BUSINESS WITH PERSONALITY FRIDAY 31 JANUARY 2020 ISSUE 3,546 CITYAM.COM FREE BRITAIN TO LEAVE THE EUROPEAN UNION AT 11PM TONIGHT IT’S BEEN QUITE A RIDE CATHERINE NEILAN the city which first gave indications of “Our job as the government — my job Baker said yesterday: “I’ll allow myself a request an extension to the transition @CatNeilan the momentous result when its vote to — is to bring this country together and glass of champagne... but I’ll celebrate period, which lasts until the end of leave was announced in the early hours take us forward. And the most in a way which is respectful of the December, giving the UK and the EU less BRITAIN will formally leave the of 24 June 2016. important thing to say tonight is that genuine sorrow that others are feeling than a year to sign a trade deal. European Union tonight at 11pm, more The government will mark the UK’s this is not an end but a beginning,” he is at the same time.” than three and a half years after the departure with a Downing Street light expected to say. Johnson is expected to lay out his £ HOW CARNEY COPED P2£ historic referendum vote. show and the Prime Minister will The Prime Minister’s plan for a low-key objectives for the second stage of £ THE STORY SO FAR P4–5£ Boris Johnson will host a cabinet address the country at 10pm, stressing celebration was echoed by other negotiations with the bloc on Monday. £ BREXIT CHIEF ON WHAT meeting in Sunderland today, visiting the need for unity. prominent Brexiters. Tory MP Steve The PM has repeatedly said he will not HAPPENS NEXT P14 FTSE 100▼ 7,381.96 -101.61 FTSE 250▼ 21,291.88 -177.11 DOW▲ 28,859.44 +124.99 NASDAQ▲ 9,298.93 +23.77 £/$▲ 1.311 +0.010 £/€▲ 1.188 +0.006 €/$▲ 1.103 +0.003 02 NEWS FRIDAY 31 JANUARY 2020 CITYAM.COM DOUBT IT TAKES OYSTER CARDS UK-based flying taxi outfit puts its latest model on display to commuters at Canary Wharf THE CITY VIEW Carney goes not with a bang but a whimper HERE may be a part of Mark Carney that will be glad to see the back of the Bank of England. His eight-year tenure, Twhich ends in March, has been dominated by political turbulence and so, perhaps inevitably, rows about the politicisation of the Old Lady. Threadneedle Street is not alone in being pulled into the orbit of politics. Whether through Donald Trump’s relentless attacks on the Fed’s independence or the ECB’s creeping expansion into sensitive policy issues, central banks have been politicised — whether through accident or design. Looking back on Carney’s tenure as the 120th governor, there was an early row about “forward guidance”, a policy designed to give markets clearer signals about rates. Carney said the Bank would hold rates at 0.5 per cent until unemployment BRISTOL firm Vertical Aerospace displayed its latest flying taxi concept outside Canary Wharf tube station yesterday. The Seraph fell to seven per cent or lower. The labour market performed took off for the first time last year. The firm says it’s “working closely with regulators” to ensure that it can operate commercially better than many — including as early as 2022. Back on ground, Transport for London is considering an appeal from Uber for a more traditional licence. Carney — expected, and in the end the Bank’s policy just left people confused. Labour MP Pat McFadden dubbed Carney Central banks, an “unreliable boyfriend”. The UK consumers former Goldman Sachs man whether through GDP warning as then had to wrangle with the accident or design, more confident Scottish referendum before have been facing his biggest political politicised challenge: Brexit. Carney Carney signs off after election warned Brexit could lead to recession, much to the fury of Leavers like Iain Duncan Smith JESS CLARK and Michael Howard who accused the Bank of a “woeful failure” HARRY ROBERTSON case for a rate cut. However, Carney @jclarkjourno to be balanced. Yet to many, he appeared an adult in the room as said: “To be clear, these are still early UK CONSUMER confidence jumped politicians squabbled. Throughout all this, unemployment @henry_g_robertson days, and it is less of a case of so far so this month across a number of continued to fall as the UK economy defied what Boris Johnson THE BANK of England left interest good, than so far, good enough.” surveys, signalling the end of a rates on hold yesterday, citing signs of The Bank was not optimistic that “jittery mood” as sentiment went on to call “the doomsters and the gloomsters”. Carney’s a short-term pick-up in growth follow- the growth pick-up would continue strengthens following the General period as governor could be caricatured as one of inaction, but ing the Tory election victory. long