Climate change activists target Bank of England and Barclays - business live

Graeme Wearden

from Economics | The Guardian on 2019-05-02 14:57 (#4EAQ2)

Mark Carney is giving a press conference after leaving UK interest rates on hold, as protesters urge action on climate change

Earlier:

3.57pm BST

Time for a recap:

The #ClimateEmergency demands all our institutions support rapid decarbonisation and the Bank of England is no exception! It's time to #GreenTheBoE a pic.twitter.com/ExSzF9qWfz

Dharma Action Network outside Barclays AGM. Barclays blind to the climate crisis .. #climatechange pic.twitter.com/xfjWGZXDgC

3.54pm BST

Mark Carney's key message today is that interest rates will probably rise faster than investors think, says our economics editor Larry Elliott.

Investment has fallen for four successive quarters, trade has been a drag on growth and the economy has become even more dependent on the willingness of households to carry on spending.

Investment is expected to bounce back once Brexit has been resolved, while low unemployment and rising real incomes will continue to support household spending. In those circumstances, the MPC is likely to become markedly more hawkish.

3.23pm BST

Newsflash: Barclays has suffered a pay revolt, hot on the heels of the climate change protests at its AGM today.

30% of shareholders opposed the bank's remuneration report, a slapdown for CEO Jes Staley and colleagues.

3.06pm BST

Some reaction to the Tesla fund-raising drive:

$10m represents a 0.13% increase on Elon's existing 19% $7.8bn stake in Tesla, and means that Elon's stake is actually being reduced via this offering.

He's need to spend $125m to keep his stake unchanged).

Not a glowing endorsement. https://t.co/SD3yVSVrks

Watching Tesla rally on a $650 million stock offering... pic.twitter.com/y97ugvsO9z

3.00pm BST

In other environmental-business news, Tesla launched a new $2.3bn fundraising drive.

It is raising the cash by issuing new shares and debt. CEO Elon Musk is chipping in $10m personally, following pressure from Wall Street to bolster Tesla's cash reserves.

Analysts have been predicting for months that Tesla would need to raise funds for its expansion plans, which include the construction of a factory in Shanghai, the upcoming Model Y SUV, and the crucial ramp up of Model 3 sedan production.

The immediate pressure may be off, now that Tesla has repaid $1.1 billion in convertible bonds that matured in November and March, but Elon Musk and his colleagues face another $566 million repayment this coming November, even as the company continues to consume cash rather than generate it."

"The debate over whether the firm needs to raise fresh capital is therefore not going to go away. Given the loyal band of shareholders he has and the company's massive market capitalisation it would make sense for Mr Musk to do so.

2.27pm BST

Just in: photos of climate change protesters being dragged away by security outside Barclays annual investor meeting in London this morning.

2.21pm BST

Resolution Foundation have tweeted a chart showing how the financial markets expect interest rates to rise extremely slowly -- which is why Mark Carney is signalling they may accelerate faster:

Lower for (even) longer. UK market expectations for Bank Rate have followed downward movements in US and euro-area expectations over recent months. Latest expectations imply Bank Rate will only break 1% by the middle of 2022; some 13 years after it last stood above this level pic.twitter.com/TC5VoWHPI3

1.51pm BST

The press conference is now over, so here's a snap summary from CNBC's Joumanna Bercetche:

#BankOfEngland: Reasons for upward growth revision this year : Q1 now 0.5% vs 0.3% in March:
1- better than expected US, Eurozone & China growth
2- stockpiling (adds ~0.1% qoq)
3- lower market interest rates and easier financial conditions

#BankOfEngland: on #brexit
1-no mention at all of latest brexit extension impact
2- still see investment drag (-2.5%) this year on brexit uncertainty
3- expect data to remain volatile
4- projections still conditioned on "smooth adjustment to the av range of possible outcomes"

In response to @ChrisGiles_ question, #Carney says "MPC are not more relaxed than usual about forecasts"... 2.1% , 2.2% is not consistent with inflation remit

Presser more hawkish than QIR really emphasizing excess demand but not until a "year or so" says Broadbent $GBP #BOE

1.36pm BST

Q: What is your message ahead of next month's G20 meeting in Japan?

Mark Carney singles out the dangers of financial market fragmentation - he hopes to do more work to fight this.

1.31pm BST

Q: Where would your forecast be without the rise in consumer spending? And would you agree that without immigration and tough welfare rules, the economy would be flat?

