When I was a boy in Scotland, I remember my father telling me that the ruling Labour Party was bad for business. He was just 30 and an entrepreneur trying to support three children in a country plagued by strikes, power cuts, inflation and high taxes. We moved to Canada before Conservative Margaret Thatcher became Prime Minister of Britain in 1979.
The Labour Party is back! With yesterday’s UK election, Keir Starmer is set to become the UK’s first Labour Prime Minister in 14 years, promising to be both “pro-business and pro-worker.” (Click here for the Labour Party Manifesto, a term some might associate with communism until they see the accompanying photo of Starmer.)
Will this left-wing centrist party be better for business than the right-wing centrist party it replaced? Many suspect so, given the volatility, years of stagnant wages and sluggish growth under the Conservatives. After all, the Conservatives brought about Brexit, gave us leaders who flouted COVID protocols or survived on a head of lettuce. Prime Minister Rishi Sunak could have waited until 2025 to call an election, but he decided to call it earlier than planned.
I asked two experts I respect to weigh in on the impact of Labour’s victory. Ian Bremmer, founder and chairman of Eurasia Group, called it “positive and much-needed,” adding that “a Labour government would be good for the UK’s position in the world and its economic prospects.” Moreover, a Starmer victory “would allow him to provide political stability and certainty, something the UK has sorely lacked for much of the last decade. Furthermore, I expect Starmer to deliver a coherent economic policy and a major reset with the European Union, which will improve the outlook for domestic and international investors.”
I also asked Azeem Azhar for his thoughts. As well as being the founder of the Exponential View newsletter, the British thinker co-chairs the World Economic Forum’s Global Futures Council on Complex Risk. He says that last night’s Labour victory will cause “businesses of all types, but particularly start-ups and climate tech companies, to breathe a sigh of relief. The promise of a stable and disciplined government will unlock investment. Bosses who have been holding back and investors worried about political volatility will be reassured. I expect investment to increase and confidence in the UK tech and climate tech sectors.”
Get your thoughts and more news below.
Diane Brady
diane.brady@fortune.com
Follow us on LinkedIn
TOP NEWS
The poison pill of the South-West
On Wednesday, Southwest Airlines announced it would take a “poison pill” targeting activist investor Elliott Management. In June, Elliott bought $1.9 million in stock and accused the airline’s executives of having a “stubborn unwillingness to evolve.” Southwest shares have fallen more than 20% in the past 12 months. Fortune
Apple gets seat on AI board
Apple’s App Store chief Phil Schiller is reportedly getting an observer seat on the board of OpenAI, the developer of ChatGPT. Fortune’David Meyer suggests that the new board seat for Microsoft-backed OpenAI is hedging its bets, as it works with Apple to bring OpenAI products to devices like the iPhone. Microsoft, too, is hedging its bets, investing in French AI startup Mistral and poaching the founder of Inflection AI. Fortune
Biotechnology in Birmingham
Alabama politicians like U.S. Sen. Katie Britt and Rep. Terri Sewell are seeking funding from the Department of Commerce to help make Birmingham, Alabama, a biotech hub. Investing in Birmingham will help “establish key aspects of the supply chain,” they wrote in a statement. Fortune Comment: Congress is currently considering legislation that would block federally funded vendors from working with Chinese biotech companies. Fortune
AROUND THE WATER FOUNTAIN
Rishi Sunak may have lost his $177,000 prime ministerial job, but a multi-million dollar salary awaits the man richer than King Charles by Ryan Hogg
Washington’s surveillance of Chinese and Sino-American scientists is harming their productivity and global scientific cooperation by Lionel Lim
Attention span at work is dead: 60% of employees can’t go 30 minutes without being distracted by Sasha Rogelberg
How Four Seasons CEO Alejandro Reynal Uses ‘Inbox Zero’ and a Montblanc Pen to Run the World’s Most Luxurious Hotel Group by Peter Vanham
Fearless Fund Lawyer: Court Ruling Banning Grants to Black Women Entrepreneurs Should Terrify CEOs by Alphonso David
Amsterdam has long sought to keep “troublesome” tourists away. It first banned the construction of hotels and now plans to ban cruises. by Prarthana Prakash
TThis edition of CEO Daily was curated by Nicholas Gordon.
