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| Brexit fears hit sterling; Charlotte Hogg quits Bank of England - business live | |
| (35 minutes later) | |
| 10.03am GMT | |
| 10:03 | |
| Charlotte Hogg's resignation letter | |
| Oh wow. Charlotte Hogg actually offered to resign last week, when she also admitted to MPs that she’s failed to report her brother’s role at Barclays. | |
| The Bank has just published Hogg’s resignation letter, in which she insists she made an “honest mistake” by not fully complying with the BoE’s code of conduct (which she helped to draw up). | |
| She also reiterates that she never shared any information with her brother , but recognises that saying sorry isn’t enough. | |
| Here’s the letter, dated yesterday (suggesting she resigned last night, after MPs met to discuss the issue before drawing up this morning’s report). | |
| 9.54am GMT | |
| 09:54 | |
| Labour MP Angela Eagle says Hogg has made the right decision: | |
| She had no option after ignoring banks own disclosure rules: Charlotte Hogg resigns from new Bank of England role https://t.co/38KJ2r4QYF | |
| 9.53am GMT | |
| 09:53 | |
| Here’s some instant reaction to Charlotte Hogg’s resignation, from the BBC’s business editor Kamal Ahmed: | |
| Charlotte Hogg, talked of as a possible first female governor of the Bank, quits @bankofengland after critical report by TSC | |
| And here’s our political editor Heather Stewart: | |
| Blimey: this is very embarrassing for Bank of England boss Mark Carney: Hogg is his handpicked lieutenant. https://t.co/0KavsUQsjL | |
| 9.44am GMT | |
| 09:44 | |
| Charlotte Hogg has resigned | |
| NEWSFLASH: Charlotte Hogg has resigned from the Bank of England, following the scathing report from the Treasury committee. | |
| In a statement, the BoE says it accepted her resignation with deep regret. | |
| Anthony Habgood, Chair of Court, says: | |
| “In her time at the Bank, Charlotte Hogg has made a huge contribution in areas such as professionalising and modernising the management and operations of the Bank, leading the implementation of the strategic plan, championing diversity and driving forward the Bank’s understanding of key issues such as Fintech and Operational Risk. No one who knows her doubts her track record or her integrity. While Charlotte’s decision by any measure exceeds the standard that would be expected in the private sector or would be required under statute, it is understandable in the circumstances and she has taken it with the best interests of the Bank at heart.” | |
| Mark Carney, Governor of the Bank, says he also “deeply regrets” her decision: | |
| “While I fully respect her decision taken in accordance with her view of what was the best for this institution, I deeply regret that Charlotte Hogg has chosen to resign from the Bank of England.” | |
| “Since Charlotte joined the Bank almost four years ago, she has transformed its management and operations. Drawing on her extensive private sector experience and her unrelenting commitment to excellence, she has led a broad range of initiatives to build a more open and inclusive institution, to overhaul our IT systems, and to change fundamentally how the Bank develops, manages and rewards its dedicated public servants. | |
| Along the way, she has inspired countless colleagues at the Bank and attracted a new cohort of professionals to it. The combination of Charlotte’s unique skills and drive were exceptionally well suited to lead similar transformations of our markets and banking responsibilities, particularly given the growing importance of FinTech, operational excellence and the management of cyber risk.” | |
| 9.41am GMT | |
| 09:41 | |
| Charlotte Hogg is under serious pressure now, following the Treasury Committee’s ruling that she lacks the competence to be deputy governor. | |
| Wes Streeting, another member of the committee, says she should step down. | |
| Treasury Cttee unanimous in view that Charlotte Hogg's "professional competence falls shortof the very high standards required" for BoE D-G | |
| Charlotte Hogg should now withdraw from her appointment as Deputy Governor. | |
| 9.28am GMT | 9.28am GMT |
| 09:28 | 09:28 |
| MPs: Charlotte Hogg lacks competence to be Bank of England deputy governor | MPs: Charlotte Hogg lacks competence to be Bank of England deputy governor |
| Newsflash: The Treasury Committee has just declared that Charlotte Hogg, the new deputy governor of the Bank of England, has fallen short of the ‘highest standards’ required for the role. | Newsflash: The Treasury Committee has just declared that Charlotte Hogg, the new deputy governor of the Bank of England, has fallen short of the ‘highest standards’ required for the role. |
| In a new report, MPs have criticised Hogg for not reporting that her brother Quintin works for Barclays, when she joined the Bank in 2013 as chief operating officer. | In a new report, MPs have criticised Hogg for not reporting that her brother Quintin works for Barclays, when she joined the Bank in 2013 as chief operating officer. |
