Paper Summary – Tuesday 2nd July

The front pages of the FT, CityAM and the Daily Telegraph’s business section run stories on Mark Carney’s first day at the Bank of England. Described by the Metro asthe George Clooney of banking, the new governor arrived to much press attention and hype about how he may be able to help repair the UK economy. Tara Ricks, managing director of specialist recruiter Randstad Financial & Professional, said: “The hype could quickly become a hindrance once Mr Carney takes the reins. Living up to potential and promise can be paralysing. But make no mistake, it will be harder for him than in Canada. There will be more obstacles to his reforming instincts. More vested interests to tackle. More chronic weaknesses in the economy. And more pressure from the media.”

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The Express says there were 58,242 mortgage approvals for home purchases in May – the highest in three years. The Bank of England’s Money and Credit survey showed the loans approvals were worth a total £8.7 billion, up from 54,354 in April and the highest level since December 2009. The home loans figures reflect an improving housing market – boosted by the Funding for Lending (FLS) and Help to Buy stimulus schemes.

Personal Finance
Up to 1.4 m expats living in Europe could lose their pension rights if Britain leaves the EU. A report for MPs suggested that British workers would lose their automatic right to be part of the European Union’s coordinated benefits system, leaving them with “significantly reduced” entitlements to pensions. Farmers’ incomes would also suffer from the loss of EU subsidies, while British fisherman could be plunged into new “cod wars” with rival fleets as fishing grounds are redrawn. However, the 112-page study, which tentatively outlined the implications of leaving the EU, suggested that foreign investment in Britain may benefit from more freedom to negotiate agreements with other countries. That’s in the Telegraph.

Recruitment & Employment
The big remuneration story of the day is MP’s pay. The Sun’s editorial says any MP accepting a 15 per cent pay rise might as well write voters a resignation vote – they already earn more than £66,000 – well over twice the average Britain. “It would be obscene for MP’s to trouser such a rise”. The Times takes a more pragmatic approach; its leader piece says while the cause of higher pay for MPs is not popular, the quality of personnel in Parliament will suffer if remuneration is allowed to lag other professions. Meanwhile The Guardian says “MPs have never had it so good” and that they can do without another pay boost now.


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