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Bank of England deputy governor 'must resign' over code of conduct breach - business live Bank of England deputy governor 'must resign' over code of conduct breach - business live
(35 minutes later)
3.19pm GMT
15:19
Given the tensions over the US trade deficit with Germany, this could be interesting:
#Germany FinMin Schäuble says will meet US Treasury Sec Steven Mnuchin March 16 in Berlin. https://t.co/f7ynNoAta9
3.13pm GMT
15:13
Trump’s talk of cracking down on drug pricing has also unsettled European pharmaceutical companies.
Novartis is down 1.7%, Roche has fallen 1.23%, Shire has lost 2.2%, while AstraZeneca and GlaxoSmithKline are both almost 1% lower.
2.43pm GMT2.43pm GMT
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Wall Street opens lower as Trump tweet hits healthcare stocksWall Street opens lower as Trump tweet hits healthcare stocks
President Trump has been at it again. A tweet suggesting plans to cut drug prices has hit pharmaceutical shares and helped push Wall Street lower at the open:President Trump has been at it again. A tweet suggesting plans to cut drug prices has hit pharmaceutical shares and helped push Wall Street lower at the open:
I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!
So the Dow Jones Industrial Average is down 33 points or 0.16% while the S&P 500 opened 0.17% lower and the Nasdaq Composite off 0.21%.So the Dow Jones Industrial Average is down 33 points or 0.16% while the S&P 500 opened 0.17% lower and the Nasdaq Composite off 0.21%.
Pfizer is down 1.3% while Merck is 1.5% lower.Pfizer is down 1.3% while Merck is 1.5% lower.
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at 2.47pm GMTat 2.47pm GMT
2.21pm GMT2.21pm GMT
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Will any European countries end up leaving the eurozone? Apart from Greece, the chances are low, according to Moody’s, but could get higher. In a new report, it said:Will any European countries end up leaving the eurozone? Apart from Greece, the chances are low, according to Moody’s, but could get higher. In a new report, it said:
The likelihood of a country other than Greece leaving the European Union’s single currency area remains very low, but has the potential to increase materially this year given the rise of anti-EU political parties in the region.The likelihood of a country other than Greece leaving the European Union’s single currency area remains very low, but has the potential to increase materially this year given the rise of anti-EU political parties in the region.
While it is unlikely that any of these parties will gain sufficient electoral support to seek a mandate for exit from the euro area in the near future, they can still influence political agendas, potentially weakening support for euro area membership...While it is unlikely that any of these parties will gain sufficient electoral support to seek a mandate for exit from the euro area in the near future, they can still influence political agendas, potentially weakening support for euro area membership...
“Aside from Greece, Moody’s believes that the likelihood of a country leaving the euro area remains very low,” said Colin Ellis, Moody’s Chief Credit Officer for EMEA and the report’s co-author. “However, this probability could increase over coming months, depending on the results of upcoming elections.”“Aside from Greece, Moody’s believes that the likelihood of a country leaving the euro area remains very low,” said Colin Ellis, Moody’s Chief Credit Officer for EMEA and the report’s co-author. “However, this probability could increase over coming months, depending on the results of upcoming elections.”
Any exit from the European single currency would be an existential moment for the euro area: it would demonstrate conclusively that the currency union was not indivisible.Any exit from the European single currency would be an existential moment for the euro area: it would demonstrate conclusively that the currency union was not indivisible.
A country leaving the euro area and redenominating its currency would not necessarily automatically result in a default, however. In that situation, Moody’s would in particular focus on any change in the financial value of debt obligations relative to the original contractual promise.A country leaving the euro area and redenominating its currency would not necessarily automatically result in a default, however. In that situation, Moody’s would in particular focus on any change in the financial value of debt obligations relative to the original contractual promise.
2.12pm GMT2.12pm GMT
14:1214:12
US trade deficit hits near five year highUS trade deficit hits near five year high
Over to the US and - in news which will not please Donald Trump - the country’s trade deficit in January widened to its highest level since March 2012.Over to the US and - in news which will not please Donald Trump - the country’s trade deficit in January widened to its highest level since March 2012.
With rising oil prices pushing up the cost of imported fuel, the trade gap increased 9.6% to $48.5bn compared to the December figure of $44.3bn, according to the Commerce Department. Trump sees trade as one of the key areas to tackle, and has already said he will pull out of the Trans-Pacific Partnership and renegotiated the North American Free Trade Agreement.With rising oil prices pushing up the cost of imported fuel, the trade gap increased 9.6% to $48.5bn compared to the December figure of $44.3bn, according to the Commerce Department. Trump sees trade as one of the key areas to tackle, and has already said he will pull out of the Trans-Pacific Partnership and renegotiated the North American Free Trade Agreement.
