U.S. Economic News
August 14, 2019
U.S. News
Greg Ip reports for the Wall Street Journal that the recent spate of nationalist and populist backlash against globalization in countries such as the U.S. and Britain is pushing the global economy towards recession. The rise of unilateralism has weighed heavily on global confidence as businesses and investors, uncertain what rules will govern international commerce, retreat from risky investments. WSJ
According to the Wall Street Journal, Beijing considers the delay in new U.S. tariffs on Chinese goods as an important step towards a trade truce, increasing the likelihood that China will send negotiators to continue trade talks in September. China may also resume purchases of U.S. agricultural products ahead of the next round of talks, a boon for struggling American farmers. WSJ
The Financial Times reports that the spread between the 10-year and 2-year U.S. Treasurys has turned negative for the first time since the lead-up to the 2008-09 recession, an ominous signal often perceived by investors as a sign of impending recession. A similar inversion in the U.K. underscores the extent to which U.S.-China trade tensions and weakening Chinese and German industrial output are weighing on the world economy. FT