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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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| Mark Carney confirms discussions on extending term at Bank of England - business live | |
| (35 minutes later) | |
| Treasury committee member Wes Streeting has welcomed Carney’s comments. | |
| 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. | |
| [For anyone just tuning in... Mark Carney is currently due to leave the Bank in nine months time. He was originally due to leave this summer, but in 2016 he agreed to stay on until June 2019. Now a further extension is on the cards...] | |
| Nicky Morgan begins the session by joking that today’s session hasn’t attracted much press attention -- and then reads out a stream of headlines about Mark Carney’s future at the Bank of England. | |
| Can he shed any light on whether he’d stay longer at the Bank? | |
| Governor Carney replies that at this “critical period” it is “important that everyone does everything they can to help with the transition of exiting the European Union”. | |
| That includes parliamentarians and central bankers. | |
| Carney says: | |
| Accordingly, 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. | |
| That sounds like a heavy hint that he’d stay at the Bank, beyond June 2019 - his current exit date. | |
| Carney adds that he has already discussed this issue with the chancellor, Philip Hammond, and he expects an announcement to be made in due course. | |
| More to follow! | |
| Parliament’s Treasury committee has begun its hearing with Bank of England governor Mark Carney. | |
| He’s accompanied by chief economist Andy Haldane, and Monetary Policy Committee member Silvana Tenreyro. | |
| On the agenda: Last month’s interest rate rise, the outlook for UK growth and inflation, and the state of the economy. | |
| Brexit, and Carney’s own future, will surely also come up too..... | |
| The session is being streamed here. | |
| Joel Hills of ITV News reckons Mark Carney wasn’t considering an an extra shift at the Bank of England two months ago. | Joel Hills of ITV News reckons Mark Carney wasn’t considering an an extra shift at the Bank of England two months ago. |
| On July 5th, during an interview in Newcastle, I asked Mark Carney if he would consider extending his term at @bankofengland. He looked 1) very surprised to be asked the question (so much so he didn’t answer it) 2) completely unenthused by the idea. | On July 5th, during an interview in Newcastle, I asked Mark Carney if he would consider extending his term at @bankofengland. He looked 1) very surprised to be asked the question (so much so he didn’t answer it) 2) completely unenthused by the idea. |
| But perhaps things have changed, now the Treasury have been (apparently) proposing the governor stays in post until 2020. | But perhaps things have changed, now the Treasury have been (apparently) proposing the governor stays in post until 2020. |
| Just an hour to wait until MPs on the Treasury committee grill Mark Carney about the possibility of extending his contract beyond June 2019. | Just an hour to wait until MPs on the Treasury committee grill Mark Carney about the possibility of extending his contract beyond June 2019. |
| Craig Erlam of City trading firm OANDA suggests the governor might refuse to be drawn about the issue today (he’s officially there to discuss August’s inflation report). | Craig Erlam of City trading firm OANDA suggests the governor might refuse to be drawn about the issue today (he’s officially there to discuss August’s inflation report). |
| Carney’s appearance before the Treasury Select Committee on Tuesday comes with an additional twist, following reports that the Treasury is trying to persuade him to extend his term – which ends in the middle of next year - by another 12 months. Carney has already agreed to one extension in order to oversee the Brexit process and the government is clearly hopeful that he will contemplate one more so as to provide some source of stability in otherwise uncertain times. | Carney’s appearance before the Treasury Select Committee on Tuesday comes with an additional twist, following reports that the Treasury is trying to persuade him to extend his term – which ends in the middle of next year - by another 12 months. Carney has already agreed to one extension in order to oversee the Brexit process and the government is clearly hopeful that he will contemplate one more so as to provide some source of stability in otherwise uncertain times. |
| He hasn’t been the most popular of Governors, primarily among Brexiteers, who are still angry about his predictions on the economy prior to the referendum in the event of a vote to leave. | He hasn’t been the most popular of Governors, primarily among Brexiteers, who are still angry about his predictions on the economy prior to the referendum in the event of a vote to leave. |