Exports to the European Union fell 7.3%, and Trump advisors have already hit out at Germany for benefiting from a weak euro.Exports to the European Union fell 7.3%, and Trump advisors have already hit out at Germany for benefiting from a weak euro.
The trade deficit with the United Kingdom rose from $457m to $609m.The trade deficit with the United Kingdom rose from $457m to $609m.
Meanwhile the deficit with China, another contentious area for Trump, rose by 12.8% to $31.1bn in January.Meanwhile the deficit with China, another contentious area for Trump, rose by 12.8% to $31.1bn in January.
But the trade deficit with Mexico - where Trump has continued to push plans for a border wall - fell 10.1% to its lowest level since July 2015.But the trade deficit with Mexico - where Trump has continued to push plans for a border wall - fell 10.1% to its lowest level since July 2015.
Ahead of next week's G20 finance ministers & central bankers meeting, US January trade deficit comes in at $48.5B.Widest in nearly 5 years.Ahead of next week's G20 finance ministers & central bankers meeting, US January trade deficit comes in at $48.5B.Widest in nearly 5 years.
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1.52pm GMT1.52pm GMT
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Here’s our news story about Charlotte Hogg’s non-disclosure, which sparked such a rumpus at the Treasury committee today:Here’s our news story about Charlotte Hogg’s non-disclosure, which sparked such a rumpus at the Treasury committee today:
1.28pm GMT1.28pm GMT
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Labour MP: Charlotte Hogg must resignLabour MP: Charlotte Hogg must resign
Newsflash: John Mann MP has declare that Charlotte Hogg’s position as deputy governor is “now untenable”, following her admission that she didn’t declare that her brother hold a senior role in Barclays’ strategy team.Newsflash: John Mann MP has declare that Charlotte Hogg’s position as deputy governor is “now untenable”, following her admission that she didn’t declare that her brother hold a senior role in Barclays’ strategy team.
In a statement just released, Mann MP argues that Hogg has failed to meet the principles of public life, known as the “Nolan principles” (a point he made during today’s hearing).In a statement just released, Mann MP argues that Hogg has failed to meet the principles of public life, known as the “Nolan principles” (a point he made during today’s hearing).
Mann says:Mann says:
“It is simply incredible that such a senior person at the Bank of England has behaved in such in this manner. Last week Charlotte Hogg proudly told this committee that she actually wrote the bank’s code of conduct which she has now admitted to repeatedly breaking it.”“It is simply incredible that such a senior person at the Bank of England has behaved in such in this manner. Last week Charlotte Hogg proudly told this committee that she actually wrote the bank’s code of conduct which she has now admitted to repeatedly breaking it.”
“Not only has she compromised her current position and the Bank of England itself but more importantly she has failed under the key principles of the Nolan standards in public life and she has no excuse for doing so.”“Not only has she compromised her current position and the Bank of England itself but more importantly she has failed under the key principles of the Nolan standards in public life and she has no excuse for doing so.”
“This is simply a question about standards in public life and in this regard she has failed and must resign.”“This is simply a question about standards in public life and in this regard she has failed and must resign.”
1.21pm GMT1.21pm GMT
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You can watch the entire Treasury Committee hearing about Charlotte Hogg’s non-declaration here.You can watch the entire Treasury Committee hearing about Charlotte Hogg’s non-declaration here.
1.20pm GMT1.20pm GMT
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Andrew Tyrie wraps up the hearing by saying that we are “looking at a mistake, a series of mistakes”.Andrew Tyrie wraps up the hearing by saying that we are “looking at a mistake, a series of mistakes”.
We need to examine if the response from the bank has been proportionate.We need to examine if the response from the bank has been proportionate.
There are three issues to discuss, Tyrie argues:There are three issues to discuss, Tyrie argues:
Tyrie concludes by telling Anthony Habgood and Bradley Fried that this morning’s news about Charlotte Hogg has been a surprise to a number of committee members, including himself, and they must “think very carefully” about it.Tyrie concludes by telling Anthony Habgood and Bradley Fried that this morning’s news about Charlotte Hogg has been a surprise to a number of committee members, including himself, and they must “think very carefully” about it.
