The Imitation Game: Bank of England picks World War-II code breaker Turing on £50 notes

<a href="https://www.wionews.com/world/europe-needs-to-find-candidate-to-head-imf-france-233585">Bank of England governor Mark Carney</a> on Thursday gave outgoing IMF chief Christine Lagarde his warm support as she heads to the <a href="https://www.wionews.com/world/european-central-bank-chief-draghi-brushes-off-donald-trumps-charge-of-currency-manipulation-228456">European Central Bank</a>, but evaded questions about whether he wants to succeed her.

The Canadian is due to end his posting in London at the end of January and has been judged by bookmakers as an early favorite to take over at the International Monetary Fund once Lagarde is confirmed at the Frankfurt-based ECB.

"I do want to take the opportunity to praise the role that Christine Lagarde has played and the leadership she's played at the IMF," Carney told a news conference marking the publication of the BoE's latest Financial Stability Report.

He said it had been an "absolute privilege" to serve as head of Britain's central bank, but declined to go further on what the future might hold.

The process to pick a new IMF managing director "should be open, transparent and merit-based, so there'll come a time when that process launches, and that's probably the right time to answer that question."

Carney also holds British and Irish passports, so would qualify to replace Lagarde under an arrangement whereby a European leads the IMF and an American the World Bank.&nbsp;

That convention has come under strain in recent years from developing economies demanding a greater say at the Washington-based institutions, although the American David Malpass was elected unopposed in April to head the World Bank.

Lagarde is leaving the IMF two years ahead of schedule after European Union leaders, at a summit this month, nominated her to succeed Mario Draghi as ECB president.&nbsp;

Draghi himself has been mentioned as a possible pick at the IMF. Other names in the mix include Bank of France governor Francois Villeroy de Galhau, EU finance commissioner Pierre Moscovici of France, and former British finance minister George Osborne.

Bank of England governor Mark Carney on Thursday gave outgoing IMF chief Christine Lagarde his warm support as she heads to the European Central Bank, but evaded questions about whether he wants to succeed her.

Bank of England governor Mark Carney on Thursday gave outgoing IMF chief Christine Lagarde his warm support as she heads to the European Central Bank, but evaded questions about whether he wants to succeed her. The Canadian is due to end his posting in London at the end of January and has been judged by bookmakers as an early favorite to take over at the International Monetary Fund once Lagarde is confirmed at the Frankfurt-based ECB. "I do want to take the opportunity to praise the role that Christine Lagarde has played and the leadership she's played at the IMF," Carney told a news conference marking the publication of the BoE's latest Financial Stability Report. He said it had been an "absolute privilege" to serve as head of Britain's central bank, but declined to go further on what the future might hold. The process to pick a new IMF managing director "should be open, transparent and merit-based, so there'll come a time when that process launches, and that's probably the right time to answer that question." Carney also holds British and Irish passports, so would qualify to replace Lagarde under an arrangement whereby a European leads the IMF and an American the World Bank. That convention has come under strain in recent years from developing economies demanding a greater say at the Washington-based institutions, although the American David Malpass was elected unopposed in April to head the World Bank. Lagarde is leaving the IMF two years ahead of schedule after European Union leaders, at a summit this month, nominated her to succeed Mario Draghi as ECB president. Draghi himself has been mentioned as a possible pick at the IMF. Other names in the mix include Bank of France governor Francois Villeroy de Galhau, EU finance commissioner Pierre Moscovici of France, and former British finance minister George Osborne.

Bank of England boss dodges International Monetary Fund speculation

<a href="https://www.wionews.com/world/britain-adopts-2050-net-zero-emissions-target-230832">Britain's economy</a> appears to have shrunk for the first time since late 2012 between April and June as worries about Brexit were compounded by global trade tensions, a closely watched survey showed on Wednesday.

A day after Bank of England Governor Mark Carney warned of the growing risks from a no-deal <a href="https://www.wionews.com/world/pro-brexit-meps-turn-backs-at-european-anthem-in-european-parliament-232506">Brexit</a> and protectionist trade policies, a gauge of Britain's huge services industry the IHS Markit/CIPS services Purchasing Managers' Index (PMI) slipped to 50.2 in June, just above the no-growth level of 50.

Economists polled by Reuters had expected the PMI to remain at May's level of 51.0.

Equivalent surveys for manufacturing and construction published earlier this week showed those sectors contracted in June, meaning Britain's economy overall probably shrank by 0.1 per cent in the second quarter, IHS Markit/CIPS said.

British gross domestic product last shrank from one quarter to another in the final three months of 2012, according to official data. The last time GDP shrank for two or more quarters in a row the widely accepted definition of a recession was in 2008-2009, during the global financial crisis.

"The latest downturn has followed a gradual deterioration in demand over the past year as Brexit-related uncertainty has increasingly exacerbated the impact of a broader global economic slowdown," said Chris Williamson, a chief business economist at IHS Markit.

