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You can find the current article at its original source at https://www.theguardian.com/business/live/2018/sep/04/mark-carney-governor-bank-of-england-paul-pester-quits-tsb-business-live
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| Version 1 | Version 2 |
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| Mark Carney under pressure to extend stay at Bank of England – business live | Mark Carney under pressure to extend stay at Bank of England – business live |
| (35 minutes later) | |
| Growth in Britain’s construction sector has hit a three-month low in August, a new survey shows. | |
| Housebuilding growth slipped to its weakest rate since March, according to data firm Markit. That won’t provide the new homes needed to tackle the UK housing shortage. | |
| Civil engineering output was also disappointing, and actually fell in August, while commercial building work accelerated. | |
| This pulled Markit’s construction PMI down to 52.9, much weaker than July’s 55.8. That’s not far from the 50-point mark showing stagnation. | |
| It means builders could take breather after a busy few months, as Tim Moore, associate director at IHS Markit, explains: | |
| “The construction sector slipped back into a slower growth phase in August, with this summer’s catch- up effect starting to unwind after projects were delayed by adverse weather at the start of 2018. | |
| “Civil engineering was the worst performing area of the construction sector, with output in this category falling for the first time since March amid reports citing a lack of new work on infrastructure projects. | |
| House building saw a particularly sharp slowdown since July, meaning that commercial construction was the fastest growing sub-sector in August. | |
| The pound isn’t the only currency under pressure today. | |
| Indeed, the US dollar is strengthening across the board, bringing more pain to emerging markets such as South Africa and Indonesia. | |
| USD marches on, Citi notes. The Dollar Index DXY is continuing to make new highs of the day at 95.52. As a consequence, there is not one currency trading in the green vs the USD. Euro is edging towards the lower end of the $1.15-1.1750 trading range. EM FX hit hardest. pic.twitter.com/I3V7GcSOIs | |
| Several senior economists are unimpressed by the swirling uncertainty over Mark Carney’s future. | Several senior economists are unimpressed by the swirling uncertainty over Mark Carney’s future. |
| Professor Costas Milas of the University of Liverpool’s management school, argues that the governor should pledge to stay until 2021. That would be the typical eight-year term, rather than Carney’s planned six-year stint [ending in June 2019]. | Professor Costas Milas of the University of Liverpool’s management school, argues that the governor should pledge to stay until 2021. That would be the typical eight-year term, rather than Carney’s planned six-year stint [ending in June 2019]. |
| In a letter to the FT, professor Milas says this is the wrong time for a change of governor: | In a letter to the FT, professor Milas says this is the wrong time for a change of governor: |
| The rumour is that Mr Carney is considering a “Treasury request to serve another year as governor”. This will make it a seven-year service at the bank rather than the eight-year service advertised by the Treasury back in 2012. | The rumour is that Mr Carney is considering a “Treasury request to serve another year as governor”. This will make it a seven-year service at the bank rather than the eight-year service advertised by the Treasury back in 2012. |
| Assuming that the rumour is a fact, the Treasury is indeed correct in asking Mr Carney to continue as governor at the bank. A critical, yet unwritten, rule of football is never substituting a player — let alone your (monetary policy) captain — when defending a corner. | Assuming that the rumour is a fact, the Treasury is indeed correct in asking Mr Carney to continue as governor at the bank. A critical, yet unwritten, rule of football is never substituting a player — let alone your (monetary policy) captain — when defending a corner. |
| Indeed, with Brexit headwinds remaining quite strong, this is not the time to replace the governor. That said, Mr Carney needs to commit to his full eight-year tenure. He is not a player on loan where he has the luxury to extend by one year and then by another one. As simple as that. | Indeed, with Brexit headwinds remaining quite strong, this is not the time to replace the governor. That said, Mr Carney needs to commit to his full eight-year tenure. He is not a player on loan where he has the luxury to extend by one year and then by another one. As simple as that. |
| However, former Bank of England policymaker Andrew Sentance has criticised the “charade” around the governorship. He argues that the independence of the Bank is at risk: | However, former Bank of England policymaker Andrew Sentance has criticised the “charade” around the governorship. He argues that the independence of the Bank is at risk: |
| The charade called the appointment/reappointment of the Governor of the Bank of England continues. This unprofessional approach to a very senior position in the UK policy establishment is undermining the credibility and independence of the Bank of England. https://t.co/Gj0hjYiqdd | The charade called the appointment/reappointment of the Governor of the Bank of England continues. This unprofessional approach to a very senior position in the UK policy establishment is undermining the credibility and independence of the Bank of England. https://t.co/Gj0hjYiqdd |
| We should seriously question how independent the Bank of England is these days, when the appointment of the Governor becomes subject to the whims of politicians. https://t.co/W6Cu42jO6W | We should seriously question how independent the Bank of England is these days, when the appointment of the Governor becomes subject to the whims of politicians. https://t.co/W6Cu42jO6W |