| You have to wonder why Carney would choose to remain in the hot seat given the hand he’s been given and the constant criticism he’s received. Perhaps this is one reason why efforts are being made to retain him for now, it can’t be one of the most sought after jobs at the minute. | You have to wonder why Carney would choose to remain in the hot seat given the hand he’s been given and the constant criticism he’s received. Perhaps this is one reason why efforts are being made to retain him for now, it can’t be one of the most sought after jobs at the minute. |
| The Press Association have compiled a handy Q&A on the IT crisis at TSB. | The Press Association have compiled a handy Q&A on the IT crisis at TSB. |
| Q: Why has TSB come under the spotlight? A: Problems erupted following a migration of customer data from former owner Lloyds’ IT system to a new one managed by TSB’s current owner Sabadell.Up to 1.9 million people using TSB’s digital and mobile banking found themselves locked out of their bank accounts. Some customers were unable to access their cash or pay bills - while others reported being able to see other people’s accounts.The Information Commissioner’s Office, which monitors data and privacy, previously said it was looking into the situation. MPs on the Treasury Committee heard from the bank in April that 40,000 complaints were received over a 10-day period. | Q: Why has TSB come under the spotlight? A: Problems erupted following a migration of customer data from former owner Lloyds’ IT system to a new one managed by TSB’s current owner Sabadell.Up to 1.9 million people using TSB’s digital and mobile banking found themselves locked out of their bank accounts. Some customers were unable to access their cash or pay bills - while others reported being able to see other people’s accounts.The Information Commissioner’s Office, which monitors data and privacy, previously said it was looking into the situation. MPs on the Treasury Committee heard from the bank in April that 40,000 complaints were received over a 10-day period. |
| By the end of July, over 135,000 complaints had been logged. | By the end of July, over 135,000 complaints had been logged. |
| Q:What about people who have incurred charges because of the hitches? A: TSB has promised that its customers will not be left out of pocket as a result of the glitches. They can raise a complaint with the bank, and if they are still unhappy after giving it a chance to respond they can complain to the Financial Ombudsman Service, which resolves disputes between consumers and firms. | Q:What about people who have incurred charges because of the hitches? A: TSB has promised that its customers will not be left out of pocket as a result of the glitches. They can raise a complaint with the bank, and if they are still unhappy after giving it a chance to respond they can complain to the Financial Ombudsman Service, which resolves disputes between consumers and firms. |
| Q: Have other problems emerged? A: MPs have voiced strong concerns over how the problems were handled and fears were also raised about some people being targeted by fraudsters following the IT issues. The saga took another twist when it emerged some former TSB customers had found their direct debits had been cancelled and firms were apparently told that they had died.And customers of the bank have faced further frustration just this week, with many unable to access their accounts on Monday. | Q: Have other problems emerged? A: MPs have voiced strong concerns over how the problems were handled and fears were also raised about some people being targeted by fraudsters following the IT issues. The saga took another twist when it emerged some former TSB customers had found their direct debits had been cancelled and firms were apparently told that they had died.And customers of the bank have faced further frustration just this week, with many unable to access their accounts on Monday. |
| Q: What indications have there been as to how TSB’s customers are feeling about the bank? A: A recent survey from MoneySavingExpert.com saw TSB tumble down the website’s rankings in terms of customers’ satisfaction with their bank.MoneySavingExpert.com said last week that TSB had plummeted from 4th to 11th place in its latest banking customer service survey, which the consumer help website carries out twice a year. Some 49% of those who graded TSB said its service was poor and just 23% deemed it great. Meanwhile, a separate survey carried out in July for GoCompare Money found 16% of TSB customers surveyed are considering switching banks. | Q: What indications have there been as to how TSB’s customers are feeling about the bank? A: A recent survey from MoneySavingExpert.com saw TSB tumble down the website’s rankings in terms of customers’ satisfaction with their bank.MoneySavingExpert.com said last week that TSB had plummeted from 4th to 11th place in its latest banking customer service survey, which the consumer help website carries out twice a year. Some 49% of those who graded TSB said its service was poor and just 23% deemed it great. Meanwhile, a separate survey carried out in July for GoCompare Money found 16% of TSB customers surveyed are considering switching banks. |