Carney takes the first point, saying the economy was "bang in line" with the Bank's forecasts -- thanks to higher consumption.

1.27pm BST

Q: Are the Bank of England, the Federal Reserve and the European Central Bank now at the same point on monetary policy?

Errr no, Carney replies. Every economy, every central bank, every family is unique, but the BoE is facing a certain large issue (Brexit!) that will affect the economy in a certain way.

1.24pm BST

Back to Brexit...

Q: Your surveys shows that a quarter of UK firms still don't have a Brexit plan in place. Should they act now?

1.15pm BST

Q: My colleague Larry Elliott asks about climate change -- shouldn't the Bank's monetary policy committee consider this issue?

Carney explains that the Bank's financial policy committee has been doing a lot of work on climate change -- because it's a long-term issue, that can threaten financial stability.

For us, we spend a lot of time focusing on what happens on the next few quarters and the next few years....

This was a point I tried to make a few years ago - the tragedy of the horizon is that when it becomes relevant for monetary policy it will be too late.

1.06pm BST

Q: What are the growth implications if Britain agreed a customs union with the EU?

Mark Carney explains that there are various sorts of customs union. The Bank's forecasts assume that Brexit will create a situation midway between an EEA-style agreement (close integration) and a move to WTO rules (less integration).

12.59pm BST

Q: You risk missing your gender diversity targets, so should the next Bank of England governor be a woman?

Mark Carney (flanked by three other men) insists that the Bank is making good progress on gender diversity. The number of women in senior management has risen from 17% in 2013 to over 31% today, and the pipeline of new employees is showing greater diversity on gender, and ethnicity.

We're shifting the dial, without question.

12.54pm BST

Q: What needs to happen to encourage businesses to invest, rather than just moaning?

Mark Carney suggests this is a bit unfair - firms are rightly cautious about making big investments

12.51pm BST

Amusingly, the City seems to be ignoring Mark Carney's hints that interest rates may rise faster than they expect.

The pound is as flat and calm as a millpond, basically unchanged against the US dollar at $1.305.

12.48pm BST

Q: How can you say that the risk of a disorderly Brexit have eased?

Carney points out that MPs voted against a no-deal Brexit.

12.47pm BST

To paraphrase #Carney, markets underprice what the #BoE expects to happen, which depends on the assumption of an orderly Brexit. The BoE implied rate curve may, therefore, be on the move coming months, boosting #sterling.

12.46pm BST

Onto questions:

Q: Can you shed more light on the Bank's plans for interest rate rises in the next couple of years?

Carney: potential for "more and more frequent interest rate rises than the market expects"

BoE Governor Carney says there are insufficient hikes in the market curve $GBP

12.42pm BST

Mark Carney warns that investors may be under-estimating future UK interest rate rises.

The current market interest rate curve is "unequal to the task" of achieving the Bank's inflation target, he says -- in other words, rates must rise faster, or inflation will overshoot.

12.37pm BST

Mark Carney begins his press conference by explaining that global tensions have eased since the Bank of England's last Quarterly Inflation Report in February.

Financial conditions have improved, global trade appears to be stabilising, and trade tensions may be abating, the governor explains.

12.31pm BST

Here's our news story on the Bank's interest rate decision:

12.30pm BST

Mark Carney is holding a press conference now to discuss the inflation report (and perhaps climate change too?). It's being streamed live here.

12.27pm BST

The Bank is also sticking to its pledge that interest rates will rise (but not today!) at a gradual pace.

We have kept interest rates at 0.75%. Find out why in our visual summary: https://t.co/NErJey2wDI #InflationReport pic.twitter.com/e66OrM3Owm

12.21pm BST

Brexit appears no fewer than 87 times in the Quarterly Inflation Report.

The Bank says Britain's struggle to leave the EU has hit business investment, driven up stockpiling, and deterred some people from moving house.

12.14pm BST

Disappointingly, the words 'climate change' don't seem to appear in the minutes of the Bank of England's meeting (online here), or in the Quarterly Inflation Report (online here).

I can't find 'green' and 'environmental' in their either, despite Mark Carney's apparent concern for the issue (and the damaging impact that the climate emergency could have on the economy).

12.07pm BST

The Bank of England has raised its growth forecast for the UK, now that the threat of an immediate no-deal Brexit has receded.

It now expects Britain's GDP to grow by 1.5% this year, up from just 1.2% forecast in February.

