Long would it take under reasonable circumstances, to sell the underlining asset . Remember that whether the investor is a Retail Investor or an institutional investor, you dont own the most liquid bit of the fund. You own a socalled vertical slice, or a proportion of all the funds assets. When you redeem in a perfect world, the fund is selling that vertical slice or giving you a price that would be consistent with it having to do that. The first thing is to understand the liquidity. The second is to play with two variables one, the price, the price discount that would be applied if the money is paid out n the timeframea to sell the represented a proportion, and the second factor is to adjust the redemption term upfront to reflect the time it would take to sell. And obviously there are combinations of those two that could be determined. So we have set out these this broad approach, as you have seen described in the report, and jointly with the fca we are going to consult and examine this. We are also we are very conscious that the u. K. Is effectively the most open capital market, major capital market, in the world. It is a major Asset Management sector. There are International Linkages with this. There is a Big International debate and discussion which we are helping to lead. Bailey,john, andrew others, we will be playing a role at the fsb jointly with other bodies, to try to advance advance these issues. Question you mentioned overlap between us and the fca. A sense of objectives going in the same directions. These funds are collective, and everyone is entitled to the same treatment within one. From an fca point of view, if there are things in the fund that mean that people that move early get a better deal, not because markets have moved just get a better deal than people who come later that is an issue for them. For us, that could be the beginning of a run. People start to appreciate if you move quickly, you will get some of the scarce assets that are liquid, and a better price. Have provoked, from a micro speculative reit speculative point, it could be. On the openended funds again, you mentioned the international collaboration. I believe, governor, in the past, you have expressed a certain degree of disappointment with the limited action to date. Have you seen any sort of increased willingness recently . Mr. Carney well, i think again, i will hand it to john in a sec, because he is sitting at the fsb table. But we have seen we have seen some important progress over the last few years, and i will give s. E. C. Mple, which is the s approach to socalled bucketing liquidity. We reference it in the report. We think this is a sensible approach. We will look at it of at it as a basis of classification, starting off this process. And of course, we are conscious that the extent to which there can be similar processes followed by major jurisdictions that is in the industrys interest. It is in the markets interest. It is an authoritys interest. I would say the dialogue, at least in my experience at the is interest ise, increasing. Before i hand off to john whitman, let me make one point. We should not forget we discussed it in the report, but i want to underscore it is that a better fund structure, one that is more commensurate with the types of underlying assets they could be infrastructure assets. They could be real estate assets, smallcap equities, is three examples. Maybe more sustainable, resilient infrastructure as well would be a fourth. That is not daily liquidity, ftse 100, equity you can move in and out all the time. But those are hugely important assets for growing this economy in a sustainable way, and we should make sure that as many investors as possible have access to that in a responsible way. This is where it crosses over from Financial Stability to productive finance. But if you want to say mr. Whitman on the investment side, the cooperation has improved considerably over the past years. You have four moment security regulators with market integrity, investment protector mandate. They do not normally have a macroprudential responsibility. And i think we have come a long way since the fsbs recommendation on liquidity, which i asked for the International Security regulators to take up. We need to go further and see whether those recommendations will do enough, particularly in this area of liquidity, and match the underlying the quivery liquidity of funds and the redemption turns. There are proposals on measuring leverage and other fsb recommendations, published over the last couple of weeks. Again, we need to make sure we have got everything really that deals with the risk. But the two sides understand each other and Work Together now , i think much more closely than they did years ago. Thank you. X. Ona maxwell from m my question is on label. In your october record you said there was no justification for further increased exposure to libor. You would be pursuing future policy and supervisory tools in this quarter. In todays records, i think you said you will still be considering further supervisory tools. Are you still looking into policy tools such as prudential incentives, or have you seen a sufficient increase in banks exposure to libor . Mr. Carney fiona, let me start. I will hand to sam as well. We are encouraged in general in sterling libor on the progress being made, which we are seeing both in cash and derivative markets. We have the engagement that we expect, and sam can expand, of senior managers in the major funds on these issues for the transition. We are i mentioned it in my opening remarks. It is in the report. ,e will look at, in terms of for example, our sterling monetary framework, which effectively is our liquidity facilities we provide for the market, how long we will continue to accept liborrelated collateral, for example, as the market builds up. It is an obvious point, just from a Risk Management perspective. We expect it to cease to exist after 2021. It is not clear