| Jonathan Reynolds MP, Labour’s Shadow Treasury Minister, has also welcomed Paul Pester’s exit, saying: | Jonathan Reynolds MP, Labour’s Shadow Treasury Minister, has also welcomed Paul Pester’s exit, saying: |
| “TSB customers have suffered inexcusable levels of disruption and received service which has fallen far short of accepted standards. It is right that the most senior person at the bank has been held accountable for this. | “TSB customers have suffered inexcusable levels of disruption and received service which has fallen far short of accepted standards. It is right that the most senior person at the bank has been held accountable for this. |
| “A decade on from the financial crisis, senior individuals taking responsibility in this way will be an essential building block of restoring public trust in our banking sector.” | “A decade on from the financial crisis, senior individuals taking responsibility in this way will be an essential building block of restoring public trust in our banking sector.” |
| Here’s Angela Monaghan’s news story on the shake-up at TSB (and its latest technology problems). | Here’s Angela Monaghan’s news story on the shake-up at TSB (and its latest technology problems). |
| TSB have written to Treasury committee chair Nicky Morgan MP, confirming that Paul Pester has stepped down (three months after the committee said they’d lost confidence in him). | TSB have written to Treasury committee chair Nicky Morgan MP, confirming that Paul Pester has stepped down (three months after the committee said they’d lost confidence in him). |
| They may not have much confidence in Pester’s replacement either; executive chairman Richard Meddings apparently thinks it’s 2019! | They may not have much confidence in Pester’s replacement either; executive chairman Richard Meddings apparently thinks it’s 2019! |
| Not a great look from a bank trying to shake off a reputation for IT problems. | Not a great look from a bank trying to shake off a reputation for IT problems. |
| I don’t imagine the right honourable member for Loughborough appreciates being hailed as “Morgan” either! | I don’t imagine the right honourable member for Loughborough appreciates being hailed as “Morgan” either! |
| In reply, Nicky Morgan has welcomed Pester’s departure...and warned that that bank’s problems aren’t over. | In reply, Nicky Morgan has welcomed Pester’s departure...and warned that that bank’s problems aren’t over. |
| The Committee remains concerned about the continuing problems at TSB, including unacceptable delays in compensating customers who have been badly let down. It is to be hoped that Dr Pester’s successor is able to restore the confidence of the bank’s long-suffering customers”. | The Committee remains concerned about the continuing problems at TSB, including unacceptable delays in compensating customers who have been badly let down. It is to be hoped that Dr Pester’s successor is able to restore the confidence of the bank’s long-suffering customers”. |
| South Africa’s lurch into recession is a blow to new prime minister Cyril Ramaphosa, who succeeded Jacob Zuma earlier this year: | South Africa’s lurch into recession is a blow to new prime minister Cyril Ramaphosa, who succeeded Jacob Zuma earlier this year: |
| Ramaphosa Starts With a Recession, Just Like Zuma Nine Years Ago. @business #SouthAfrica $USDZAR pic.twitter.com/dkEy8rQaxQ | Ramaphosa Starts With a Recession, Just Like Zuma Nine Years Ago. @business #SouthAfrica $USDZAR pic.twitter.com/dkEy8rQaxQ |
| Newsflash: South Africa has fallen into recession. | Newsflash: South Africa has fallen into recession. |
| New figures show that the country’s GDP shrank by 0.7% in the second quarter of 2018 - news which is sending currency into a fresh dive. | New figures show that the country’s GDP shrank by 0.7% in the second quarter of 2018 - news which is sending currency into a fresh dive. |
| Economists had expected growth of around 0.6%, after a sharp slump earlier this year. Instead, South Africa has now racked up two consecutive quarterly contractions - the classic definition of a recession. | Economists had expected growth of around 0.6%, after a sharp slump earlier this year. Instead, South Africa has now racked up two consecutive quarterly contractions - the classic definition of a recession. |
| The South African #economy slipped into a #Recession as economic activity declined by 0,7% in Q2:2018 q/q after a 2,6% decline in Q1:2018 #StatsSA #GDP https://t.co/KjOdmHB0yN pic.twitter.com/aBnPccETmP | The South African #economy slipped into a #Recession as economic activity declined by 0,7% in Q2:2018 q/q after a 2,6% decline in Q1:2018 #StatsSA #GDP https://t.co/KjOdmHB0yN pic.twitter.com/aBnPccETmP |
| The South African rand has promptly slumped by 2% against the US dollar, extending its earlier losses. | The South African rand has promptly slumped by 2% against the US dollar, extending its earlier losses. |
