Talk to UK newspaper editors and they will tell you that, by and large, they are happy with the system of self-regulation regarding complaints. Anyone who thinks it provides an easy ride, they will say, does not understand that no one likes their peers marking their homework.
But this is precisely the point, say regulatory campaigners: it’s the press marking their own work, and the outcome, while sometimes critical, usually is not hard-hitting enough.
I was reminded of this continuing debate by publication of Ben Bernanke’s review of the Bank of England’s performance over the past two years.
Mr Bernanke, one of the most highly respected of recent central bankers, was asked by the Bank to examine its methods and practices. The former US Federal Reserve chairman took his brief seriously, spending more than seven months and conducting more than 60 face-to-face interviews with Bank of England staff and market participants and sitting in on its Monetary Policy Committee’s November 2023 rate-setting round.
Doubtless all that was most uncomfortable for governor Andrew Bailey and his team. Mr Bernanke’s 80-page report does not hold back, dishing out criticism and making 12 recommendations for change. Except it does pull its punches in one respect: Mr Bernanke does not say what he thinks of Mr Bailey and his MPC colleagues. He does not comment on the way they work and whether they should reform their all-important forecasts for inflation and the economy.
That, you feel, was a step too far. But this was a Bank and its hierarchy, let us not forget, that failed to predict the energy price spike following Russia’s invasion of Ukraine, that didn’t foretell the impact of the pandemic on global trade and supply chains, assumed that workers would pick up from where they left off once the outbreak had dissipated and the lockdowns ended and didn’t realise lifestyle patterns had altered, possibly forever.
Human behaviour is never a Bank strength: it also did not call how price inflation would lead to salary inflation, that rather than stomach high prices, workers would immediately seek more money.
That’s quite a roll-call. Nevertheless, Mr Bernanke turns a convenient blind eye, preferring to dwell on outdated computers and data sourcing. He does turn the screw in places, comparing the Bank’s forecasting record, for instance, with six other central banks and finding it was the worst at understanding the dynamics in the jobs market, consistently forecasting higher unemployment that never materialised.
This can beg the question as to what Mr Bernanke's review is for? But here the peers taking a close look kicks in again. Having asked the esteemed American for his time and effort, and of course, his expertise, Mr Bailey and chums are not able to turn round and ignore him.
They’ve accepted every one of his recommendations, saying they will “act on all” of them. It’s a pity there weren’t 13, 14, 15 recommendations requiring some tough soul-searching by Mr Bailey and co regarding their own positions, but there are not, so a dozen it is.
Still, as Mr Bailey stresses – possibly out of a sense of relief – that marks part of a “once-in-a-generation” opportunity to modernise. So, he was quick to note, an IT upgrade is already under way.
The Bank, like the nation, is a creature of habit, struggling to adapt, reluctant to give up old ways for the new.
It’s much easier to blame the tools and not the people, especially if they are your pals and drawn from the same social milieu. It raises another issue, which is that Mr Bernanke is caustic about the forecasting technology, known as Compass, so why did it need an outsider to say it? Why was Mr Bailey not on top of the problem, why was he content to chug along in an underpowered car?
The car analogy is apposite because Mr Bernanke warns that updating the model will be “like fixing a car when the engine is running”. In other words, there may well be some serious glitches ahead.
There are moments reading it, and this is one of them, when Mr Bernanke could be talking about the state of Britain overall, not its central bank. Staff are overstretched and insufficiently experienced, they move around too frequently.
The Bank, like the nation, is a creature of habit, struggling to adapt, reluctant to give up old ways for the new. It hesitates to take on board geopolitical crises, defaulting towards the notion of “stay calm”. The rest of the world may be panicking but not it seems, the British.
The MPC has a funny attitude towards the meaning of the word “target”. The target rate for UK inflation is 2 per cent. It’s a target, a goal. But the Committee treated it with certainty, as the baseline, saying their forecasts would fall back to it over time and that consumer and market expectations were fixated on 2 per cent as the likely result – when recent reality has shown this to be woefully low.
