This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/politics/live/2016/jul/12/mps-to-quiz-mark-carney-on-brexit-fallout-business-live
The article has changed 13 times. There is an RSS feed of changes available.
| Version 11 | Version 12 |
|---|---|
| MPs quiz Mark Carney on Brexit fallout - as it happened | MPs quiz Mark Carney on Brexit fallout - as it happened |
| (about 1 month later) | |
| 3.00pm BST | 3.00pm BST |
| 15:00 | 15:00 |
| That’s it for today, thank you for joining us. We’ll be back again in the morning. AM | That’s it for today, thank you for joining us. We’ll be back again in the morning. AM |
| 2.47pm BST | 2.47pm BST |
| 14:47 | 14:47 |
| Wall Street opens higher | Wall Street opens higher |
| US markets are up in early trading. | US markets are up in early trading. |
| 2.39pm BST | 2.39pm BST |
| 14:39 | 14:39 |
| Irish economy grows 26% in 2015 | Irish economy grows 26% in 2015 |
| Ireland’s economy grew by a massive 26.3% in 2015, following a surge in foreign investment. | Ireland’s economy grew by a massive 26.3% in 2015, following a surge in foreign investment. |
| A major boost came from foreign companies that switched their base to Ireland, increasing the value of the country’s corporate sector. | A major boost came from foreign companies that switched their base to Ireland, increasing the value of the country’s corporate sector. |
| Michael Connolly, a senior statistician at Ireland’s Central Statistics Office, said: | Michael Connolly, a senior statistician at Ireland’s Central Statistics Office, said: |
| What happens here is that an entire balance sheet of a company relocating to Ireland from somewhere else is included in our capital stocks or our international investment position. | What happens here is that an entire balance sheet of a company relocating to Ireland from somewhere else is included in our capital stocks or our international investment position. |
| The very dramatic increase has increased the capacity for production in the economy and impacts the accounts for 2015 in the increase of exports and imports. | The very dramatic increase has increased the capacity for production in the economy and impacts the accounts for 2015 in the increase of exports and imports. |
| Read our full story on the figures here: | Read our full story on the figures here: |
| 2.25pm BST | 2.25pm BST |
| 14:25 | 14:25 |
| German finance minister Wolfgang Schaeuble has been speaking in Brussels, where he joined other EU finance ministers for the latest Ecofin meeting. | German finance minister Wolfgang Schaeuble has been speaking in Brussels, where he joined other EU finance ministers for the latest Ecofin meeting. |
| He called for Britain to be clear about its Brexit decision as soon as possible to limit long-term uncertainty. | He called for Britain to be clear about its Brexit decision as soon as possible to limit long-term uncertainty. |
| Speaking separately in Berlin, the German Chancellor Angela Merkel said her government’s goal is to ensure Brexit does not have an impact in Germany. | Speaking separately in Berlin, the German Chancellor Angela Merkel said her government’s goal is to ensure Brexit does not have an impact in Germany. |
| 2.17pm BST | 2.17pm BST |
| 14:17 | 14:17 |
| FTSE 100 breaks through 6,700 mark | FTSE 100 breaks through 6,700 mark |
| The FTSE 100 has risen above 6,700 for the first time since 11 August. | The FTSE 100 has risen above 6,700 for the first time since 11 August. |
| Investors continue to be cheered by the swifter-than-expected conclusion to the Conservative Party leadership contest, with Theresa May confirmed on Tuesday as the UK’s new PM. | Investors continue to be cheered by the swifter-than-expected conclusion to the Conservative Party leadership contest, with Theresa May confirmed on Tuesday as the UK’s new PM. |
| The FTSE is up 0.3% or 18 points at 6,701. | The FTSE is up 0.3% or 18 points at 6,701. |
| Updated | Updated |
| at 2.18pm BST | at 2.18pm BST |
| 2.05pm BST | 2.05pm BST |
| 14:05 | 14:05 |
| The pound is up 1.2% against the dollar, at $1.3152. | The pound is up 1.2% against the dollar, at $1.3152. |
| It is up 0.9% against the euro at €1.1850. | It is up 0.9% against the euro at €1.1850. |
| 2.03pm BST | 2.03pm BST |
| 14:03 | 14:03 |
| Back in the wider world, European markets are higher. | Back in the wider world, European markets are higher. |
