Ross Clark

Ross Clark

Ross Clark is a leader writer and columnist who has written for The Spectator for three decades. He writes on Substack, at Ross on Why?

Will British stocks bounce back after Covid?

From our UK edition

'Unloved' is an adjective often applied to British shares in recent years. A more appropriate description might be 'abandoned, with half a dozen kids and the rent unpaid'. Since referendum day in June 2016 the FTSE100 index has grown by 10 per cent. Over the same period the Hang Seng is up 42 per cent, the DAX up 44 per cent, the Dow Jones up 88 per cent and the Nasdaq up 184 per cent. The FTSE100’s longstanding underperformance goes back far further, though, than that. It is still lower than it was on the last day of the last century – although there has been substantial growth in the midcap stocks which make up the FTSE250. Yet some seem to think that the ship has finally come in for UK shares.

Is Boris right about a third wave?

From our UK edition

Covid deaths fell to 17 on Sunday, the lowest daily figure since 28 September and no higher than the levels being recorded throughout much of last summer. Deaths are down over 40 per cent on the week, hospitalisations down 21 per cent. Yet the better the news on vaccinations and serious illness, the longer the road seems to be out of lockdown. The latest potential roadblock seems to be the threat of a third wave in Europe. The Prime Minister said this lunchtime: 'On the Continent right now, you can see, sadly, there is a third wave under way. And people in this country should be under no illusions that... when a wave hits our friends in Europe it washes up on our shores as well. I expect we will feel those effects in due course.

Oxford vaccine gets a boost from US study

From our UK edition

The hesitancy of many European countries to use the AstraZeneca vaccine (between bouts of complaining the company hasn’t delivered enough doses) has been widely reported. Less discussed is the delay in US authorities approving the vaccine for use there. But with the reporting of results from a US trial, that should now be a formality. The trial, run by Rochester and Columbia universities, involved 32,449 volunteers in the US, Peru and Chile. Two thirds were given the actual vaccine and the rest a saline placebo. In all, 141 people developed a symptomatic Covid illness. Those who were given the vaccine, however, were found to have their risk of developing symptomatic infection cut by 79 per cent. Their risk of developing serious illness was reduced by 100 per cent.

Why the UK shouldn’t engage in vaccine nationalism

From our UK edition

There is a big, big hole in Ursula von der Leyen’s strategy of threatening to ban exports of the Pfizer vaccine to Britain unless Britain hands over shots of UK-made AstraZeneca vaccine to make up for a shortfall in EU-made supplies. Well, several holes perhaps – not least that EU member states have done their utmost to undermine public confidence in the AstraZeneca vaccine, with the result that millions of doses have sat unused in fridges. What is the point in extracting AstraZeneca vaccines from Britain if they, too, are left to languish in fridges while Emmanuel Macron, Angela Merkel and others put people off accepting the vaccine?

Is India to blame for the UK’s vaccine delay?

From our UK edition

The UK vaccination programme has been such a success to date that until yesterday evening it seemed a formality that the government would achieve its target of offering all adults at least a first dose of a Covid vaccine by July. Indeed, on Monday it looked as if this date might be brought forwards when it was announced that there would be a huge uplift in vaccine shots available, thanks to the arrival of a large consignment of AstraZeneca vaccine from India. Instead of 2 million doses a week, the vaccination programme would be able to deliver 4 million doses. On Wednesday evening, however, that hope was shattered. Firstly, Ursula von der Leyen renewed her threat to block exports of the Pfizer vaccine, British supplies of which are sourced from a factory near Brussels.

How to rein in runaway house prices

From our UK edition

Should the Bank of England be jacking up interest rates whenever the housing market starts to run away with itself? That is what the Reserve Bank of New Zealand has in effect just been asked to do by Jacinda Ardern’s government: to take into account a ‘sustainable housing market’ when fixing its monetary policy. If such a policy were to be adopted in Britain it would have profound consequences for homebuyers and investors – threatening to cut off the supply of cheap loans whenever prices started getting frothy. It is over two decades since the Bank of England was set the task of tracking an inflation target – increasing interest rates to cool an overheating economy and reducing them to warm up a cooling one.