| In the City, the pound is dropping again as traders fret about Brexit....and the uncertainty at the Bank of England. | In the City, the pound is dropping again as traders fret about Brexit....and the uncertainty at the Bank of England. |
| Sterling is down half a cent against the US dollar at $1.2825, having lost almost a cent on Monday. | Sterling is down half a cent against the US dollar at $1.2825, having lost almost a cent on Monday. |
| Connor Campbell of SpreadEx explains: | Connor Campbell of SpreadEx explains: |
| Speculation over Mark Carney’s future at the Bank of England, and the continued opposition to Theresa May’s Chequers plan failed to help the pound recover Monday’s losses as Tuesday got underway. | Speculation over Mark Carney’s future at the Bank of England, and the continued opposition to Theresa May’s Chequers plan failed to help the pound recover Monday’s losses as Tuesday got underway. |
| The problem isn’t that Carney might stay on longer, but the fact he might not, his tenure as central bank chief set to end just after Britain officially leaves the EU. Combine this with the renewed attacks on May from Brexit hardliners and sterling couldn’t really do anything positive after the bell. | The problem isn’t that Carney might stay on longer, but the fact he might not, his tenure as central bank chief set to end just after Britain officially leaves the EU. Combine this with the renewed attacks on May from Brexit hardliners and sterling couldn’t really do anything positive after the bell. |
| Despite the sometimes-shambolic state of TSB’s service since April, it appears that Paul Pester could still pick up a bonus. | Despite the sometimes-shambolic state of TSB’s service since April, it appears that Paul Pester could still pick up a bonus. |
| Here’s the official line: | Here’s the official line: |
| Paul will be paid in line with the bank’s remuneration policy and the terms of his contract. | Paul will be paid in line with the bank’s remuneration policy and the terms of his contract. |
| The release of variable pay will take into account the outcome of performance conditions as well as ongoing regulatory and independent investigations. | The release of variable pay will take into account the outcome of performance conditions as well as ongoing regulatory and independent investigations. |
| Wes Streeting MP, another member of the Treasury committee, thinks Paul Pester’s departure hasn’t come fast enough . | Wes Streeting MP, another member of the Treasury committee, thinks Paul Pester’s departure hasn’t come fast enough . |
| The Board should have agreed with the @CommonsTreasury committee months ago. That was the right time for Mr Pester to step down. Questions remain of them and Sabadell. They will not escape thorough scrutiny in due course on behalf of their customers - including former customers. https://t.co/lf3WjLbIdi | The Board should have agreed with the @CommonsTreasury committee months ago. That was the right time for Mr Pester to step down. Questions remain of them and Sabadell. They will not escape thorough scrutiny in due course on behalf of their customers - including former customers. https://t.co/lf3WjLbIdi |
| Alison McGovern MP reminds us that the Treasury committee asked TSB to consider Pester’s position three months ago. | Alison McGovern MP reminds us that the Treasury committee asked TSB to consider Pester’s position three months ago. |
| @CommonsTreasury letter of 7 June on Paul Pester's role at TSB pic.twitter.com/Tx0wReVc4f | @CommonsTreasury letter of 7 June on Paul Pester's role at TSB pic.twitter.com/Tx0wReVc4f |
| Still, at least they got today’s announcement out.... | Still, at least they got today’s announcement out.... |
| TSB announces that CEO Paul Pester is stepping down, but given the state of its IT system it's surprising that it managed to get the email out. pic.twitter.com/6fZ23Tkl8T | TSB announces that CEO Paul Pester is stepping down, but given the state of its IT system it's surprising that it managed to get the email out. pic.twitter.com/6fZ23Tkl8T |
| Paul Pester’s departure comes five months after TSB suffered one of the worst IT crises in years, when a technology migration was botched, leaving thousands of customers unable to access their accounts. | Paul Pester’s departure comes five months after TSB suffered one of the worst IT crises in years, when a technology migration was botched, leaving thousands of customers unable to access their accounts. |
| Pester was roasted by MPs over his handling of the crisis; his future has been in doubt since June when the Treasury Committee said they had “lost confidence’ in him. | Pester was roasted by MPs over his handling of the crisis; his future has been in doubt since June when the Treasury Committee said they had “lost confidence’ in him. |
| And the gremlins returned to TSB over the weekend, when ‘planned maintenance’ went wrong, leaving customers fuming. | And the gremlins returned to TSB over the weekend, when ‘planned maintenance’ went wrong, leaving customers fuming. |
| Perhaps that was the last straw - either for Sabadell or Pester himself.... | Perhaps that was the last straw - either for Sabadell or Pester himself.... |
| Breaking: Paul Pester, the boss of TSB, has resigned - as the bank is struck by ANOTHER tech meltdown. | Breaking: Paul Pester, the boss of TSB, has resigned - as the bank is struck by ANOTHER tech meltdown. |
| In a statement, the bank says: | In a statement, the bank says: |
| The Board of TSB Bank Plc has today announced that after 7 years as CEO, Paul Pester will be stepping down from his position and leaving the company. | The Board of TSB Bank Plc has today announced that after 7 years as CEO, Paul Pester will be stepping down from his position and leaving the company. |
