News and Trends

Bond king Jeffrey Gundlach bets on gold and rings alarm bell on potential U.S. recession- Market Watch--6.14.19
Investors seem eager to insure themselves against geopolitical tensions that have flared up in the Middle East and Hong Kong this week. Meanwhile, ongoing trade tensions lead to an even bigger chance of a recession hitting the U.S. in the not-too-distant future.

The Fed is likely to drop ‘patient’ word next week, clearing way for July cut, economists say- CNBC--6.14.19
When Federal Reserve officials meet next week, it is expected that they will clear the way for a July interest rate cut by downgrading their economic forecast and tweaking the language in their statement.

America's CFOs are bracing for a 2020 recession- CNN--6.12.19
U.S. finance leaders fear the longest economic expansion in modern American history may come to a screeching halt. Nearly half of chief financial officers in the U.S. are predicting the American economy will be in recession by the middle of next year.

A recession shock could wipe 30% off U.S. stocks, warns Oxford Economics- Market Watch--6.12.19
The U.S. economy could suffer a sharp slowdown and even suffer into a recession. This fallout could trigger a 30% drop in the S&P 500 in the third quarter.

Trump: If President Xi does not attend G-20, more China tariffs will go into effect immediately- CNBC--6.10.19
President Trump has threatened more tariffs on Chinese imports if President Xi Jinping is not at this month's G-20 meeting. The Trump administration increased tariffs last month on $200 billion worth of goods the U.S. imports from China.

The risks are rising that the dollar could lose its special global standing- CNBC--6.9.19
The U.S. dollar may be at risk of surrendering its position as the world's global reserve currency. China and the euro zone have been actively pushing their currencies as reserve and transactions substitutes.

May's weak jobs report is the latest sign of a US economic slowdown- CNN Business--6.7.19
The disappointing May jobs report is the latest sign that the U.S. economy is losing momentum after a decade-long expansion. The jobs report may even push the Fed to cut rates later this year in an effort to rejuvenate the economy.

Outlook turns sour as trade war drags on- Reuters--6.7.19
The global economic expansion has started to sour and is increasingly at risk from a developing trade war between the U.S. and China. A group of several hundred economists and financial market professionals polled by Reuters almost unanimously warned that trade conflict is the number one global economic risk.

Swings in market sentiment resemble pre-Lehman crisis, strategist warns- CNN Business--6.6.19
Wall Street's swings are starting to feel similar to the month before the implosion of Lehman Brothers that set off the 2008 financial meltdown, according to one market strategist.

Turning its back on greenback: Russia slashes share of US dollar in international reserves - RT--6.6.19
The Central Bank of Russia continues to work on diversifying its foreign exchange reserves and is gradually moving away from the U.S. dollar. White eliminating the dollar, The Russian central bank has been increasing its holdings of the euro, yuan and gold.

Job growth screeches to a near halt in May, with private payrolls up just 27,000- CNBC--6.5.19
Job creation skidded to a near-halt in May in yet another sign that the U.S. economic momentum is slowing. Companies only added 27,000 new positions during the month, according to a report, well below Dow Jones estimates of 173,000.

Russia, China Prepare To Dump Dollar, Agree To Bilateral Trade In National Currencies- Zero Hedge--6.5.19
Russia and China are set to sign an agreement which would boost the use of the national currencies in bilateral and international trade in an attempt to move away from the dollar-dominated financial system.

Morgan Stanley tells investors to play defense as cycle indicator flashes ‘downturn’- Market Watch--6.3.19
Investors should brace for market turmoil over the next 12 months, according to experts as Morgan Stanley. In a note detailed on Sunday, the bank advised market participants to go on the defensive.

10-year yield continues collapse on slowing growth fears, hits session low under 2.07%- CNBC--6.3.19
The yield on the benchmark 10-year Treasury note fell below 2.07% on June's first day of trading as mounting global growth fears pushed the rate to its lowest level since September 2017.

Trump slaps tariffs on all imports from Mexico, sending stock futures tumbling- Market Watch--5.31.19
President Donald Trump has announced new tariffs against all products imported from Mexico, saying that they would stay in effect until the illegal immigration problem was solved.

Stocks suffer worst May since 2010 as Trump threatens tariffs on Mexico- Market Watch--5.31.19
Stocks closed sharply lower on Friday, with the market logging its worst May since 2010 after President Donald Trump unexpectedly announced plans to impose tariffs on imports from Mexico.

China accuses US of 'economic terrorism' as trade war tensions escalate - CNN--5.30.19
China accused the Trump administration of committing "economic terrorism" on Thursday. The Ministry of Foreign Affairs said the White House has "brought huge damage to the economies of other countries and the U.S. itself."

Is the US bond market forecasting a recession?- Fox Business--5.30.19
One economic indicator may be pointing towards a recession. The spread between the 3-month Treasury bill interest rate and 10-year Treasury note yield inverted on Wednesday. Yield curve inversions, which are rare, have typically been considered an indication of recession.

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