"Risks also remain skewed to the downside as sentiment about the year ahead is worryingly subdued, suggesting the third quarter could see businesses continue to struggle."

British government bond yields fell further after the survey, with the yield on 10-year gilts hitting its lowest level since the months after the 2016 Brexit referendum.

Curve Inversion

Investors see more chance of a cut to British interest rates after Carney's speech on Tuesday, in which he said the economy might need more support to cope with the shock of a no-deal Brexit or an escalation of global trade tensions.

The yield curve between two- and five-year British government bonds inverted for the first time since 2008 on Wednesday, suggesting investors see a risk of recession.

The BoE says Britain's economy probably flatlined in the second quarter after strong growth early in the year when companies were rushing to get ready for the original March 29 Brexit date.

That deadline has since been pushed back to Oct. 31.

Andrew Wishart, an economist with consultancy Capital Economics, said the pre-March 29 rush accounted for some of the second-quarter weakness.

"But the fact the surveys have not picked up towards the end of the quarter, and global manufacturing is slowing, means the risk is that the economy fails to bounce back in the third quarter," he added.

Many businesses are alarmed by the prospect of a no-deal Brexit, something both candidates to replace Theresa May as prime minister has said they are prepared to do if necessary.

Williamson said the weak reading of Britain's economy should put pressure on the Bank of England to add stimulus.

"For policymakers to not loosen policy with the all-sector PMI at its current level would be unprecedented in the survey's two-decade history," he said.

Britain's economy appears to have shrunk for the first time since late 2012 between April and June as worries about Brexit were compounded by global trade tensions, a closely watched survey showed on Wednesday.

Britain's economy appears to have shrunk for the first time since late 2012 between April and June as worries about Brexit were compounded by global trade tensions, a closely watched survey showed on Wednesday. A day after Bank of England Governor Mark Carney warned of the growing risks from a no-deal Brexit and protectionist trade policies, a gauge of Britain's huge services industry the IHS Markit/CIPS services Purchasing Managers' Index (PMI) slipped to 50.2 in June, just above the no-growth level of 50. Economists polled by Reuters had expected the PMI to remain at May's level of 51.0. Equivalent surveys for manufacturing and construction published earlier this week showed those sectors contracted in June, meaning Britain's economy overall probably shrank by 0.1 per cent in the second quarter, IHS Markit/CIPS said. British gross domestic product last shrank from one quarter to another in the final three months of 2012, according to official data. The last time GDP shrank for two or more quarters in a row the widely accepted definition of a recession was in 2008-2009, during the global financial crisis. "The latest downturn has followed a gradual deterioration in demand over the past year as Brexit-related uncertainty has increasingly exacerbated the impact of a broader global economic slowdown," said Chris Williamson, a chief business economist at IHS Markit. "Risks also remain skewed to the downside as sentiment about the year ahead is worryingly subdued, suggesting the third quarter could see businesses continue to struggle." British government bond yields fell further after the survey, with the yield on 10-year gilts hitting its lowest level since the months after the 2016 Brexit referendum. Curve Inversion Investors see more chance of a cut to British interest rates after Carney's speech on Tuesday, in which he said the economy might need more support to cope with the shock of a no-deal Brexit or an escalation of global trade tensions. The yield curve between two- and five-year British government bonds inverted for the first time since 2008 on Wednesday, suggesting investors see a risk of recession. The BoE says Britain's economy probably flatlined in the second quarter after strong growth early in the year when companies were rushing to get ready for the original March 29 Brexit date. That deadline has since been pushed back to Oct. 31. Andrew Wishart, an economist with consultancy Capital Economics, said the pre-March 29 rush accounted for some of the second-quarter weakness. "But the fact the surveys have not picked up towards the end of the quarter, and global manufacturing is slowing, means the risk is that the economy fails to bounce back in the third quarter," he added. Many businesses are alarmed by the prospect of a no-deal Brexit, something both candidates to replace Theresa May as prime minister has said they are prepared to do if necessary. Williamson said the weak reading of Britain's economy should put pressure on the Bank of England to add stimulus. "For policymakers to not loosen policy with the all-sector PMI at its current level would be unprecedented in the survey's two-decade history," he said.

United Kingdom economy shrinks as Brexit, global worries mount: Survey

Former Reserve Bank of India chief Raghuram Rajan said on Wednesday he did not intend to apply for the job of Bank of England governor which is due to come vacant next year.

Rajan has been mentioned by analysts as a possible future BoE governor after Mark Carney - who previously headed Canada's central bank - steps down at the end of June 2019.

"I have a very good job at the University of Chicago and I actually am an academic, not a professional central banker. I am very happy where I am," Rajan told reporters after an event in London hosted by the U.S. university's Booth School of Business, where he is a finance professor.

