Bank of England’s Mark Carney Extends Term to Stay On Through Brexit Talks – Wall Street Journal

Bank of England’s Mark Carney Extends Term to Stay On Through Brexit Talks – Wall Street Journal

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Wall Street Journal

Bank of England’s Mark Carney Extends Term to Stay On Through Brexit Talks
Wall Street Journal
LONDON—Bank of England Gov. Mark Carney plans to serve an extra year as head of the British central bank, in a surprise compromise meant to allow him to steer the U.K.’s economy beyond its exit from the European Union. In a letter to Treasury chief …
Brexit Bulletin: Carney to Stay?Bloomberg
Pound headed for worst month since Brexit voteRT
Thanks to Mark Carney for staying until the end of Brexit negotiations – he’s just the sort of migrant Britain needsThe Independent
Telegraph.co.uk –Financial Times –Express.co.uk
all 354 news articles »

Britain doesn’t need to bluff about Brexit – Spectator.co.uk (blog)

Britain doesn’t need to bluff about Brexit – Spectator.co.uk (blog)

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The Government’s insistence that we should not give away our hand in negotiations with the EU has backfired. It is putting us in a weak position because the primary reason for not giving away your hand is when you are bluffing. We are not bluffing. We are in a strong position and should take maximum advantage of it. 

When negotiating with someone who may or may not be reasonable, there is unavoidable uncertainty. We should define the worst that can happen and prepare for it. We can’t control how our opponents behave, but we should define all the things we can control and make sure we control them. Whether or not we make a success of independence will in reality depend not on the decisions of the EU but on the way we handle the decisions that are within our powers. Managing the exchange rate and investing in productivity-enhancing infrastructure are only the most obvious of many such measures. Moreover, we should remember that our opponents have difficulties too. Many of Europe’s political leaders face elections in the next year or two. Their electorates could easily remove them.

What does the EU have that we want, and what do we have that they want? What is the balance of power? When tiny Switzerland negotiated a trade deal with China, the Communist government insisted that it must have immediate tariff-free access to Switzerland for its manufactures while Switzerland had to wait between five and fifteen years before China would remove all tariffs. We are not in the same position. The EU sells us more than we sell them. 5.8 million EU jobs rely on exports to the UK. Some companies are fearful of having to pay tariffs on exports to the EU, but they forget that we will charge tariffs on EU exports to the UK. At 2015 trading volumes we will receive nearly £8 billion more than we pay. The worst case is manageable. Many non-members export successfully to the EU single market despite paying the tariffs.

For this reason we should declare our negotiating hand: we wish to leave the EU, which means not being members of the single market, which means that we will pay the tariffs and charge the same tariffs on EU exports to the UK. If the EU would like an agreement to lower tariffs, or keep them at zero, that will be fine with us. If they don’t, then we are prepared.

Saying that we do not want to declare our hand in advance implies that we are bluffing and we don’t want the EU to know what we will be prepared to concede as discussions proceed. They will see this as weakness. Moreover, they will know that there are weak individuals within the Cabinet who are ready to make concessions. The Treasury is the main bastion of timidity and should be brought to heel. We don’t need to bluff. The worst the EU can do is to impose net tariffs on itself of £8 billion a year.

And if we end up paying and receiving tariffs there are numerous ways, within the WTO rules, in which we can compensate industries that pay the most. The recent announcement that Nissan plans to continue investing in the UK revealed that location decisions are marginal for companies that already have major investments here. Companies that export focus on the price at which they can sell overseas. It will depend on domestic costs, the exchange rate, and on tariffs. The UK government can make a decisive difference to all of them, as Nissan surely accepted. 

Lord Hill, Britain’s EU commissioner until his resignation, recently told Radio 4’s Today programme that many in Brussels believe we will back down completely and stay in the EU. All the talk of not laying our cards on the table emboldens them to be recalcitrant in the expectation that we will give in. But if we declare that the WTO option is our primary objective, and mean it, then they can’t hold a gun to our heads.

David Green is Director of Civitas

Carney to Stay at BOE Until June 2019 to Help Address Brexit – Bloomberg

Carney to Stay at BOE Until June 2019 to Help Address Brexit – Bloomberg

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Bank of England Governor Mark Carney said he will extend his time in office by a year to 2019 to guide the economy through Britain’s split from the European Union.

Choosing a middle path between leaving in 2018 as planned or remaining until 2021 as entitled, Carney said in a letter to Chancellor of the Exchequer Philip Hammond that by staying until June 2019 he hoped to “contribute to securing an orderly transition to the U.K.’s new relationship with Europe.”

The decision ends months of speculation about Carney’s future that had raged as he led the charge to safeguard financial markets and the economy following June’s referendum.

By providing continuity at the central bank, the 51-year-old Canadian is likely to soothe market concerns over the uncertainties that still lie ahead as the U.K. negotiates its break with the EU.

Staying put is still likely to raise the ire of some Conservative lawmakers. His response to the Brexit vote and his underestimation of the economy’s resilience prompted calls for him to resign, and he had to fend off a clumsy critique of easy monetary policy from Prime Minister Theresa May.

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Is dressing as Brexit for Halloween the most biting satire of 2016? – The Tab

Is dressing as Brexit for Halloween the most biting satire of 2016? – The Tab

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Yeah we all get what you did there

What’s the scariest thing to happen to Britain this year? Well, aside from those pesky killer clowns, it’s probably Brexit.

The EU Referendum saga plunged the country into a months-long argument, with the UK’s political environment turning into a post-apocalyptic hellscape, but with more Union Jack bunting and smiling-with-a-pint-of-ale photocalls.