| Richard Meddings, current Non Executive Chairman of TSB, will take on the role of Executive Chairman with immediate effect in order to enable a full public search to commence for a new CEO. | Richard Meddings, current Non Executive Chairman of TSB, will take on the role of Executive Chairman with immediate effect in order to enable a full public search to commence for a new CEO. |
| Whilst there is still work to do to achieve full stability for customers, TSB’s systems and services are much improved since the bank’s IT migration earlier this year. Paul and the Board have therefore agreed that this is the right time for Paul to step down and to appoint a new CEO for TSB. | Whilst there is still work to do to achieve full stability for customers, TSB’s systems and services are much improved since the bank’s IT migration earlier this year. Paul and the Board have therefore agreed that this is the right time for Paul to step down and to appoint a new CEO for TSB. |
| More to follow.... | More to follow.... |
| Conservative MP George Freeman has also called on Mark Carney to stay longer at the Bank, saying: | Conservative MP George Freeman has also called on Mark Carney to stay longer at the Bank, saying: |
| “We need a Brexit that doesn’t damage business confidence, investment and jobs. | “We need a Brexit that doesn’t damage business confidence, investment and jobs. |
| Mark Carney is the Alex Ferguson of the City - if he’ll do it he would be a smart pick.” | Mark Carney is the Alex Ferguson of the City - if he’ll do it he would be a smart pick.” |
| The problem, though, is that Carney may have had enough of playing on the hallowed turf of Threadneedle Street. | The problem, though, is that Carney may have had enough of playing on the hallowed turf of Threadneedle Street. |
| Plus, crucially, the rest of the Carney family are heading back to Canada this year (two of the governor’s daughters have A-levels and GCSEs this summer). Having already agreed to remain at the BoE another year (till summer 2019), would he really want to stay even longer? | Plus, crucially, the rest of the Carney family are heading back to Canada this year (two of the governor’s daughters have A-levels and GCSEs this summer). Having already agreed to remain at the BoE another year (till summer 2019), would he really want to stay even longer? |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| Mark Carney was described as the “the outstanding central banker of his generation” when he was dramatically appointed as Bank of England governor in 2012. Since then, he’s been called everything from the “high priest of Project Fear” to the “George Clooney of finance” | Mark Carney was described as the “the outstanding central banker of his generation” when he was dramatically appointed as Bank of England governor in 2012. Since then, he’s been called everything from the “high priest of Project Fear” to the “George Clooney of finance” |
| Now, with his stint at the Bank almost over, could the so-called “unreliable boyfriend” change his mind again? | Now, with his stint at the Bank almost over, could the so-called “unreliable boyfriend” change his mind again? |
| There’s growing pressure on Carney to stick around longer at the Bank, rather than leave in June 2019 as planned. This would let him help the UK through the Brexit transition (or do I mean upheaval?), and calm the markets. | There’s growing pressure on Carney to stick around longer at the Bank, rather than leave in June 2019 as planned. This would let him help the UK through the Brexit transition (or do I mean upheaval?), and calm the markets. |
| The rumour mill is working overtime, with the Treasury and the Bank of England apparently in discussions about Mark Carney staying on longer as governor. | The rumour mill is working overtime, with the Treasury and the Bank of England apparently in discussions about Mark Carney staying on longer as governor. |
| Britain’s Treasury committee will try to get to the bottom of the situation today, when they question the governor about last month’s interest rate rise. | Britain’s Treasury committee will try to get to the bottom of the situation today, when they question the governor about last month’s interest rate rise. |
| Some MPs are hoping that Carney could be persuaded to extend his stint in London longer, even though he’s planned to return to Canada for family reasons. | Some MPs are hoping that Carney could be persuaded to extend his stint in London longer, even though he’s planned to return to Canada for family reasons. |
| Stewart Hosie, a Scottish National Party MP on the committee, told us: | Stewart Hosie, a Scottish National Party MP on the committee, told us: |
| “It wouldn’t be a surprise at all if a member would ask [about Carney’s future]. | “It wouldn’t be a surprise at all if a member would ask [about Carney’s future]. |
| Carney has done a very good job in what, in many cases, have been very difficult economic circumstances. There would be a lot of merit in the chancellor asking him to extend his term should that be the decision the chancellor were to take. | Carney has done a very good job in what, in many cases, have been very difficult economic circumstances. There would be a lot of merit in the chancellor asking him to extend his term should that be the decision the chancellor were to take. |
| Brexit-loving MPs, though, won’t relish the thought of Mark Carney remaining (so to speak) at the Bank for longer, given his warnings about the cost of leaving the EU. | Brexit-loving MPs, though, won’t relish the thought of Mark Carney remaining (so to speak) at the Bank for longer, given his warnings about the cost of leaving the EU. |
| The agenda | The agenda |
| 9.30am BST: UK construction PMI for August | 9.30am BST: UK construction PMI for August |
| 1.15pm BST: Treasury Committee hearing with BoE governor Mark Carney, chief economist Andy Haldane and MPC member Silvana Tenreyro | 1.15pm BST: Treasury Committee hearing with BoE governor Mark Carney, chief economist Andy Haldane and MPC member Silvana Tenreyro |