target of 4GW by 2025.

The gathering is part of the government’s push to boost investment in the UK and spur growth, following the tax cuts announced in last week’s autumn statement.

Attendees will get a lesson on the UK’s innovative past, as the summit will celebrate “British Ideas – Past, Present and Future”, from the steam train to quantum computing.

Get through that, and they can enjoy a reception at Buckingham Palace hosted by the King.

Also coming up today

The Bank of England is facing calls for reform after a House of Lords report found that the central bank’s reliance on “inadequate” forecasting models and a lack of intellectual diversity within its most senior ranks contributed to inflation sticking at among the highest levels in decades.

In a report critical of Threadneedle Street, the powerful Lords economic affairs committee said the central bank had made “errors” in its handling of the inflation shock triggered after the Covid pandemic and Russia’s invasion of Ukraine.

While saying that all major central banks had incorrectly expected the toughest inflationary period in four decades to be “transitory”, it warned that mistakes at the Bank had fuelled a “dramatic” fall in public confidence.

More here.

The agenda

  • Today: UK holds Global Investment Summit at Hampton Court

  • 11am GMT: CBI distributive trends survey of UK retail

  • 3pm GMT: US new home sales data for October

Key events

Bank of England governor warns of tough times ahead in inflation battle

The Bank of England governor has warned that the “next leg” of a mission to reduce inflation will be hard.

On a Andrew Bailey has told Newcastle’s ChronicleLive that bringing inflation all the way down to the Bank’s 2% target will require restrictive monetary policy.

Bailey explained that the sharp drop in inflation in October, from 6.8% to 4.7%, was mainly due to the drop in energy prices after Ofgem lowered its price cap.

He says:

“I’ve very much used this analogy of a game of two halves. They’re not equal but a lot of what we’re seeing at the moment, including that inflation came down a bit over 2%, and that’s very good news, is the unwinding of these inflationary effects of these external shocks.

That’s a handy reminder for the prime minister, who has claimed his government have halved inflation from its peak over 11%.

Bailey predicted that inflation drop below 4% in the first quarter of next year, but tha would still leave a way to go, adding:

And the rest of it has to be done by policy and monetary policy. And policy is operating in what I call a restrictive way at the moment – it is restricting the economy. The second half, from there to two, is hard work and obviously we don’t want to see any more damage.

Several tech deals are being announced today too, including Microsoft pledging to spend £2.5bn on next-generation AI datacentres and thousands of graphic processing units in the UK

This will boost “the UK’s AI Superpower status”, the government says.

Full story: Australian super fund puts billions into backing Britain’s energy transition

Katharine Murphy

Katharine Murphy

The behemoth Australian fund IFM Investors will sink £10bn (A$19bn) into infrastructure and energy transition projects in Britain by 2027 as part of a new memorandum of understanding with the Sunak government.

The decision by IFM – which is owned by 17 Australian industry super funds – comes as a coalition of business and environmental groups calls on the Albanese government to supercharge tax and other financial incentives to ensure Australia can attract sufficient capital to drive the domestic transition to net zero emissions.

The MoU between IFM Investors and Britain’s minister for investment will be signed at the Global Investment Summit in London. Kemi Badenoch, the UK’s business and trade secretary, characterised the commitment from IFM as “a very important investment for the UK’s innovative energy and infrastructure sectors”.

More here.

Rishi Sunak has said that attracting global investment is at the heart of his plan for growing the economy, setting the scene for today’s summit:

Today’s investments, worth more than £29bn, will create thousands of new jobs and are a huge vote of confidence in the future of the UK economy. Global CEOs are right to back Britain – we are making this the best place in the world to invest and do business.

From giving businesses the biggest tax cut in recent history last week, to our culture of innovation and thriving universities producing some of the finest minds in the world, ours is truly a nation of opportunity.

Attracting global investment is at the heart of my plan for growing the economy. With new funding pouring into key industries like clean energy, life sciences and advanced technology, inward investment is creating high-quality new jobs and driving growth right across the country.

UK announces £30bn boost at Global Investment Summit

Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.

The UK government will today try to woo hundreds of business leaders as Rishi Sunak hosts a major business event at Hampton Court.

More than 200 executives are set to attend the Global Investment Summit, including Goldman Sachs chief executive David Solomon, JPMorgan’s Jamie Dimon, Blackstone boss Stephen Schwarzman and Aviva’s Amanda Blanc.

Prime minister Rishi Sunak and business & trade secretary Kemi Badenoch will be hosting, with Barclays, HSBC and Lloyds Bank sponsoring the event.

With a dollop of hype, the government says the summit “marks a huge step forward for levelling up”.

This claim is based on the fact that some of the “A-list CEOs and investors” attending have collectively pledged £29.5bn in new UK projects and capital. That spending, Downing Street says, will create over 12,000 jobs.

It’s rather more than the £10bn which the UK lined up two years ago for the previous summit in 2021.

But these sums aren’t always really new money. £7bn of today’s total comes from Iberdrola, the Spanish owner of Scottish Power, which has “confirmed £7 billion of investment as part of a total £12 billion programme for 2024-28.” But, a year ago, Iberdrola did say Scottish Power would lift its capital spend to £6.7bn between 2023 and 2025.

Other deals being touted today are also focused on the energy sector, alongside tech, life sciences, infrastructure, and housing.

Australia’s IFM Investors also intend to invest £10 billion over the next four years for large-scale infrastructure and energy transition projects, the government says, adding:

IFM will sign an MoU with the Department for Business & Trade at the summit to identify commercially viable opportunities, with potential projects including Nala Renewables, a UK-based portfolio company within IFM, which is actively seeking investment opportunities in the UK as it looks to achieve a renewable capacity target of 4GW by 2025.

The gathering is part of the government’s push to boost investment in the UK and spur growth, following the tax cuts announced in last week’s autumn statement.

Attendees will get a lesson on the UK’s innovative past, as the summit will celebrate “British Ideas – Past, Present and Future”, from the steam train to quantum computing.

Get through that, and they can enjoy a reception at Buckingham Palace hosted by the King.

Also coming up today

The Bank of England is facing calls for reform after a House of Lords report found that the central bank’s reliance on “inadequate” forecasting models and a lack of intellectual diversity within its most senior ranks contributed to inflation sticking at among the highest levels in decades.

In a report critical of Threadneedle Street, the powerful Lords economic affairs committee said the central bank had made “errors” in its handling of the inflation shock triggered after the Covid pandemic and Russia’s invasion of Ukraine.

While saying that all major central banks had incorrectly expected the toughest inflationary period in four decades to be “transitory”, it warned that mistakes at the Bank had fuelled a “dramatic” fall in public confidence.

More here.

The agenda

  • Today: UK holds Global Investment Summit at Hampton Court

  • 11am GMT: CBI distributive trends survey of UK retail

  • 3pm GMT: US new home sales data for October



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