Don’t blame the EU for the latest Covid vaccine clash

From our UK edition

Far from subsiding, as it seemed to be doing last week, the European war over the AstraZeneca vaccine has intensified. Over the past few weeks, EU leaders have swung from accusing the company – and Britain – of hoarding the vaccine and failing to supply it to EU countries, to claiming that it is ineffective, back to accusing us of hoarding it again. But the decision by several European countries to suspend rollout of the vaccine over fears of blood clots is the most serious challenge yet. This time, however, the blame cannot be laid at the door of the EU – the European Medicines Agency continues to declare the vaccine to be safe and has said that any negative side-effects are outweighed by the benefits.

Should we be worried about another Covid spike?

From our UK edition

As the chief medical officer professor Chris Whitty suggested this week, the situation with Covid figures can change very sharply, very quickly. One moment infection numbers can be falling, like they were in late November, but the next moment, they can take off again — as they subsequently did in mid-December. That is why all eyes are now on the day-to-day Covid figures published by Public Health England and especially on the apparent deceleration in the decline in new cases over the past week. The numbers published on Wednesday still show a 20 per cent week-on-week fall in the seven day average but that constitutes quite a sharp change.

Is now the time to invest in tech shares?

From our UK edition

Punters have been warning about the over-valuation of tech stocks for so long that great fortunes have been made in the interim. Then again, anyone old enough to remember back 20 years will know that tech stocks are not invincible – they can indeed crash. So is the wobble in tech stocks since the middle of February just that – a wobble – or is it the beginning of something bigger? Has the end of the party finally arrived? Since the middle of February the NASDAQ – the US exchange for tech stocks – has slid by just over eight per cent. Some of the big players – the ‘FAANGs’ -- have fared worse.

How worried should we be about a third wave?

From our UK edition

At the beginning of the year, Boris Johnson and his advisers were at pains to tell us that by spring we would be in a vastly better situation with Covid. Well, spring is here, the number of new infections and deaths is falling by around 30 per cent week on week, deaths are back to where they were last October and new infections last September. The vaccine programme is running on time, and take-up has been high. Why, then, was the chief medical officer Chris Whitty so downbeat when he addressed the House of Commons science and technology committee this morning?

What the return of classrooms means for Covid

From our UK edition

Will the return of schools reverse, or dramatically slow, the sharp downwards trend in new Covid-19 infections, which is currently falling at more than 30 per cent a week? No one knows for sure, but it seems unlikely that the mass return of schools today will not have some effect on infections in England, especially given that it involves a section of the population that has not been vaccinated.  While few children suffer serious symptoms of Covid-19, they can carry the disease — older children, especially. For that reason, a return of unvaccinated children to school is likely to have a greater effect on raw infection numbers than, say, a return of vaccinated over-70s to bowls clubs and whist drives.

Is it time to measure Covid differently?

From our UK edition

According to government figures the toll of Covid 19 so far has been 124,419 deaths (if you define a Covid death as any death which occurs within 28 days of someone being confirmed as infected with the virus) or 140,062 (if you define a Covid death as one where the word ‘Covid’ is mentioned anywhere on a death certificate – regardless of whether they have produced a positive tests). These are figures which have been compared with Jumbo Jet-loads or matched up against the loss of life in the Somme. But should we really be using raw death figures – which are hugely emotive – to influence decisions as to how to handle the pandemic?

Covid-19 and the problem with Britain’s weight

From our UK edition

How strong is the link between obesity and the danger of dying from Covid? Yesterday, the World Obesity Federation published a report containing a widely-quoted statistic that 2.2 million out of 2.5 million Covid deaths globally have occurred in countries where more than half the population is overweight. The figure is stark, although also highly unsatisfactory. Obesity tends to be more prevalent in wealthy countries – which also happen to have more aged populations, another strong risk factor in Covid deaths. Yet the report also collates a substantial body of evidence linking obesity more directly with Covid deaths.

Is the fall in Covid infections really slowing down?