| The FTSE 250 is up 0.6% at 16,803. | The FTSE 250 is up 0.6% at 16,803. |
| 1.38pm BST | 1.38pm BST |
| 13:38 | 13:38 |
| Carney gives robust defence in tense exchange with MPs | Carney gives robust defence in tense exchange with MPs |
| Mark Carney came under considerable pressure from MPs, who quizzed him on the Bank’s position in the lead up to the referendum on 23 June. | Mark Carney came under considerable pressure from MPs, who quizzed him on the Bank’s position in the lead up to the referendum on 23 June. |
| It was the governor’s first appearance in front of the Treasury Committee. | It was the governor’s first appearance in front of the Treasury Committee. |
| Key points from the session: | Key points from the session: |
| Updated | Updated |
| at 2.40pm BST | at 2.40pm BST |
| 12.48pm BST | 12.48pm BST |
| 12:48 | 12:48 |
| Will the Brexit decision be negative for foreign direct investment over the long term, Tyrie asks Richard Sharp, an external member of the FPC? | Will the Brexit decision be negative for foreign direct investment over the long term, Tyrie asks Richard Sharp, an external member of the FPC? |
| In the short to medium term yes, Sharp answers, in the longer term it will depend on policies and agreements struck. | In the short to medium term yes, Sharp answers, in the longer term it will depend on policies and agreements struck. |
| And that concludes the session. Full story and summary to follow. | And that concludes the session. Full story and summary to follow. |
| 12.37pm BST | 12.37pm BST |
| 12:37 | 12:37 |
| The governor says a weaker pound should improve the current account deficit, making it smaller. | The governor says a weaker pound should improve the current account deficit, making it smaller. |
| If maintained, the drop in the pound since the referendum would reduce the current account deficit by about a third, Carney estimates. | If maintained, the drop in the pound since the referendum would reduce the current account deficit by about a third, Carney estimates. |
| Turning to the downsides of the Brexit vote for the current account, Carney includes the reduction in foreign investment in UK commercial property, and the “modest increase” in risk premium associated with UK assets. | Turning to the downsides of the Brexit vote for the current account, Carney includes the reduction in foreign investment in UK commercial property, and the “modest increase” in risk premium associated with UK assets. |
| When institutions try to bluff their way through risks, sweeping them under the carpet it is “exactly the wrong thing to do”, Carney says. | When institutions try to bluff their way through risks, sweeping them under the carpet it is “exactly the wrong thing to do”, Carney says. |
| 12.23pm BST | 12.23pm BST |
| 12:23 | 12:23 |
| Carney turns to the fall in the pound since the referendum. | Carney turns to the fall in the pound since the referendum. |
| The exchange rate move can help the UK adjust to the post-Brexit environment, including the change in trade terms that will follow, the governor says. | The exchange rate move can help the UK adjust to the post-Brexit environment, including the change in trade terms that will follow, the governor says. |
| FPC member Donald Kohn says that if you are going to make a major decision to build a factory or open a new office in the UK, you would want to know what the terms of trading would be with other countries. | FPC member Donald Kohn says that if you are going to make a major decision to build a factory or open a new office in the UK, you would want to know what the terms of trading would be with other countries. |
| 12.15pm BST | 12.15pm BST |
| 12:15 | 12:15 |
| Andrew Tyrie follows up by saying the Bank’s MPC and FPC would have come in for considerable criticism had they not commented on the potential consequences of Brexit in the run up to the referendum. | Andrew Tyrie follows up by saying the Bank’s MPC and FPC would have come in for considerable criticism had they not commented on the potential consequences of Brexit in the run up to the referendum. |
| Deputy governor Cunliffe says the Bank’s reputation would have been damaged if it had not warned of Brexit risks before the vote. | Deputy governor Cunliffe says the Bank’s reputation would have been damaged if it had not warned of Brexit risks before the vote. |
