Given the claims made by some metric zealots on these boards, this report in yesterday's 'Mail' shows the amazing achievements of a country that *still* sells pints of beer, runs horse races in furlongs, and measures its inhabitants in feet and inches and stones and pounds. One of life's imponderables is why the same levels of inward investment are not flowing in to all those fully metric countries in Europe (sorry, 'on the continent'):

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Investment floods into the UK
This is Money, 29 June 2005

Inward investment into Britain jumped by 31% last year, official figures revealed today. A record 1,066 projects created 39,592 jobs, according to the Department for Trade and Industry.

That was up from 25,463 jobs created by 811 investment projects the previous year. Trade Secretary Alan Johnson said international comparisons showed the UK was Europe's top investment destination.

The figures come as Prime Minister Tony Blair was calling for EU economic reform away from agricultural subsidies and towards research and development coupled with freer job markets. Mr Johnson said: 'The UK is still viewed globally as one of the best places in the world to do business thanks to our unrivalled economic performance, emphasis on research and technology and skilled, flexible workforce.'

Research and development projects were up 22% to 101, while pharmaceuticals and biotechnology increased 38% to 80 and there was a 61% rise in IT and software projects to 240. The boom showed claims that a rising tax burden and staying out of the euro would mean Britain struggled to win investment were incorrect, according to Mr Johnson.

'The predictions of the death knell for inward investment in the UK have been proved wrong,' he said.

New EU countries from eastern Europe are putting up a fierce fight for investment but are not competing 'head-to-head' with Britain, officials said.

Services make up the largest area of investment projects, followed by manufacturing. The US accounts for the lion's share of inward investment, 43%, with 464 projects bringing 17,730 jobs.

However, another 38 countries also set up projects in Britain including emerging economies China and India. The south east attracted most jobs, with 5,379 people being hired by foreign companies.

Foreign Secretary Jack Straw said the Government was 'ambitious for Britain and are determined to seize the opportunities of the new global economy'. He said: 'Inward investors recognise we've taken a lead in deregulating and opening up markets to international competition.

'Our openness to investment and commitment to free trade are essential for our continuing prosperity.'

The regional breakdown of the 39,592 jobs created by inward investment in 2004-5 follows:

1. East Midlands 1,794
2. East of England 1,648
3. London 3,955
4. North East 3,947
5. North West 5,376
6. Northern Ireland 2,627
7. Scotland 4,340
8. South East 5,379
9. South West 1,251
10. Wales 2,593
11. West Midlands 4,083
12. Yorkshire & Humber 2,599

2005 Associated Newspapers Ltd

TB
Given the claims made by some metric zealots on these boards, this report in yesterday's 'Mail' shows the amazing achievements of a country that *still* sells pints of beer, runs horse races in furlongs, and measures its inhabitants in feet and inches and stones and pounds. One of life's imponderables is why the same levels of inward investment are not flowing in to all those fully metric countries in Europe (sorry, 'on the continent'):

metre
Sorry to rob you of your illusion, but me thinks that has more to do with Brits using today's Lingua Franca.

re (metre): "Sorry to rob you of your illusion, but methinks that [Britain's economic success in recent years compared to the comparative failure of eurozone countries] has more to do with Brits using today's lingua franca".

REPLY: Fascinating! It makes you wonder why we joined the Common Market at all

Tony - If you respond to him he will stay longer.

Although that does have the benefit of reduced costs with the savings on sleeping tablets!

At first I thought you were referring to the US. But I think you should have also mentioned the UK is a country that sells gasoline in litres, food by the kilogram, and whose industries, which are the source of the nations income from trade are metric. Outsiders to the UK who buy UK products see them described in rounded metric numbers. Those who buy British industrial products see the technical information in metric and have to deal with metric fasteners. This has a much greater effect on forming an outsiders opinion on the status of measurement in the UK, then things the outsider never sees (the things you mention).

Your article proves one thing, and that is the overwhelming effect of interest rates. Your interest rates are the highest in the industrialized world at 4.75 %. This is the reason for your large inward investment, but has the reverse effect of anyone inside the country who has to borrow money, such as for a home, to purchase a car, or who is forced to use a credit card.

There is talk of UK rates falling, which will mean that inward investment will decrease. Most likely the dollar will benefit as dollar rates are rising. The Riksbank's decision to cut its main rate from 2 % to 1.5 %, after leaving rates unchanged for 14 months, followed a sharp deterioration in the Swedish growth outlook. The ECB could follow suit, but the declining value of the euro may make that move unnecessary.

If the UK rates were to fall to a 1.5 % to 2 % level, what type of investment inflow could the UK expect? Maybe this article is an example of what is yet to come:

British Pound


Plunging close to 600 pips over the past week, the British pound came under heavy selling pressure following a barrage of weaker economic data. Even today's stronger PMI survey could not help the currency pair overcome the bearish momentum. The price action in the GBPUSD illustrates the importance of interest rates and carry on currencies. The pound rallied significantly between 2003 and for most of 2004, which was a time when the UK was raising rates aggressively while the US was dragging their feet. This time around, we have the same divergence but a role reversal. The UK is seeing a more compelling reason to cut rates while the US on the other hand is rolling ahead with its rate hikes. This has caused the gap between UK interest rates and US interest rates to move closer, providing a perfect reason for the pound's recent price action. Meanwhile, the big event today was actually the passing of the baton of the EU Presidency from the Dutch to the British. The reception abroad is far from supportive with a number of European papers mulling on whether the UK is really the best choice as a leader to pull the region out of its current crisis. Especially since they have been one of the most skeptical on the fate of the EU and it was in part their refusal to give up their rebates that resulted in the collapse of the EU budget talks. On July 12, Gordon Brown will be unveiling the UK's plans for the region's economic policies to EU Finance Ministers. It will be interesting to see not only their suggested proposals, but also how the other members of the EU respond to them.



Your article also stated that "Services make up the largest area of investment projects". Traditionally services are low wage, low personal growth jobs. Not something one makes a career out of. And the low numbers is not something to be proud of.

I wish someone would publish an article that compares the "quality" of these newly created jobs to those jobs lost to China and India. If I lose an 80 k$ per year job with full benefits because the job was outsourced and found a replacement job paying only 60 k$ per year with only partial benefits, the media would claim it as wonderful because I'm working, even though from my point of view I lost out.

So how does one prosper if one is giving up pay and benefits just so a statistic can claim one is employed? I'll never figure that one out. I guess that is what is meant by seizing the opportunities of the new global economy. Remind of that when I can't pay my bills.

'Let's relocate to Britain - they speak English there' July 1 2005, 9:02 AM

TB
REPLY: Fascinating! It makes you wonder why we joined the Common Market at all.


Isn’t that quite obvious, to metricate?????

<<If the UK rates were to fall to a 1.5 % to 2 % level>>

If that happened then the economy would boom, with inflation probably going up in line.

And then we'll have a bust.

The GB economy is very different to those of Europe and America (although closer to America).

It pains me to say - Gordon Browne has actually managed to smooth out the boom-bust cycle - although he *did* inherit a healthy economy from the Conservatives and his stealth taxes are sneaky and deceptive.