Wednesday newspaper round-up: MPC, Syria, Sterling
Mark Carney’s guidance policy has come under fire from several members of The Times Shadow Monetary Policy Committee, with one warning of the risks of a fresh housing bubble. Four of the nine members raised questions about the Bank of England’s pledge to keep rates at the rock-bottom level of 0.5 per cent as long as unemployment remains above 7 per cent, that same newspaper says.
Leading Democratic and Republican senators have reached a deal on a motion authorising an attack on Syria, adding momentum to US President Barack Obama’s risky push for congressional approval for military action. The resolution, agreed by Bob Menendez, the Democratic chair of the Senate Foreign Relations Committee, and Bob Corker, the senior Republican on the committee, set a 60-day deadline for military action, with a possible 30-day extension, the Financial Times writes.
About 80,000 gold miners in South Africa walked out on strike on Tuesday night, raising fears of renewed violence in the crisis-hit industry and underlining the government’s dwindling authority. President Jacob Zuma admitted that he could only plead with companies and unions to find a peaceful solution and avoid seriously damaging the economy, already hit by sluggish growth and a contagion of strikes in other sectors, The Guardian reports.
Supergroup, the high street fashion retailer, faces a battle with investors after Pensions & Investment Research Consultants (Pirc) advised members to reject its remuneration report at the annual meeting on September 10th. The shareholder group, whose members control assets in excess of £1.5trn, has warned that the performance conditions of Supergroup’s long-term incentive plan “are not considered sufficiently challenging,” The Daily Telegraph explains.
Sterling raced to a three-and-a-half month high against the euro yesterday as the economic recovery gathered pace. The pound soared to as high as €1.1838 – a level not seen since May – after figures showed the construction industry growing at its fastest pace for six years, The Daily Mail points out.
Cuadrilla’s attempts to drill for oil in West Sussex have suffered a fresh setback after it was forced to re-apply for planning permission, admitting its current application may not comply with regulations. The current authorisation expires at the end of September and a fresh application to remove any potential legal ambiguities does run a certain risk of adding several months of delays to further work at the site, according to The Daily Telegraph.