GDP is expected to have grown by 0.5% in 2019 Q1, in part reflecting a larger-than-expected boost from companies in the United Kingdom and the European Union building stocks ahead of recent Brexit deadlines.

That boost is expected to be temporary, however, and quarterly growth is expected to slow to around 0.2% in Q2. Smoothing through those developments, the underlying pace of GDP growth appears to be slightly stronger than previously anticipated, but marginally below potential.

That subdued pace reflects the impact of the slowdown in global growth and ongoing Brexit uncertainties. The latter is having a particularly pronounced impact on business investment, which has been falling for a year.

12.04pm BST

Here's a video clip confirming that some of the climate activists at Barclays were forcibly moved by security staff - even though the protest appeared entirely peaceful.

The moment #DivestBarclays campaigners attempted to protest @Barclays AGM over their fossil fuel funding.

Heavy handed security to say the least! pic.twitter.com/83ptseT0t4

Activists from @peopleandplanet take the floor and ask @Barclays CEO to tell the truth as he shamelessly promotes the bank's climate action.
The truth? Barclays has been pouring over $85bn into #fossilfuels since the #ParisAgreement.#FossilBanksNoThanks #BarclaysAGM pic.twitter.com/PBME59CQlz

12.00pm BST

Newsflash: The Bank of England has left UK interest rates unchanged at 0.75%.

It's a unanimous vote too; all nine policymakers judged it's too early to raise borrowing costs, given the current Brexit uncertainty

11.52am BST

Barclays CEO Jes Staley has claimed that the bank does take climate change seriously.

He told shareholders that the Bank wants to help the move to a low carbon economy, and gave several examples of this commitment:

Put simply, Barclays fully understands our corporate responsibility in respect of climate change. We are a supporter of the goals of the Paris accord. And we will keep our policy position under constant review to ensure that our actions align with those goals.

11.44am BST

Today's protests have overshadowed activist investor Edward Bramson's attempt to win a seat on Barclay's board.

Bramson seems to have been unsuccessful, but won't give up his battle.

Bramson made an appearance at the Barclays AGM in London on Thursday morning, conceding early defeat over his resolution to become a bank director.

"Before we start I think it's fair to tell you that we know we haven't got a majority of the vote." Instead, Bramson said he expects a "fairly heavy vote against" his resolution. "We've known it for a couple of weeks."

11.44am BST

Some Barclays shareholders applauded the climate protesters as they left the AGM - showing the City does have a degree of sympathy for their cause.

The group was eventually led out of the main hall, but received applause from the investor crowd as they left

11.37am BST

Here's another video clip of the protests:

Climate change protestors interrupt ceo Jes Staley a@Barclaysa(C) AGM a@BBCBusinessa(C) pic.twitter.com/01H0mX62IX

11.33am BST

Barclays annual meeting has just been disrupted by climate activists.

They've interrupted CEO Jes Staley's speech, and are calling on the bank to tell the truth about its role funding the fossil fuel industry.

A group of climate protesters have linked arms and disrupted the Barclays AGM for another year running, yelling "climate justice" and "tell the truth" pic.twitter.com/AIOz5xlKhX

Climate change protesters have infiltrated the Barclays AGM, interrupting chief executive Jes Staley's speech on the subject. pic.twitter.com/V0l8B0CHDu

11.32am BST

Reuters is reporting that several of the protesters outside Barclays' AGM were "dragged away" by security staff and police.

Here's its take:

Protesters called on Barclays to end its financing of fossil fuel projects outside the lender's annual investor meeting in London on Thursday,where shareholders were gathering to vote on a possible boardroom revamp.

Campaigners from student activist network People & Planet waved banners reading 'Fossil Banks-No Thanks', days after environmental group Extinction Rebellion paralysed parts of the British capital in protests against the impact of climate change.

11.17am BST

Back in the markets, shares in Dutch football club Ajax have hit a fresh all-time high this morning, after it put one foot in the Champion's League final.

Ajax secured a 1-0 win over Tottenham Hotspur on Tuesday night -- something of an escape for an injury-ravaged and generally outplayed Spurs.

Ajax shares trading at all-time highs on hopes of reaching the Champions League finals against Barcelona and then selling all their star players to the Catalan side.$AJAX +90% over the past year pic.twitter.com/9MLCCL5OBp

10.56am BST

My colleague Kalyeena Makortoff reports that some of the protesters outside Barclays AGM have hot-footed it from the Bank of England.