| Hogg only revealed this breach of the code of conduct last week, having initially told the committee that she had reported all possible conflicts of interest. | Hogg only revealed this breach of the code of conduct last week, having initially told the committee that she had reported all possible conflicts of interest. |
| And the Treasury Committee has now concluded that this means Hogg is not up to the job of deputy governor – a very serious rebuke. | And the Treasury Committee has now concluded that this means Hogg is not up to the job of deputy governor – a very serious rebuke. |
| Here’s the key conclusion from its report: | Here’s the key conclusion from its report: |
| In its Report on 2 March, the Committee concluded that Ms Hogg had the professional competence necessary to fulfil the role of Deputy Governor for Markets and Banking. Had it known then what has since been disclosed, it would have taken a different view. | In its Report on 2 March, the Committee concluded that Ms Hogg had the professional competence necessary to fulfil the role of Deputy Governor for Markets and Banking. Had it known then what has since been disclosed, it would have taken a different view. |
| Professional competence for this role includes an ability to follow the rules, particularly those that one has had a hand in writing and enforcing; an understanding of why those rules are important; and an awareness of the risks arising from actual and potential conflicts of interest, and the perceptions of conflict. Ms Hogg’s oral and written evidence has given the Committee grounds for concern on all three counts. | Professional competence for this role includes an ability to follow the rules, particularly those that one has had a hand in writing and enforcing; an understanding of why those rules are important; and an awareness of the risks arising from actual and potential conflicts of interest, and the perceptions of conflict. Ms Hogg’s oral and written evidence has given the Committee grounds for concern on all three counts. |
| The Committee considers that her professional competence falls short of the very high standards required to fulfil the additional responsibilities of Deputy Governor for Markets and Banking. | The Committee considers that her professional competence falls short of the very high standards required to fulfil the additional responsibilities of Deputy Governor for Markets and Banking. |
| John Mann MP, a member of the committee, says this is its strongest ever ruling. | John Mann MP, a member of the committee, says this is its strongest ever ruling. |
| Charlotte Hogg: strongest opinion ever made by a Treasury Committee: knowing what we know now, we would not have approved her. Unanimous. | Charlotte Hogg: strongest opinion ever made by a Treasury Committee: knowing what we know now, we would not have approved her. Unanimous. |
| Updated | Updated |
| at 9.29am GMT | at 9.29am GMT |
| 9.22am GMT | 9.22am GMT |
| 09:22 | 09:22 |
| The British Chambers of Commerce has added to the jitters in the City this morning. | The British Chambers of Commerce has added to the jitters in the City this morning. |
| Although the BCC has raised its growth forecast for 2017, it also cut its forecasts for 2018 and predicted that consumer spending will falter as inflation rises. | Although the BCC has raised its growth forecast for 2017, it also cut its forecasts for 2018 and predicted that consumer spending will falter as inflation rises. |
| BCC's Head of Economics @Suren_Thiru comments on the #BCCForecast published today https://t.co/ljDQKulmXR pic.twitter.com/5DE3HwvFCD | BCC's Head of Economics @Suren_Thiru comments on the #BCCForecast published today https://t.co/ljDQKulmXR pic.twitter.com/5DE3HwvFCD |
| More here: | More here: |
| 8.34am GMT | 8.34am GMT |
| 08:34 | 08:34 |
| Foreign exchange traders are starting to get “spooked” by the prospect of two years of Brexit negotiations, warns Kathleen Brooks of City Index. | Foreign exchange traders are starting to get “spooked” by the prospect of two years of Brexit negotiations, warns Kathleen Brooks of City Index. |
| Parliament may have passed the Brexit Bill, but a source at the PM’s office said that Article 50 won’t be triggered today, instead we will have to wait until the end of March, when Dutch elections and the EU’s 60th birthday celebrations are out of the way. | Parliament may have passed the Brexit Bill, but a source at the PM’s office said that Article 50 won’t be triggered today, instead we will have to wait until the end of March, when Dutch elections and the EU’s 60th birthday celebrations are out of the way. |
| The pound has taken a sharp drop in early Tuesday trading, in fairness liquidity has been thin, however, it suggests that the reality of the UK’s divorce from Europe and two years of horse-trading to agree trade deals is beginning to spook the FX market. | The pound has taken a sharp drop in early Tuesday trading, in fairness liquidity has been thin, however, it suggests that the reality of the UK’s divorce from Europe and two years of horse-trading to agree trade deals is beginning to spook the FX market. |
| 8.27am GMT | 8.27am GMT |
| 08:27 | 08:27 |
