‘The fog will not clear’: Why another volley of tariffs, or tweets, could plunge the global economy into a recession [Financial Post (Toronto, Ontario, Canada)]
Morgan Stanley (MS)
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Source: Financial Post
'The fog will not clear': Why another volley of tariffs, or tweets, could plunge the global economy into a recession If a recession did happen, it would have to be a full-on, policy-induced error, led by trade policy Concerns of a global recession appear to be on the rise, but economists say it may take an additional slew of bad news — or maybe a volley of bad tweets — before output and consumer sentiment fall off a cliff. Economic data over the past few weeks has added to the anxiety. On Friday alone it was reported that the British economy contracted in the second quarter, that the International Energy Agency had noted that global oil demand growth is slowing at a rate not seen since the global financial crisis, and that Canada, despite some strong wage growth, unexpectedly shed 24,200 jobs last month. Then there is the United States, whose president recently threatened China with a fresh batch of tariffs to add to the approximately US$250 billion of Chinese goods the U.S. had a
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