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The British pound sank last Friday, boosting the London stock market after UK Prime Minister Boris Johnson warned he was ready to walk away from European Union trade talks and prepare for a “no-deal” Brexit.

Sterling slid underneath US$1,29 after Johnson accused the EU of failing to negotiate seriously — and declared Britain should “get ready” for an Australia-style agreement based on World Trade Organisation rules from January “unless there is a fundamental change of approach” from Brussels.

It comes after an EU summit this week demanded Britain urgently gives ground on fair trade rules to unblock post-Brexit negotiations.

“Sterling fell sharply on comments from PM Boris Johnson calling for the UK to prepare for a no-deal exit in January and accusing the EU of not negotiating seriously,” said Markets.com analyst Neil Wilson.

Johnson’s comments fuelled gains on the London stock market, with it gaining 1,3 percent in early afternoon deals. A weak pound lifts the share prices of companies listed on the FTSE 100 index that make large earnings in dollars.

“However, fresh Covid-19 restrictions continue to cloud the outlook,” she told AFP.  — AFP