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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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| Government urged to clarify Mark Carney's future at Bank of England after Brexit - business live | Government urged to clarify Mark Carney's future at Bank of England after Brexit - business live |
| (35 minutes later) | |
| Back in the financial markets, Amazon just hit a $1trn market capitalisation. | |
| Amazon’s share price rose over the ‘magic’ figure of $2050.27, making it the second US company - after Apple - to be worth $1,000,000,000,000. | |
| Amazon becomes world's second $1tn company https://t.co/aFplaV2o8T | |
| Amazon’s value has surged in the last year, as the company has continued to post strong sales growth and cement its strong position in web services and the cloud. | |
| It’s super news for anyone who bought shares 20 years ago, or indeed last autumn! | |
| Amazon market cap milestones:Sep 2018: $1 trillionOct 2017: $500 billionJun 2012: $100 billionOct 2009: $50 billionNov 1998: $10 billion Sep 1997: $1 billion | |
| The Treasury committee hearing has wrapped up. | The Treasury committee hearing has wrapped up. |
| And across the road in Westminster, Theresa May’s spokeswoman has confirmed that an announcement on Mark Carney’s future is being worked on. | And across the road in Westminster, Theresa May’s spokeswoman has confirmed that an announcement on Mark Carney’s future is being worked on. |
| Reuters has the details: | Reuters has the details: |
| British Prime Minister Theresa May thinks Mark Carney has done a good job as governor of the Bank of England, her spokeswoman said on Tuesday, adding that there would be further announcements on the matter. | British Prime Minister Theresa May thinks Mark Carney has done a good job as governor of the Bank of England, her spokeswoman said on Tuesday, adding that there would be further announcements on the matter. |
| “The prime minister obviously thinks he has done a good job in his time as governor, and there will be more to say on that in due course,” the spokeswoman told reporters. | “The prime minister obviously thinks he has done a good job in his time as governor, and there will be more to say on that in due course,” the spokeswoman told reporters. |
| Carney said earlier he was ready to extend his time in charge of the central bank to help Britain’s economy as it leaves the EU. | Carney said earlier he was ready to extend his time in charge of the central bank to help Britain’s economy as it leaves the EU. |
| Nicky Morgan MP, Chair of the Treasury Committee, has urged the Treasury to make a decision about Mark Carney’s future soon - and press on with finding his successor too. | Nicky Morgan MP, Chair of the Treasury Committee, has urged the Treasury to make a decision about Mark Carney’s future soon - and press on with finding his successor too. |
| She says: | She says: |
| “In his evidence session with the Treasury Committee today, Mark Carney indicated that he is willing to stay as Governor of the Bank of England beyond June 2019 if it would assist the Government. | “In his evidence session with the Treasury Committee today, Mark Carney indicated that he is willing to stay as Governor of the Bank of England beyond June 2019 if it would assist the Government. |
| “Stability is vital during this important period. The sooner the Government provides clarity, the better. Any extension to Dr Carney’s term should not be used to delay succession planning.” | “Stability is vital during this important period. The sooner the Government provides clarity, the better. Any extension to Dr Carney’s term should not be used to delay succession planning.” |
| John Mann MP then asks BoE chief economist Andy Haldane how he’d deliver on Labour’s policy to make the Bank boost UK productivity. | John Mann MP then asks BoE chief economist Andy Haldane how he’d deliver on Labour’s policy to make the Bank boost UK productivity. |
| Under this plan, the BoE would be set a new 3% productivity growth target (alongside its 2% inflation goal) | Under this plan, the BoE would be set a new 3% productivity growth target (alongside its 2% inflation goal) |
| How, Mann asks, would this be achieved? What tools would be deployed? | How, Mann asks, would this be achieved? What tools would be deployed? |
| Haldane scratches his ear, and explains that while such targets are a good idea, the key question is who is best placed to deliver them. | Haldane scratches his ear, and explains that while such targets are a good idea, the key question is who is best placed to deliver them. |
| The Bank’s existing mandate for price stability and financial stability should help productivity growth, but they won’t deliver it on their own, he says. | The Bank’s existing mandate for price stability and financial stability should help productivity growth, but they won’t deliver it on their own, he says. |
