UK bank chief: trade war may ‘shipwreck’ global economy

Business

FILE – In this May 2, 2019, file photo Mark Carney the Governor of the Bank of England speaks during an Inflation Report Press Conference at the Bank of England in the City of London. The Bank of England is open to the idea of letting new payment services such as Facebook’s upcoming Libra hold funds with the central bank, Carney said Thursday, June 20. (AP Photo/Matt Dunham, Pool, File)

LONDON (AP) — Bank of England Governor Mark Carney has warned that the British economy could be slowing down more than anticipated in the wake of mounting Brexit uncertainties and intensified trade tensions.

Carney said In a wide-ranging speech Tuesday that there’s a “sea change” in financial markets related to worries over the global economy and that’s weighing on the British economic outlook. Trade tensions, particularly those involving the U.S. and China, could “shipwreck the global economy.”

He noted that recent economic data “raise the possibility that the negative spillovers to the U.K. from a weaker world economy are increasing and the drag from Brexit uncertainties on underlying growth here could be intensifying.”

Looking across the first half of the year, he said underlying growth in the U.K. is “running below its potential.”

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.