Sterling losses deepen to drop by 1% on Johnson’s Brexit remarks

A man wearing an EU flag-themed beret and carrying an EU flag is seen on Whitehall in central London on Friday. (AFP)
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Updated 12 December 2020
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Sterling losses deepen to drop by 1% on Johnson’s Brexit remarks

  • British PM said chances of UK securing a Brexit trade deal with EU looked to be fading

LONDON: The British pound extended losses Friday to drop more than 1 percent against the dollar after Prime Minister Boris Johnson warned that a no-deal Brexit was “very, very likely.”

The pound slumped by 1.2 percent to hit $1.3135, the lowest level since mid November, while the euro rose by 1 percent to 92.20 pence — its the highest since September.
Johnson said the chances of Britain securing a Brexit trade deal with the EU looked to be fading, as a deadline approached on whether to keep talking.
The prime minister said he had not seen “a big offer, a big change” in the EU offer on fishing and fair competition rules, making a no-deal outcome “very, very likely” under which Britain would trade on terms established by the World Trade Organization. The news sent the pound tumbling further to extend Thursday’s steep losses. “Already down sharply on the day, Johnson’s latest warning pushed the pound below $1.3150 ... while the euro extended its advance,” ThinkMarkets analyst Fawad Razaqzada told AFP. “It looks like traders are taking no chances now as the weekend approaches.
“We may see an acceleration in selling toward the close as more (dealers) exit their trades amid fears the pound could gap lower at the Asian open on Sunday night” in Britain.
CMC Markets analyst David Madden noted that the relationship between Brussels and London appeared to have deteriorated quickly over the last 24 hours.
“The UK-EU relationship has gone from bad to worse in the past 24 hours — and that goes for sterling too,” Madden said.
“Traders are turning their back on the pound as the language being used now is more serious and a fears of a no-deal have increased considerably.
“Adding to the mix is the fact that we are approaching the weekend, and it seems that some traders are keen to and run with respect to the pound.”
EU chief Ursula von der Leyen has told the bloc’s leaders there were “low expectations” a deal could be struck with Britain, EU sources said.
Europe’s stock markets also slumped Friday as a no-deal Brexit became a stronger possibility.

FASTFACTS

● PM Boris Johnson said he had not seen ‘a big offer, a big change’ in the EU offer on fishing and fair competition rules, making a no-deal outcome ‘very, very likely’ under which Britain would trade on terms established by the WTO.

● EU chief Ursula von der Leyen has told the bloc’s leaders there were ‘low expectations’ a deal could be struck with Britain, EU sources said.

● Europe’s stock markets also slumped Friday as a no-deal Brexit became a stronger possibility.

“In the past few weeks, the market consensus has gone from being reasonably confident that the EU and the UK would agree on a skinny deal — to fearing that no deal may now be the mostly likely outcome,” Rabobank analyst Jane Foley told AFP.
Meanwhile, the Bank of England took steps on Friday to keep banks lending through 2021.
Governor Andrew Bailey said the central bank had done all it could to mitigate risks from a no-deal departure from the EU, and it was ready to deal with any disruptions to financial markets.
“What has the Bank of England got in its armory, as it were? The answer is a lot. We will use our tools, as we did in March, should we be in that situation,” Bailey told a news conference.
The BoE ramped up market liquidity auctions at the start of the pandemic, as well as cutting interest rates to a record low and restarting its asset-purchase program.
Market disruptions would not threaten financial stability, but Bailey warned that some EU customers might be unable to access British financial services because the EU had not taken mitigating action. “There is a limit to what we can do,” Bailey said.


Red Sea’s oxygen balance under strain, experts warn

Updated 13 February 2026
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Red Sea’s oxygen balance under strain, experts warn

  • Scientists say warming waters, nutrient runoff and coastal development could quietly erode coral resilience

RIYADH: The Red Sea may not have dead zones, but its fragile ecosystem is vulnerable to oxygen depletion — a quiet decline that can undermine coral health and disrupt marine life.

Sea dead zones are hypoxic or low-oxygen pockets that form most often when nutrient pollution — especially nitrogen and phosphorus from farm runoff and wastewater — fuels blooms that ultimately strip oxygen from the water.

Experts say the risk is not inevitable, but it depends on earlier detection and tighter control of the conditions that drain oxygen from coastal waters.

A sea that relies on its own “breathing” is also a sea shaped by geography.

FASTFACT

DID YOU KNOW?

  • The Red Sea is naturally low in oxygen because of its warm waters and high salinity — making it especially vulnerable to further oxygen decline.
  • The Red Sea’s narrow Bab Al-Mandab strait limits deepwater exchange, meaning the basin largely depends on its own internal circulation to ‘replenish’ oxygen.
  • Saudi Arabia’s coastline features steep underwater drop-offs, allowing deep, oxygen-poor water to move closer to coral reefs near shore.