term. Threadneedle Street now Election result. leaving rates unchanged is no less a decision than deciding to Yet Threadneedle Street painted a thinks the economy will grow just 0.8 Polling released by GfK saw an cut or raise. Most of the Bank’s firepower has been dedicated to darker picture of longer-term growth per cent in 2020, down from an initial increase of two points, which Joe and slashed its forecasts to account estimate of 1.3 per cent, and foresees Staton, client strategy director, the controversial policy of quantitative easing — buying up for Brexit disruption and Britain’s 1.5 per cent growth in 2021. described as a “mini Boris bounce”. government debt. He’s also been busy in other areas, not least productivity crisis. The forecasts contrast sharply “This is linked,” he added, “to the climate change and as an active supporter of diversity in the In Mark Carney’s last rates decision with chancellor Sajid Javid’s stated uptick in jobs and housing as Bank governor, the monetary pol- desire to boost GDP growth to 2.8 per markets.” City. He worked closely with his successor Andrew Bailey, and icy committee (MPC) voted seven to cent a year. Notably individuals polled were between them, they provided reassurance to a sector felt by two to keep the main rate at 0.75 Britain officially leaves the EU particularly optimistic about their many to have been ignored by ministers during years of political per cent. This was despite a surge in tonight at 11pm, but will keep its cur- personal financial situation over upheaval and uncertainty. Bailey’s role as an architect of post- expectations of a cut after some rent trading arrangements until the the next 12 months. mixed data and dovish comments end of 2020. Another survey, conducted by Brexit trade means he’s well placed to oversee the Bank — and from MPC members. The Bank said that even with a tran- CEBR and YouGov, saw consumer the City — as Britain embarks on a bold, if uncertain, new phase. The Bank said falling Brexit uncer- sition to a “free-trade agreement”, in- confidence jump to an indexed tainty, the government’s announced creased friction will take an economic 107.7, a significant increase on spending measures, and the easing of toll, especially when combined with last year, and the highest in 16 Follow us on Twitter @cityam global trade tensions lessened the lacklustre productivity growth. months. FINANCIAL TIMES THE TIMES THE DAILY TELEGRAPH THE WALL STREET JOURNAL TORIES TO DECRIMINALISE WHAT THE SMART MOTORWAYS COULD ST JAMES’S PLACE REJECTS SENATORS BEGIN FINAL BID BBC LICENCE FEE EVASION OTHER BE HALTED OR SCRAPPED HELENA MORRISSEY SNUB FOR TRUMP IMPEACHMENT Boris Johnson’s government will The rollout of smart motorways has The boss of wealth manager St James’s The direction of US President Donald launch its first strike on BBC funding PAPERS SAY been suspended pending the outcome place has dismissed criticism of its Trump’s impeachment trial is far from next week, opening a formal process to of a major safety review, the transport complex fees by its new director Dame certain, as House Democrats and the lift the criminal penalties on those THIS secretary said yesterday. Stretches of Helena Morrissey. Chief executive President’s legal team yesterday traded refusing to pay the licence fee. The smart motorway currently under Andrew Croft said he was not shots in the final day of questioning consultation on decriminalisation will MORNING construction “will not be opening” until concerned by Morrissey’s comments ahead of a pivotal Senate vote on be one of Johnson’s first domestic new safety measures have been that nobody at SJP could explain its calling witnesses today. policy initiatives since the election — a introduced, Grant Shapps said. charges to her “in a sentence”. sign of the importance he is placing on SOUTHWEST FLEW MILLIONS shaking-up the broadcaster and the PRINCE HARRY LOSES FIGHT CHILDREN’S COMMISSIONER ON UNSAFE AEROPLANES licence fee system it has relied on since AGAINST MAIL ON SUNDAY ACCUSES ATTACKS CLEGG Southwest pilots flew more than 17m the 1920s. Tories estimate license fee The Duke of Sussex has lost a complaint The children’s commissioner has passengers on planes with unconfirmed evasion to cause costs of up to £200m. Traton has tabled a $2.9bn (£2.22bn) against the Mail on Sunday, the accused Facebook head of affairs and maintenance records over roughly two offer to buy the rest of American newspaper his wife is suing separately former deputy prime minister Sir Nick years, a government report said VOLKSWAGEN OFFERS $2BN manufacturer Navistar, in an attempt to over an alleged breach of privacy.