A new day, a new Brexit consequence. Several papers lead with the possible stepping down of Mark Carney, Governor of the Bank of England, who is reported to be considering quitting in 2018, five years into an eight year term. The Guardian discusses the criticism that Carney has faced due to his opposition to ‘leave’ during the Referendum campaign. Eurosceptic MPs Jacob Rees-Mogg and Lord Lawson, as well as arch-leaver Daniel Hannon MEP (who this morning scornfully described Carney as ‘a rockstar’), have been vocal in their denunciations of the governor. The week before last Michael Gove even went so far as to write an article comparing Carney to the Chinese emperor Ming. The speculation comes after Theresa May criticised quantitative easing during her conference speech, saying that ‘people with assets have got richer, people without them have suffered.’ However an article in the Financial Times claims that Carney has told confidantes that he is willing to serve the full term of his contract. Those who have come out in support of him today include Sir Martin Sorrell, Sir Nicholas Soames MP and Anna Soubry MP. The Telegraph view is that Carney should stay but should announce his intention sooner rather than later to end this uncertainty which can damage the markets.
Britain is to remain at the forefront of car manufacturing no matter what happens with the European Union, Greg Clarke has said. The business secretary was vague about what form any deal might take, but insisted that Nissan won’t be the only car company to come out of Brexit negotiations unscathed. The Times suggests that this indicates that the government is looking at trade deals on a sector-by-sector basis. The comments come after it was revealed by the same paper that a reassuring letter from the government to Nissan exists – although it has not yet been published. In the first half of this year Britain built 897,157 cars. 800,000 people are employed by the automotive industry and it is responsible for 12 pc of exports.
GoCompare, of annoying advert fame, faces a vote today from shareholders to decide whether to demerge from Esure, says City AM. If the split goes ahead then GoCompare will float on the London Stock Exchange by the end of this week. It is estimated to be worth around £400 million. Meanwhile Convatec, a medical equipment maker, will be listed today as the UK’s biggest float of the year – it is worth around £4.4 billion. Shares are currently priced at 225p.
The Daily Mail reports that buying a home is cheaper than renting in most British cities – if you live in the north, and can raise the money for a deposit. Glasgow, Birmingham and Bradford are all particularly cost-effective for home owners. In the former owners pay an average of £450 per month whereas renters are shelling out £596. The opposite is the case in London, where renting works out as better for your money – up to £1,118 cheaper. The findings were based on a 25-year repayment plan at 4.5 pc.
The world is running out of dollars, according to the Telegraph. Inflation worries are mounting as three-month Libor rates triple to 0.88 pc. The Federal Reserve may have to raise rates which would in turn drain global liquidity. 30 pc of all business contracts in the US are priced from Libor contracts, according to Goldman Sachs – as well as 20 pc of mortgages and almost all student loans. The repercussions could be international: 60 pc of the global economy is linked to America.