Mark Carney: The Sterling Rebound reflects expectations that a no-deal Brexit is less likely - Business Live Business

The Governor of the Bank of England, Mark Carney

Good morning and welcome to our rolling news coverage of the global economy, financial markets, the Eurozone and business.

Mark Carney has played the role of adult in space several times since joining the Bank of England in 2013. Today, parliamentarians and investors alike will turn to the BoE governor, who testifies to Parliament's financial stability in the UK.

He is asked to what extent the city can handle the Brexit and how willing the companies (or otherwise) are on a steep or untidy descent.

He will be accompanied by Alex Brazier, Executive Director for Strategy and Risk of Financial Stability, and two external members of the Financial Policy Committee - Anil Kashyap and Richard Sharp. It starts at 9.15.

The hearing of Carney is temporary - barely 12 hours after the MEPs plunged Brexit into chaos by sensationally rejecting Theresa May's deal with historically 230 votes.

May faces a vote of confidence tonight, while the rest of the country faces further uncertainty. Will the UK fail on March 29th without a deal? Will MEPs now enforce a gentler Brexit, a second referendum or even a full revocation of Article 50?

The markets take the uncertainty remarkably well. The pound is trading at $ 1.28 against the dollar after recovering from yesterday's losses yesterday evening.

Pound against US dollars

Pound against US dollar this week Photo: Thomson Reuters

This does not mean that the business world naturally relaxed the situation. There are barely 70 days to Brexit day (regardless of delays and cancellations).

Allie Renison, European and European politician on the Institute of DirectorsBloomberg TV warned that the vast majority of companies are simply not prepared for a no-deal, and they want Parliament to take the next step quickly.

Robert Ward, Chief editor of the Economist Intelligence Unit, Theresa May calculates options thin ...

Robert Ward

Theresa May, who can not command either her party or her parliament, continues limping #Brexit political chaos on all sides, an obvious substitute. But their possibilities and time are running out. It's also hard to see how she survives a second referendum scenario. #BrexitVote

January 16, 2019

We also learn if Brexit uncertainty has affected house prices this morning. Plus new inflation data showing that consumer prices rose 2.1% per year in December, compared to 2.3% in November.

The agenda

  • 9:00 am: World Economic Forum publishes Global Risk Report 2019.

  • 9:15 GMT: Mark Carney announces Financial Stability in the Treasury

  • 9:30 am GMT: Inflation data for the UK in December

  • 9:30 GMT: UK house price data for November