what we would continue to accept that as collateral, as one example. There are other sort of supervisory approaches we could on fromt would follow the socalled dear ceo letter that was sent. Work, wepreparatory look at what with those other mechanisms b, and we have done that work, which i think is what people would expect. The conclusion we have reached for the moment is that the firms are very engaged. In particular, senior managers who have been given responsibility for this within firms are very engaged on this. It is a frequent topic of discussion now at the most senior levels between us and the people running both banks and insurance companies. With that in mind, we dont see a need to move further at this time, but we have planned engagement. It is very late in the day, but lets take two followups. I think we have gone around once. Thats get brian and carolyn again. Thank you. Brian Brian Swenson from bloomberg. Werner, this is your last Financial Stability report. I could not help but notice that you almost but not quite mentioned the name of another central bank in your opening statement. Can you tell us any more about your plans for yourself after january . Mr. Carney that was well spotted. This, thethe end of only clear plans i have are this climateping out on action, climate finance, for the u. N. , but very specifically for cop 16. And italians, 26. It has a Financial Stability angle, a broader u. K. Competitiveness angle, if one looks at where some of the bigger trends in finance one of the biggest is toward sustainable finance, and that is an expertise here. But of course it is addressed and much more fundamental issues. That is the only plan i have. Caroline this is caroline again. You said the pra is going to consult on changes to bank capital requirements, while saying the overall structure will remain unchanged. The fed said something very similar in the last couple of weeks. That has prompted concern at a global level. I think you know we are at a very delicate time of a standoff on both sides of the atlantic around implement thing the finalized changes to basel iii. Is this not a renunciation of your personal legacy at the fsb in getting more countries to implement in one standards . Mr. Carney thank you for asking the question. Absolutely not. We are fully committed to baselenting basel iii, or 3. 1. We will have it fully implement it for 2024 on schedule. I appreciate the question, because just to be absolutely clear, what the pra is going to consult on is it takes into account the decision of the fcc the ftc to range the countercyclical. In a standard environment, it should have a higher resting point. Given the higher higher resting point, given that there is more of a buffer prior bufferminimum, more of a before you get to the minimum, whether it is in resolution or not, the question that is asked is, given that contingent on that, what is the appropriate level, for example, given that more losses will have been absorbed before you get to touch 2a, so to speak. That is independent of these other changes. It is a product of a judgment of the ftc looking to rebalance, if it can, if it is appropriate and it is not a decision it can take solely by itself but rebalance between buffers and minima in order, as a package an equity is what the bank of twoand has decided improve the resolve ability of the system. That is what is being consulted on. The other thing, if i can make a short plug for the aficionados on one of the more complicated bits of capital element we have laid out in the report solutions,nduring 9,al approaches, to ifrs because the interaction between that new accounting standard and the stress test can be quite dramatic, and we have a shortterm fix for it, we have continued and will continue next year, that there is a sensible approach, we think, or a few sensible approaches, and we are genuinely looking for feedback on which one of them makes the ensure that the total lossabsorbing Capacity Remains broadly the same in an environment where all that has happened is we have changed we have changed the accounting standard, and the underlying Economic Risks have not changed. There is value to change and that accounting standard because it gives greater visibility to expected losses, which has an impact on how banks manage themselves and how investors would look at banks, and how regulators would look at banks, for that matter. Out to ask are going questions, we as the pra are looking at those specific things. We are not opening up basil iii in any basel way. On climate, given your next job, can you foresee a time when bank of england or other regulators will charge banks more to lend to certain types of companies and engage in for example fossil fuel . Are we anywhere near that, higher capital charges for assets on the Balance Sheet . Is carney the first step for there to be transparency in terms of the exposures of the or the company in which an asset manager is investing, their exposure to Climate Risks and opportunities both the physical risks and transition risks related to changing climate policies. Banksen the second is for , from a Risk Management perspective, for them to understand and then make their own judgments about the wisdom of continuing to lend to companies that have potentially quite material Climate Risks, including in the mediumterm. , we will be releasing with the pra the discussion paper for the socalled biennial exploratory scenario, the climate stress test which begins to look into those issues. Now, it becomes a Business Strategy question. In the end, we dont look to financial policy, prudential policy, for climate policy. In other words, not change the capital charge as a proxy for a carbon tax, for example. Haveer, what we do look to is the exposure, the transparency around those Climate Risks of the borrowers, and what we are looking for management of banks to do is to think through their strategy about their exposure to industries, the scale of their exposure to industries that could be increasingly and materially exposed to Climate Risks. And the question is, how resilient is your strategy if you are concentrating your lending in areas that will be potentially severely affected, 5, 10, 10plus years out . That is the dynamic. 