Pound slides after Carney warns protectionism could 'shipwreck' economy

Concerns amid continues tensions

Anna Fedorova
Mark Carney, Governor of the Bank of England

Mark Carney, Governor of the Bank of England

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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