“Chinese Ministry of Commerce spokesman Gao Feng told a Beijing press conference on Thursday that “there will be no winner in the trade war, which could cause a recession in the United States and global economies.”
“The ministry did not disclose US investment growth in China for the month of May alone, but the plunge seems to have coincided with the collapse of trade talks between Beijing and Washington.”
“China’s industrial economy continued to sag in May, data released on Friday showed, as the trade war with the United States continued to hang heavy on the world’s second largest economy.
“A new batch of data from the National Bureau of Statistics showed further deterioration on April’s numbers, and pointed to an ongoing slump across key manufacturing and production sectors, many of which are reliant on strong exports.”
“The US-China trade war, industrial strife and political deadlock all threaten to overwhelm the World Trade Organization, putting the future of the institution and the system of free trade in mortal danger, Liam Fox has warned…
“He criticised the G20 for failing to address the “scale [and] urgency of the challenges facing the global trading system” and warned “the WTO could be facing an existential crisis”.”
“Competitive currency devaluation does not benefit any country and could cause chaos to global financial order, former China central bank governor Zhou Xiaochuan said on Friday.
“Zhou did not specifically mention the Chinese yuan in his remarks to a financial forum in Shanghai on Friday. But global investors are closely watching the weakening currency as the U.S.-China trade war escalates.”
“Attacks targeting two oil tankers in the strait of Hormuz on Thursday followed strikes against four ships a month ago.
“The US has blamed Iran for the action and the oil price has risen as a consequence. Here we examine the potential impact on the global economy.”
“A reading of the economy from Morgan Stanley is signaling “June gloom.” Morgan Stanley’s Business Conditions Index, which captures turning points in the economy, fell by 32 points in June, to a level of 13 from a level of 45 in May.
“This drop is the largest one-month decline on record and the lowest level since December 2008 during the financial crisis, according to the firm.”
“According to a new survey from Bankrate of about 3,000 Americans, 23% of people who were adults when the recession started in December 2007 say they are now financially worse off than they were before the recession hit.
“That’s just under 50 million Americans. Another 25% say they are doing the “same.” In all, just over half believe their “overall finances” are better than before.”
“Industrial output in the euro zone dropped in April, hit particularly by falling car production, adding to concerns of a prolonged slowdown in the region that may in turn apply pressure on the central bank.
“Monthly output dropped 0.5 per cent, compared with March, the regional statistics office said on Thursday.”
https://www.irishtimes.com/business/economy/industrial-production-in-euro-zone-drops-1.3924486
“According to the Financial Times, cross-border data shows capital entering the U.K. has fallen by 30% since the Brexit referendum, while investment into the E.U.’s other 27 countries in the three years since the referendum has surged 43% up to the first quarter of 2019.”
https://seekingalpha.com/article/4270146-brexit-looms-large-autos-lead-u-k-s-gdp-slowdown
“German Federal Ministry of Economy and Energy said the economy will “remain subdued for the time being”…
“The ministry also noted “the first signs of the economic slowdown are evident in the labor market: employment continues to grow, but the lower momentum is solidifying. Unemployment increased in May, not just because of special factors.””
“The European Union’s push to bring Italy into line with the bloc’s fiscal rules intensified on Thursday as top officials called for new measures to address budget shortfalls and raised concerns for the euro zone’s stability from Rome’s high debt.”
“If too many investors make a withdrawal the fund is forced to sell assets quickly, potentially at a big discount – encouraging more investors to make redemptions before the fund loses more money.
“This can be a problem beyond the individual fund, its investors and the businesses reliant on its finance.
“It could spread through the real economy, harming businesses, savers and growth in a systemic way that did not exist at the time of the financial crisis.”
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