Bombshell Weekend Our Guide to What's on in London P22-23
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BUSINESS WITH PERSONALITY COME RAIN OR SHINE BOMBSHELL WEEKEND SNEAK A PEEK AT OUR GUIDE TO WHAT’S CANARY WHARF’S ON IN LONDON P22-23 LIGHT SHOW P18 FRIDAY 17 JANUARY 2020 ISSUE 3,536 CITYAM.COM FREE BRACE FOR IMPACT Now O’Leary KHAN: DON’T threatens to sue over Flybe deal TAKE LONDON FOR GRANTED STEFAN BOSCIA The Prime Minister has now pledged campaign today with a speech that @Stefan_Boscia to spend £100bn in infrastructure, will emphasise her Manchester up- however the only projects earmarked bringing and call for devolution away SADIQ Khan urged Labour and the for funding so far are well beyond the from the capital. Conservatives to ditch their “anti-Lon- capital. Big ticket London projects, Richard Brown, deputy director at don agenda” in a speech to City such as Crossrail 2 and vital Tube think tank Centre for London, said the grandees last night. upgrades, appear to have been left on signs coming from Westminster were The speech, at the Square Mile’s the sidelines. concerning for the capital. annual dinner for London’s political Conservative Cities of London and “It would be short-sighted of the leaders, hit out at Boris Johnson’s Westminster MP Nickie Aiken echoed government to take for granted the plans for “re-balancing spending away Khan’s concerns in an interview with significant contribution the capital from London and towards other parts City A.M. on Tuesday. makes — driving jobs, growth and of the country”. She said: “We’ve got to move away prosperity across the country — and to ALEX DANIEL owned” by virtue of Sir Richard However, the Tories weren’t the only from an us-and-them mentality... The overlook the communities who feel AND POPPY WOOD Branson’s airline Virgin Atlantic target of the mayor’s tongue-lashing. City is the engine of UK plc, but it left behind within London,” he said. @alexmdaniel @poppyeh having a 30 per cent stake in it. “My party — the Labour party — needs all the other elements to create “It is in everyone’s best interest for O’Leary’s comments came as Flybe clearly faces the same forces and pres- a Rolls Royce.” London to thrive — while working with THE BACKLASH over the chief Mark Anderson late last night sures — particularly after the General Meanwhile, the start of Labour’s other cities and regions to ensure this government’s decision to save Flybe insisted the firm’s government loan Election result,” Khan said. leadership contest has revolved benefit is shared.” continued to escalate yesterday for did not amount to a bailout. “Clipping London’s wings is not the around winning back northern voters, Conservative mayoral candidate the third day running, as Ryanair “We are in conversation with the answer if you want to help other cities with candidates scuttling to distance Shaun Bailey dismissed Khan’s chief executive Michael O’Leary government around a financial loan and regions to soar. The way to make themselves from ties to the capital. comments that there was a growing waded in with a threat to take — a loan, not a bailout — a our country more equal is not to make Frontrunner and Holborn and St anti-London sentiment from the legal action. commercial loan, but that is the London poorer.” Pancras MP Sir Keir Starmer was quick government. In a strongly worded letter to same as any loan we'd take from any The mayor of London’s comments to point out in a recent interview that “The only anti-London agenda is the chancellor Sajid Javid, O’Leary railed bank,” Anderson told Flybe staff, the come after the Conservatives picked while he was born in London, he in one coming from City Hall,” he said. against the decision to extend a tax BBC reported. up a swathe of northern and midlands fact grew up in Surrey. “Khan is not keeping us safe, he’s not “holiday” to the struggling airline, seats in the General Election, breaking Another favoured contender Rebecca building us homes, and he’s letting which he declared was “billionaire- £ CONTINUES ON P3 apart Labour’s so-called red wall. Long-Bailey will officially launch her the transport system fall apart.” FTSE 100▼ 7,609.81 -32.99 FTSE 250▲ 21,721.23 +8.12 DOW▲ 29,297.64 +267.42 NASDAQ▲ 9,357.13 +98.44 £/$▲ 1.308 +0.005 £/€▲ 1.175 +0.007 €/$▼ 1.113 -0.003 02 NEWS FRIDAY 17 JANUARY 2020 CITYAM.COM ALL HANDS ON DECK Outgoing Bank of England governor Mark Carney to advise PM on climate change ahead of UN conference THE CITY VIEW Forget Big Ben, the real rows are ahead NE OF the more ludicrous stories of the week concerns the efforts of a small band of pro-Brexit MPs to get the Obells of Big Ben ringing out our departure from the EU at 11pm on 31 January. Parliamentary authorities have done their best to shut down