Bassanese Bites: On the brink – October 8 2019
Last week provided further tangible signs that the trade-induced slowdown in the global economy was finally filtering through to the United States, which seemingly should make US President Trump more prepared to strike a deal with China sometime soon. Adding to the trade angst last week was the World Trade Organisation’s decision to let the US impose tariffs on EU aircraft imports – owing to the latter’s unlawful Airbus subsidies.
In my view, if these festering trade tensions are not resolved soon, a global recession – and ugly bear market – awaits us by early 2020. The stakes are now that high. The world’s 4th largest economy – Germany – is now in recession, with factory orders slumping further overnight.