| 12.10pm BST | 12.10pm BST |
| 12:10 | 12:10 |
| Conservative MP Jacob Rees-Mogg is up. He clashed with Carney in the run-up to the referendum, accusing the governor of being in the pocket of the chancellor on the remain side of the campaign. | Conservative MP Jacob Rees-Mogg is up. He clashed with Carney in the run-up to the referendum, accusing the governor of being in the pocket of the chancellor on the remain side of the campaign. |
| Rees-Mogg asks whether the Bank must be like Caesar’s wife, “above suspicion”? | Rees-Mogg asks whether the Bank must be like Caesar’s wife, “above suspicion”? |
| The MP is pressing on with the idea that Carney showed political bias in the run-up to the referendum by arguing that being a member of the EU would be net beneficial for the UK economy. Carney rejects the idea. | The MP is pressing on with the idea that Carney showed political bias in the run-up to the referendum by arguing that being a member of the EU would be net beneficial for the UK economy. Carney rejects the idea. |
| The Conservative MP is now taking Carney to task on his comment pre-referendum that UK rates could go either up or down in the event of a Brexit vote. | The Conservative MP is now taking Carney to task on his comment pre-referendum that UK rates could go either up or down in the event of a Brexit vote. |
| Was it ever likely that policy would be tightened, Rees-Mogg asks, or did it just suit the chancellor’s argument? Carney says the statement was a balanced view, reflecting the views of the MPC as a whole. | Was it ever likely that policy would be tightened, Rees-Mogg asks, or did it just suit the chancellor’s argument? Carney says the statement was a balanced view, reflecting the views of the MPC as a whole. |
| The governor is keeping a fairly cool head in the face of some hostile questioning by Rees-Mogg. | The governor is keeping a fairly cool head in the face of some hostile questioning by Rees-Mogg. |
| Carney gets the last word, suggesting those questioning whether the Bank was biased “should consider their [own] motivations their judgements?” | Carney gets the last word, suggesting those questioning whether the Bank was biased “should consider their [own] motivations their judgements?” |
| Updated | Updated |
| at 12.44pm BST | at 12.44pm BST |
| 11.51am BST | 11.51am BST |
| 11:51 | 11:51 |
| Markets are hedging “downside risk” according to Carney, which is why we have seen record low bond yields. | Markets are hedging “downside risk” according to Carney, which is why we have seen record low bond yields. |
| Low bond yields do not give an accurate signal of the future of the UK economy. “The financial system can withstand huge shocks. There will be growth”. | Low bond yields do not give an accurate signal of the future of the UK economy. “The financial system can withstand huge shocks. There will be growth”. |
| 11.46am BST | 11.46am BST |
| 11:46 | 11:46 |
| Carney: we have tools to meet stability | Carney: we have tools to meet stability |
| Carney is talking about the ultra low rates environment we are currently in. The governor suggests that the Bank still has tools up its sleeve should it need them. | Carney is talking about the ultra low rates environment we are currently in. The governor suggests that the Bank still has tools up its sleeve should it need them. |
| We have the tools to meet our responsibilities for both monetary and financial stability. | We have the tools to meet our responsibilities for both monetary and financial stability. |
| Carney continues to sound the same reassuring note he has adopted since the Brexit result was known on 24 June. | Carney continues to sound the same reassuring note he has adopted since the Brexit result was known on 24 June. |
| Economists believe the Bank’s Monetary Policy Committee will announce fresh measures to stimulate the UK economy - possibly as early as Thursday when it announces its monthly policy decision. | Economists believe the Bank’s Monetary Policy Committee will announce fresh measures to stimulate the UK economy - possibly as early as Thursday when it announces its monthly policy decision. |
| The MPC could further cut interest rates (from 0.5%) or extend quantitative easing (from £375bn), or both. | The MPC could further cut interest rates (from 0.5%) or extend quantitative easing (from £375bn), or both. |