Climate protesters gathered outside the Barclays AGM at Westminster this morning, some said they came straight from the Bank of England action earlier on pic.twitter.com/W7H0BZtWxB

10.54am BST

Barclays shareholders arriving at today's annual general meeting at the QE2 centre are being urged to press the bank to stop funding fossil fuel protests:

This is a #ClimateEmergency! @Barclays must go #FossilFree pic.twitter.com/XLJG68qBGI

10.35am BST

The BBC's Danielle Codd is also outside the Barclays AGM:

Small climate change protest outside a@Barclaysa(C) AGM as investors enter... pic.twitter.com/J6yP0qHjWt

10.33am BST

Barclays Bank is also feeling the wrath of climate change activists.

Protesters are demonstrating outside its Annual General Meeting in London this morning, urging it to stop investing in fossil fuel projects.

.@NoFossilBanks protest at the #Barclays #AGM! #ClimateEmergency pic.twitter.com/Y9EP2Afee4

.@ShareAction has today together with investors with over $1trn assets written to @Barclays - 'worst in Europe' for fossil fuel financing - calling on the bank to restrict its massive financing of #tarsands and #coal #climateemergency

10.24am BST

Fossil Free London, who co-organised the protests, argues that the Bank of England needs to set a good example to the rest of the financial world.

A spokesperson says:

"In signalling to the market that it is willing to invest in fossil fuels, the Bank is setting an example for other banks and investors to do the same. In giving its stamp of approval, the Bank of England is legitimising climate criminals.

"We are therefore demanding that the Bank's Monetary Policy Committee blacklist bonds from fossil fuel companies, and we call on them to instead buy assets in fossil free sectors, such as renewable energy."

10.12am BST

Fran Boait, executive director of Positive Money, is urging the Bank of England to use its powers to help fight the climate crisis.

Speaking at this morning's protests, she says:

"As regulator of our financial system, the central bank has the power to stamp out risky fossil fuel lending, using the same macroprudential tools it has used to clamp down on irresponsible mortgage lending since the financial crisis."

"In choosing not to use these powers at its disposal, it is complicit in the climate crisis."

Brilliant protest #GreenTheBoE #ClimateEmergencyNOW with @PositiveMoneyUK @FossilFree_UK we need more action now pic.twitter.com/JysMbtliym

10.10am BST

Today's protests at the Bank of England come as the government's official advisers argues that the UK must set a legally binding target of zero net carbon emissions by 2050.

The Committee on Climate Change says tough,and pricy action is needed. Moving to a low-carbon economy will cost tens of billions of pounds of investment every year, to drive the move to clean energy production.

Climate Change Committee declare UK must have a zero carbon target - but bad news is they suggest by 2050.

Britain must adopt a 2030 zero-carbon target - giving us 10 years to enact win-win solutions reducing carbon, saving money and make Britain a better, cleaner place to live. pic.twitter.com/4apVwVvmck

9.52am BST

Back outside the Bank of England....

Jessie from Fossil Free London is demanding the @bankofengland and mark carney put their money where their mouth is and get out of fossil fuels.

We need more than strong worlds. We need action. We need to #GreenTheBoE pic.twitter.com/uc9E6E9jz5

9.37am BST

Another economic newsflash: the UK construction sector has returned to growth, but still looks weak.

Housebuilding activity rose in April, according to data firm Markit, lifting the Construction PMI index up to 50.5 from 49.7 (anything over 50 shows growth).

9.29am BST

On the economic front, eurozone factories have suffered their third contraction in a row, as the US-China trade war, Brexit and weak global growth all bite.

Eurozone manufacturing PMI of 47.9 in April, basically unchanged from the flash estimate. Germany & Italy both with sub-50 readings, with France bang on 50. Rough indicator of official stats. Markit citing protectionism, auto sector issues & Brexit as influences. pic.twitter.com/UChtWzjTQ5

9.27am BST

A petition has been set up to urge the Bank of England to raise its game on climate change.

It calls on Britain's central bank to:

Capital markets have huge potential to halt climate breakdown. The Bank of England has the power to unleash green investment on a massive scale. Sign the petition (https://t.co/gZ8rFRvfyr) and join @PositiveMoneyUK & @FossilFreeLondon on Thursday to #GreenTheBoE

9.22am BST

The long-running Brexit crisis may distract the Bank of England from the climate change emergency.

Associate Press points out that the BoE's new forecasts, due at noon, will be closely scrutinised.

The Bank of England is set to provide its first forecasts of what Britain's Brexit delay will mean for the British economy.

