Pound slides after Carney warns protectionism could 'shipwreck' economy

Concerns amid continues tensions

Anna Fedorova
clock • 1 min read

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Markets

Market Movers: Advice industry cautious about Trump's long-term market impact

Market Movers: Advice industry cautious about Trump's long-term market impact

‘Short term should be positive - more concern over longer term implications’

Professional Adviser
clock 20 November 2024 • 1 min read
Bank of England holds rates at 5.25% in final pre-election decision

Bank of England holds rates at 5.25% in final pre-election decision

'The MPC would not want to be perceived as politicking'

Cristian Angeloni
clock 20 June 2024 • 1 min read
Inflation officially back to Bank of England's target level of 2%

Inflation officially back to Bank of England's target level of 2%

Data shows a 2% year-on-year fall ‘in line with consensus expectations’

Hope Coumbe
clock 19 June 2024 • 2 min read