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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/oct/06/pound-sterling-chancellor-hammond-wall-street-charm-offensive-business-live
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| Version 0 | Version 1 |
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| Pound hits another 31-year low as chancellor Hammond launches Wall Street charm offensive – business live | Pound hits another 31-year low as chancellor Hammond launches Wall Street charm offensive – business live |
| (35 minutes later) | |
| 3.49pm BST | |
| 15:49 | |
| And Reuters: | |
| British finance minister Philip Hammond said on Thursday that he would focus on increasing the country’s economic output by improving productivity, but that overall growth could slow as Britain barred most low-skilled European Union migrants. | |
| “What we need to drive is a growth in GDP per capita. We need to see our economic expansion coming from an improvement in productivity, not simply from bringing ever larger numbers of low skilled people into the economy,” Hammond said in an interview with Bloomberg TV in New York. | |
| Economic data earlier on Thursday showed British productivity continued to lag other countries after several years in which growth has been driven by a growing workforce, which includes higher numbers of EU migrants. | |
| Hammond also said Britain’s government was looking at the costs and benefits of remaining in a customs union with the EU, as being outside would have “frictional costs” for manufacturers such as carmakers. | |
| 3.47pm BST | |
| 15:47 | |
| Here’s Bloomberg’s take on their interview with chancellor Philip Hammond: | |
| The U.K. will use Brexit to build on historic trading relationships outside of the EU, Chancellor of the Exchequer Philip Hammond told Bloomberg TV in New York. | |
| “We want to get the right Brexit for Britain,” Hammond told Bloomberg Editor-in-Chief John Micklethwait. | |
| He described the U.K. as “mid-Atlantic in the way it does business,” and said capitalism faced problems across the developed world. | |
| “We have a problem, not just a British problem but a developed world problem, in keeping our populations engaged and supportive of our market capitalism economic model,” Hammond said. | |
| Hammond, who is on a visit to U.S. to meet Wall Street bosses and attend meetings of the International Monetary Fund, said he would make protecting London’s financial sector a priority for him. | |
| “It will be one of the U.K. government’s objectives to ensure that parts of the financial services sectors that are Europe-facing are able to continue doing business in Europe.” | |
| There are long-term economic advantages to @Brexit, Philip Hammond says https://t.co/KAo4N8YKEB pic.twitter.com/xhHqLjzm6a | |
| Updated | |
| at 3.55pm BST | |
| 3.43pm BST | |
| 15:43 | |
| Philip Hammond may not want to disclose whether he thinks the value of sterling is too high or too low, but he might be pleased to know it has come off its lows of the day. | |
| The pound is currently at $1.2646, down 0.8% on the day but above the new 31 year low of $1.2623 it reached earlier. | |
| 3.39pm BST | |
| 15:39 | |
| Hammond backs Carney | |
| Question: Should Mark Carney (one of Britain’s best known foreign workers) stay on longer as Bank of England governor? | |
| I think the governor is doing a good job. The bank is fulfilling its remit very effectively. It helped us recover from the financial crisis and helped us smooth the shock that came on 23rd June. | |
| It is Mark Carney’s decision...I would welcome his decision to stay if thats the decision he makes. | |
| And there the interview ends. | |
| Updated | |
| at 3.57pm BST | |
| 3.36pm BST | |
| 15:36 | |
| Question: isn’t UK economy doing ok? | |
| Media is focussing on backward data. UK economy was stronger than we thought.. but the concensus of forecasters is suggesting growth will slow as we go through period of negotiation until we have certainty over our position with EU. | |
| Business investment is the key focus. Business postpones decisions if climate is uncertain. We want to bring back certainty as soon as we can. | |
| 3.34pm BST | 3.34pm BST |
| 15:34 | 15:34 |
| Question: Investment outside London? | Question: Investment outside London? |
| We have a productivity problem in UK, and one of drivers is regional disparity. We are hugely underinvested in transport links [in northern region]. | We have a productivity problem in UK, and one of drivers is regional disparity. We are hugely underinvested in transport links [in northern region]. |
| We will continue to support Northern powerhouse and other regions. | We will continue to support Northern powerhouse and other regions. |
| On infrastructure, lot is done by private sector. In public sector, we have an opportunity to borrow cheaply and we have further capacity for targeted investments in productive infrastructure. But with our debt to GDP ratio we cannot have unrestrained programme of public spending. | On infrastructure, lot is done by private sector. In public sector, we have an opportunity to borrow cheaply and we have further capacity for targeted investments in productive infrastructure. But with our debt to GDP ratio we cannot have unrestrained programme of public spending. |
