BOE gov Carney still on his feet at Mansion House 20 June
- higher global growth needs a new approach
- Brexit will be a big test
"It will not be enough for the G20 to "resist protectionism." The G20 now needs to make "trade work for all." That includes using e-commerce platforms to promote free trade for SMEs across the G20,21 and it requires an urgent and critical examination of trade in services"
My Lord Mayor, this building, with all its majesty and history and this topic, central clearing of derivatives; could not appear farther from the concerns of people in this country. But they are much more closely related than they appear.
A decade of radical financial reform was not an end in itself, but rather a means to serve households and businesses better. We must ensure that the real economy reaps its full benefits, including through freer trade in services and more resilient financing of the investment needed to boost wages of workers in all industries across the UK. One million people across this country work in financial services.
The industry contributes 7% of output and pays taxes that cover almost two thirds of the cost of the NHS. At a time when the UK is running a 5% current account deficit, financial services runs a 1.5% trade surplus with Europe alone. The entire service sector runs a 5% surplus with the world and employs 85% of UK workers.
We could take these realities for granted. And it would be all too easy to give into protectionism. But as we learned in the 1930s, that road leads neither to equity nor prosperity. Raising barriers to trade disproportionately hurts the least well off through higher prices and fewer opportunities"
GBPUSD still near session lows around 1.2670 EURGBP struggling to break up through 0.8800 which is providing some GBP support for the moment.
Carney - Focus must turn to service sector
