But let me talk a little about the big picture, before considering how savings patterns and our own industry will be challenged and changed. How matters evolve in detail is largely speculative. But the direction of the broad tide of innovation is clear, as are some of its implications. Firstly, many industries face unprecedented obsolescence driven by technology and uncertainty about the sustainability of their competitive position. Corporate investment horizons are shrinking and corporate structures and corporate fortunes are being transformed on ever shortening timescales.
Many companies know that already.
For what it is worth, we feel that as a result many corporates probably should invest their funds more cautiously than they have hitherto. It is not just companies that are effected. Government finances will not be immune from the impact of these changes. Arbitrage between tax regimes will inevitably increase, as businesses, in particular service industries, will be much more easily able to relocate. This poses a major challenge to the role of government in the decades ahead.