So is it really a surprise, then, that Brexit was the costume du jour for politically savvy young people this year? Pro- and anti-EU revellers alike went out clad in flags and photos of Farage, using their acerbic skills to personify the concept of Brexit Britain.

brexit

Oscar Williams-Grut, a Cambridge grad who works at Business Insider UK, settled on the falling pound for his costume. He told us: “To be honest, I stole the idea from an old colleague who did a joke tweet about going as the pound for Halloween when it was tanking earlier this month.

“The reaction was pretty positive to the costume, everyone thought it was pretty funny and I managed to avoid any unwanted awkward political chat.”

falling-pound

Here are some more of the most piercing Brexit costumes from around the country. Try not to leave too scared.

Is dressing as Brexit for Halloween the most biting satire of 2016? – The Tab

Is dressing as Brexit for Halloween the most biting satire of 2016? – The Tab

http://ift.tt/2eVb6mK

Yeah we all get what you did there

What’s the scariest thing to happen to Britain this year? Well, aside from those pesky killer clowns, it’s probably Brexit.

The EU Referendum saga plunged the country into a months-long argument, with the UK’s political environment turning into a post-apocalyptic hellscape, but with more Union Jack bunting and smiling-with-a-pint-of-ale photocalls.

So is it really a surprise, then, that Brexit was the costume du jour for politically savvy young people this year? Pro- and anti-EU revellers alike went out clad in flags and photos of Farage, using their acerbic skills to personify the concept of Brexit Britain.

brexit

Oscar Williams-Grut, a Cambridge grad who works at Business Insider UK, settled on the falling pound for his costume. He told us: “To be honest, I stole the idea from an old colleague who did a joke tweet about going as the pound for Halloween when it was tanking earlier this month.

“The reaction was pretty positive to the costume, everyone thought it was pretty funny and I managed to avoid any unwanted awkward political chat.”

falling-pound

Here are some more of the most piercing Brexit costumes from around the country. Try not to leave too scared.

UK financial regulator vows to slash FCA rules – Financial Times

UK financial regulator vows to slash FCA rules – Financial Times

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Financial Times

UK financial regulator vows to slash FCA rules
Financial Times
The UK’s financial watchdog has pledged to drastically reduce the number of its rules and focus on better and clearer regulation as it tries to move on from a “very sorry history” of financial scandals and subsequent record-breaking fines.
FCA on a Mission to move on from ‘sorry history’Financial News (subscription)

all 52 news articles »

Nissan assurances over Brexit cannot be published, says business secretary – The Guardian

Nissan assurances over Brexit cannot be published, says business secretary – The Guardian

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The government’s letter to Nissan promising to keep the car industry competitive after Brexit cannot be published because of commercial sensitivity, Greg Clark, the business secretary, has said.

He was pressed three times by the shadow business secretary, Clive Lewis, to “show us the letter”, amid speculation it contained promises that could have financial implications for the taxpayer.

But Clark said he had already set out the broad principles of the correspondence, including an aim of negotiating an EU deal for cars that is free of tariffs and bureaucratic impediments.

He said it was no sweetheart deal and only contained three commitments to continue funding as well as the promise that carmakers would still be competitive when the UK leaves the EU.

Labour and the SNP said it was not good enough that parliament was not allowed to see the terms of the deal that enabled Nissan to announce it would boost its production at Sunderland.

Clark said: “You asked me whether I would publish the correspondence. I have set out the information that I gave them and I would just say this to you. My responsibility, on behalf of the government, is to encourage and to attract investment in this country, and it’s important that when companies of all types and in all sectors share with me their investment plans that are of information to their prospective competitors that they can be assured that they are not going to be disclosed to their competitors to their disadvantage.”

Lewis said it was not good enough for the cabinet minister to “ask people to believe that Nissan is risking millions of pounds of investment and the success of its newest models on the basis of the government’s good intentions alone”.

“If you didn’t offer Nissan a sweetener, then what have you got to hide? Show us the letter,” he said.

A string of other MPs including Hilary Benn, the new chair of the Brexit committee, Ed Miliband, the former Labour leader, and Andrew Tyrie, the Tory chair of the Treasury committee, pressed Clark for more details.

In his answer to Tyrie, Clark gave his strongest hint yet that the government would be seeking to stay in the customs union for the automotive sector at least.

Asked whether his reassurances amounted to staying in the customs union, Clark answered: “This goes beyond any discussions I’ve had with any company. But it seems to me, why would you not aim as a matter of negotiations to avoid bureaucratic impediments. That seems to me common sense.”

When Benn pressed him on whether the UK would offer tariff-free access to all other parts of industry, Clark said it was only an ambition rather than a certainty that this would be achieved for carmakers in talks with the EU.

“It is not in my gift to offer tariff-free access to the single market. What I was describing was what would be a positive outcome from the negotiations and therefore the demeanour we should take,” he said.

In another answer, Clark appeared to signal that the government wants different deals for different sectors of the economy.

“It seems to me that the approach – not only that I intend to take, but that I am already taking – with the firms that are in our economy is to take time to meet them to understand the different needs of different sectors, so that we can be informed by them, as we form our negotiating mandate. It will be different from sector to sector. That’s obviously the case.”

On Sunday the former deputy prime minister Nick Clegg said in a letter to Clark that such an approach could cost the taxpayer a “colossal amount of money” as a patchwork of carve-outs, subsidies and sectoral arrangements would create winners and losers.