11th July 2016

BBA Brief – 11 July 2016

Bank of England set to cut interest rate

The Sunday Telegraph (B1) reports that the Bank of England’s Monetary Policy Committee will cut interest rates when it meets on Thursday amid concerns over an economic slowdown. It is also expected that the Bank will launch a new round of quantitative easing to boost growth. The FT (£, p3) notes that Governor Mark Carney has previously highlighted the limits of monetary policy, stating that “as we have seen elsewhere, if interest rates are too low (or negative), the hit to bank profitability could perversely reduce credit or even increase its overall price.” 

May promises crackdown on big business

Theresa May has pledged to reform executive pay and install employees on company boards as she launches her national campaign to become Prime Minister (Times, £, p1). The Home Secretary states that too few people are sharing in the country’s economic success and more needs to be done to tackle irresponsible behaviour by big business. The Sun (p2) notes that the directors of Britain’s top 100 companies now earn 120 times the average sum earned by their employees, compared to 47 times more in 2000.

Chancellor begins world tour to reassure investors

Chancellor George Osborne has begun a world tour designed to reassure international investors about doing business with the UK following the vote to leave the European Union (Telegraph, B3). Mr Osborne is visiting New York today and will next week travel to Singapore and China. He said: “My message to the world is that Britain may be leaving the EU, but we are not quitting the world. We will continue to be a beacon for free trade, democracy and security, more open to that world than ever.”

Latest from the BBA

On the 12 September, BBA will be running a one day training workshop on the ‘Introduction to the Role of the MLRO’ for more details click here.

The BBA’s 14th annual Financial Crime and Sanctions Conference will be taking place on the 20 and 21 September. Visit our website to view the conference programme, confirmed speakers and to book your place.

Latest from our sponsor Jaywing

Jaywing’s Data Management Practice Director, Inderjit Mund, blogs about the role of data management when it comes to regulatory compliance.

Today’s diary

Visa Europe Consumer Spending Index

Deloitte CFO Survey: on CFOs views on risk, uncertainty, investment plans and access to credit

Eurogroup meeting of Eurozone finance ministers: in Brussels

Stat of the day

98.9 – business optimism in June, down from 99.4 in May (Source: BDO).

In brief

Demand for start-up loans is expected to pick up if the economy slows down in the wake of the EU referendum vote (FT, £, p4).

Uncertainty following the EU referendum vote has pushed UK business output and optimism to three-year lows, according to a new report from services group BDO (BBC News).

Bloomberg looks at the exposure of the UK banking sector to commercial real estate.

Employers have responded to the new National Living Wage by raising prices or reducing profits rather than cutting jobs, according to a survey from the Resolution Foundation (BBC News).

The Sunday Times (£, B1) reports that Italy and the European Commission are deadlocked over plans to support the country’s banking sector.

What the commentators say

Writing in the Times (£, p7), Home Secretary Theresa May states that “we need to get tough on irresponsible behaviour in big business” and calls for reform of executive pay.

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