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Climate emergency protests ahead of Bank of England financial stability report - business live Climate emergency protests ahead of Bank of England financial stability report - business live
(32 minutes later)
You can sign the petition urging the Bank of England to help decarbonise the economy and support investment in low-carbon companies and technologies here.
The letter recognises that BoE governor Mark Carney has spoken out about the issue -- including in a speech in March, urging governments to deliver coherent and credible policies. But more action is needed to drive the UK’s “green transition”.
Rather than buying bonds from oil companies, for example, the Bank could help support a Green New Deal by deterring banks from funding environmentally damaging projects.
Addressed to Carney, the letter says:
Your recent warning about the “devastating effects” of climate change has provided a much-needed wake-up call to the world’s banks, investors and regulators. It’s brilliant to see you set a powerful example by announcing that the Bank of England will disclose its own climate risk.
But we know you can and must go further. You rightly acknowledge that meeting even the modest targets of the Paris Agreement will require a “massive reallocation of capital”. But this is unlikely to happen unless central banks play a leading role.
"What do we want!? Green investment! When do we want it!? NOW!!" The climate emergency is on our doorstep we need to #GreenTheBoE today! If you agree sign here > https://t.co/pHbDJllbRa pic.twitter.com/ssKrI8qXN9
The demonstrators are chanting “Whose climate? Our climate” outside the Bank:The demonstrators are chanting “Whose climate? Our climate” outside the Bank:
Protestors are chanting “whose climate, our climate” and say the Bank has Shell and BP assets on its balance sheet from QE pic.twitter.com/FpreOhpIVEProtestors are chanting “whose climate, our climate” and say the Bank has Shell and BP assets on its balance sheet from QE pic.twitter.com/FpreOhpIVE
Rachel Oliver, head of campaigns at @PositiveMoneyUK, says they want the Bank to take climate risks as seriously as other risks, such as for mortgages. She says credit guidance could be used to penalise carbon linked assetsRachel Oliver, head of campaigns at @PositiveMoneyUK, says they want the Bank to take climate risks as seriously as other risks, such as for mortgages. She says credit guidance could be used to penalise carbon linked assets
Today’s protests are organised by Positive Money and Fossil Free London, who argue that the climate emergency is a massive threat to financial stability.Today’s protests are organised by Positive Money and Fossil Free London, who argue that the climate emergency is a massive threat to financial stability.
As such, the Bank should prioritise climate change when assessing the risks to the UK economy and the financial system.As such, the Bank should prioritise climate change when assessing the risks to the UK economy and the financial system.
That includes using its bond-buying stimulus programme to support green companies, rather than those who pollute the planet and fuel carbon emissions.That includes using its bond-buying stimulus programme to support green companies, rather than those who pollute the planet and fuel carbon emissions.
They explain:They explain:
The Bank of England rightly recognises that climate change represents a huge risk to financial stability, estimating that it may lead to $20tn in losses - nearly ten times UK GDP. However, while the central bank has made good progress in talking the talk, it has not always walked the walk, continuing to shy away from treating climate change with the same gravity it gives to other risks to financial stability, such as risky mortgage lending.The Bank of England rightly recognises that climate change represents a huge risk to financial stability, estimating that it may lead to $20tn in losses - nearly ten times UK GDP. However, while the central bank has made good progress in talking the talk, it has not always walked the walk, continuing to shy away from treating climate change with the same gravity it gives to other risks to financial stability, such as risky mortgage lending.
The Bank of England itself has also been culpable in fuelling carbon bubbles, buying bonds in high-carbon companies such as the likes of Shell and BP with money created through its corporate QE programme. Positive Money and Fossil Free London wants the Bank of England’s power to create money to be used in a way that helps rather than hinders the green transition.The Bank of England itself has also been culpable in fuelling carbon bubbles, buying bonds in high-carbon companies such as the likes of Shell and BP with money created through its corporate QE programme. Positive Money and Fossil Free London wants the Bank of England’s power to create money to be used in a way that helps rather than hinders the green transition.
A group of campaigners have assembled outside the Bank of England, demanding it does more to tackle the climate emergency.A group of campaigners have assembled outside the Bank of England, demanding it does more to tackle the climate emergency.
