Global Markets: Goldman Sachs fears recession

By MarketsFarm

WINNIPEG, Aug. 12 (MarketsFarm News) – The following is a glance at the news moving markets in Canada and globally.

– Goldman Sachs Group Inc. has expressed concerns that the United States-China trade war will devolve into an all-out recession. “We expect tariffs targeting the remaining $300bn of U.S. imports from China to go into effect,” the bank said on Sunday, in a note to clients. Goldman Sachs has lowered its fourth-quarter U.S. growth forecast by 20 basis points, on the expectation that the trade war will continue into 2020.

– Hong Kong’s airport canceled all flights on Monday due to anti-government protests. The disruption comes after weeks of demonstrations and marches. Approximately 5,000 activists occupied the airport’s arrivals hall for over four days. The demonstrators then moved to the departures area, which disrupted activity to the point that the airport was shut down. Hong Kong police declined to specify if they would move the demonstrators.

– A recent report showed German exports to Iran have fallen by almost 50 per cent in the first half of 2019. This is likely in response to the recent U.S. sanctions on Iran, which includes third-party countries that engage in business with Iran. “German companies are forced to choose between their market activities in Iran and the United States, so it’s clear which market is preferred,” the German trade association said to Reuters.

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