Investment in infrastructure across the North is a win-win for the UK Government says American banker Bob Diamond

Speaking to the Yorkshire Post, he said: “Panmure Gordon is opening an office in Leeds. You have 50 per cent of the growth companies in the North. You have 20 per cent of the companies that we do business with in the North. Levelling up is an important initiative to us.”

Rich Ricci, CEO of Panmure Gordon, said that in order for those growth companies to “reach their full potential” the Government has “got to invest in all of the infrastructure - not just the railways”.

“If they don’t, we run the risk of those businesses not fulfilling their potential or worse they decide to go somewhere else,” he added.

Mr Diamond said: “It makes businesses more successful. It’s easier to do business therefore you’re going to have more profitable businesses, more taxes being paid. Investment in infrastructure is just a win - win for the UK.”

He added that levelling up was even more important post-Brexit with the need to make trade easier for UK firms.

The Queen’s Speech on May 10 included a Levelling Up and Regeneration Bill, which will seek to drive local growth and regenerate towns and cities across England.

Both Britain and the US are likely to fall into a recession either later this year or early next year, the American banker said. The National Institute of Economic and Social Research (NIESR) is forecasting two consecutive quarters of contraction, a common definition of a recession, in the UK.

Mr Diamond believes that the forecasts are correct and that there will be two consecutive quarters of contraction.

He said: “The important thing is it’s a reasonably mild recession. Let’s keep in mind that there is going to be a recession ahead. There’s always a cycle. It can’t always be growth. The question is how effectively do we manage through that period of recession.”

From Panmure Gordon’s perspective it will be about staying close to its clients, Mr Ricci says.

Inflation is “clearly” on the minds of investors, the CEO of Panmure Gordon said, with central banks raising interest rates - the US going further than the Bank of England.

Mr Ricci said: “Investors are very worried because there’s no certainty around what might happen and where things might go.

“Everyone knows interest rates are going up but at what rate and at what speed? Are we going to tip into a recession? Of course it’s at the front of everyone’s minds and that’s impacting markets and their ability to deal with things.”

Mr Diamond added: “The gap between the number of job openings and the number that are unemployed is as wide as it has ever been both in the UK and in the US.

“That tightness in the labour market is a real worry for businesses both because of their ability to hit their plans with the right number of staff but also the pressure it puts on wages. It’s definitely a concern.

“The challenge for the UK is even greater than the challenge for the US because I think the impact of the lockdown in China and particularly the impact of the war in Ukraine are probably a little bit more pronounced here. I think the UK is in a better position than continental Europe.”

He also feels that the UK needs to be more open to deep capital markets. Mr Diamond said: “They are just not as open to the depth of the capital market and allowing hedge funds and venture funds and whatnot to proliferate.”

Making waves in the North

Investment bank Panmure Gordon has set its sights on expanding across the North of England.

It has appointed big corporate names in the region including Stuart Watson, formerly a managing partner at accountancy firm EY, and James Lambert, the entrepreneur who founded R&R Ice Cream.

Rich Ricci said Leeds is a “fantastic” location for Panmure Gordon and that they were looking forward to building up their business here.

He added: “You can cover Liverpool, Manchester, Newcastle and York. There’s a great education system. It’s a vibrant city. We think it’s underserved.”