| Naeem Aslam of Think Markets says “sterling has dropped like a rock” this morning, as traders wake up to the reality that the UK will trigger article 50 this month. | Naeem Aslam of Think Markets says “sterling has dropped like a rock” this morning, as traders wake up to the reality that the UK will trigger article 50 this month. |
| Theresa May is heading towards hard Brexit negotiations with an attitude that she has nothing to lose. | Theresa May is heading towards hard Brexit negotiations with an attitude that she has nothing to lose. |
| The biggest fear on the street is what will her EU partners will say and how they are going to treat this matter given that Brexit is about to become a reality. | The biggest fear on the street is what will her EU partners will say and how they are going to treat this matter given that Brexit is about to become a reality. |
| 8.25am GMT | 8.25am GMT |
| 08:25 | 08:25 |
| FTSE 250 hits another record high | FTSE 250 hits another record high |
| Britain’s FTSE 250 index, which contains many medium-sized UK companies, hit a fresh all-time high in early trading. | Britain’s FTSE 250 index, which contains many medium-sized UK companies, hit a fresh all-time high in early trading. |
| A cheaper pound boosts the value of UK companies’ overseas earnings, and also makes them more vulnerable to takeover bids from foreign rivals. | A cheaper pound boosts the value of UK companies’ overseas earnings, and also makes them more vulnerable to takeover bids from foreign rivals. |
| 8.14am GMT | 8.14am GMT |
| 08:14 | 08:14 |
| Scottish independence vote also weighs on the pound | Scottish independence vote also weighs on the pound |
| Financial experts believe that Scotland’s push for a new referendum on independence is also hitting the pound today. | Financial experts believe that Scotland’s push for a new referendum on independence is also hitting the pound today. |
| Theresa May tried to slap down the idea yesterday, claiming the Scottish Government was playing politics by requesting a second vote. | Theresa May tried to slap down the idea yesterday, claiming the Scottish Government was playing politics by requesting a second vote. |
| But the City is concerned that the United Kingdom’s future is also in doubt, as the PM starts the devilishly complicated task of exiting the EU. | But the City is concerned that the United Kingdom’s future is also in doubt, as the PM starts the devilishly complicated task of exiting the EU. |
| Investors must consider whether the vote will happen, whether it will be before or after Brexit, and what the result might be. | Investors must consider whether the vote will happen, whether it will be before or after Brexit, and what the result might be. |
| Carsten Nickel of Teneo Intelligence says: | Carsten Nickel of Teneo Intelligence says: |
| The many questions surrounding the latest Scottish push for independence will further add to the already elevated levels of uncertainty. The coming days will likely see both pro- and anti-independence activists starting to work with strong assumptions about the consequences of a potential Scottish break-away, painting their positive or negative views as “inevitable”. | The many questions surrounding the latest Scottish push for independence will further add to the already elevated levels of uncertainty. The coming days will likely see both pro- and anti-independence activists starting to work with strong assumptions about the consequences of a potential Scottish break-away, painting their positive or negative views as “inevitable”. |
| Here’s Adam Cole of Royal Bank of Canada: | Here’s Adam Cole of Royal Bank of Canada: |
| The government’s stance on calls for a second Scottish referendum is still evolving, but reports in the media overnight (The Times) suggest PM May is “preparing to reject” the call. | The government’s stance on calls for a second Scottish referendum is still evolving, but reports in the media overnight (The Times) suggest PM May is “preparing to reject” the call. |
| Mike van Dulken of Accendo Markets agrees that the prospect of a second Scottish independence vote is pushing sterling down this morning. | Mike van Dulken of Accendo Markets agrees that the prospect of a second Scottish independence vote is pushing sterling down this morning. |
| GBP back under pressure from Brexit (Art 50, Scot indyref2), expectations of more dovish BoE, still hawkish Fed. A lIttle boost for #ftse100 pic.twitter.com/UWAjmYMcS2 | GBP back under pressure from Brexit (Art 50, Scot indyref2), expectations of more dovish BoE, still hawkish Fed. A lIttle boost for #ftse100 pic.twitter.com/UWAjmYMcS2 |
| Updated | Updated |
| at 8.18am GMT | at 8.18am GMT |
| 7.53am GMT | 7.53am GMT |
| 07:53 | 07:53 |
| Pound hits eight-week low as Brexit looms | Pound hits eight-week low as Brexit looms |
| The prospect of Britain triggering its exit from the European Union this month has hit sterling this morning. | The prospect of Britain triggering its exit from the European Union this month has hit sterling this morning. |
| The pound has shed almost a cent against the US dollar in early trading, hitting $1.2125. | The pound has shed almost a cent against the US dollar in early trading, hitting $1.2125. |