"I think I’ve said all I can say. I’m not going to apply for a job anywhere, absolutely."

Asked what he would do if he were approached to fill the role, Rajan - who was the RBI's governor until September 2016 - said he had answered a similar question.

Also read: <a href="http://www.wionews.com/india-news/implementation-of-gst-not-unfixable-problem-ex-rbi-governor-raghuram-rajan-130060">Implementation of GST </a><a href="http://www.wionews.com/india-news/implementation-of-gst-not-unfixable-problem-ex-rbi-governor-raghuram-rajan-130060">not</a><a href="http://www.wionews.com/india-news/implementation-of-gst-not-unfixable-problem-ex-rbi-governor-raghuram-rajan-130060"> 'unfixable' problem, says Raghuram Rajan</a>

British finance minister Philip Hammond is expected to name Carney's successor later this year, and said in Washington last month that he would consider candidates from abroad.

Andrew Bailey, a former BoE deputy governor who now heads Britain's Financial Conduct Authority, is seen as the front-runner by many economists in the City of London.

Aside from current senior BoE staff, other names mentioned include Agustin Carstens, the Mexican who is general manager of the Bank for International Settlements, Minouche Shafik, a former BoE deputy governor who heads the London School of Economics and Shriti Vadera, who chairs Santander UK.

Rajan is a former chief economist at the International Monetary Fund, and warned of financial imbalances in the run-up to the 2007-08 global crisis.

On Wednesday, he said that banks were now much safer but risk had shifted to other parts of the financial system.

Debt troubles in Argentina were likely to be repeated elsewhere and he highlighted the increased volume of 'covenant-lite' loans compared with before the crisis.

The U.S. Federal Reserve and the European Central Bank had probably done too much in the way of asset purchases once the worst of the crisis had passed, Rajan added, and had let governments off the hook in terms of undertaking structural reform and providing fiscal stimulus.

In the ECB's case, asset purchases appeared to have weakened the euro but not boosted real economic activity.

He declined to comment on whether the BoE's 435 billion pound ($587 billion) asset purchases were too much, or if Britain's fiscal austerity since 2010 had been excessive, as he had not studied the British economy in as much depth.

Rajan has been mentioned by analysts as a possible future BoE governor after Mark Carney - who previously headed Canada's central bank - steps down at the end of June 2019

Former Reserve Bank of India chief Raghuram Rajan said on Wednesday he did not intend to apply for the job of Bank of England governor which is due to come vacant next year. Rajan has been mentioned by analysts as a possible future BoE governor after Mark Carney - who previously headed Canada's central bank - steps down at the end of June 2019. "I have a very good job at the University of Chicago and I actually am an academic, not a professional central banker. I am very happy where I am," Rajan told reporters after an event in London hosted by the U.S. university's Booth School of Business, where he is a finance professor. "I think I’ve said all I can say. I’m not going to apply for a job anywhere, absolutely." Asked what he would do if he were approached to fill the role, Rajan - who was the RBI's governor until September 2016 - said he had answered a similar question. Also read: Implementation of GST not 'unfixable' problem, says Raghuram Rajan British finance minister Philip Hammond is expected to name Carney's successor later this year, and said in Washington last month that he would consider candidates from abroad. Andrew Bailey, a former BoE deputy governor who now heads Britain's Financial Conduct Authority, is seen as the front-runner by many economists in the City of London. Aside from current senior BoE staff, other names mentioned include Agustin Carstens, the Mexican who is general manager of the Bank for International Settlements, Minouche Shafik, a former BoE deputy governor who heads the London School of Economics and Shriti Vadera, who chairs Santander UK. Rajan is a former chief economist at the International Monetary Fund, and warned of financial imbalances in the run-up to the 2007-08 global crisis. On Wednesday, he said that banks were now much safer but risk had shifted to other parts of the financial system. Debt troubles in Argentina were likely to be repeated elsewhere and he highlighted the increased volume of 'covenant-lite' loans compared with before the crisis. The U.S. Federal Reserve and the European Central Bank had probably done too much in the way of asset purchases once the worst of the crisis had passed, Rajan added, and had let governments off the hook in terms of undertaking structural reform and providing fiscal stimulus. In the ECB's case, asset purchases appeared to have weakened the euro but not boosted real economic activity. He declined to comment on whether the BoE's 435 billion pound ($587 billion) asset purchases were too much, or if Britain's fiscal austerity since 2010 had been excessive, as he had not studied the British economy in as much depth.

Not applying for Bank of England job: Raghuram Rajan

Bank of England governor Mark Carney asserted that he will not be reconsidering his decision to stay at the British central bank until June 2019 on Thursday.

