Bank of England governor pledges to boost economy

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Monday, 28 January 2013

Mark Carney hints that he is prepared to do what the chancellor has not

Media Eye

Guardian

New Bank of England chief Mark Carney – set to replace incumbent Mervyn King in the summer – has signalled intentions for a massive policy overhaul at the organisation. In a speech to the World Economic Forum in Davos, Carney argued that the leaders of central banks should mull “aggressive” and “unconventional” measures to jump start their national economies. His thoughts arrive in the wake of figures indicating that the UK could be heading for a triple-dip recession, as a result of lacklustre growth stimulus from the Coalition – with chancellor George Osborne once again facing questions about his economic stewardship.

Among the initiatives that have been mooted as potential changes of direction for the Bank are quantitative easing until unemployment falls to an agreed level – an idea that King has rejected – and the organisation itself lending cash to businesses. Could it be that the man Osborne has hired to watch over the nation’s finances is prepared to do things that the chancellor himself would not? It certainly appears so from his key Davos quote: “Monetary policy can be more nimble than fiscal policy.”

 

Telegraph

Starbucks bosses have raised concerns that the chain is gearing up for a UK consumer boycott. The speculation follows the company’s refusal to disclose the Christmas performance of its UK outlets – a decision at odds with the traditional reporting practices of large, British firms. The company has declined to explain why it has not provided the information, choosing instead to focus on more general figures from the Europe, Middle East and Africa (EMEA) region. Murray Worth, spokesman for pressure group UK Uncut, said: “There is no small irony in them not giving information about the UK business, given the lack of transparency over tax has been an issue.”

 

Mail online

Campaign group Fairer Gambling has criticised the proliferation of fixed-odds betting terminals (FOBTs) in the nation’s bookies. In 2007, there were 16,380 machines in the UK. Now their numbers have doubled to 32,000. “It is an addiction,” said the group’s chairman Adrian Parkinson. “In areas of high unemployment, it is impossible not to conclude that a lot of money going into these machines is coming from benefit payments. We would like the FOBTs to be less profitable and attractive to the gambler by making the maximum stake £2 and a much longer time allowed between bets. People are losing far more than they can possibly afford.”

 

Mirror

Insulation-firm leaders have hit out at Coalition management of two, high-profile sustainability schemes – the Green Deal and the Energy Company Obligation – for spawning job losses. According to trade group the Insulation Industry Forum, long delays in implementing the schemes following the closure of those they were meant to replace have led to the cancellation of 44,000 home-insulation projects, destroying 4,200 jobs and threatening a further 1,350.

 

Express

Motorists could be paying 4p per litre more on petrol in the coming days thanks to wholesale fuel-price speculators driving up the cost, it has emerged. Petrol Retailers Association chairman Brian Madderson said that the coming rise “is not due to government tax, Brent crude going up [or] weak currency exchange”, and has urged the Office of Fair trading to investigate potential irregularities in the wholesale fuel market. AA president Edmund King added: “If falls in wholesale prices were reflected as quickly as rises, no one would mind. But they’re not.”

 

Independent

Managers at UK publishing house Quercus have announced lower-than-expected profits from the Christmas period, thanks to delays with a long-awaited celebrity memoir. While Quercus stopped short of naming the book in question, it is heavily tipped to be the autobiography of one Graham McPherson – better known as Madness singer Suggs – which the publisher had trailed as a flagship seasonal title. Unfortunately, said tome failed to appear, with Suggs said to be still deeply entrenched in final-draft territory. And he thought his girl was mad at him…

 

Sun

Parenting groups have blasted bosses at designer brand Dolce & Gabbana for planning to release a perfume for babies. Each 50ml bottle will set punters back £28, with the fragrance touted by the firm as “a symbol of pureness”. Mumsnet founder Justine Roberts said: “In terms of products nobody wants or needs, perfume for babies ranks right up there. This will leave most parents sniggering.”