| In the long run, though, productivity growth depends on having a skilled and educated workforce, and infrastructure improvements. | In the long run, though, productivity growth depends on having a skilled and educated workforce, and infrastructure improvements. |
| And, Haldane concludes, central banks do not build roads or railways, hospitals or schools. They don’t train apprentices, and they don’t teach schoolchildren. | And, Haldane concludes, central banks do not build roads or railways, hospitals or schools. They don’t train apprentices, and they don’t teach schoolchildren. |
| Governor Carney adds that the Bank would have greater responsibility for productivity, but not more powers to solve the problems. | Governor Carney adds that the Bank would have greater responsibility for productivity, but not more powers to solve the problems. |
| We wouldn’t have the tools, Mr Mann, to achieve it. | We wouldn’t have the tools, Mr Mann, to achieve it. |
| The FT’s Chris Giles suggests this might put the bank in a sticky situation: | The FT’s Chris Giles suggests this might put the bank in a sticky situation: |
| Finally Haldane says central banks do not build roads etcHe doesn't confront the questionCarney steps in and says we would have greater responsibility not power.Again, truth is an honest MPC would have to resign because they're being asked to deliver the impossible | Finally Haldane says central banks do not build roads etcHe doesn't confront the questionCarney steps in and says we would have greater responsibility not power.Again, truth is an honest MPC would have to resign because they're being asked to deliver the impossible |
| Unclear whether John Mann thinks his party's policy is nuts, which is the genius of the question | Unclear whether John Mann thinks his party's policy is nuts, which is the genius of the question |
| John Mann MP asks Carney if he’d still want to be Bank of England governor if Boris Johnson or Jacob Rees-Mogg were prime minister in June 2019. | John Mann MP asks Carney if he’d still want to be Bank of England governor if Boris Johnson or Jacob Rees-Mogg were prime minister in June 2019. |
| Carney suggests that this wouldn’t put him off. | Carney suggests that this wouldn’t put him off. |
| These jobs are technocratic jobs. You serve the remit set by parliament and the government of the day. | These jobs are technocratic jobs. You serve the remit set by parliament and the government of the day. |
| A former Bank of England policymaker, Andrew Sentance, has criticised the whole circus around Mark Carney’s future. | A former Bank of England policymaker, Andrew Sentance, has criticised the whole circus around Mark Carney’s future. |
| Today’s session follows days of speculation about whether the Treasury and the Bank were trying to hammer out an agreement to keep the governor for longer. | Today’s session follows days of speculation about whether the Treasury and the Bank were trying to hammer out an agreement to keep the governor for longer. |
| That, Sentance told Radio 4’s World at One, bad for the central bank’s credibility: | That, Sentance told Radio 4’s World at One, bad for the central bank’s credibility: |
| “It seems like the appointment of the governor is something that is happening between the Chancellor and the governor, and is not happening in a transparent way. | “It seems like the appointment of the governor is something that is happening between the Chancellor and the governor, and is not happening in a transparent way. |
| “It seems an awful lot is happening in this appointment process behind the scenes and that is not good in terms of the independence of the Bank of England.” | “It seems an awful lot is happening in this appointment process behind the scenes and that is not good in terms of the independence of the Bank of England.” |
| Treasury committee member Wes Streeting has welcomed Mark Carney’s offer to stay on longer, and hopes an announcement comes soon. | Treasury committee member Wes Streeting has welcomed Mark Carney’s offer to stay on longer, and hopes an announcement comes soon. |
| Mark Carney confirms to @CommonsTreasury that he is in discussions with Treasury about extending his term beyond his anticipated departure date in June 2019. Makes sense, in my view, in light of Brexit and the sooner we have clarity on this the better. | Mark Carney confirms to @CommonsTreasury that he is in discussions with Treasury about extending his term beyond his anticipated departure date in June 2019. Makes sense, in my view, in light of Brexit and the sooner we have clarity on this the better. |
| Ed Conway of Sky News suspects that Carney could actually extend his governorship to 2021, rather than leaving in June 2019 as currently planned. | Ed Conway of Sky News suspects that Carney could actually extend his governorship to 2021, rather than leaving in June 2019 as currently planned. |