&quot;I don&#39;t think we should reopen these things. We have got enough things to worry about,&quot; he told BBC television. &quot;I don&#39;t think we should give real-time commentary on all these things.&quot;

Carney announced on Monday that he was extending his time at the bank for six years instead of the five that he had agreed to stay initially. He decided not to take up the option of staying for a full eight-year term.

&quot;By taking my term in office beyond the expected period of the Article 50 process (for Britain to leave the EU), this should help contribute to securing an orderly transition to the UK&#39;s new relationship with Europe,&quot; he had said, news ageny Reuters reported.

(With inputs from Reuters)

Carney announced on Monday that he was extending his time at the bank for six years instead of the five that he had originally agreed on

Bank of England governor Mark Carney asserted that he will not be reconsidering his decision to stay at the British central bank until June 2019 on Thursday. "I don't think we should reopen these things. We have got enough things to worry about," he told BBC television. "I don't think we should give real-time commentary on all these things." Carney announced on Monday that he was extending his time at the bank for six years instead of the five that he had agreed to stay initially. He decided not to take up the option of staying for a full eight-year term. "By taking my term in office beyond the expected period of the Article 50 process (for Britain to leave the EU), this should help contribute to securing an orderly transition to the UK's new relationship with Europe," he had said, news ageny Reuters reported. (With inputs from Reuters)

Bank of England governor: Won't rethink decision to leave in 2019

Media speculation was divided Sunday on the fate of the governor of the Bank of England, Mark Carney, with competing claims as to whether he is set to announce his departure amid Brexit tensions.&nbsp;

The Canadian is on a five-year contract that expires in 2018 but has an option to extend the job until 2021, a decision the central bank has said will be made public by the end of this year.

Media reports suggest Carney will not take up the option to stay on, with the Sunday Times newspaper saying he was &quot;disillusioned&quot; with Prime Minister Theresa May&#39;s Conservative government.

Carney has been criticised by eurosceptic Conservatives for his warnings of the economic impact of Brexit before the June referendum vote to leave the European Union.

In her speech to her party conference earlier his month, May also appeared to criticise the bank&#39;s policy, saying quantitative easing and low interest rates hurt savers.

But following speculation Carney would be out the door in 2018, the Financial Times late on Sunday reported the governor is &quot;said to be leaning strongly towards staying in his post&quot; until 2021.

&quot;Friends say Carney is determined to defend the Bank of England&#39;s independence in the face of a sustained attack by Brexiters,&quot; the newspaper reported.

Carney told a parliamentary committee on Tuesday that any decision would be &quot;entirely personal&quot;.

&quot;No one should read anything into that decision in terms of government policy,&quot; he said.

The job was &quot;an absolute privilege&quot;, he said, but added: &quot;Like everyone I have personal circumstances that I have to manage.

&quot;This is a role that requires total attention, devotion, and I intend to give it for as long as I can. Those are the only factors.&quot;

A bank spokesman declined to comment on the speculation, or on reports that Carney may announce his decision as soon as Thursday.

Business secretary Greg Clark told the BBC on Sunday that Carney&#39;s future at the bank was &quot;a decision for him&quot; but said he had done a &quot;fantastic job&quot;.

(AFP) 
&nbsp;

Reports suggest Carney is leaning towards not extending his tenure after 2018 amid criticism about his approach to Brexit

Media speculation was divided Sunday on the fate of the governor of the Bank of England, Mark Carney, with competing claims as to whether he is set to announce his departure amid Brexit tensions. The Canadian is on a five-year contract that expires in 2018 but has an option to extend the job until 2021, a decision the central bank has said will be made public by the end of this year. Media reports suggest Carney will not take up the option to stay on, with the Sunday Times newspaper saying he was "disillusioned" with Prime Minister Theresa May's Conservative government. Carney has been criticised by eurosceptic Conservatives for his warnings of the economic impact of Brexit before the June referendum vote to leave the European Union. In her speech to her party conference earlier his month, May also appeared to criticise the bank's policy, saying quantitative easing and low interest rates hurt savers. But following speculation Carney would be out the door in 2018, the Financial Times late on Sunday reported the governor is "said to be leaning strongly towards staying in his post" until 2021. "Friends say Carney is determined to defend the Bank of England's independence in the face of a sustained attack by Brexiters," the newspaper reported. Carney told a parliamentary committee on Tuesday that any decision would be "entirely personal". "No one should read anything into that decision in terms of government policy," he said. The job was "an absolute privilege", he said, but added: "Like everyone I have personal circumstances that I have to manage. "This is a role that requires total attention, devotion, and I intend to give it for as long as I can. Those are the only factors." A bank spokesman declined to comment on the speculation, or on reports that Carney may announce his decision as soon as Thursday. Business secretary Greg Clark told the BBC on Sunday that Carney's future at the bank was "a decision for him" but said he had done a "fantastic job". (AFP)

Bank of England's governor undecided on job extension amid Brexit tensions

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