USA and China have once again locked horns over certain trade treaties and this is surely going to fuel the rising fears of an economic crisis. Although financial experts from both ends are trying their hard to keep things in place, situations is unlikely to settle down soon. Reza Irani, one of the most sought after financial expert around, further fears of an upcoming global recession amidst the trade wars between these two world superpowers. While these are just anticipations, let’s have a look at how thing went down in the past few months between these two countries.
- The White House recently came up with an announcement which states about the delaying few of the China tariffs coming into effect from the September 1 until December 15. This move further took the Dow Jones Industrial Average to jump up to more than 500 points within a matter of few hours.
- The stock market then witnessed a fall and predictions were made regarding further declines on the coming weeks amidst the rising fears of a cold war between the Chinese and American officials in a recent meeting.
- Whilst President Trump delivered a surprise to everyone around with more tariffs on Chinese goods, Goldman Sachs experts further assumes that a new trade deal is not expected to materialize before the 2020 election.
- If we talk about the bond markets, which comes as an inverted Treasury yield curve—largely been used by economists as a recession predictor—is almost there where it was during the most infamous 2007 recession.
- On the other side, Bank of America officials stated that the odds supporting the possibility of an upcoming recession are as much as 30%.
- Moreover, Morgan Stanley analysts further puts through predictions regarding a recession to be coming on board within the next nine months, given to the existing riff between USA and China continues.
- It’s not just about the financial institutions and experts, various economists and financial experts like Reza Irani have placed predictions regarding an upcoming global recession. Still they are expecting an improvement if Donald trump doesn’t get re-elected as the USA president in 2020.
Whilst looking at all the above mentioned factors, it can be ascertained that Global recession is just round the corner and even a financial expert like Reza irani is backing the same fact. That said, concrete steps needs to be taken forward to avoid such situation forward.