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UK Bank Chief: Trade War May 'Shipwreck' Global Economy

Associated Press

   LONDON - Bank of England Governor Mark Carney warned Tuesday that the
   British economy is barely growing in the wake of mounting Brexit
   uncertainties and intensified trade tensions.

   Carney said in a wide-ranging speech that a "sea change" has taken
   place in financial markets in recent months largely related to worries
   over the global economy. Trade tensions, particularly those involving
   the U.S. and China, have the potential to "shipwreck the global
   economy" and that's a fear that's taken root across financial markets.

   "Reflecting the more febrile atmosphere, a trade war has shot to the
   top of the risks most worrying investors and measures of global
   economic policy uncertainty have reached record highs," he said.

   Though some of those tensions were eased over the weekend when U.S.
   President Donald Trump and his Chinese counterpart, Xi Jinping, agreed
   to resume trade negotiations, Carney said it would be wise for
   investors not to get too carried away.

   "Progress today is no guarantee of progress tomorrow," he said.
   Carney, who is set to leave the bank at the end of January after seven
   years at the helm, said the British economy is having to cope with all
   these trade tensions at a time of acute uncertainty over the country's
   departure from the European Union.

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