Investment Notes
By CUSTOS
IF the investment dollar premium can rise to 25 per cent--s-it is now 22 per cent—before the election what can it do if Labour is returned with a huge majority? I agree with my colleague that
• the City is likely to be greatly alarmed. The im- pression is growing that Mr Wilson's government is anti-business and especially anti-City and that fresh taxation and a new Companies Act will carry the onslaught on capital further. Of course. the rise in the dollar investment premium reflects the buying of business firms for direct investment overseas as well as that of portfolio investors. Although Wall Street has staged an impressive recovery most investors believe that another set- back is only a matter of time, and few would be prepared to pay a premium of 25 per cent for the privilege of buying, say, General Motors, even if it is the largest and most successful company in the world.
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