Good morning from the financial times. Today is Wednesday, September 23rd. And this is your ft news briefing.
The truce between social media companies in advertisers over harmful content the UN group has a grim report on covid-19 jobs impact and will they or won't they the bank of England gives us some clues about negative interest rates. + London is the financial Hub of the European Union, but what's the game plan? Post-brexit I Mark Filipino and here's the new you need to start your day.
Back at the start of the summer more than 200 companies pull their advertising from Facebook. This was at the height of the George Floyd protests in the company's had some real problem for the post Facebook allowed on its site hate speech aggressive content stuff that companies don't want to see their ads appearing next to but now companies and social media sites have come to an agreement on posting standards the World Federation of advertisers helped negotiate the deal between companies like Mars and Unilever and Social Media Group such as Facebook YouTube and Twitter the deal set some ground rules on what counts is hate speech and it gives external Auditors an easier way to report harmful content the system they do that through will launch in the second half of next year.
What's the social media platforms have committed to developing tools that give companies more control over what their advertising is placed against YouTube has this in place Facebook and Twitter will develop a road map by the end of the year Unilever said the developments have given them confidence to start spending add money on these platforms. Again. Maher said it's not declaring victory until the solutions were implemented a called the deal and important milestone.
You and groups has the pandemic will destroy at least a hundred million jobs this year a little push between 90 million and 120 million people in the developing world and absolute poverty the UN conference on trade development called it another lost decade for the developing world as rising spending on health declining tax revenues the claps and Export earnings impending debt repayments take a toll and now the developing world is looking at a financing gap of between 2 and 3 trillion dollars.
The bank of England has been flirting with the idea of negative interest rates. But yesterday Boe Governor Andrew Bailey close the door on the possibility. At least for the foreseeable future dft's economics editor. Chris Childs explains why the central bank is holding off on the idea is to say that the banking and was not trying to send a signal lost week when it's set up a review is a how it could Implement negative rights. This was just a technical exercise and you had to know how to do it before you can even take a decision whether to do it. I'm so yesterday's speech Little Women Are by Andrew Bailey it since you tried to put the record straight what he said was of course, he should have been cardinal sin to have that if you would not sure you could implementation. You would not show the banking system would be able to withstand a zero or negative rate is over the past few days. We've seen the UK.
Announce new restrictions with government worried about how covid-19 is going to progress over the next few months does the virus affect the central bank's Approach at all?
What is very clear that the bank of England isn't the driving force of the response to cope with its the government's on his fiscal policy and monetary policy. That's driving. Emoji pussy will try and be as supportive as it can be pretty the toolbox exist. As a device that moment is of two aspects one is that they would be more quantitative easing some more money printing to fly into they called me to help the government. If it wanted to expand fiscal policy more aggressively again, and secondly, that's really so the juul burning Oak communication or guidance. Does the Bank of England like to call it a little bit like the feds but nauseous for more so the bank of new lights think it has a policy of keeping interest rates extremely low on till that very very strong signs that the economy could withstand the interest rate Rises what the bank of England Governor Bailey said again on Tuesday. It's not a full mood change in the remix in the way.
It has a full moon change its policy, but the bank is so that's the way it's thinking at the moment.
UK and the EU are in the middle of an ugly breakup and it's still unclear a westminster's decision to breach international law will affect the brexit trade deal. The two sides are working on one thing is certain though the EU needs to figure out how to operate without London as its Financial Center the house the EU go about doing that and we'll London Simple Minds completely vanish your answer. Those questions is Sam Fleming are Brussels bureau. Chief Sam. What are some of the steps the eu's taking to brace itself for when the UK formally leaves the EU?
Well, there are some things that they need to do and I've already made say they will do wish that too and schoel commence ability and make sure the Rotten Tomato wrenching disruption to business. That's not your business on this side and just transition. Mission to start a Monday allowed European Banks be continued access thing uk-based clearinghouses until the middle of 2022. So there are three testing Hayden but the bigger picture is but you have to make some fairly significant decisions as to how it was to manage the relationship with the city on the bases to see if it's really not just brakes it though that we're talking about here. There are few other things going on. Obviously, there's covid-19. There is the rising tensions between the US and China and all the while that you was trying to become an autonomous economy. So, how's it going about this as it approaches its brexit talks with the the UK.
This time it's goes to the heart of the eu's reflection of the moments as you say its thinking about how does it ensure that it stands on its own two feets in the world. But I Services has become positive thing as well misfeasance this whole debate about brexit Sandy UK becoming a country the EU has long wanted much better more diverse Financial Capital markets in particular is a very Bank Reliance Financial system. It wants companies to have a broader access to other forms of financial services in Dunn capital-raising. And so this is a long long time to take was just now gained added urgency because of the Strategic autonomy idea the idea that the EU afford to rely on other parts of the walls in the way. We needs it badly exposed to potentially, afford to rely on auk that the moment he has to be willing to break international law that makes it a very unreliable partner.
How do you use effective London leaves? How was London affected by all this it is it's value truly lost here. Well suddenly not because any migration of activity from London to the European Union will let me take place over a long. Of time, but I think the broad message. Yeah Sunday from our opposing husband. That's a lot of people would automatically change in a short time. At least we'll be at the abundance. It just takes a long time to generate financial center and especially takes a very long time to grow a a truly Global International cannot spend the night. If you think about the ecosystem in the city of London of lawyers, another Salon Services services companies des and taking a very very long time indeed to develop and so many of the people we've spoken to horses when they say well, you know if you love me,
What people do think it would be your opinion is now beginning to gear up for strategic today about the extent to which it continued to rely on the city of London. And what within that can you play Financial Services needs to be pulled back to the European Union at least in part, and that's the big cuz I was going to play out. Really I think many years, simple images of Brussels bureau chief. Thank you Sam.
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