Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

Continue Reading

Currencies

Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

Continue Reading

Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

Continue Reading

Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Banks

Carney: UK is ‘investment banker for Europe’

The governor of the Bank of England has repeated his calls for a “smooth and orderly” UK exit from the EU, saying that a transition out of the bloc will happen, it was just a case of “when and how”. Responding to the BoE’s latest bank stress tests, where lenders overall emerged with more resilient […]

Continue Reading

Categorized | Banks

Carney: UK is ‘investment banker for Europe’


Posted on November 30, 2016

The governor of the Bank of England has repeated his calls for a “smooth and orderly” UK exit from the EU, saying that a transition out of the bloc will happen, it was just a case of “when and how”.

Responding to the BoE’s latest bank stress tests, where lenders overall emerged with more resilient balance sheets, Mark Carney said the strength of the UK’s financial system was welcome in light of the possibility of a “UK-specific risk to financial stability” materialising in the coming years.

The governor said it was imperative that British businesses know “as much as possible, as early as possible” about the transition arrangements and the level of access to the EU’s internal market following the referendum.

“Having a degree of clarity, when appropriate, will help an orderly transition,” said Mr Carney.

He added that EU leaders should also push for a smooth Brexit, as the UK was “effectively the investment banker for Europe”.

The BoE’s financial stability report said the US election had amplified existing vulnerabilities in the global financial system, but on the economy, Mr Carney welcomed plans by US president-elect Donald Trump to inject fiscal stimulus into the world’s biggest economy.

Read more: BoE stress tests – all you need to know