Who should replace Bank of England governor Mark Carney?
The Canadian is leaving Threadneedle Street in 12 months (having extended his term to help oversee Brexit) and the debate over his successor is hotting up.
To his critics he overstepped the mark in politicising his role during the referendum campaign, has been too timid on rate rises in recent years and has confused markets with his mixed signals.
To his supporters, he was a cool head in the immediate aftermath of the referendum and has held his nerve throughout the slow, spluttering economic recovery. I think the critics make the more compelling argument.
One influential economist keen to see what a post-Carney Bank might mean is former Monetary Policy Committee member Andrew Sentance, who thinks its time for a British governor, saying, “I dont think we should appoint somebody else from overseas.” Sentance has grown impatient with Carneys reluctance to support a rate rise, and he suggests that the governors “lack of confidence with raising interest rates has been due to the fact hes not familiar with the UK economy”.
Read more: Carney has bigger things to worry about than meaningless Brexit forecasts
He added: “I dont think having people who arent familiar with the UK economy jetted in would be a good thing.”
Personally, I dont think it matters a jot where the next governor comes from, provided theyre the best person for the job and, crucially, theyre better at communicating policy intentions than Carney.
Sentance has also been pretty critical of the Banks chief economist, Andy Haldane, who he has accused of coveting media attention.
But Haldane is on a mission (indeed, a national tour) to ensure that the views of ordinary people and real businesses are fed into the MPCs decision making. Surely Sentance would approve of such efforts?
Millennials vs their parents: The railway debate
Its often claimed that Jeremy Corbyn has captured the support of millennials with his pledge to nationalise swathes of the British economy, but polling by consultancy giant FTI reveals that millennials parents are much more likely to support such policies. On rail nationalisation, just 24 per cent of 18-34 year olds back nationalisation compared to 35 per cent of those over 50. When it comes to the energy sector, 15 per cent of millennials surveyed favour full nationalisation while support for such a move increases among older generations. This shouldnt be taken to suggest that todays young voters are red-blooded free-marketeers, however, as 53 per cent of them want price caps and heavier regulation in the rail industry, with 59 per cent calling for the same in the energy sector. FTI also surveyed global institutional investors who, unsurprisingly, are the biggest advocates of leaving utilities in private hands – though they expect regulation to increase.
Read more: Rail nationalisation? It's time we got on with a real privatisation instead
Is the SNP "up to something" with Heathrow?
Nearly three years ago the Airports Commission recommended a third runway at Heathrow. They began their deliberations in 2012, the government agreed with their findings 18 months ago, and now – nearly half a century after the Roskill Commission first opened the airport expansion can-of-worms, MPs are finally being asked to vote on the plan. But will Heathrow expansion pass the Commons? Ministers are deeply worried about the SNP, and suspect its MPs “are up to something” according to one source. Much will depend on their position.
Read more: Heathrow battle looms as SNP support wavers while Tory rebels add up
A new PR hybrid firm is born
Plenty to celebrate at the annual summer party of comms agency Westbourne, which earlier that day had been snapped up by City PR giant Cicero. The former will be absorbed into the latter to offer a beefed-up public affairs offering, and the deal (which took a mere 10 weeks to complete from exploratory meeting to contract signing) brings together two thoroughly pleasant, creative and honest industry figures: James Bethell (Westbourne founder) and Ciceros Iain Anderson.
[contf]
[contfnew]
CityAM
[contfnewc]
[contfnewc]
