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The stock market has room to run and recession isn’t a near-term risk, economist says

“It’s the greatest asset inflation bubble we have seen in 20 years.”” writes Natasha Turak for cnbc.com. Berenberg’s reassuring forecast contradicts several more bearish calls pointing to highly valued stocks as indications of an asset bubble that’s waiting to pop.And despite the yield curve being fairly flat, Berenberg estimates “a very low probability of recession” thanks to the broad-based momentum of current economic growth.There’s still room for stock markets to rise and worries of an impending recession are premature, according to Berenberg Capital Markets’ chief economist. “Even if profits peaked…

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Even the highest flying tech stocks aren’t immune to trade worries: economist

“Think the highest-flying tech stocks are immune to trade tensions?” writes Deputy Markets Editor for marketwatch.com. As investors might be getting a taste of on Monday, a significant escalation in trade tensions could leave the FAANGs vulnerable, Gjerde said.Capital Economics was already looking for growth to slow next year, and Gjerde warned that escalating trade tensions could accelerate the process.In a well-timed Monday note, Ingvild Borgen Gjerde, an economist at Capital Economics, warned clients that while the so-called FAANG stocks — an acronym referring to Facebook Inc. Source: marketwatch.com Share This:

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Goldman sees slightly easier China monetary policy amid trade tiff with U.S

“Goldman has forecast China’s gross domestic product growth to be 6.6 percent this year” writes Midwest Communications Inc for 95kqds.com. SHANGHAI (Reuters) – Goldman Sachs said it expected China to adopt a slightly easier monetary stance in the face of tit-for-tat tariffs between Beijing and Washington that, while likely to have limited immediate impact on the economy, were at risk of escalating.”Neither side will be brought to its knees – which is one reason to think the trade dispute could drag on.”.  Source: 95kqds.com Share This:

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The Fed said it’s hiking rates four times this year, but here’s why the market’s not convinced

“The Federal Reserve may have telegraphed a fourth interest rate hike this year, but markets didn’t quite get the message” writes Yuri Gripas for cnbc.com. There are multiple reasons why the market is not buying into a more hawkish Fed.After the conclusion Wednesday of its two-day meeting, the Federal Open Market Committee, through the so-called dot plot of individual members’ expectations, indicated that it would increase rates two more times before 2018 ends. Source: cnbc.com Share This:

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Escalating U.S.-China trade spat comes at a bad time for global growth, economist says

“The escalating trade spat between the U.S. and China comes at an inconvenient time for the global economy” writes Deputy Markets Editor for marketwatch.com. Kujis said Chinese policy stimulus during moments of global economic weakness have provided a buffer for growth in the country and elsewhere.The resilience of China’s economy in early 2018 has been an important buffer for global growth in the face of mounting headwinds, noted Louis Kujis, head of Asia economics for Oxford Economics, in a Friday note.If attention does turn back to the global backdrop, the…

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Fed will ignore G-7 trade spat and announce new rate hikes, economist says

“The Federal Reserve is due to announce another rate hike this Wednesday and won’t take any notice of the spat between the U.S. and its Western allies over trade tariffs, an economist told CNBC Monday” writes Adam Jeffery for cnbc.com. Market players are monitoring the rhetoric surrounding trade between the U.S. and the other six world-leading economies after divergences at the Group of Seven (G-7) summit over the weekend. The hope is, in the end, that a serious trade war is averted, not to say that there won’t be tariffs…

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Swiss vote on how to create money is challenging for bankers, economist says

“Switzerland’s upcoming vote on how to create money is intellectually challenging for the traditional banking system, an economist told CNBC on Friday” writes Silvia Amaro for cnbc.com. They use the 2008 global financial crash as an example of why the banking system needs to reduce irresponsible spending.The wealthy nation is due to vote Sunday on whether it should have a so-called sovereign money system — meaning the central bank would be the only provider of Swiss francs.In other words, commercial banks would no longer be able to create cash; their…

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Global growth rate could drop by more than a quarter thanks to tariffs, S&P chief economist forecasts

“Global gross domestic product (GDP) growth could take a hit to the order of around one percent if tariff threats escalate into a trade war, S&P Global’s chief economist forecast Monday” writes Natasha Turak for cnbc.com. The OECD and the International Monetary Fund have both issued forecasts expressing confidence in global growth while highlighting a trade war as a major downside risk to their generally still-positive outlooks.It may not be a global recession, but “one could imagine a scenario where rather than global growth in the threes we have global…

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Trump ‘flip-flops’ so much over China and trade it’s hard to pick stocks, economist says

“President Donald Trump “flip-flops” so much on his stance over trade and tariffs with China that it’s difficult to know what stocks to buy and avoid, an economist told CNBC ahead of the next round of Sino-U.S. trade talks aimed at averting a trade war” writes Holly Ellyatt for cnbc.com. “So it’s very difficult to buy and sell anything when the flip-flops are so prominent,” Freris added, although he suggested avoiding tech stocks, which could be the worst hit if a trade war and tariffs between China and the U.S.…

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Trump’s Fed nominees say they will ‘absolutely’ keep the central bank independent of the White House

“Trump said in interviews with the Wall Street Journal last year that he prefers low interest rates to help spur economic growth” writes Heather Long Is for washingtonpost.com. Kevin Warsh, who was shortlisted for Fed chair in the fall, said he also met with the president, who questioned him extensively about his views on interest rates.The decisions Fed officials make about interest rates and financial regulations affect just about everyone in the country. Source: washingtonpost.com Share This:

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