Wednesday, September 18, 2024

Lord of the ties

The Readout with Allegra Stratton

While we wait for the momentous decision on whether the Fed will cut interest rates to come through this evening in the UK, let's look at something a little closer to home.

Perhaps the daily diet of stories about tickets, dresses, and specs that Keir Starmer and his wife have received seems a bit silly, but the initial story about £5,000 worth of clothes and personal shopping given to his wife by a Labour donor has rumbled on for enough time to become a significant issue. Anyone who has worked in Downing Street knows how stories like this consume everyone's attention: It's not edifying, but there's a huge market for revealing details on how someone funds their wardrobe and gigs.

I could see it getting up to 10 days in the headlines, which was supposedly said by Alastair Campbell to be a danger period after which a politician can't survive. 

Some will say: "Well, what do we expect when we don't give the prime minister and his wife an allowance?" That might be true, but any government about to cut services and raise taxes shouldn't touch that debate with a selfie stick. Surely there are some in Labour who worry that stories of parties with peacocks come across as just as out of touch as stories of Boris Johnson's wallpaper. If they don't, how good is their understanding of the country?

Victoria and Keir Starmer in July. Photographer: Stefan Rousseau/Getty Images

The man footing the bill for these goodies – Labour's Lord of the Ties, Waheed Alli – is profiled today by three of Bloomberg's experts across politics and business, who have spoken to more than a dozen Labour aides (words that strike fear into the heart of any comms team). Some tell them he's a loyal supporter doing a good job of raising finances for Labour, others "question the appropriateness of the many hats he wears for the governing party."

They write: "The scrutiny raises uncomfortable questions of Starmer about the degree of access and influence exercised by a major donor and the potential for conflicts of interest, especially in recommending public appointments. Moreover, the leader's acceptance of gifts has opened him up to charges of hypocrisy — which he denies — after he spent much of his time in opposition criticizing the former Conservative administration's record on ethics and propriety."

So, what of those economic reforms? Today Bloomberg runs news that the government is to dilute an aspect of its controversial workers' rights package. It had pledged to protect employees from so-called "workplace surveillance," but Readout writer Ailbhe Rea and political correspondent Ellen Milligan say it now won't be included in the Employment Rights Bill being published next month.

Labour does still appear committed to ending "presenteeism" (when you think about it, an ugly neologism) and increasing flexible working. This gets a boost today from Bloomberg Opinion's Lionel Laurent. Taking a look at Amazon's push to bring to an end working from home, Lionel points out that it isn't clear the return en masse to the office will bring the productivity boost bosses want, but he suggests some ideas that might. It's a good read.

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What just happened

The stories you need to know about this evening

A really bouncy dead cat bounce

I was going to write about the news that London's £10 million+ houses aren't selling as high mortgage rates and the forthcoming budget put a chill on the top end of the housing market. This is despite the increase in Americans buying up London's spenniest addresses: Apparently they are seeking a haven from issues like violence and gun crime, which are seen as unstoppable, whoever wins the presidential contest in seven weeks' time.

All of this is very interesting but…I can't help but also want to draw your attention to this piece in Bloomberg Businessweek by Joshua Green that looks at THAT pet-eating claim from the debate last week.

There are some signs it has helped Donald Trump which, even after accounting for his incredible talent for hijacking the news, I wasn't expecting. To most, it felt like this time he had misjudged the mood with a claim that was just too lurid.

Trump and Harris debate on Sept. 10 in Philadelphia. Photographer: Win McNamee/Getty Images North America

Ha! Back to school for all of us: The "charge has sparked hundreds of stories and additional news cycles, as partisans fight over the validity of the claim and reporters swarm Springfield, Ohio, to document the local fallout," explains Joshua. "Trump's struggles during the debate to explain his views on abortion or elucidate his 'concepts of a plan' to replace Obamacare have been mostly forgotten."

Yes, the widespread perception is that Harris won the debate and she has a narrow lead in most polls. However: "Political coverage has shifted in a direction Republicans prefer (82% named immigration as a top issue in a Sept. 9 Pew poll), taking airtime away from issues such as abortion and health care that are top for Democrats (76% and 67%, respectively)."

Interestingly, Joshua also points out that while commentators have mocked the idea, Harris's campaign itself has not done so (and bear in mind their strategy to call Trump and J.D. Vance "weird" majors on mocking). Instead, they "don't view it as a helpful development."

There's a political cliché for when you throw a mad suggestion around to distract from an issue – a "dead cat bounce." Trump's feline fantasy has put new meaning into that.

The big number 

2.2%
UK inflation held at just above the Bank of England's 2% target in August, cementing expectations that policymakers will cut interest rates again later this year.

Hedge fund titans breed a $14 billion pack of startup cubs

One key story, every weekday

Once, it was Julian Robertson, the founder of Tiger Management, who got to play godfather to a generation of hedge fund stars.

Now, it's Ken Griffin's Citadel and Izzy Englander's Millennium Management who are taking up that role — whether they want to or not.

With the multi-strategy hedge fund titans closed to outside cash amid a dearth of talent able to manage their money, Citadel and Millennium traders are seizing the chance to go it alone. And investors are backing them with an avalanche of assets.

Read The Big Take.

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Allegra Stratton worked for former Prime Minister Rishi Sunak when he was chancellor and runs an environmental consultancy, Zeroism.

Please send thoughts, tips and feedback to readout@bloomberg.net. You can follow Bloomberg UK on X.

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