clear
Saturday November 17th, 2018 11:02PM

UK finance leaders say openness is key to future prosperity

By The Associated Press
Related Articles
  Contact Editor

LONDON (AP) — Increased openness, not protectionism, is the best way to ensure Britain's prosperity in a rapidly changing world, the U.K. government's two most powerful money men said Thursday.

Treasury chief Philip Hammond and Bank of England Gov. Mark Carney said financial and trade connections with the rest of the world will help maintain Britain's economy stays strong as the country leaves the European Union, adjusts to technological advances and copes with an aging population.

"We must commit to being the most open market in the world...," Hammond said in his annual Mansion House speech to leaders of the U.K. financial services industry. "Because 'global Britain' is not just a strategy for Britain's economic future, it's a statement about what kind of people we are — and about the economy and the society we are seeking to build."

Carney, in complementary remarks to the same group, said the Bank of England is working to help Britain's financial system keep pace with rapid technological developments, for example by allowing new forms of payment that will facilitate trade with everyone from traditional European partners to emerging markets.

Retaining Britain's place as one of the world's top financial centers is critical to the success of Brexit. The U.K. financial services industry employs more than 1 million people and contributes 11 percent of annual tax revenues, while generating a trade surplus equal to 3 percent of economic output.

That is because London accounts for 40 percent of global foreign exchange volumes and handles more international banking activity than anywhere else, Carney said.

"Being at the heart of the global financial system reinforces the ability of the rest of the U.K. economy, from manufacturing to the creative industries, to compete globally," Carney said. "And it broadens the investment opportunities and risk-adjusted returns for U.K. savers."

But Britain must act now to guarantee that it preserves this position, Hammond said, announcing plans for what he called global financial partnerships.

The partnerships will bring together governments, regulators and industry to facilitate cross-border financial services and provide access to global markets, he said.

"Future success is not ours by right," Hammond said. "If we are to retain - and entrench - our position as the world's leading financial center, we must act now to secure it in the face of global challenge."

Both men reached into history to underscore the challenges of the technological revolution that is at hand, with Hammond noting that past British leaders were slow to adopt the telephone and electric lights.

Carney went so far as to say Britain's economy is on the cusp of a fourth industrial revolution — a dramatic rebalancing of the global world order. It is a hyper-connected world, where the future may increasingly belong to small and medium-sized firms with direct stakes in local and global markets, Carney said.

"The nature of commerce is changing. Sales are increasingly taking place online and over platforms. ... Intangible capital is now more important than physical capital," Carney said. "Data is the new oil."

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Industries, AP Business - Financial Services
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Salah, Neymar, Messi, messy, messy: World Cup stars stifled
Nagging injuries, heavy marking from opponents and some simply uninspired play have some of the biggest names at the World Cup off to a shaky start
4:36PM ( 9 minutes ago )
Confusion and uncertainty at the border after Trump acts
The federal government is wrestling with the fallout over President Donald Trump's move to stop separating immigrant families, with no clear plan to reunite the more than 2,300 children already taken from their parents
4:28PM ( 17 minutes ago )
The Latest: Lawyer: Court ruling doesn't call for separation
An attorney representing immigrant children says a decades-old court settlement doesn't require or even imply that the U.S. government should separate families entering the country illegally
4:28PM ( 17 minutes ago )
Associated Press (AP)
The Latest: Interior links reorganization plan to Obama
The Trump administration is citing an endorsement from unlikely source _ former President Barack Obama _ as it touts a plan to reorganize the federal government
4:16PM ( 29 minutes ago )
The Latest: Plan for kids on military bases raises concerns
The prospect of the U.S. government housing up to 20,000 migrant children on military bases has raised questions on Capitol Hill
4:16PM ( 30 minutes ago )
The Latest: Argentina collapses vs. Croatia, could go home
Croatia is through to the knockout stage of the World Cup with a dominant 3-0 win over Lionel Messi and Argentina, who now need help to advance.
4:04PM ( 42 minutes ago )
AP Business
The Latest: Store manager: Tax ruling means local spending
The manager of a Native American art store in South Dakota says he thinks the Supreme Court's online sales tax decision will increase people's desire to spend their money locally
2:29PM ( 2 hours ago )
US stocks skid as industrials, automakers, tech trade lower
US stocks are down and European indexes also fell after German automaker Daimler said tariffs by China on US goods will hurt its annual profit
2:08PM ( 2 hours ago )
Courting Putin, Trump jolts the West with a nationalist bent
As Donald Trump presses ahead with plans for a summer summit with Russia's Vladimir Putin, the president is jolting relationships with some of America's longest and strongest allies
1:31PM ( 3 hours ago )
AP Business - Economy
Angry Republican teachers create split inside Oklahoma GOP
Nearly 100 teachers, many of them Republicans, are running for political office in Oklahoma
12:09PM ( 4 hours ago )
OPEC enters meeting that could set direction of oil prices
OPEC and Russia are expected to approve raising oil production, but just how much is up in the air
11:59AM ( 4 hours ago )
Over 100 arrested in immigration raid at Ohio meatpacking plant
More than 100 workers were arrested at an Ohio meatpacking plant by federal agents following a yearlong immigration investigation, the second large raid in the state in the past two weeks.
8:49AM ( 7 hours ago )
AP Business - Industries
Central bank chiefs of 4 major nations raise trade concerns
Central bank chiefs from Europe, US and Japan raise worries about impact of trade conflicts
12:59PM ( 1 day ago )
Fed chair signals gradual rate hikes in tame inflation era
US Fed chairman Powell signals interest rate hikes will remain gradual in an era of tame inflation
10:46AM ( 1 day ago )
US stocks and bond yields dip amid trade worries
Global stock markets are mostly lower as U.S. President Donald Trump's approval of a plan to impose tough tariffs on China renewed concerns about trade friction
6:15PM ( 5 days ago )
AP Business - Financial Services
Salah, Neymar, Messi, messy, messy: World Cup stars stifled
Nagging injuries, heavy marking from opponents and some simply uninspired play have some of the biggest names at the World Cup off to a shaky start
4:36PM ( 9 minutes ago )
Confusion and uncertainty at the border after Trump acts
The federal government is wrestling with the fallout over President Donald Trump's move to stop separating immigrant families, with no clear plan to reunite the more than 2,300 children already taken from their parents
4:28PM ( 17 minutes ago )
The Latest: Lawyer: Court ruling doesn't call for separation
An attorney representing immigrant children says a decades-old court settlement doesn't require or even imply that the U.S. government should separate families entering the country illegally
4:28PM ( 17 minutes ago )
Trump jabbed first, and now world hits back in trade fight
Trump got in the first jabs; now the world is punching back as trade brawl spreads
4:28PM ( 17 minutes ago )
Koko the gorilla, who learned sign language, dies at 46
Koko, the gorilla who mastered sign language, has died in her sleep at the foundation's preserve in California's Santa Cruz mountains on Tuesday
4:26PM ( 19 minutes ago )