Martin Vander Weyer

How big is Brexodus — the flight of business and people from the City of London in parallel with our exit from the EU? I observed recently that squealing from the Square Mile has been minimal compared to sectors that make and move physical goods — suggesting that banks, insurers and investment houses have quietly completed all the necessary rejigging of domiciles and compliance that will permit them to carry on making money willy-nilly. There’s been plenty of paddling beneath the City surface. A report by the New Financial thinktank ‘identified 275 firms in the UK that have moved or are moving some of their business, staff, assets or legal entities from the UK to the EU’.

It never works to take two unhappy companies and blend them into a bigger pile of misery. That’s the way it looks at the investment giant Standard Life Aberdeen, known to some as ‘Staberdeen’, where Aberdeen Asset Management founder Martin Gilbert seems to have just lost a power struggle with his former co-chief executive Keith Skeoch from the Standard Life side. And that’s certainly the way in Frankfurt, where Deutsche Bank and Commerzbank are being shoved together by pressure to create what German finance minister Olaf Scholz foresees as a national champion that would be the second largest lender in the eurozone (after BNP Paribas of France) and impregnable to foreign takeover.

Was Help to Buy a timely market intervention with a valid social purpose or a political gimmick that unintentionally showered housebuilders with taxpayers’ cash? Or both: this isn’t a straightforward question. ‘This government supports those who dream of owning their own home,’ said a statement from Philip Hammond last week. So far the ‘equity loan scheme’ launched by George Osborne in 2013 and now extended until 2023 has underpinned 194,000 home sales, the great majority to first-time buyers in the provinces, while another 300,000 have been supported by a £3,000 savings top-up.

My hopes of an invite from Jeff Bezos to the opening of Amazon’s proposed but now cancelled ‘HQ2’ at Long Island City in New York were slim, since I was thrown out of his existing Seattle HQ on the orders of the online giant’s PR police. But I disagree with rising-star Democrat congresswoman Alexandria Ocasio-Cortez, who hailed the scrapping of the project as a victory for ‘everyday New Yorkers’ over ‘Amazon’s corporate greed, its worker exploitation, and the power of the richest man in the world’.

Welcome to The Spectator’s Economic Disruptor of the Year Awards 2019, sponsored by Julius Baer. We’re waiting to hear from entrepreneurs in every business sector across the UK who are eager to tell us how their products are bringing radical benefits to consumers in terms of price and choice. We’re looking for disruptors who can make an impact nationally and globally. Meanwhile, we’ll be presenting inspirational stories about the people behind the UK’s fastest-growing entrepreneurial ventures. In the first of the series, Martin Vander Weyer meets Virraj Jatania, whose low-cost banking app Pockit was the overall winner of our 2018 awards.  Virraj Jatania doesn’t need to be an entrepreneur.

There’s a lesson for all boardrooms — and an echo of the lost era of big-bucks, big-ego banking — in the story of Santander’s withdrawal of its job offer to Andrea Orcel. The Italian-born former UBS and Merrill Lynch investment banker was named last September as the next chief executive of the Spanish giant that is Europe’s fifth-largest commercial banking group; but during his ‘gardening leave’ between employers, the deal fell apart. The amount Orcel was demanding in compensation for deferred rewards at UBS — some reports say €50 million — turned out to be way over the top for the Spaniards.

Happy Chinese New Year, or at least let’s hope so. The chubby pig of 2019 is an obvious symbol of wealth; but being both pragmatists and optimists where money is concerned, the Chinese easily find reasons to associate all 12 of their zodiac creatures, (including 2018’s dog) with rising prosperity. This year, however, the amount spent by their shoppers and tourists during the New Year festivities will be compared against last year’s figure of $190 billion for signs of a weakening economy. We already know that trade tensions with the US and other negative factors have been afflicting Chinese sales of western imports, from iPhones to Land Rovers, and that property and shares have been afflicted too, with the Shanghai stock market down by half from its 2015 peak.

Paying tax — which many of us have been doing this week before HMRC’s 31 January deadline — is a citizen’s duty, not an act of virtue. But for the very rich it is also a choice, since with the help of expensive advisers they can duck it or pay very little of it by using complex avoidance devices and offshore havens. So if they stay onshore and pay up, we should salute their good citizenship — if only to encourage others like them who might lighten the tax burden for the rest of us. In that context I was pleased to see two of this column’s controversial heroes of modern capitalism in the Sunday Times list of the UK’s 50 highest taxpayers.

Patisserie Valerie, the cake-shop chain that found a potentially fraudulent £40 million black hole in its finances last October, fell into administration today after failing to persuade its bankers not to pull the plug. Chairman Luke Johnson, having lent the company £10 million plus last-minute cash to help pay this month’s wages for 3,000 staff, joins the creditors’ queue. Investors who put £15 million into his attempted rescue late last year are disgruntled, while investigations into the role of auditors Grant Thornton and former finance director Chris Marsh have yet to throw light on what went wrong in the first place. What’s curious about this mystery story is that it could not have happened to a more genteel brand.