They will hand over two A1 postcards signed by hundreds of members of the public during the recent Glastonbury festival, addressed to governor Mark Carney with the text:They will hand over two A1 postcards signed by hundreds of members of the public during the recent Glastonbury festival, addressed to governor Mark Carney with the text:
“We the undersigned urge you to use the Bank of England’s powers to unleash green investment now!”“We the undersigned urge you to use the Bank of England’s powers to unleash green investment now!”
They have two key demands:They have two key demands:
That the Bank of England ‘greens’ its quantitative easing (QE) programme. With speculation mounting that the Bank could undertake more QE in response to a Brexit shock or another recession, the central bank should at the very least rule out asset purchases in high-carbon sectors, if not actively favour bonds which finance green projectsThat the Bank of England ‘greens’ its quantitative easing (QE) programme. With speculation mounting that the Bank could undertake more QE in response to a Brexit shock or another recession, the central bank should at the very least rule out asset purchases in high-carbon sectors, if not actively favour bonds which finance green projects
That the Bank of England uses all of the powers at its disposal to stop financial firms it regulates pouring more money into fossil fuels. This approach, known as ‘credit guidance’, could include tools such as differential collateral requirements and targeted refinancing operationsThat the Bank of England uses all of the powers at its disposal to stop financial firms it regulates pouring more money into fossil fuels. This approach, known as ‘credit guidance’, could include tools such as differential collateral requirements and targeted refinancing operations
My colleague Richard Partington is there (on his way to read the financial stability report), and sent these pictures:My colleague Richard Partington is there (on his way to read the financial stability report), and sent these pictures:
Protestors outside the Bank of England this morning ahead of its regular financial stability report press conference pic.twitter.com/BaMaCg9iu6Protestors outside the Bank of England this morning ahead of its regular financial stability report press conference pic.twitter.com/BaMaCg9iu6
The protestors organised by ⁦@PositiveMoneyUK⁩ and @divestlondon say the UK needs a “complete reorientation of the banking system” - calling for “Green QE” to decarbonise the economy pic.twitter.com/FmGjm00WkkThe protestors organised by ⁦@PositiveMoneyUK⁩ and @divestlondon say the UK needs a “complete reorientation of the banking system” - calling for “Green QE” to decarbonise the economy pic.twitter.com/FmGjm00Wkk
Carney, incidentally, was also at Glastonbury, telling the Economist that he enjoyed the Friday night headline slot by grime artist Stormzy.Carney, incidentally, was also at Glastonbury, telling the Economist that he enjoyed the Friday night headline slot by grime artist Stormzy.
“I very much enjoyed Stormzy. He puts his money where his mouth is in terms of building a more diverse society.”“I very much enjoyed Stormzy. He puts his money where his mouth is in terms of building a more diverse society.”
Mohamed A. El-Erian , chief economic adviser at Allianz, explains why today’s financial stability report (released at 10.30am UK time) matters:Mohamed A. El-Erian , chief economic adviser at Allianz, explains why today’s financial stability report (released at 10.30am UK time) matters:
Good morning.While many institutions now publish "financial stability reports." that of the @BankOfEngland remains one of the most insightful. The latest edition is due out today -- at a time when some key measures of financial conditions are at their loosest levels in 25 years.Good morning.While many institutions now publish "financial stability reports." that of the @BankOfEngland remains one of the most insightful. The latest edition is due out today -- at a time when some key measures of financial conditions are at their loosest levels in 25 years.
The oil price has hit its highest level since late May, after three Iranian boats “attempted to impede” a British oil tanker in the Gulf.The oil price has hit its highest level since late May, after three Iranian boats “attempted to impede” a British oil tanker in the Gulf.
My colleague Bethan McKernan reports:My colleague Bethan McKernan reports:
The incident took place in the strait of Hormuz through which the commercial vessel, British Heritage, was attempting to pass. It comes in the wake of the UK seizure of an Iranian oil tanker last week, for which Tehran had threatened retaliation.The incident took place in the strait of Hormuz through which the commercial vessel, British Heritage, was attempting to pass. It comes in the wake of the UK seizure of an Iranian oil tanker last week, for which Tehran had threatened retaliation.
“Contrary to international law, three Iranian vessels attempted to impede the passage of a commercial vessel, British Heritage, through the strait of Hormuz,” a UK government statement released on Thursday morning said.“Contrary to international law, three Iranian vessels attempted to impede the passage of a commercial vessel, British Heritage, through the strait of Hormuz,” a UK government statement released on Thursday morning said.
