The FT reported last night that:
US equities fell 3 per cent on Wednesday after disappointing data from China and Germany increased fears over global growth and bond markets signalled the chances of a recession were mounting.
The S&P 500 index finished down 2.9 per cent at its low point for the day, with energy stocks leading the declines, closely followed by financials. The tech-heavy Nasdaq was down just over 3 per cent.
Underscoring the rising concerns, the yields of US and UK 10-year government bond yields dipped below those of shorter-maturity debt for the first time since the financial crisis – an inversion of their normal relationship that has historically been a harbinger of recession and which crimps banks' profitability.
Perfect timing for Brexit.
And I'd stress, I have little doubt Brexit has not helped this trend, but equally I'd say it's just one of a number of factors created by populist politicians intent on wrecking economies for their own ends, led by those in the UK and US.
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Populist policies (Brexit, beggar they neighbour trade wars, currency wars etc.) are surely just the straw that broke the camel’s back?! The world economy has been stagnating for 10 years, exacerbated by easy money for the powerful and austerity for poor the world over.
I know you’re an ultra- remainer, but the oncoming crisis will be about much more than this English obsession.
I thought I made that clear?
For a considerable (but largely unconsidered) swathe of the population the UK has effectively been in recession for a decade.
Given the reported amount of large scale ‘panic buying’, by businesses preparing for No-Deal Brexit the figures are more healthy than they really should be. You know how hopeless and distrustful of numbers I am, but a figure of billions was quoted the other day. This is spending which won’t happen twice so will inevitably further depress figures which are already gruesome. This echos the splurge in spending in the US prior to China tariffs coming into force.
The high price of gold is a classic indication of investor fear, borne of uncertainty in the productive economy. 🙁
I have a vision of Trump’s notion of making America Great Again(?) as Uncle Sam dressed in tatters as the last man standing in a sea of destruction. I really should get out more. 🙂
Good point….
“Good point….”
What? That I should get out more 🙂
And that……:)
is the everything bubble about to burst?
Yes
Matt B says:
“……is the everything bubble about to burst?….”
Richard says ‘Yes’, but wisely doesn’t suggest how soon. Incipient chaos has a way of becoming the norm for a long time before the pin-prick appears from an unexpected quarter.
As someone observed the other day the point of the story of the boy who cried wolf is that in the end the wolf really did turn up.
True