| South African rand loses more ground against U.S. dollar after GDP data pic.twitter.com/jbJpN6t0ct | South African rand loses more ground against U.S. dollar after GDP data pic.twitter.com/jbJpN6t0ct |
| Blane Perrotton, managing director of property consultancy and surveyors Naismiths, spies an “uneasy calm” in Britain’s building sector. | Blane Perrotton, managing director of property consultancy and surveyors Naismiths, spies an “uneasy calm” in Britain’s building sector. |
| Here’s his take on drop in the UK construction PMI in August: | Here’s his take on drop in the UK construction PMI in August: |
| “Though levels of optimism have sagged, construction firms continue to hire, though this is likely to be driven by the need to get existing projects completed rather than a great bet on future demand. | “Though levels of optimism have sagged, construction firms continue to hire, though this is likely to be driven by the need to get existing projects completed rather than a great bet on future demand. |
| “With Brexit storm clouds still looming on the horizon, the current modest progress is as much as can be expected – especially in the South East. | “With Brexit storm clouds still looming on the horizon, the current modest progress is as much as can be expected – especially in the South East. |
| “Other markets are looking more buoyant – particularly the West Midlands and Bristol – but as the countdown to Brexit enters its final months, businesses’ gnawing sense of uncertainty will continue to peg back levels of investment. In that context, a steady ship should be seen as a real achievement.” | “Other markets are looking more buoyant – particularly the West Midlands and Bristol – but as the countdown to Brexit enters its final months, businesses’ gnawing sense of uncertainty will continue to peg back levels of investment. In that context, a steady ship should be seen as a real achievement.” |
| Financial analyst Emanuele Canegrati of BP Prime says the PMI is much weaker than expected. | Financial analyst Emanuele Canegrati of BP Prime says the PMI is much weaker than expected. |
| UK Construction #PMI Plunges to 52.9 in Aug. from 55.8 in July. A very surprising Decline, as Analysts expected 54.9. Now it is only 2.9 away from the 50 threshold. The indicator is historically a reliable predictor for future recession when it falls below 50 @graemewearden | UK Construction #PMI Plunges to 52.9 in Aug. from 55.8 in July. A very surprising Decline, as Analysts expected 54.9. Now it is only 2.9 away from the 50 threshold. The indicator is historically a reliable predictor for future recession when it falls below 50 @graemewearden |
| But Max Jones of Lloyds Bank Commercial Banking is more optimistic: | But Max Jones of Lloyds Bank Commercial Banking is more optimistic: |
| “Recent results from contractors indicate some softness in civil engineering and sentiment here has not been helped by last week’s announcement that Crossrail project is behind schedule. | “Recent results from contractors indicate some softness in civil engineering and sentiment here has not been helped by last week’s announcement that Crossrail project is behind schedule. |
| “Yet even if the UK’s current infrastructure pipeline may not be quite as bulging as some would hope, mega-projects like Heathrow, Hinkley Point and HS2 continue to offer quality work for firms right down the supply chain. Importantly, minds are focused on discipline, with anecdotal evidence that firms are holding prices during bidding negotiations. | “Yet even if the UK’s current infrastructure pipeline may not be quite as bulging as some would hope, mega-projects like Heathrow, Hinkley Point and HS2 continue to offer quality work for firms right down the supply chain. Importantly, minds are focused on discipline, with anecdotal evidence that firms are holding prices during bidding negotiations. |
| “If the commercial market still looks fragile, much of this has to do with fears about the London market. Confidence in the capital remains intrinsically tied to Brexit, so any developments or certainty in negotiations will be warmly welcomed.” | “If the commercial market still looks fragile, much of this has to do with fears about the London market. Confidence in the capital remains intrinsically tied to Brexit, so any developments or certainty in negotiations will be warmly welcomed.” |
| Growth in Britain’s construction sector has hit a three-month low in August, a new survey shows. | 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. | 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. | 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. | 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: | 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. | “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. | “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. | House building saw a particularly sharp slowdown since July, meaning that commercial construction was the fastest growing sub-sector in August. |