From our UK edition

Imperial College’s REACT study is given a prominence over other Covid data, but it is a struggle to understand why. This morning, as so often, BBC news bulletins included the latest tranche of results from the study, suggesting that the fall in new Covid infections is ‘slowing'.  The data appears to confirm a deceleration in the fall in infections that was evident in the Test and Trace figures a fortnight ago – and which I wrote about here a week ago – but which has since been reversed. React seems to be telling us a story which we could equally glean much earlier from the PHE figures.

Is this a once-in-a-generation chance to invest in central London?

From our UK edition

Buy when there is gunfire on the streets, goes the old adage. But could this be a case of the right time to buy being when there is, well, hardly anything happening on the streets? Few investments have been as hard hit by Covid-19 as commercial property in central London. As shops and restaurants have been closed, and office staff made to work from home, landlords have struggled to collect their rent. In the six months to September, for example, Shaftesbury, which owns 600 buildings in the West End including 1.9 million square foot of retail and office space, managed to collect only 41 per cent of what was due, falling to 36 per cent in January. Moreover, many people believe that there will be a permanent shift in the way we work and spend our leisure time.

Rishi Sunak’s furlough trap

From our UK edition

The trouble with emergency financial measures is that the crises used to justify them never seem to end. Just as the Bank of England couldn’t bring itself to think the time was ever right to reel back the ultra-low interest rates and quantitative easing it introduced at the nadir of the 2008/09 financial crisis, so the furlough scheme is steadily becoming a permanent part of Britain’s welfare infrastructure. Originally scheduled to end last June, it is to be extended yet again until the end of this September, by which time it will have been in operation for 18 months. This will be three months after all Covid restrictions are due to end. What, then, will be the excuse for the government to continue to pay the wages of employees who are not actually working?

House buyers will need to move quickly after the Budget

From our UK edition

There is one certainty for every Budget day: that the chancellor will dream up some novel scheme to prop up the housing market. Rishi Sunak’s idea of providing state guarantees for 95 per cent mortgages taken out by first time buyers isn’t, however, that new. It is really just a reheated version of one branch of the Help to Buy scheme run by George Osborne between 2013 and 2016. This is the story of the property market over the past quarter century: in the long property boom of the late 1990s and early 2000s banks got themselves into huge trouble by advancing high loan-to-value mortgages.

Perhaps it is time to nationalise our failing railways

From our UK edition

We mustn’t abandon the railways to market forces, many on the left asserted when British Rail was broken up and privatised in the 1990s. They needn’t have worried. A quarter of a century on and we have yet to see a market force take to the tracks. Wasn’t the whole purpose of privatisation supposed to be to transfer financial risk from the taxpayer to private finance?  Instead, as soon as the Covid crisis struck, while other industries were offered loans, furlough payments and business rate relief but were otherwise left to fend for themselves, the rail industry was propped up as if nothing was wrong. The government simply suspended the franchise system and paid the industry directly to lug fresh air around the country.

How worried should we be about the Brazilian variant?

From our UK edition

How worried should we be about the news that P1, one of the two Brazilian variants of Sars-CoV-2, has been found in six people who travelled from Brazil to Britain before the hotel quarantine rules came into force, and that one of these people has yet to be traced? Variant P1 is of concern not just because laboratory study has revealed changes to the spike protein, which might make it theoretically more transmissible, but because of real-world data from Manaus, the Amazonian city to which its origins have been traced. It was first detected in Japan on 6 January among a family which had travelled from the city.

Are people tiring of lockdown?

From our UK edition

Is the decline in new Covid infections slowing down? That is the picture painted by the government’s figures for confirmed infections, arrived at via the NHS Test and Trace system. The most recent figures show that the 71,320 cases recorded in the seven days to Wednesday are 15 per cent down on the previous seven days — a substantial fall, yet over the previous few weeks numbers had been declining at around 25 per cent every week. The fall in deaths, on the other hand, appears to be accelerating. The figure for the past seven days — at 2,684 — is 30 per cent down on the previous seven days. Hospitalisations are declining at a rate that falls between the two — down 20 per cent over the past week.