Most investors have concentrated their thoughts on the eurozone.
They are worried and confused by the economic situation. Many are furious. Bankers in France had a wheeze. Their idea was to roll over Greece’s debt to thirty years. Of course, this would be a default, but so courteous. Lenders might not get the money promised to them. However, the words and procedures would leave their pride in place. Payments will be made later - much later. That is, if everything goes well. Investors seem to be relying on it. Careful observers reckon there is no plausible rate of economic growth that will make sure Greece and Ireland can expand their way out of debt. Italy, Portugal and Spain have shifted into the danger-belt. The recommendation from France and Germany for a co-ordinating body in the eurozone is unsurprising. They know that a commitment to rescue constantly the euro as a result of poorly managed economies in the eurozone would cause major difficulties. Bear in mind: forty-five percent of our exports are to continental Europe.
One of the world’s greatest brands has been strutting its stuff in recent weeks
No one is sure of the correct name. Royalty? Majesty? Sovereign? Highness? Monarchy? But when whatever it is called is on a special promotion, the package is second to none. Mind you, the firm avoids over-exposure in these aspects of its work. Crowns, orbs, sceptres and bemedalled males are iconic emblems of the brand. And what about the golden coaches? Plus QEII’s titfers. This brand has a stamina beyond all others. There are lessons for marketers. First, think long-term despite having a few no-brainers right now and over the centuries. Second, even if you have difficulties in being close to the customers, fake the image. Be a good mingler. Third, keep reminding yourself that marketing is more important than production. This is good news for the royals, as they do not produce a lot. Marketing (and selling) occupies 99% of their waking hours. Don’t knock it. You are observing the most reliable money-making brand ever. Respect it.
Several years ago, David Knapman of Baker Tilly suggested a few simple guidelines on planning for the longer-term.
The starting point is: where am I now? Where am I going? How am I going to get there? Easy to say, but difficult to deliver. The need for unrivalled persistance defeats most managers. Don’t accept: more of the same • a future dictated by others • feeling trapped • a business without passion and inspiration. Do plan: for the results you want • increased financial independence • to be inspired again • to feel in control • for measurable success. These urgings resonate with my experience.
Have you noticed the latest and arrogantly daft idea from the big banks?
They are offering ‘advice and support’ to smaller firms on everything from finance through to marketing and public relations. The idea is difficult to swallow, especially because two of those banks got themselves in such a mess that they only survived thanks to money from the taxpayer. And some of the others relied in part upon the implicit backing of HM Treasury. Maybe this scheme will tick a few boxes for the Government’s ministers or encourage the banks to make more loans to businesses? Reminds one of the old adage: those who can do, those who can’t teach. I know, it’s a bit unfair.
Crumbs.
In Britain alone, 800 people still work on the administration of Lehman Brothers. Guardian, 15 September 2010.