I remember my father telling me as a child in Scotland that the ruling Labour Party was bad for business. He had just turned 30 and was an entrepreneur trying to support three children in a country of strikes, power outages, inflation and high taxes. We emigrated to Canada before Conservative Margaret Thatcher became Prime Minister of the UK in 1979.
Labour is back! Yesterday’s UK election saw Keir Starmer become the first Labour Prime Minister in 14 years, promising to be “for business and for workers”. (Click here for the Labour manifesto. Some may associate it with communism until they see Starmer’s photo.)
Is this centre-left party better for business than the centre-right one it replaced? Many think so, given the instability, years of stagnant wages and low growth under Conservative governments. After all, the Conservatives have produced leaders who instigated Brexit, ignored Covid-19 measures and outlived a head of lettuce. Chancellor Rishi Sunak could have waited until 2025 to call an election but decided to call one early.
I asked two respected commentators for their thoughts on the impact of a Labour victory. Ian Bremmer, founder and president of Eurasia Group, called it “long-awaited positive news,” adding that a Labour government would be good for Britain’s global standing and economic prospects. He went on to say that if Starmer wins, he “can bring political stability and policy certainty, something the UK has sorely lacked for much of the past decade. Moreover, we expect Starmer to implement a coherent economic policy and a significant restructuring with the European Union, both of which would improve the outlook for domestic and international investors.”
I also asked Azeem Azhar, the British thinker who founded the newsletter Exponential View and co-chairs the World Economic Forum’s Global Future Council on Complex Risks, for his opinion. In his view, last night’s Labour victory “will be a cause for a sigh of relief for businesses of all types, particularly start-ups and climate tech companies. The promise of a stable and disciplined government will unleash investment. Executives who have been saving their ammunition will be relieved, as will investors worried about political instability. I expect to see increased investment and more confidence in the UK tech and climate tech sectors.”
Please share your thoughts and other news below.
Diane Brady
[email protected]
Follow on LinkedIn
top News
Southwest Poison Pill
Southwest Airlines said Wednesday it was introducing a “poison pill” aimed at activist investor Elliott Management. In June, Elliott bought $1.9 million worth of stock in the airline, accusing the airline’s executives of “stubbornly refusing to evolve.” Southwest’s shares have fallen more than 20% in the past 12 months. luck
Apple appoints new director of AI
Apple’s App Store chief Phil Schiller is reportedly set to join the board of directors of OpenAI, the developer of ChatGPT, as an observer. luck’David Meyer suggested the new board appointments were a way for Microsoft-backed OpenAI to hedge its bets as the company works with Apple to put OpenAI’s products on iPhones and other devices. Microsoft is also looking to hedge its bets, investing in French AI startup Mistral and poaching the founder of Inflection AI. luck
Birmingham Biotechnology
Alabama politicians, including Sen. Katie Britt and Rep. Terri Sewell, are seeking funding from the Commerce Department to turn Birmingham, Alabama, into a biotech hub. Investment in Birmingham would help “domesticate critical aspects of the supply chain,” they wrote. luck Op-ed. The U.S. Congress is currently considering a bill that would restrict U.S. federally funded providers from working with Chinese biotechnology companies. luck
Around the water cooler
Rishi Sunak may have lost his $177,000 Chancellorship but the man richer than King Charles still has millions of dollars in corporate payouts waiting for him. Ryan Hogg
Washington’s scrutiny of Chinese and Chinese-American scientists is undermining their productivity and global scientific collaboration. Lionel Lim
Concentration in the workplace is declining: 60% of employees can’t work for even 30 minutes without being distracted Sasha Rogelberg
How Four Seasons CEO Alejandro Reynal Leads the World’s Most Luxurious Hospitality Group with Inbox Zero and a Montblanc Pen Peter Vanham
Fearless Fund adviser: Ruling banning grants to black women entrepreneurs should terrify CEOs Alfonso David
Amsterdam has long wanted to keep “nuisance” tourists away, first by banning the construction of new hotels and now by banning cruise ships. Prarthana Prakash
This edition of CEO Daily was curated by Nicholas Gordon.