| That would mean a full eight-year stint (he started in summer 2013) - the standard term for BoE governors. | That would mean a full eight-year stint (he started in summer 2013) - the standard term for BoE governors. |
| Breaking: Mark Carney signals he will extend his tenancy through the Brexit transition."I am willing to do whatever else I can to promote a smooth Brexit & effective transition... The Chancellor and I have discussed this. I would expect an announcement to be made in due course." | Breaking: Mark Carney signals he will extend his tenancy through the Brexit transition."I am willing to do whatever else I can to promote a smooth Brexit & effective transition... The Chancellor and I have discussed this. I would expect an announcement to be made in due course." |
| The fact that Carney emphasised he is willing to stay on for the Brexit transition implies he might indeed stay until the originally-intended end of his term: mid 2021. So another two years rather than one | The fact that Carney emphasised he is willing to stay on for the Brexit transition implies he might indeed stay until the originally-intended end of his term: mid 2021. So another two years rather than one |
| Chances of a hard Brexit, as far as market is concerned, have risen from 1 in 5 to 1 in 4 according to BoE chief economist Andy Haldane | Chances of a hard Brexit, as far as market is concerned, have risen from 1 in 5 to 1 in 4 according to BoE chief economist Andy Haldane |
| Moments after signalling he's staying on as Governor, Mark Carney reminds Brexiteers why he so infuriates them, warning that a no deal Brexit would mean a return of the real income squeeze. And warns that the BoE may even have to RAISE interest rates if there's a hard Brexit | Moments after signalling he's staying on as Governor, Mark Carney reminds Brexiteers why he so infuriates them, warning that a no deal Brexit would mean a return of the real income squeeze. And warns that the BoE may even have to RAISE interest rates if there's a hard Brexit |
| Q: How vulnerable is sterling to a sudden devaluation? | Q: How vulnerable is sterling to a sudden devaluation? |
| Mark Carney takes a ‘glass half-full’ approach. He thinks the pound is currently suffering from the risk of a no-deal Brexit, so it might rise if an agreement and a transition deal is reached. | Mark Carney takes a ‘glass half-full’ approach. He thinks the pound is currently suffering from the risk of a no-deal Brexit, so it might rise if an agreement and a transition deal is reached. |
| But if that doesn’t happen, the pound would move the other way, he explains. | But if that doesn’t happen, the pound would move the other way, he explains. |
| Quilter Investors head of investment, Anthony Gillham, believes the UK government should accept Mark Carney’s offer to stay longer at the Bank of England. | Quilter Investors head of investment, Anthony Gillham, believes the UK government should accept Mark Carney’s offer to stay longer at the Bank of England. |
| Gillham concedes that Carney hasn’t be “universally popular” (particularly with Leave supporters, who have hated his warnings about Brexit). | Gillham concedes that Carney hasn’t be “universally popular” (particularly with Leave supporters, who have hated his warnings about Brexit). |
| But even so, Britain would benefit from an experienced hand at the top of the Bank in the likely turbulent times ahead. | But even so, Britain would benefit from an experienced hand at the top of the Bank in the likely turbulent times ahead. |
| Gillham writes: | Gillham writes: |
| “Central banks have done a lot of heavy lifting over the last decade in an effort to restore economic stability, although they have often been required to swim upstream against a current of destabilising political uncertainty. As if to illustrate the point, despite the Bank of England’s efforts to protect sterling over the summer, we have seen the pound chasing up positive sentiment around Brexit, before following it back down when the political rhetoric changes. | “Central banks have done a lot of heavy lifting over the last decade in an effort to restore economic stability, although they have often been required to swim upstream against a current of destabilising political uncertainty. As if to illustrate the point, despite the Bank of England’s efforts to protect sterling over the summer, we have seen the pound chasing up positive sentiment around Brexit, before following it back down when the political rhetoric changes. |