Matheus Paiva, a senior oceanographer, told Arab News that “the Red Sea’s shallow Bab Al-Mandab choke point limits deepwater exchange,” meaning oxygen replenishment depends heavily on internal overturning circulation.

He said this circulation is driven as surface waters flow north, cool, become denser and sink, helping ventilate deeper layers through vertical mixing.

Paiva said the Saudi coastline’s underwater topography makes the risk more immediate close to shore.

Coral reefs along Saudi Arabia’s Red Sea coast, where scientists say warm, salty waters and limited deep-water exchange can leave ecosystems vulnerable to low-oxygen stress. (Unsplash.com)

“Unlike regions with wide, gradual shelves, our coast features narrow fringing reefs that drop sharply into deep water via steep underwater cliffs and canyons,” he said.

“This ‘step-and-drop’ topography brings deep oxygen-poor water close to shore.”

Paiva said warming at the surface can intensify stratification and reduce vertical mixing. He said that can allow low-oxygen water to creep upslope and affect shallower reef zones.

How oxygen gets consumed faster than it’s replaced is where human pressure can tip the balance.

Carlos Duarte, executive director or the Coral Research and Development Accelerator Program at KAUST, told Arab News that the Red Sea’s baseline conditions create vulnerability. “Because of its warm waters and high salinity, the Red Sea is inherently low in oxygen and, therefore, vulnerable to processes that decline oxygen further.”

He said algal blooms and heat waves raise biological oxygen demand, linking low oxygen to coral mortality.

Duarte said human-driven nutrient and organic inputs can intensify these declines.

He said poorly managed urban development and aquaculture operations can contribute nutrient and organic loads that fuel algal blooms.

Coral reefs along Saudi Arabia’s Red Sea coast, where scientists say warm, salty waters and limited deep-water exchange can leave ecosystems vulnerable to low-oxygen stress. (Unsplash.com)

Duarte said that as bloom material decomposes, it strips oxygen from the water and can lead to hypoxia.

The Red Sea’s celebrated clarity reflects a naturally nutrient-poor system. “The risk is amplified because the Red Sea is naturally oligotrophic. It is nutrient-poor and crystal clear,” Paiva said.

He added that wastewater releases and heavy rain events that trigger flash floods can push large nutrient loads into coastal waters in a short time.

In turn, those pulses can threaten biodiversity and the marine environment that underpins tourism investments along the Kingdom’s Red Sea coast.

Seeing low oxygen coming — rather than reacting after the fact — is the promise of new monitoring and analytics.

Paiva said high-accuracy oxygen data still relies on direct measurements collected during vessel surveys.

Carlos Duarte, executive director or the Coral Research and Development Accelerator Program at KAUST.

“We still depend heavily on classic vessel surveys,” he said. Teams deploy multiparameter sondes to profile the water column and collect water samples to establish a baseline.

“This ‘water-truthing’ remains the industry standard for high-accuracy data,” he said.

Saeed Al-Zahrani, general manager for Saudi Arabia at NetApp, said continuous data can help teams intervene earlier. “Oxygen depletion is rarely sudden; it tends to build over time when conditions line up,” he said.

Al-Zahrani said AI can flag anomalies, learn what “normal” looks like in specific locations, and generate short-horizon risk forecasts.

He added that it creates a decision window — guidance on when to increase sampling, where to focus response efforts, and when to tighten controls around discharges.

Coastal development that reduces oxygen risk starts, Duarte said, with what never reaches the sea.

Duarte said Saudi Arabia’s west coast investments have an advantage compared with older coastal destinations: the opportunity to design sustainability into projects from the outset rather than trying to retrofit after degradation becomes evident.

Duarte said nutrient control is a direct lever to reduce oxygen-depletion risk. “Achieve circular economies where organic products and nutrients are recycled and reused in the system to avoid discharging nutrients to the marine environment,” he said.

Al-Zahrani said wastewater and environmental systems produce huge volumes of information, but fragmentation can slow decisions.

He said connecting data in near real time can help detect problems earlier and anticipate load spikes tied to rainfall, tourism peaks, or industrial activity.

Reef resilience depends on reducing stress before heat and low oxygen overlap.

Duarte told Arab News: “Coral reefs are extremely vulnerable to oxygen depletion.” He added that it can contribute to bleaching and mortality in a warmer ocean.

He said marine heat waves can worsen oxygen stress by reducing oxygen solubility and limiting ventilation of subsurface waters, while increasing oxygen demands of organisms.

Duarte said reducing nutrient inputs and managing reefs to avoid excessive growth of seaweed can build resistance.

He also said models that account for how waves and currents interact with reef topography — work he said is being developed at KAUST — can help guide restoration toward sites more likely to remain oxygenated during heat stress.