26, part ofon cop the objective should be, in finance for cop 26, is that the foundations are put in place so that professional Financial Decisions can take into account climate change, right . Whether they are lending or investing, that the disclosure is there and the tools to make those assessments are in place. Willwill be driven we provide the framework for getting to those tools in place, and theprivates private sector will develop those. But we will use the focus of cop 26 to get that done. Thank you all for coming. Mr. Carney good luck. Vonnie think of England Governor Mark carney, the first time he has spoken since the general election. A Financial Stability report. They are increasing the countercyclical buffer to 2 from 1 . Whichked about tail risk, has become less likely. By that, he means a disorderly brexit has become less likely, and they are taking that into account. On thursday, he will address more fully the concerns about brexit for the u. K. Economy. This in particular was about stress tests for u. K. Banks. He said the bank of england will change the stress test next year to accommodate for brexit. As for his own plans, he did mention a u. N. Climate role, but had made his mind up about nothing more. Meantime, we have another headline. Boris johnson is expected to start announcing his cabinet members the next few hours. He has just gone with the welsh secretary. Boris johnson has appointed simon hart as welsh secretary. It is not the most important job in the cabinet. Importantate many jobs will continue to be held by those who held them during the campaign, but we expect a few more appointments. For more insight on what is happening with britain in general, lets bring in a senior fellow for europe at the council for foreign affairs. He joins us from rome. How much uncertainty do we have about the direction of the u. S. Economy, compared to the middle of last week . You mean the u. K. Economy, right . Vonnie the british economy, yes. Matteo i think there is a huge sigh of relief at least in the short term with this election, that most of the uncertainty in the shortterm is gone. That being said, i think markets will be very happy in the next few weeks, maybe the next two months, then it will start to sink in that the hard work has yet to be done with brexit. There is tremendous work still to be done and a tremendous amount of uncertainty that will come with that. What kind of brexit will Boris Johnson choose . We dont really quite know right now what kind of leader he will be. Alignment for closer with the European Union . That could come with the cost of giving up the promise of taking back control. Or will he go a further distance, where he will be able to diverge from e. U. Standards and strike deals all over the world, which may come at a very High Economic cost . Vonnie what kind of brexit do you think he will pursue . I think the logical exit for him to pursue is a hard brexit, because he has promised for hard brexiteers that britain will be able to strike favors on their own. The main point is to control immigration, right . You have a point system immigration, australian style, which will not discriminate within europe, or will open up , or thelabor markets commonwealth. Knowing Boris Johnson, what i think he may do is go for a soft brexit and try to convince everyone else it is indeed hard brexit, and go for the kind of path of least resistance. That is something he did last year when he said, i am going to get rid of the Northern Irish backstop, and he made it into a front stop, if you want. That is something i think we should be on the outlook for. The landslide victory obviously gives him a lot of power, but how important will it be who he appoints to cabinet positions . Obviously, we are expecting saadi david to continue as chancellor. Are there going to be other point people out there we need to keep an eye on . Matthias i think michael gove is the person to watch, right . I mean, there is this kind of fratricide situation going on, where there was this whole king s drama where gove stabbed boris in the back, and now they seem to be best friends again. I would expect gove to be in charge of either leading future brexit negotiations, but also to strike deals with the rest of the world. It will be interesting to see who he does put in these positions. That being said, Boris Johnson did clear the conservative party of the kind of left over remainders. Onrybody who was elected thursday owes their position, their member of parliament position, to Boris Johnson. I expect them to be quite loyal, which also will give him quite a lot of flexibility in how hard a brexit or how soft a brexit to go for. Vonnie thank you for your time today. Much appreciated. From the council on foreign relations, he joined us from rome. What would happen if an unexpectedly violent disease nt diseasevirule spread across borders . Our countries prepared for pandemic . Joining us from baltimore with more is the director of the center for Health Security at jon Hopkins Bloomberg school of Public Health. Thank you for joining. What kind of pandemic would it be most likely that we would see in our lifetime, were we to experience one . I think most in the Public Health community are particularly concerned about the possibility of an influenza pandemic sometime in the church. In the future. But there are other diseases that could spread from persontoperson by cough that are also concerning, not just for the global community, but certainly including the community in the business community. Vonnie obviously, everybody is terrified of pandemics, when they see a movie about a pandemic, or it comes to mind. But there have not be