Huang out to dry? Nvidia announced the resignation of its scandal-hit chief executive Jensen Huang today, adding to the huge losses the chipmaker has sustained since the weekend (see our Stat of the Day).
Here in the UK, there was some unusually upbeat news from the Office for National Statistics, with new figures showing that between July and September the economy grew at its fastest rate since Labour came to power. AI was the biggest contributor, boosting both investment and productivity, so let’s hope that Nvidia’s change of leadership doesn’t mark the popping of the tech bubble.
Labour are, of course, happy to claim the credit. Not so much, funnily enough, for the economy’s rougher patches. And their main contribution has been growing the public sector, not the private sector that pays for it.
Finally, congratulations to Paul McCartney – who was confirmed as a billionaire this week, and not just due to his Beatles royalties. His shrewd investments in other musicians’ back catalogues mean he gets paid every time Grease gets staged or one of the many Christmas standards he owns is played. So your office Christmas party will be keeping Macca in mince pies. Isn’t capitalism wonderful?
Below you’ll find all the latest pieces from CapX, plus what we’re reading from around the web.
Marc Sidwell
Editor, CapX
Today’s Takes
Fresh thinking from CapX
AI is the final blow for Mickey Mouse degrees
Damian Pudner
‘With AI turning the graduate jobs market upside down, persuading students to spend three years and tens of thousands of pounds on a degree is becoming a bloody hard sell.’
Tony Blair wanted half of young adults in higher education. That has produced a bloated, expensive sector, in dire financial straits. Now AI is threatening to demolish the universities’ economic model. When it happens, taxpayers must not end up bailing them out. Read More
Cambridge’s growth needn’t run dry
Paul Bristow
‘In the Fens, we have land known to flood, and vast amounts of water are pumped away every year. As a country, we cannot afford to let that resource go unused.’
Britain hasn’t built a major reservoir since 1992. A constrained water supply is now holding back growth in Cambridge’s Silicon Fen, even as other parts of Cambridgeshire pump huge amounts of rainwater into the North Sea every winter. The region’s Mayor argues a network of farm reservoirs could be the answer. Read More
The EU is closing the Temu loophole. Britain is next
Marco Forgione
‘When the US changed its de minimis rules, Temu stopped shipping directly to consumers from China, shipping instead to local warehouses.’
The EU is making one of the biggest reforms to its Customs Union since 1968, ending the de minimis rule that exempted low-value parcels from duty. The UK will follow suit by 2028. Consumers will pay more, but get safer goods. Marketplaces like Shein and Temu are likely to find ways around it. Is it worth it? Read More
Stat of the Day
Best of the Web
Britain’s GDP boost is a gift for Labour
Michael Simmons, The Spectator
‘It’s a golden gift for Healey and Burnham. They better not mess it up.’
Since the summer, the economy grew both overall and on a per person measure. It’s good news, and surprising in the face of rising energy costs and global turmoil. With the biggest growth coming from the technology sector, John Healey and Andy Burnham need to suppress the Left’s worst instincts and get out of the way of AI infrastructure development. Read More
Listening to Martin Lewis won't fix the energy market
Ryan Bourne, The Times 🔒
‘Changing who pays for expensive energy doesn’t make it cheaper to supply.’
Martin Lewis is celebrating the Chancellor asking Ofgem to scrap gas standing charges. But while most single pensioners will benefit, families with two or more children will be hit with a bigger bill. If ministers want to make a real difference, they should focus on bringing down the cost of energy for everyone through supply side reforms. Read More
Richard Cobden should have failed. Why didn’t he?
Steve Davies
The Capitalist: Ed Conway – is free trade in retreat?
And if you want more...
– UK by numbers (Hannah Ritchie)
– Cut the quangos (The Critic)
– Adam Smith’s hidden parable (Law and Liberty)
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