Factory activity contracted across Asia and Europe last month as an escalating t...
LONDON/HONG KONG - Factory activity contracted across Asia and Europe last month as an escalating trade war between Washington and Beijing raised fears of a global economic downturn and heaped pressure on policymakers to roll out more stimulus.
Some economists predict a world recession and a renewed race to the bottom on interest rates if trade tensions fail to ease at a Group of 20 summit in Osaka, Japan at the end of June, when presidents Donald Trump and Xi Jinping could meet. IHS Markit’s May final manufacturing Purchasing Managers’ Index for the euro zone was 47.7, below April’s level and only just above a six-year low in March.
The outlook, however, remained grim as output growth slipped, factory prices stalled and businesses were the least optimistic on production since the survey series began in April 2012. J.P. Morgan now expects the Federal Reserve to cut rates twice this year, a major change from its previous forecast that rates would stay on hold until the end of 2020.
If that were to happen, and China were to retaliate, “we could end up in a recession in three quarters”, said Chetan Ahya, global head of economics at Morgan Stanley.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Factory activity shrinks across Asia, global recession fears mountFactory activity contracted in most Asian countries last month as an escalating ...
Read more »
Asia markets decline as trade fears heat upStocks in Asia declined in Monday morning trade amid increasing global trade concerns.
Read more »
Global stocks drop on fears of expanding trade warEuropean shares sink to a more than three-month low, with carmakers taking the hardest hit, as Trump stokes trade tensions
Read more »
U.S. stock futures, oil slide as trade wars stoke global recession fearsU.S. stock futures, Asian share markets and oil prices slipped to multi-month lo...
Read more »
The global fishing fleet has exploded and that could be bad for the planetThe world's fishing fleet has more than doubled since 1950, but it's not because the fishing was any good. Fishermen are working a lot harder to catch fewer fish and with climate change, fish stocks will be even further stressed, a study to publish on Tuesday found.
Read more »
FAA Chief Optimistic On Forging Accord Among Global Regulators On 737 MAXMandating simulator training for pilots may still be on the table at FAA after a meeting of officials from 33 aviation regulatory bodies from around the world convened by the agency to craft a consensus on bringing the Boeing plane back into the air.
Read more »
How to think about global warming and warThey are linked—and that is worrying
Read more »
Asian shares falter, bonds rally on global risk aversionAsian shares sank on Wednesday and bonds rallied as investor sentiment soured ov...
Read more »
Mondelez isn't feeling the heat from global consumer worries, CEO saysMondelez International CEO Dirk Van de Put explains how changing consumer habits are boosting the Oreo-maker's sales.
Read more »
Global Bond Yields Hit Multiyear LowsGovernment bond yields around the world plumbed new multiyear lows, a sign of growing investor worries that global economic growth is poised to weaken.
Read more »
Walmart Hires Global Tech Chief to Compete With AmazonWalmart is hiring Suresh Kumar, a former executive from Amazon and Google, to lead global technology, creating a new senior role as the world’s biggest retailer ramps up its efforts to take on Amazon.
Read more »