Reuters - Video

EDITION: U.S. | U.K. | IN

Finance Videos

Davos 2014: Cameron, UK can be 're-shore nation'

Friday, Jan 24, 2014 - 01:58

Jan. 24 - UK Prime Minister, David Cameron, uses a speech at Davos to say Britain and the West have an opportunity to boost their economic fortunes by luring jobs and factories back from abroad. His words came just a day after the Bank of England governor, Mark Carney, reassured investors by suggesting there was no immediate need for the UK to raise interest rates. Hayley Platt reports.

▲ Hide Transcript

View Transcript

Britain's open for business. And wants companies who have 'off-shored' their business to Asia and elsewhere - to come home to help boost Britain's economy. That was the message from David Cameron at this year's World Economic Forum in Davos. SOUNDBITE: David Cameron, UK Prime Minister, saying (English): "For years the West has been written off. People say that we are facing some sort of inevitable decline.'' The Prime Minister is hoping cheap energy from shale gas and less regulation would be just some of the incentives. SOUNDBITE: David Cameron, UK Prime Minister, saying (English): "There is now an opportunity for the reverse. There is an opportunity for some of those jobs to come back." The government says well-known companies including Raspberry Pi, Jaegar and Vent-axia have already returned to Britain. Now a new government-sponsored service called Reshore UK has been set-up to help firms which want to do the same. BCG's Mike Ingram says Britain is more attractive now. SOUNDBITE: Mike Ingram, BGC Partners, saying (English): "The things that businesses were concerned about, they were concerned about the macroeconomics economic environment. Now, certainly that has improved over the last 12 months in Britain. The other thing they were worried about was financing conditions; those have eased." The news that UK interest rates are likely to remain low should also help. The Bank of England governor, Mark Carney, appears to have ruled out an immediate hike even though unemployment has fallen to 7.1% - just a shade higher than the threshold at which he had indicated the BOE would consider a hike. Though that may leave Carney in a difficult spot over his forward guidance policy. SOUNDBITE: Mike Ingram, BGC Partners, saying (English): "If he moves the threshold to 6.5 percent unemployment rate, that's the rate the Bank of England thinks that the labour market becomes inflationary. Or he says this number doesn't really mean anything at all." Cameron is under pressure to prove that Britain's surprisingly strong economic recovery is sustainable. But he acknowledged there were still problems - and asked for patience from those who have yet to feel the benefits of the economic recovery.

Davos 2014: Cameron, UK can be 're-shore nation'

Friday, Jan 24, 2014 - 01:58

Top News »

The Exchange »

Moving Pictures »