LONDON: Former Bank of England chief Mervyn King on Saturday warned that the UK needs a “credible fallback” in case no EU trade deal is reached during Brexit negotiations.
Lord King, who served as Bank of England governor for a decade, which included the 2008 global financial crisis, said that “no deal” was not the first preference of anybody.
He also admitted he did not know what the economic consequences of Britain’s decision to leave the European Union (EU) would be.
Speaking to the BBC Today program, the banker said: “We are where we are, and we are in a negotiation and it’s important that the negotiation succeeds.
“But it cannot succeed without a credible fallback position and that is something which I think is a practical thing that the civil service ought to be taking a lead on.”
Prime Minister Theresa May has long argued that “no deal is better than a bad deal”, the key phrase repeated by her since outlining her Brexit blueprint in January.
That would mean Britain relying on World Trade Organization rules in its trading with its former partners in Europe.
As Britain begins the arduous task of negotiating a favorable trading relationship with the EU it has simultaneously embarked on a trade offensive beyond the bloc — including the Gulf states which a number of senior ministers have visited over the last year.
“It’s a do-able proposition if we start now. We’ve probably wasted a year but we need to be much further along the road to making that a credible fallback position,” Lord King told the program.
Britain needs a Brexit backup, warns former Bank of England chief
Britain needs a Brexit backup, warns former Bank of England chief
Closing Bell: Saudi main index closes in red at 10,947
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25.
The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated.
The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71.
The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated.
The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51.
On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39.
National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50.
On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co.
In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.
Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.
Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.
The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said.
The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.
