The pound slid to a six-month low against the euro and dollar, after Bank of England Governor Mark Carney issued a warning that escalating protectionism could "shipwreck" the world economy.
In a speech, Carney said international trade tensions could lead to a new Cold War, which would cost the global economy billions, with fears over this outcome already causing a "sea change" in how business is conducted globally. While trade between the US and the USSR was worth some $2bn at the height of the Cold War, Carney has pointed out that US-China trade today "clocks $2bn a day". The Telegraph quotes him saying: "Certainly the portents are worrying. The storm that the modern Prospero has conjured is having an impact." Carney is concerned that global protectionism will become...
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