The central bank is due Thursday to keep its main interest rate on hold at 0.75 percent following the latest meeting of the Monetary Policy Committee.

9.09am BST

Here's another video clip from outside the Bank:

"Bank of England, can't you see, money must go #FossilFree!" #ChangeFinance pic.twitter.com/OkTev5a39S

8.59am BST

The Bank of England argues that it does take the climate change threat seriously already.

It has created a Climate Financial Risk Forum, in which the biggest companies in the City meet to discuss the financial risk presented by the issue.

The catastrophic effects of climate change are already visible around the world. From blistering heatwaves in North America to typhoons in south-east Asia and droughts in Africa and Australia, no country or community is immune. These events damage infrastructure and private property, negatively affect health, decrease productivity and destroy wealth.

And they are extremely costly: insured losses have risen five-fold in the past three decades. The enormous human and financial costs of climate change are having a devastating effect on our collective wellbeing.

8.52am BST

We've got a clear message for the @bankofengland and Mark Carney. It's time stop funding climate breakdown and starting funding a green transitions. This is an emergency. Time to act like it.@peopleandplanet @FossilFree_UK @ukycc @Strike4Youth @ExtinctionR pic.twitter.com/8OPmfGh5WO

8.50am BST

This video clip shows an activist chanting "This is an emergency... Bank of England go fossil free".

#GreenTheBoE now! https://t.co/PULsbeyMNi

8.46am BST

The protests are underway outside the Bank of England, as activists hammer home their message at Bank staff, and commuters passing by.

[If you're not familiar with London, the BoE is next to Bank Station, in the heart of the City of London]

We're outside the Bank of England demanding Mark Carney put his mouth where his mouth is & #GreenTheBoE now! pic.twitter.com/AAhQqQo6HK

Mark Carney go fossil free! Get carbon out of the BoE! @divestlondon @ExtinctionR @Strike4Youth #GreenTheBoE now! pic.twitter.com/nFTIND8UH9

8.43am BST

Digging fossil fuels out of the ground and burning them is obviously bad for the environment, pumping up carbon emissions, adding to global warming and undermining the Paris Agreement targets.

8.15am BST

Labour's shadow chancellor, John McDonnell, is backing the protesters:

Right now, big finance is driving climate breakdown. The Bank of England has a key role to play in tackling climate change.The debate has started on how to use the power of the bank to unleash green investment. Join @PositiveMoneyUK & @FossilFreeLondon on Thursday to #GreenTheBoE

8.09am BST

The climate change protesters should have a spring in their steps as they head to the Bank this morning.

Last night, the UK parliament approved a motion to declare an environment and climate emergency. This move follows the Extinction Rebellion protests in London this month, and the school strikes organised by pupils.

"We pledge to work as closely as possible with countries that are serious about ending the climate catastrophe and make clear to Donald Trump that he cannot ignore international agreements and action on the climate crisis."

Activism works.
So act.

7.52am BST

The Bank of England needs to blacklist high-carbon bonds and commit its huge buying power to 'green QE', writes Simon Youel of Positive Money.

In a Guardian column today, he explains:

In the three years since the Paris climate agreement, as the government has spoken (often empty words) about doing its part in lowering emissions, our financial sector has been pouring hundreds of billions of pounds into fossil-fuel projects, unleashing environmental havoc across the planet.

In its role as the regulator of the financial system, the Bank of England has the power to stamp out irresponsible fossil fuel lending - using the same tools it has used to clamp down on risky mortgage lending since the financial crisis. In choosing not to use these powers, it is complicit in the climate crisis.

7.50am BST

Today's protests at Bank are organised by two campaign groups - Positive Money and Fossil Free London.

They want the Bank to take two specific steps to address the climate.

At the very least ruling out asset purchases in high-carbon sectors, if not actively favouring bonds which finance green projects.

The Bank of England should use all of the powers at its disposal to stop financial firms it regulates pouring more money into fossil fuels, while encouraging greater lending towards more sustainable ends. This approach, known as 'credit guidance', could include tools such as differential collateral requirements and targeted refinancing operations.

7.37am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Tomorrow morning we and @divestlondon will be outside the Bank of England calling for greater action against banks pouring hundreds of billions of pounds into fossil fuels.

To #TellTheTruth, we're facing a #ClimateEmergency, and it's time to #GreenTheBoE https://t.co/T8wY5ESZQd pic.twitter.com/yDA5mlCcqn

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