EU is ‘prepared’ in case of no-deal Brexit

European Central Bank policymaker Francois Villeroy de Galhau, who is also governor of the French central bank, is in Tokyo for the Paris Europlace International Financial Forum. (Reuters)
Updated 19 November 2018
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EU is ‘prepared’ in case of no-deal Brexit

  • “If we were to have a no-deal scenario, which we don’t wish, we are prepared on the European side”
  • British Prime Minister Theresa May’s premiership has been thrown into chaos since she unveiled a draft EU divorce deal

TOKYO: European Central Bank policymaker Francois Villeroy de Galhau said on Monday that it would be better if Britain had a deal for its withdrawal from the European Union but that the EU was ready in case it left the bloc without an agreement in place.
“If we were to have a no-deal scenario, which we don’t wish, we are prepared on the European side,” Villeroy said in a lecture at Keio University in Tokyo.
“It will be probably very detrimental for the British economy, but on the European side the effect on GDP (gross domestic product) growth is limited and there (are) no financial stability issues.”
British Prime Minister Theresa May’s premiership has been thrown into chaos since she unveiled a draft EU divorce deal that both pro- and anti-Brexit lawmakers have denounced, with several of her ministers having resigned and some of her lawmakers seeking to oust her.
It is unclear whether May will win parliament’s support for the draft agreement, heightening the risk Britain will withdraw from the EU without a deal.


US-Saudi business council reports $13bn in contracts

Updated 24 May 2019
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US-Saudi business council reports $13bn in contracts

  • Improved oil prices, combined with a government focus on spending, contributed to the rise, the council said

LONDON: The value of joint Saudi-US contracts rose to $13 billion in the first quarter of 2019, according to a business council report.

That marked the highest value of awarded contracts since the first quarter of 2015, the US-Saudi Arabian Business Council said.

The value of contracts awarded during the first quarter amounted to about half of the total value in all of last year, it added.

The contracts “included many vital projects, notably in the oil, gas, water and transport sectors,” Abdallah Jum’ah, the co-chair of the council, was reported as saying by Asharq Al-Awsat.

Energy was the top sector, with $3.1 billion of the value of contracts awarded, with many struck by Saudi Aramco. 

Improved oil prices, combined with a government focus on spending, contributed to the rise, the council said.

The construction sector also looks set for a recovery after many projects were put on hold due to the oil-price crash.

“If the pace of awarding construction contracts witnessed during the first quarter of 2019 continues for the rest of the year, the index of awarding construction contracts may return to the range we witnessed before the canceling and postponing of mega projects due to lower oil revenue,” the council said.