Original source: https://www.bloomberg.com/news/articles/2019-08-07/world-economy-edges-closer-to-a-recession-as-trade-fears-spread
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Investors already are urging central banks and policymakers to reverse route. Investors are now bearish, having a segment of the yield curve, the difference between 10-year and notes, inverted the maximum because 2007, indicating stakes on prolonged weakness. The fear is that without a trade truce soon, markets will expand their latest slide and uncertainty-plagued companies will pull back farther extending the aggravation of makers to the services industry. After that, the labour market may decode and customers can retrench, causing banks to cut interest rates and possibly restart easing. Bank of America Corp. economists warn that even”with no ending in sight, and there are significant downside risks to our forecasts for U.S. and worldwide growth. In the event the trade war escalates — this could include a more explicit money war — doubt would be considerably higher and financial conditions much wider.”… Read More
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