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Royal Bank of Scotland chief executive Stephen Hester this afternoon told the annual CBI conference in London that the worst was over for the British economy, but the majority of the audience begged to differ.
Hester said: “We believe the world economy is recovering, although there remain headwinds in front of us.”
However, when the assembled chief executives, chairmen and other business leaders were asked in a show of hands whether the recovery had “taken root” or whether there was “great trouble ahead,” around 70% voted for the pessimistic view.
As with the big political speeches from Prime Minister Gordon Brown, his shadow David Cameron and Lib-Dem leader Nick Clegg, much of the debate revolved around whether or not the Government should rein in public spending now, at the risk of putting thousands of public sector workers on the dole and derailing the economic recovery. But when asked if it was riskier to cut spending later, about 60% of delegates said leaving it too late to deal with the huge deficit was the biggest danger.
Hester also said it was important for RBS and other banks to show “a degree of humility” to reconnect with the world and their customers. He was speaking at a debate with Marks & Spencer's outgoing chief executive Sir Stuart Rose, who, when asked about how his business was faring, said: “M&S is like the A&E department of retail. We feel the pain first.”
Reader views (4)
The sooner these guys realise the game is up the sooner we can evolve a new way of managing our economy. Unfortunately the current regime has no intentions of letting go of a system that benefits them and them alone. The degree of arrogance being displayed by Mr Hester and others in similar positions is sickening, they are all culpable for the mess and are not capable of making the necessary changes. God bless all who sail in her!
- Gilbert Tuplin, Canterbury, 24/11/2009 07:37
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Oh yes Mr Hester, all the debt, public and private, has just vaporised to allow the economy to grow again.
Get real.
- Dave Davies, Basingstoke, Hants, 23/11/2009 20:50
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We should send Mr Hester over to the US who the UK always lag behind to see HOW WELL the US is doing. A month ago I read a report in a national newspaper saying US now out of recession. Well, after spending the last week over there, I can say absolute GARBAGE is being printed and the US citizens will tell you the same. The world has a long correction ahead and the sooner it is tackled the better as all the leaders are doing is delaying the pain. The only thing that has propped up the world in the past year is quantative easing and car scrappage schemes that are all about to end. You can't prop up a Donkey after years of abuse and the same applies to the economy. Happy New Year all.
- T, London, 23/11/2009 18:08
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He's got that sort of face that a) Doesn't have a clue about the economy or banking and b) you can't trust doesnt he?
- Ancient Wisdom, London, England, 23/11/2009 17:06
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