These are stories Report on Business followed this week.
Mark Carney is being treated like a king.
On the one hand, he’s something of a market darling. On the other, a media darling.
Indeed, one would be hard pressed to recall another time when a central banker, handsome devil though he may be, was compared to a movie star.
First, a recap of Mr. Carney’s week, which puts it all in perspective.
On Sunday, in a BBC profile, he was likened to George Clooney and dubbed “the ‘film star’ central banker” whose “tidy hair and relaxed smile have helped him become something of a celebrity in his native Canada.” Pictures of both men ran side by side on the website.
Then on Monday, he started his new job as governor of the Bank of England, becoming the first foreigner to hold the post in its 319-year history. Not only that, he gave up his chauffeur and took the subway to work, and was on the job by 7 a.m.
“That, along with the news that he got there by way of the Underground, helped endear him to London's early-rising commuters,” said the BBC.
(Who wouldn’t love a guy who joins the common folk on the tube and looks like George Clooney?)
Later in the week, he promised to address a controversy brewing since the pre-Carney Bank of England announced its decision to replace the image of social reformer Elizabeth Fry with Winston Churchill on the £5 banknote, a move that would leave no women on British money but for the Queen.
Said Mr. Carney: “I believe that our notes should celebrate the diversity of great British historical figures and their contributions in a wide range of fields.”
(Who wouldn’t love a guy who says that and looks like George Clooney?)
Then on Thursday, he had his biggest impact, in the markets at least, as the central bank’s monetary policy committee broke with tradition and issued a longer-than-normal policy statement that suggested speculation of a rate move was overdone, a signal in itself. The Bank of England is now expected to move to full-scale guidance at its next meeting in August.
The central bank’s action, a tool of Mr. Carney’s when he was governor of the Bank of Canada, drove down the pound and sent British stock prices surging.
(Who wouldn’t love a guy who can do all that and looks like George Clooney?)
On the market side of things, Mr. Carney and his committee stunned investors and analysts who hadn’t seen it coming.
On the same day, in fact, the European Central Bank also began guiding markets with the suggestion that interest rates would remain low for an extended period, and perhaps may even fall.
This is a distinctly North American way of doing things, used for some time now at both the Bank of Canada and the Federal Reserve.
As The Globe and Mail’s Brian Milner reports, the move is an important one in that it gives some certainty to bond markets, businesses and other investors.
At the same time, Britain’s media has taken an intense interest in the new governor and his wife, economist Diana Carney.
News organizations had already put the couple under the spotlight, scrutinizing things like Mr. Carney’s pay package.
This week, as The Globe and Mail’s Paul Waldie writes from London, there was something of a frenzy as one newspaper reported on a blog post of hers from months ago, when she said she didn’t like tea bags that are individually wrapped.
“Rarely has a man been of such interest to the media that even his wife's views on tea bags merited a few column inches,” said the BBC.
All in all, it was a heck of a first week for Mr. Carney, who is clearly putting his stamp on the Old Lady of Threadneedle, as the Bank of England is called, promising a new era for central banking in Britain.
Which, presumably, was why he was courted by George Osborne, the Chancellor of the Exchequer.
“Carney was imported to deliver, in the chancellor's words, ‘monetary activism’ and he has not been slow to act,” said chief U.K. economist Brian Hilliard of Société Générale.
As for being a media star, Mr. Carney may well be pushed out of the limelight when the royal baby is born, George Clooney looks notwithstanding.
- Four days in, Carney makes his mark on Bank of England
- Europe's central bankers move to quell fears of rate rises
- What they're saying about Carney: 'From Canada with dove'
- Carney ponders putting a woman on pound notes as wife, Diana, takes heat from press
- Mark Carney enjoys pleasant first day, but Britain's shaky economy awaits
- Carl Mortished in ROB Insight (for subscribers): In first statement, Carney a dove in hawk's clothing
- Letter to Mark Carney: 'Your biggest problem will be us Brits'
- Mark Carney not only played goal for the Oxford Blues hockey team, he also managed it
The week in Business Briefing
- RIM shares: Recovery, Interrupted
- Welcome to a 95-cent (and falling) Canadian dollar
- Mark Carney goes to bat for women on British banknotes
- A funny thing happened on the way to the housing crash (It didn't crash)
- Hiring in Canada pauses in June as full-time jobs take beating
The week in Streetwise (for subscribers)
- York University launches financial regulation program
- Canadian investment banks miss out on global surge in fee income
- Canada's high-yield market takes it on chin in June
- An interest rate hike should be good news for life insurance companies
- U.S. investment banks trounce Canadian rivals in deal making
The week in Economy Lab
- Prognosis grim for Toronto condo investors
- The youth jobless recovery: Good news in Canada, at last?
- Why Canada's smaller trade deficit is hardly encouraging
- The rehabilitation of Quebec's Maurice Duplessis
- The economic benefits of free trade in people
The week in ROB Insight (for subscribers)
- Fracking regulation could raise costs for Enbridge
- Domestic oil stocks attractive - and expensive
- Face reality, Alberta, and get a sales tax
- Buy gold! (Junior miners, that is)
- Ghost malls, shadow banks: China sounds alarm on debt
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It's the law that was supposed to free the grapes, ending a prohibition-era federal ban on individual purchases of wine across provincial borders. It hasn’t quite worked out that way. Barrie McKenna examines the issue.
The U.S. economy is entering six crucial months with stronger signals in two key sectors. Joanna Slater looks at what's ahead.
At the top of Spiddle Hill, one of the gentle mountains that dot the region around Tatamagouche in Nova Scotia, is a little wind farm unusual in that it is owned by 286 people, largely in the community. Richard Blackwell visited the project.
Speculation is mounting after reports that Apple Inc. has applied for a trademark on the term “iWatch” in Japan, leading some to conclude the company behind the iPhone will soon release a smartwatch, Omar El Akkad reports.
Don Mattrick boasts a résumé that reads like a teenager’s fantasy: Founded first gaming company at age 17, sold it a decade later for $10-million, then resurrected the Xbox. Omar El Akkad looks at the Canadian now about to take one of the most daunting challenges in the video game industry – saving Farmville..
The famous Ford pickup truck is carrying a full load these days – not of bricks or lumber, but of good economic news. David Berman looks at why sales of Ford's F-150 matter.
Oil prices surged to a 14-month high on Wednesday, triggered partly by unrest in Egypt, a factor that may pull some investor interest back into a Canadian energy sector that has been pressured for months by uncertainty over obstacles to increasing oil sands crude exports. Jeffrey Jones reports.
For all the talk about her maternity leave and her views on telecommuting policies, Marissa Mayer’s time as the CEO of Yahoo Inc. is now being defined by something else entirely – an acquisition frenzy. Omar El Akkad reports.
Canada’s securities industry is shrinking, with jobs and firms disappearing at a pace that has taken the business back to 2010 levels, Streetwise columnist Boyd Erman writes.Report Typo/Error
- S&P/TSX Composite14,626.24-138.53(-0.94%)
- S&P 500 INDEX2,175.44-11.46(-0.52%)
- Dow Jones Industrials18,481.48-65.82(-0.35%)
- Canadian Dollar / US Dollar FX Spot Rate0.7733-0.0002(-0.03%)
- UK Pound Sterling / US Dollar FX Spot Rate1.3226-0.0005(-0.04%)
- Crude Oil Front Month Futures$46.79+0.02(+0.04%)
- Gold Front Month Futures$1,324.400.00(0.00%)
- Updated August 24 4:30 PM EDT. Delayed by at least 15 minutes.