| “If Mark Carney’s tenure is extended he will have his work cut out, but the case for an experienced captain to guide the UK through dangerous waters has grown stronger as Brexit negotiations have dragged on. He will install a measure of certainty on monetary policy, which provides some air cover through what will surely be an unpredictable spell. As Bank of England governor Mark Carney hasn’t always been universally popular, but appointing him as temporary caretaker through this period of transition does make sense.” | “If Mark Carney’s tenure is extended he will have his work cut out, but the case for an experienced captain to guide the UK through dangerous waters has grown stronger as Brexit negotiations have dragged on. He will install a measure of certainty on monetary policy, which provides some air cover through what will surely be an unpredictable spell. As Bank of England governor Mark Carney hasn’t always been universally popular, but appointing him as temporary caretaker through this period of transition does make sense.” |
| The Treasury have declined to comment on Mark Carney’s comments today, but have confirmed that an announcement will come in due course. | The Treasury have declined to comment on Mark Carney’s comments today, but have confirmed that an announcement will come in due course. |
| The committee have moved away from Mark Carney’s future, and onto the impact of artificial intelligence on the UK economy (are they suggesting the governor could be replaced by a robot?). | The committee have moved away from Mark Carney’s future, and onto the impact of artificial intelligence on the UK economy (are they suggesting the governor could be replaced by a robot?). |
| Q: How many jobs will be lost to the fourth industrial revolution? | Q: How many jobs will be lost to the fourth industrial revolution? |
| Chief economist Andy Haldane says estimates for gross job losses range from 10% and 50% of the global workforce - as jobs are automated or entire professions are replaced with software. | Chief economist Andy Haldane says estimates for gross job losses range from 10% and 50% of the global workforce - as jobs are automated or entire professions are replaced with software. |
| Of course, you also need to factor in how many new jobs are created (coding all those robots etc) | Of course, you also need to factor in how many new jobs are created (coding all those robots etc) |
| But the big picture is that the gross job losses due to AI, big data, etc, the gross job losses will be “at least as large and possibly larger as in previous industrial revolutions”, Haldane adds. | But the big picture is that the gross job losses due to AI, big data, etc, the gross job losses will be “at least as large and possibly larger as in previous industrial revolutions”, Haldane adds. |
| Here’s our news story on governor Carney’s pledge to help Britain through Brexit by serving longer at the Bank of England: | Here’s our news story on governor Carney’s pledge to help Britain through Brexit by serving longer at the Bank of England: |
| Mark Carney has confirmed he is in talks with the Treasury over staying on at the Bank of England to smooth any potential fallout from Brexit. | Mark Carney has confirmed he is in talks with the Treasury over staying on at the Bank of England to smooth any potential fallout from Brexit. |
| Dropping the broadest possible hint he could remain at Threadneedle Street beyond his scheduled departure date in June, the Bank of England governor said: “Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and an effective transition at the Bank of England.” | Dropping the broadest possible hint he could remain at Threadneedle Street beyond his scheduled departure date in June, the Bank of England governor said: “Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and an effective transition at the Bank of England.” |
| Carney confirmed he had held talks with the chancellor, Philip Hammond, over his future, and said an announcement would be made by the government “in due course”. | Carney confirmed he had held talks with the chancellor, Philip Hammond, over his future, and said an announcement would be made by the government “in due course”. |
| Speaking to MPs on the Treasury committee, tasked with scrutinising appointments at the central bank, he said: “I am signalling a willingness to do whatever I can to support this process.”... | Speaking to MPs on the Treasury committee, tasked with scrutinising appointments at the central bank, he said: “I am signalling a willingness to do whatever I can to support this process.”... |
| More here: | More here: |
| Charlie Elphicke MP disputes the Bank’s claim that food prices would surge if Britain left the EU without a deal next year. | Charlie Elphicke MP disputes the Bank’s claim that food prices would surge if Britain left the EU without a deal next year. |
| Q: Couldn’t the UK set its own tariffs, meaning cheaper food imports from countries outside the EU? | Q: Couldn’t the UK set its own tariffs, meaning cheaper food imports from countries outside the EU? |
| Carney says that any such cut in tariffs would be countered by a slump in sterling after a no-deal Brexit (driving up imports). | Carney says that any such cut in tariffs would be countered by a slump in sterling after a no-deal Brexit (driving up imports). |