| After shock of Brexit decision there will be a period of uncertainty, we have to support the economy through that. | After shock of Brexit decision there will be a period of uncertainty, we have to support the economy through that. |
| 3.31pm BST | 3.31pm BST |
| 15:31 | 15:31 |
| Question: Sterling gone down since Brexit. Does UK economy work at this level? | Question: Sterling gone down since Brexit. Does UK economy work at this level? |
| We don’t target exchange rate level. Market makes its judgement, and that can change quickly. | We don’t target exchange rate level. Market makes its judgement, and that can change quickly. |
| The market determines the appropriate level and we are committed to free floating exchange rate system. | The market determines the appropriate level and we are committed to free floating exchange rate system. |
| 3.29pm BST | 3.29pm BST |
| 15:29 | 15:29 |
| UK government is pro-business - Hammond | |
| Question: Theresa May seemed more critical of business than previous PMs. Is government anti-business? | Question: Theresa May seemed more critical of business than previous PMs. Is government anti-business? |
| Absolutely not. We are pro-business. | Absolutely not. We are pro-business. |
| But we [Western economies} have a problem in keeping populations supportive of capital market model. People feel economy is not working for them, they are losers. We have to re-engage those people who feel they do not have a stake any more. | But we [Western economies} have a problem in keeping populations supportive of capital market model. People feel economy is not working for them, they are losers. We have to re-engage those people who feel they do not have a stake any more. |
| We have to address signs of a sizeable amount of people becoming disenchanted. | We have to address signs of a sizeable amount of people becoming disenchanted. |
| We have to deal with rogue operators. We have examples in UK of companies abusing market power, abusing workers. We have to deal with that. | We have to deal with rogue operators. We have examples in UK of companies abusing market power, abusing workers. We have to deal with that. |
| PM said there is a limit to the power of government but doesn’t mean they have no power at all. They have to make sure markets work properly. Sending out strong message that best way to make people free and prosperous is to have a free liberal economy. | PM said there is a limit to the power of government but doesn’t mean they have no power at all. They have to make sure markets work properly. Sending out strong message that best way to make people free and prosperous is to have a free liberal economy. |
| Updated | |
| at 3.57pm BST | |
| 3.26pm BST | 3.26pm BST |
| 15:26 | 15:26 |
| Question: is there any economic advantage to Brexit? | Question: is there any economic advantage to Brexit? |
| In the long term yes and outside the EU we will build on historic trading links. Our economy is more mid-Atlantic than Europe. | In the long term yes and outside the EU we will build on historic trading links. Our economy is more mid-Atlantic than Europe. |
| 3.24pm BST | 3.24pm BST |
| 15:24 | 15:24 |
| One reaction so far: | One reaction so far: |
| Offhand review from one American hedge fund manager about Hammond's talk: "well, he's a good *politician." | Offhand review from one American hedge fund manager about Hammond's talk: "well, he's a good *politician." |
| 3.21pm BST | 3.21pm BST |
| 15:21 | 15:21 |
| Question: EU will say you either get migration controls or single market. From conference it appears migration is more important. | Question: EU will say you either get migration controls or single market. From conference it appears migration is more important. |
| Hammond: I don’t agree. There will be discussions and there will have to be give and take on both sides... if there is a solution that is advantageous to both sides. We don’t delude ourselves our European partners owe us any favours. | Hammond: I don’t agree. There will be discussions and there will have to be give and take on both sides... if there is a solution that is advantageous to both sides. We don’t delude ourselves our European partners owe us any favours. |
| They still want access to UK market. | They still want access to UK market. |
| It has to be a win-win solution. | It has to be a win-win solution. |
| But we have to realise the Brexit vote said implicitly that we should not have freedom of movement in way we had in the past. That is about control, not saying people from Europe cannot come into the UK. | But we have to realise the Brexit vote said implicitly that we should not have freedom of movement in way we had in the past. That is about control, not saying people from Europe cannot come into the UK. |
| This is a negotiation, we both have our starting positions and will discuss it. | This is a negotiation, we both have our starting positions and will discuss it. |
| Updated | Updated |
| at 3.22pm BST | at 3.22pm BST |
| 3.18pm BST | 3.18pm BST |
| 15:18 | 15:18 |
| We have an economy heavily integrated with the EU after forty years. | We have an economy heavily integrated with the EU after forty years. |
| One of things we have to do is analyse benefits and costs of being in a customs union. | One of things we have to do is analyse benefits and costs of being in a customs union. |