GIIA's market spotlights July 2024

Market spotlights

U.S. news

By David Quam, Senior U.S. Advisor and Alessandro Pecorari, Policy & Public Affairs Manager

The American political landscape has gone through a whirlwind this past month. Following the assassination attempt during a political rally in Butler, Pennsylvania, Donald Trump went on to lead a very patriotic show at the Republican Convention, where he nominated his running mate, Ohio Senator JD Vance. President Joe Biden announced he will no longer run for a second term - not since President Lyndon Johnson in 1968, has a sitting US President stood down from a presidential race.

Following Biden’s endorsement, Democrats quickly coalesced around his replacement, Vice-President Kamala Harris. From her track record as US Senator, former presidential candidate, and District Attorney General of California, her policies suggest a departure from the Biden Administration on key areas such as fracking, and renewables as well as AI regulation. 

On the events front this month, GIIA saw a lot of activity in the West, Midwest, and Northwest regions of North America. GIIA attended this year’s NGA Summer Meeting in Salt Lake City, Utah. Governors, stakeholders, and GIIA Members came together ahead of the presidential election to network, and see the role of the NGA Chair pass from Governor Spencer Cox of Utah, to Governor Jared Polis of Colorado.

In mid-July, GIIA’s Senior U.S. Advisor, David Quam was invited to speak at the 33rd Pacific Northwest Economic Region (PNWER) Annual Summit in Whistler, British Columbia. This event gathered legislators, business leaders, academics, and policymakers from the U.S. and Canada to discuss regional economic best practices and trade concerns. David spoke on a panel with a specific focus on infrastructure and P3s, highlighting the key trends among our global investors at a regional level.

At the end of the month, the NGA Infrastructure Team held its third regional project delivery meeting in Minneapolis, Minnesota. Bringing together representatives from NGA’s infrastructure network in the Midwest, along with select industry and federal agency partners – including two GIIA members – the reception and roundtable was a chance to discuss best practice across procurement, funding and finance, permitting, legal considerations, and best practices in project delivery. It was a key opportunity to highlight completed or in-development projects in the Midwest, including bridges, water investments, transportation and electrification efforts.

UK news

By Nick Elliott, Policy & Public Affairs Manager

This month has been anything but quiet in the UK, with Labour's recent election victory bringing a conclusive end to any speculation of a quiet summer. The new government has quickly assembled its team, mixing familiar faces from the former shadow cabinet with fresh appointments.

A key figure to watch is Lord Livermore, who has taken on the roles of Growth Minister and Financial Secretary to the Treasury. I would encourage members who have not yet read the Financial Times article on him to do so. It provides a good overview of his intentions to open up the UK for investment, detailing the various levers he plans to pull to achieve this goal. He is set to be an important contact for investors as he drives Labour’s growth agenda across government.

We have also seen the appointment of Varun Chandra, formerly the CEO of Hakluyt, as the Prime Minister’s top business liaison, taking up a similar role as that carried out by Franck Petitgas under the previous government. Varun, who played a key role in integrating Hakluyt into the mainstream professional services sector, is expected to leverage his extensive network in the City to help facilitate further investment into the country. He will be another key figure within the government for members to engage in the coming months.

These new appointments show a strong emphasis on building relationships, especially as we approach Labour's investment summit in October. The summit is expected to be a significant event where the government will aim to showcase the UK as an attractive destination for investment and growth. They will want to use this opportunity to announce investments and send a clear signal that the country is open for business. 

On the policy front, as I highlighted in an article earlier this month, there have been several key announcements that are beginning to flesh out Labour's long-discussed initiatives. Notably, we saw bills to introduce Great British Energy and the National Wealth Fund, along with some initial details on their operation. Additionally, a new Planning and Infrastructure Bill was announced, which will aim to streamline the planning process and reduce bureaucratic delays that have become emblematic of the UK planning system. This month also saw the release of Ofwat’s PR24 draft determinations, a particular concern to many members. We are closely monitoring the process and are actively seeking opportunities to influence the outcome through representation and consultation. This is essential given their potential impact on the UK’s overall attractiveness as an investment destination.

There's a lot happening, and numerous ways for members to get involved in our activities over the coming months. Whether it's providing your company’s views for consultation responses, or participating in roundtables with senior government figures, your input is valued and appreciated. If you're interested in contributing, please reach out to me at nelliott@giia.net.

EU news

By Harvey Chandler, Head of Policy & Public Affairs

Two communications on energy and climate are expected in the coming months, with a state of the energy union report expected on 11 September, and a communication on energy and climate diplomacy on 30 October. Both will be important indicators of if and how the EU may adjust its policy priorities to ensure it meets its 2030 targets and may guide the path towards implementation at the member state level. 

In a busy news period, it may already feel the EU's parliamentary elections are now seemingly yesterday's story, but institutions are pushing ahead with appointments to key posts. Investors will welcome the continuity of Ursula Von Der Leyen's reappointment to the top job in the Commission, whilst a broadly new slate of candidates for other posts start to come forward. 

Spain's choice of Teresa Ribera puts her in contention for the climate (CLIMA) or energy (ENER) briefs at the heart of major parts of the Green Deal. In what may be part of an effort to make way for new directorates – such as a defence post – there's speculation that both CLIMA and ENER may merge to create a new super directorate able to drive forward implementation of climate targets. If Ribera is appointed to a new super directorate, investors are likely to want certainty soon about how the directorate will function, as well as to understand Ribera's policy priorities.

France meanwhile is openly acknowledged as seeking a brief that puts it in the driving seat for increasing EU competitiveness, meaning a bolstered competition (COMP) or trade brief appears most prized. The highly anticipated and regularly delayed Draghi report on competitiveness is expected to frame the EU's considerations of where it turns next to bolster investor confidence and drive forward EU industrial policy. That report is now due no earlier than September.

For information on how you or your company can get involved in our advocacy work, get in touch with our Membership Officer Sophia Taylor, or email any of our Policy & Public Affairs team via the links above.