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Slowdown fears, trade wars hit sales at major industrial companies

“PPG shares traded 0.4% higher on Thursday” writes Claudia Assis for marketwatch.com. Alcoa shares recently rallied more than 6%, heading toward their highest close in two weeks and on pace for their largest one-day percent increase since Sept. 11.AA, +5.95%  reported mixed third-quarter earnings late Wednesday and shares rose on news of a restructuring and asset sales for the aluminum and alumina producer. Source: marketwatch.com

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St. Louis Fed president: US economy could see ‘sharper-than-expected slowdown’

“Louis Federal Reserve warned Tuesday that the U.S. economy could see a sharper slowdown than expected in the coming months” reports washingtonexaminer.com. That uncertainty, Bullard said, “Creates a disincentive for global investment.” “Slower global growth may feed back into slower growth in the U.S.,” he said.Louis, said risks facing the economy include uncertainty over global trade policy and the slowing of the global economy. “U.S. monetary policy cannot reasonably react to the day-to-day give and take of trade negotiations,” Bullard said Tuesday during a presentation at a conference in London,…

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IMF chief: trade conflicts fuel synchronized global slowdown

“Those discussions are expected to be dominated by the global growth slowdown, the trade conflicts and concerns over what the impact of a messy exit by Britain from the European Union could do to European growth prospects” reports thebusinessjournal.com. The lasting solution to the trade conflicts will require cooperation from all countries, Georgieva said.IMF Managing Director Kristalina Georgieva said that an updated IMF forecast to be released next week will show growth falling to its lowest point since the beginning of this decade.(AP) — The new head of the 189-nation…

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Here’s why European leaders may let an economic slowdown morph into a serious crisis

“So the odds are that European governments will wait until the slowdown degenerates into a serious crisis before they act” writes Senior Writer for marketwatch.com. Meanwhile, fiscal policy remains roughly neutral.In an era where interest rates are near zero or even negative, more borrowing doesn’t necessarily increase the debt load, as Olivier Blanchard, the former IMF chief economist, has noted.The irony is that the eurozone owes part of its greater fiscal flexibility to the central bank’s policy.The countries with high levels of public debt – Italy (more than 130% of…

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Business economists foresee slowdown in US growth

“The new forecast marks a downgrade from the 2.6% estimate for 2019 economic growth that the NABE panel had made in June” reports thebusinessjournal.com. For 2020, the forecasters expect GDP growth to fall to 1.8%.(AP) — The nation’s business economists think President Donald Trump’s trade war with China will contribute to a sharp slowdown in economic growth this year and next, raising concerns about a possible recession starting late next year.The latest survey by a panel of 51 forecasters with the National Association for Business Economics shows they expect growth,…

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What goes up must come down: Genie, maker of construction lifts, is already feeling a slowdown

“Another emerging market: data centers, which are becoming a huge global business for construction lifts” writes Seattle Times Business for seattletimes.com. As the global construction sector ramped up, Fearon said, “rental companies bought an incredible amount of equipment.” But the reverse has also been true.In early 2019, many of those Genie customers started worrying about a construction slowdown and began curbing equipment purchases.Genie, which makes the bright blue construction lifts that are nearly ubiquitous in booming regions like ours, has long served as an informal leading indicator for the construction business,…

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Economy added 136,000 jobs in September to bring unemployment to five-decade low

“The U.S. economy added 136,000 jobs in September, and the unemployment rate ticked down to 3.5%, a new 50-year low, according to federal data released Friday” reports washingtonexaminer.com. Trump has touted the low unemployment rate and continued economic expansion as a major achievement of his administration, but any economic slowdown could damage the president’s chances of reelection.Unemployment was expected to hold steady at 3.7%, indicating the labor market remains tight and the economy strong. Source: washingtonexaminer.com

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Gold inches up as weak US data reinforces economic slowdown fears

“Gold prices inched up on Wednesday, after rising as much as 1% in the previous session, as dismal U.S. manufacturing data fanned fears of a sharp global economic slowdown and stoked bets of further interest rate cuts” reports cnbc.com. An employee returns a box of one kilogram gold bars to the safe in Budapest, Hungary, on June 17, 2013.U.S. manufacturing activity tumbled to a more than 10-year low in September as lingering trade tensions weighed on exports, further heightening financial market fears of a sharp slowdown in economic growth in…

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A manufacturing downturn could still hurt the U.S. economy, but not trigger a recession as in the past

“Early in the post-war era, cracks like that in the manufacturing sector usually would have widened to encompass the broader U.S. economy” writes Elisabeth Buchwald for marketwatch.com. Towards the end of the 1970s, the share of manufacturing jobs still topped 20%, when some 19.5 million Americans were employed in auto plants, steel factories and the like.From the 1950s through the 1970s, the manufacturing sector was the ship propelling the U.S. economy, but that ship has sailed which means the recent slowdown in factory activity is unlikely by itself to trigger…

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Global recession a serious danger in 2020, says UN

“Weaker growth in both advanced and developing countries means the possibility of a global recession in 2020 is a clear and present danger, the UN has warned” writes Larry Elliott for theguardian.com. Trade growth was expected to slow sharply this year as a result of a slump in global demand and the protectionist measures announced by Donald Trump.The UN stressed the need to look beyond the short-term threat of recession to deeper and long-running threats. “Beyond the immediate risks that could stall the global economy are a series of macrostructural…

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