| That’s sterling’s lowest point since mid-January, when Theresa May declared that Britain would leave the single market. It’s around 19% weaker than before last June’s Brexit vote. | That’s sterling’s lowest point since mid-January, when Theresa May declared that Britain would leave the single market. It’s around 19% weaker than before last June’s Brexit vote. |
| The pound is also down around 0.6% against the euro, at €1.140. | The pound is also down around 0.6% against the euro, at €1.140. |
| Traders appear to be responding to last night’s developments in Westminster, where MPs gave their approval to Theresa May’s Brexit bill. | Traders appear to be responding to last night’s developments in Westminster, where MPs gave their approval to Theresa May’s Brexit bill. |
| That gives the prime minister the power to formally trigger article 50 of the Lisbon Treaty, and ends the tussle between the House of Commons and the House of Lords. | That gives the prime minister the power to formally trigger article 50 of the Lisbon Treaty, and ends the tussle between the House of Commons and the House of Lords. |
| The Lords had pushed, in vain, for the government to grant residency rights to EU nationals and guarantee MPs a vote on the final Brexit deal. | The Lords had pushed, in vain, for the government to grant residency rights to EU nationals and guarantee MPs a vote on the final Brexit deal. |
| Labour’s leader in the Lords, Lady Smith, told the Guardian that the Upper House realised there was no hope of changing MPs minds over this issue. | Labour’s leader in the Lords, Lady Smith, told the Guardian that the Upper House realised there was no hope of changing MPs minds over this issue. |
| She said: | She said: |
| “If I thought there was a foot in the door or a glimmer of hope that we could change this bill, I would fight it tooth and nail, but it doesn’t seem to be the case. | “If I thought there was a foot in the door or a glimmer of hope that we could change this bill, I would fight it tooth and nail, but it doesn’t seem to be the case. |
| Brexit won’t be formally triggered today, but the government is adamant it will happen by the end of the month. | Brexit won’t be formally triggered today, but the government is adamant it will happen by the end of the month. |
| 7.33am GMT | 7.33am GMT |
| 07:33 | 07:33 |
| The agenda: Fed starts meeting, UK inflation basket updated | The agenda: Fed starts meeting, UK inflation basket updated |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| America’s central bank begins its two-day policy meeting today, where policymakers are widely expected to raise borrowing costs for the first time this year. | America’s central bank begins its two-day policy meeting today, where policymakers are widely expected to raise borrowing costs for the first time this year. |
| The Federal Reserve meeting is taking place in a chilly New York, as a blizzard strikes the North East of America. | The Federal Reserve meeting is taking place in a chilly New York, as a blizzard strikes the North East of America. |
| That may prevent some Wall Street traders getting to work, but it shouldn’t prevent the Fed taking its decisions or holding a press conference tomorrow night. Investors will be keen to see how hawkish Fed chair Janet Yellen sounds, for clues on how many interest rates may come this year. | That may prevent some Wall Street traders getting to work, but it shouldn’t prevent the Fed taking its decisions or holding a press conference tomorrow night. Investors will be keen to see how hawkish Fed chair Janet Yellen sounds, for clues on how many interest rates may come this year. |
| In the UK, we’re about to find out which products have been added to the basket of goods used to calculate inflation, and which have been turfed out. The ONS will reveal all at 9.30am GMT. | In the UK, we’re about to find out which products have been added to the basket of goods used to calculate inflation, and which have been turfed out. The ONS will reveal all at 9.30am GMT. |
| In Europe, the Dutch election race is reaching a climax. Voters head to the polls tomorrow, after watching prime minister Mark Rutte and far-right populist Geert Wilders clash in a TV debate last night. | In Europe, the Dutch election race is reaching a climax. Voters head to the polls tomorrow, after watching prime minister Mark Rutte and far-right populist Geert Wilders clash in a TV debate last night. |
| The escalating row between the Netherlands and Turkey, following a ban on Turkish ministers campaigning in the country, has added an extra level of tension and drama and put migration firmly in the spotlight (just where Wilders wants it). | The escalating row between the Netherlands and Turkey, following a ban on Turkish ministers campaigning in the country, has added an extra level of tension and drama and put migration firmly in the spotlight (just where Wilders wants it). |
| And in the City, online supermarket chain Ocado and copper producer Antofagasta are reporting results. | And in the City, online supermarket chain Ocado and copper producer Antofagasta are reporting results. |
| We’ll be tracking all the main events through the day.... | We’ll be tracking all the main events through the day.... |