The British warship, HMS Montrose was “forced to position herself between the Iranian vessels and British Heritage and issue verbal warnings to the Iranian vessels, which then turned away,” the statement said.The British warship, HMS Montrose was “forced to position herself between the Iranian vessels and British Heritage and issue verbal warnings to the Iranian vessels, which then turned away,” the statement said.
Iranian boats 'attempted to impede' British oil tanker in strait of HormuzIranian boats 'attempted to impede' British oil tanker in strait of Hormuz
This has pushed the cost of a barrel of Brent crude oil up to $67.53 per barrel this morning, on fears that supplies from the Middle East could be disrupted.This has pushed the cost of a barrel of Brent crude oil up to $67.53 per barrel this morning, on fears that supplies from the Middle East could be disrupted.
Commodity prices are also rallying, sending palladium up to $1,600 per ounce for the first time since March.Commodity prices are also rallying, sending palladium up to $1,600 per ounce for the first time since March.
Palladium is used in car catalytic converters, so a pick-up in economic demand can push its price higher. Plus, anything priced in dollars can go up when the US currency weakens.Palladium is used in car catalytic converters, so a pick-up in economic demand can push its price higher. Plus, anything priced in dollars can go up when the US currency weakens.
The weakness of the dollar is giving sterling some support this morning, pushing the pound back over $1.25 (away from a six-month low).The weakness of the dollar is giving sterling some support this morning, pushing the pound back over $1.25 (away from a six-month low).
European stocks are also pushing higher, with the Stoxx 600 index gaining 0.3%.European stocks are also pushing higher, with the Stoxx 600 index gaining 0.3%.
In London, house builders are among the top risers after the latest RICS survey of chartered surveyors suggested the market was picking up.In London, house builders are among the top risers after the latest RICS survey of chartered surveyors suggested the market was picking up.
America’s S&P 500 stock index surged over the 3,000 point mark for the first time ever yesterday, after Fed chair Jerome Powell signalled that a rate cut is close.America’s S&P 500 stock index surged over the 3,000 point mark for the first time ever yesterday, after Fed chair Jerome Powell signalled that a rate cut is close.
Powell’s dovishness has pushed stock markets higher across the globe. Japan’s Nikkei gained 110 points, or 0.5%, to 21,643.53, and there were gains in Hong Kong (+0.7%), South Korea (+1.1%) and India (+0.5%) too.Powell’s dovishness has pushed stock markets higher across the globe. Japan’s Nikkei gained 110 points, or 0.5%, to 21,643.53, and there were gains in Hong Kong (+0.7%), South Korea (+1.1%) and India (+0.5%) too.
Konstantinos Anthis, Head of Research at ADSS, says investors believe the Federal Reserve is certain to cut borrowing costs at its next meeting.Konstantinos Anthis, Head of Research at ADSS, says investors believe the Federal Reserve is certain to cut borrowing costs at its next meeting.
A July rate cut seems set in stone as Powell cites geopolitical uncertainties and global growth slowdown as the reasons why an easier policy will help sustain the expansion domestically.A July rate cut seems set in stone as Powell cites geopolitical uncertainties and global growth slowdown as the reasons why an easier policy will help sustain the expansion domestically.
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.
These are difficult times for the UK economy, with Brexit unresolved, the eurozone struggling, the global economy slowing and trade tensions on a knife-edge.These are difficult times for the UK economy, with Brexit unresolved, the eurozone struggling, the global economy slowing and trade tensions on a knife-edge.
So the Bank of England’s latest financial stability report, released this morning, will show whether policymakers are getting more anxious that the next financial crisis is loomingSo the Bank of England’s latest financial stability report, released this morning, will show whether policymakers are getting more anxious that the next financial crisis is looming
The report will assess the stability of the UK financial system, and outline what the Bank is doing to remove or reduce any risks to it. The BoE will also release its Systemic Risk Survey Results, showing what investors are particularly worried about.The report will assess the stability of the UK financial system, and outline what the Bank is doing to remove or reduce any risks to it. The BoE will also release its Systemic Risk Survey Results, showing what investors are particularly worried about.
This is the final risk assessment before 31 October, the current Brexit date, so investors will be keen to hear the Bank’s views.This is the final risk assessment before 31 October, the current Brexit date, so investors will be keen to hear the Bank’s views.
