Tuesday 27th November News Headlines


Mark Carney has been announced as the new governor of the Bank of England. Carney currently heads the Financial Stability Board, spent 13 years as a Goldman Sachs banker, and has been overseeing Canadian monetary policy for the Bank of Canada. While the City has welcomed the news as a breath of the fresh air, the surprise announcement of the Canadian has caught Fleet Street napping.The Times declares that Mark Carney is the outstanding candidate to lead the BoE – despite having published a long leading article stating that Paul Tucker was the best candidate yesterday – saying “Well, oops.  That was wrong.” FT, p.1, The Times, Telegraph, p.1; Mail, p.10


The Guardian leads with a focus on wealthy property investors who use offshore accounts, largely set up in the British Virgin Islands to take advantage of tax loopholes. The Guardian estimates that approximately £7bn worth of offshore money was used in potentially tax exempt purchases in 2011. However the Guardian does also imply that the tax loopholes themselves have attracted a flood of foreign property money to Britain, rather than the attraction of investing in central London. Guardian, p.1


Seven out of 10 unemployed people have failed to find jobs despite being on the government’s back to work scheme for more than a year. 22,000 people – 29% – of those who entered the scheme last year had successfully started work. Mark Hoban, the employment minister insisted the scheme is working, pointing to the fact that every new job costs the tax payer £2,000 rather than £7,000 under Labour’s Flexible New Deal. Telegraph, p.14

Personal Finance

200,000 homes may be uninsurable from flooding, according to the Independent. The agreement between the Association of British Insurers and the Government to insure homes in high risk areas runs out next year, yet a new deal is dependent on agreement of an “overdraft” with the government, which the ABI could to temporarily draw upon to cover the cost of severe flooding. Independent, p.8





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