the scheme, saying it would be too expensive since a temporary floor would have to be installed in the tower, which is currently undergoing repair work. Boris Johnson urged the public to “bung a bob for a Big Ben Brexit bong” but once again, the bureaucrats said there was no valid mechanism through which the authorities could accept crowd- funded cash for such a project. So, no bongs on Brexit night. At the same time as this faintly surreal debate unfolded in Westminster, EU officials released a set of documents that OUTGOING Bank of England governor Mark Carney is to be a key adviser to the government in the run-up to the UN climate outlined the Commission’s red lines for future trade change conference COP26, it was revealed yesterday. Boris Johnson confirmed that the Canadian economist will help the UK negotiations. At its heart is a government to “mobilise ambitious action from across the financial system” ahead of the UK summit in November. very simple point: good market access is dependent upon a British commitment to follow EU rules — to the letter. This is There’s simply no not an unreasonable position for the EU to take, but nor is it way that the UK Regulators pressure firms a position with which the could submit to British government could having the City possibly agree. When it comes regulated by the EU to goods, an alignment of to accelerate Libor switch standards is no particular hardship as there isn’t much advantage to be gained by deviating from internationally agreed rules on safety and ANNA MENIN manipulated the rate for profit. these targets and ensure a smooth labelling. However, when it comes to financial services there’s @annafmenin In a joint letter to senior managers transition to alternative rates.” simply no way the UK can agree to be a rule-taker. This position of UK banks and insurers, the regula- Claude Brown, a partner at law is recognised by even the most ardent former Remainers, THE CITY regulator and Bank of Eng- tors reiterated a statement by the firm Reed Smith, described the regu- land (BoE) have joined forces to urge BoE’s financial policy committee (FPC) lators’ efforts as “a turning of the including former chancellor George Osborne and outgoing Bank banks and insurers to accelerate plans that “the intention is that sterling screw in order to bring about the of England governor Mark Carney — who this week warned to transition away from the discred- Libor will cease to exist after the end sought after change”. ministers not to compromise on financial regulatory alignment ited Libor interest rate benchmark. of 2021. No firm should plan “Despite exhortations and outreach as the price of preferential trade terms. The City is too big, too Firms have until October to stop otherwise.” programmes by the regulators, a wor- writing loans tied to the London The regulators also encouraged rying number of market participants important and too international to be run by Brussels and the Interbank Offered Rate (Libor), which managers to switch the convention are woefully behind the curve. Some government must make this the reddest of red lines. One of the is embedded within around $350 for sterling interest rate swaps from are not on schedule and others are first people to recognise this was the (Remain-supporting) trillion (£268 trillion) of financial Libor to the replacement Sterling preferring to do nothing until there is former EU commissioner for financial services, Jonathan Hill, products worldwide. Overnight Index Average (Sonia) rate more clarity,” he continued. The Financial Conduct Authority by 2 March, but did not specify what According to a recent report by who told the House of Lords soon after the referendum that if (FCA) and BoE yesterday said financial sanctions firms could face if they do Reuters, many British banks are un- Brexit was going to happen (as we now know it will) then the UK firms must step up their efforts to not meet the scheduled deadlines. likely to hit the October deadline to simply cannot submit to EU regulation of the City. This means, move away from the rate, which is “In most products, market partici- stop issuing loans tied to Libor. Fig- scheduled to be mothballed by the pants have made impressive progress ures from the two rival firms that sup- of course, that an almighty row is on the horizon. When it kicks end of 2021. in moving away from Libor. The time ply loan management software to the off, it will drown out even the bongs of Big Ben. The Libor rate was widely discred- has come to draw to a close its re- industry said not all banks will be ited following the 2008 global finan- maining use,” said FCA director of ex- ready for the transition, and that only cial crisis, when authorities in Britain ecutive strategy Christopher Woolard.