It's Heathrow, but not Gatwick

So it has finally happened, a new runway maybe eventually get built at Heathrow after 7 years of dithering by various Governments. I can't say May is hesitant as Prime Minister.


Clearly, the UK needs more airport capacity in the South East, but why restrict it to Heathrow is beyond my ken. It is a very statist decision and there was a much more market based route of allowing competition that could have been taken. I guess this way the impact is felt now and in limited constituencies.


On the other hand, UK Gilt 10 Years bonds, although at near record lows thanks to QE, have gained 38 basis points in a month. Still they sit 35 points down on one year, but they are creeping up. Just as the Government decides on a nice big fat investment splurge for the future. the irony being we are doing this at the end of the low interest cycle when even Ed Balls was saying do it at the beginning of the cycle.


Still, 3 elections away before any of these issues (or indeed, projects) come home to roost.