Communications must be improved. There’s too great a fixation on numbers and not enough on what the members of the MPC actually think. He calls for an improvement to communications but stops short of advocating the US practice of requiring the members of the Fed to publish their own analysis of interest rates and where they’re going.
Not only would it put the UK’s MPC members on the spot, including Mr Bailey, but it would show if the body were prone, as some – among them Mr Bernanke – suspect, of falling into “group think”.
Mr Bailey is let off. But only for so long. He’s got Mr Bernanke’s 12 steps, once he’s pursued them, what then? He’s run out of road and excuses. In one respect, the US central banking veteran has dealt the UK incumbents a favour. In another, they’ve nowhere else to turn, they can’t instigate another peer inspection. The future starts here, post-Bernanke, and that doesn’t feel so cosy after all.
UAE currency: the story behind the money in your pockets
Bob%20Marley%3A%20One%20Love
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%C2%A0Reinaldo%20Marcus%20Green%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3EKingsley%20Ben-Adir%2C%20Lashana%20Lynch%2C%20James%20Norton%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%C2%A02%2F5%3C%2Fp%3E%0A
UAE%20Warriors%20fight%20card
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Mohammed bin Zayed Majlis
Company%20profile
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Star%20Wars%3A%20Episode%20I%20%E2%80%93%20The%20Phantom%20Menace
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MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
Tips for used car buyers
- Choose cars with GCC specifications
- Get a service history for cars less than five years old
- Don’t go cheap on the inspection
- Check for oil leaks
- Do a Google search on the standard problems for your car model
- Do your due diligence. Get a transfer of ownership done at an official RTA centre
- Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
- Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
- If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell
Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
UAE currency: the story behind the money in your pockets
The Details
Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5
Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%3Cbr%3E%3C%2Fp%3E%0A
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
More coverage from the Future Forum
MEDIEVIL%20(1998)
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20SCE%20Studio%20Cambridge%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%2C%20PlayStation%204%20and%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5%2F5%3C%2Fp%3E%0A
Indian origin executives leading top technology firms
Sundar Pichai
Chief executive, Google and Alphabet
Satya Nadella
Chief executive, Microsoft
Ajaypal Singh Banga
President and chief executive, Mastercard
Shantanu Narayen
Chief executive, chairman, and president, Adobe
Indra Nooyi
Board of directors, Amazon and former chief executive, PepsiCo
COMPANY PROFILE
Name: Mamo Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua Based: Dubai, UAE Number of employees: 28 Sector: Financial services Investment: $9.5m Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors. MATCH INFO
Crawley Town 3 (Tsaroulla 50', Nadesan 53', Tunnicliffe 70')
Leeds United 0
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Lowest Test scores
26 - New Zealand v England at Auckland, March 1955
30 - South Africa v England at Port Elizabeth, Feb 1896
30 - South Africa v England at Birmingham, June 1924
35 - South Africa v England at Cape Town, April 1899
36 - South Africa v Australia at Melbourne, Feb. 1932
36 - Australia v England at Birmingham, May 1902
36 - India v Australia at Adelaide, Dec. 2020
38 - Ireland v England at Lord's, July 2019
42 - New Zealand v Australia in Wellington, March 1946
42 - Australia v England in Sydney, Feb. 1888
Specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.5-litre%20turbo%204-cylinder%20%2F%202.0%20turbo%204-cylinder%20(S3)%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20148bhp%20%2F%20328bhp%20(S3)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20250Nm%20%2F%20420Nm%20(S3)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20December%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20TBA%0D%3C%2Fp%3E%0A
25%20Days%20to%20Aden
%3Cp%3EAuthor%3A%20Michael%20Knights%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20January%2026%3C%2Fp%3E%0A
More on Turkey's Syria offence
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Mercedes-AMG GT 63 S E Performance: the specs
Engine: 4.0-litre twin-turbo V8 plus rear-mounted electric motor
Power: 843hp at N/A rpm
Torque: 1470Nm N/A rpm
Transmission: 9-speed auto
Fuel consumption: 8.6L/100km
On sale: October to December
Price: From Dh875,000 (estimate)
Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
More on Quran memorisation:
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