1.14pm GMT1.14pm GMT
13:1413:14
Charlotte Hogg has also officially recorded her family links to the Hoare family -- who created Britain’s oldest private bank, Habgood says.Charlotte Hogg has also officially recorded her family links to the Hoare family -- who created Britain’s oldest private bank, Habgood says.
1.09pm GMT1.09pm GMT
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Q: Have any other senior Bank of England staff updated their declarations under the code of conduct since Charlotte Hogg’s omission came to light?Q: Have any other senior Bank of England staff updated their declarations under the code of conduct since Charlotte Hogg’s omission came to light?
Anthony Habgood says that several people have, yes, including one who has added that his daughter is a political journalist.Anthony Habgood says that several people have, yes, including one who has added that his daughter is a political journalist.
1.01pm GMT1.01pm GMT
13:0113:01
BoE deputy chair: Hogg is a “superb public servant”BoE deputy chair: Hogg is a “superb public servant”
Deputy court chairman Bradley Fried now hits back at the suggestion that Charlotte Hogg’s conduct has fallen below acceptable standards.Deputy court chairman Bradley Fried now hits back at the suggestion that Charlotte Hogg’s conduct has fallen below acceptable standards.
Despite this lack of disclosure over her brother, I believe she is a “superb public servant” says Fried.Despite this lack of disclosure over her brother, I believe she is a “superb public servant” says Fried.
His personal view is that Hogg does meet standards of the best of public life laid out in the code.His personal view is that Hogg does meet standards of the best of public life laid out in the code.
We are living with the “disappointment and aggravation” of her non-disclosure right now, Fried adds.We are living with the “disappointment and aggravation” of her non-disclosure right now, Fried adds.
And he suggests this affair will be a “watershed moment” in Hogg’s career, and also in the way that senior Bank executives report any potential conflicts of interest.And he suggests this affair will be a “watershed moment” in Hogg’s career, and also in the way that senior Bank executives report any potential conflicts of interest.
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at 1.04pm GMTat 1.04pm GMT
12.47pm GMT12.47pm GMT
12:4712:47
Scottish Nationalist Party MP George Kerevan reads out the Bank’s code of conduct.Scottish Nationalist Party MP George Kerevan reads out the Bank’s code of conduct.
Q: The code of conduct on interests says that “living within our code is not simply about observing the letter of the policies referred to. We aspire to set an example of the best in public service.”Q: The code of conduct on interests says that “living within our code is not simply about observing the letter of the policies referred to. We aspire to set an example of the best in public service.”
By that test, has Ms Hogg failed it?By that test, has Ms Hogg failed it?
BoE Court chairman Anthony Habgood replies thatBoE Court chairman Anthony Habgood replies that
She has omitted something that she should not have omitted, that is important, so she has not lived up to that code.She has omitted something that she should not have omitted, that is important, so she has not lived up to that code.
Q: So do you stand by the code?Q: So do you stand by the code?
Absolutely we stand by the code, Habgood adds.Absolutely we stand by the code, Habgood adds.
Q: What effect will her non-compliance have on the rest of the bank staff, and the way they see the code?Q: What effect will her non-compliance have on the rest of the bank staff, and the way they see the code?
We will push the code harder, Habgood says, but it is hard as it relies on self-assessment. For example, someone’s second son might move from a non-regulated City firm to a regulated one - so they’d need to update their records.We will push the code harder, Habgood says, but it is hard as it relies on self-assessment. For example, someone’s second son might move from a non-regulated City firm to a regulated one - so they’d need to update their records.
We have moved a long way from a few years ago, when the Bank didn’t really have a code of conduct, Habgood adds (somewhat alarmingly!)We have moved a long way from a few years ago, when the Bank didn’t really have a code of conduct, Habgood adds (somewhat alarmingly!)
12.38pm GMT12.38pm GMT
12:3812:38
Tory MP Kit Malthouse is concerned that the Bank of England doesn’t know exactly what Quintin Hogg does at Barclays.Tory MP Kit Malthouse is concerned that the Bank of England doesn’t know exactly what Quintin Hogg does at Barclays.
He could even be targeted with handling Barclay’s strategy towards the Bank of England, Malthouse suggests.He could even be targeted with handling Barclay’s strategy towards the Bank of England, Malthouse suggests.
We could find out, Habgood concedes. But even if that were the case, he thinks it wouldn’t have affected Charlotte Hogg’s suitability to be deputy governor.We could find out, Habgood concedes. But even if that were the case, he thinks it wouldn’t have affected Charlotte Hogg’s suitability to be deputy governor.