Mark Carney will face a grilling from the press at 11am. UK issues will obviously dominate, but the BoE governor may also be asked about his own prospects -- is he hoping to replace Christine Lagarde at the head of the International Monetary Fund?Mark Carney will face a grilling from the press at 11am. UK issues will obviously dominate, but the BoE governor may also be asked about his own prospects -- is he hoping to replace Christine Lagarde at the head of the International Monetary Fund?
Traders, meanwhile, are pushing asset prices higher as they anticipate a US interest rate cut later this month.Traders, meanwhile, are pushing asset prices higher as they anticipate a US interest rate cut later this month.
Yesterday, Federal Reserve chair Jerome Powell told Congress that America’s economy was suffering from a weakening global economy and rising trade tensions, a cue that policymakers will ease conditions soon.Yesterday, Federal Reserve chair Jerome Powell told Congress that America’s economy was suffering from a weakening global economy and rising trade tensions, a cue that policymakers will ease conditions soon.
Fed chairman hints at first interest rate cut in over a decadeFed chairman hints at first interest rate cut in over a decade
Ipek Ozkardeskaya, analyst at London Capital Group, explains:Ipek Ozkardeskaya, analyst at London Capital Group, explains:
The US dollar gave back gains on a sharp move after the Federal Reserve (Fed) Governor Jerome Powell has been very clear that the global economic slowdown outweighs the encouraging data in the US at his speech before the congress on Wednesday.The US dollar gave back gains on a sharp move after the Federal Reserve (Fed) Governor Jerome Powell has been very clear that the global economic slowdown outweighs the encouraging data in the US at his speech before the congress on Wednesday.
Powell’s testimony gave yet another solid sign that the Fed is preparing to cut the interest rates in July. In the wake of Powell’s first day of testimony, the market sees a 25-basis-point cut as largely grantedPowell’s testimony gave yet another solid sign that the Fed is preparing to cut the interest rates in July. In the wake of Powell’s first day of testimony, the market sees a 25-basis-point cut as largely granted
That weakened the dollar, and drove Wall Street to a record high last night.That weakened the dollar, and drove Wall Street to a record high last night.
European stock markets are expected to rise this morning, pushing Britain’s FTSE 100 towards an 11-month high.European stock markets are expected to rise this morning, pushing Britain’s FTSE 100 towards an 11-month high.
European Opening Calls:#FTSE 7559 +0.37%#DAX 12432 +0.47%#CAC 5590 +0.40%#MIB 22169 +0.56%#IBEX 9282 +0.32%European Opening Calls:#FTSE 7559 +0.37%#DAX 12432 +0.47%#CAC 5590 +0.40%#MIB 22169 +0.56%#IBEX 9282 +0.32%
Dollar weakness continuing this morning, trading 0.22% lower:#EURUSD 1.12694 +0.17%#GBPUSD 1.25278 +0.21%#USDJPY 107.988 -0.44%#USDCAD 1.30589 -0.17%#AUDUSD 0.69725 +0.19%#USDCHF 0.98683 -0.27% pic.twitter.com/4KFNGic76aDollar weakness continuing this morning, trading 0.22% lower:#EURUSD 1.12694 +0.17%#GBPUSD 1.25278 +0.21%#USDJPY 107.988 -0.44%#USDCAD 1.30589 -0.17%#AUDUSD 0.69725 +0.19%#USDCHF 0.98683 -0.27% pic.twitter.com/4KFNGic76a
Powell is back on Capitol Hill later today to take questions from the Senate, so could double-down on his dovish message. We also get new US inflation and unemployment data.Powell is back on Capitol Hill later today to take questions from the Senate, so could double-down on his dovish message. We also get new US inflation and unemployment data.
The agendaThe agenda
10.30am BST: Bank of England publishes financial stability report10.30am BST: Bank of England publishes financial stability report
11am BST: BoE press conference with Mark Carney11am BST: BoE press conference with Mark Carney
1.30pm BST: US consumer inflation data for June (expected to drop to 1.6% y/y from 1.8%)1.30pm BST: US consumer inflation data for June (expected to drop to 1.6% y/y from 1.8%)
1.30pm BST: US initial jobless claims figures for last week1.30pm BST: US initial jobless claims figures for last week
3pm BST: Fed chair Jerome Powell testifies3pm BST: Fed chair Jerome Powell testifies