President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
Portfolio managers fear a "sharp fall" in stocks in the near term and are taking steps to protect themselves, according to a widely followed survey conducted Bank of America Merrill Lynch.
The investment bank's latest monthly survey of global fund managers found that 34% of investors say they have secured downside protection against a big decline in the equity market over the next three months. That represents the highest level ever in the history of the survey, chief investment strategist Michael Hartnett said.
"No trade deal means post-Fund Manager Survey investor mood has soured significantly," Hartnett said in Tuesday's note to clients. "Longs in US stocks, EM, discretionary, tech, banks [are] all threatened if key technical levels cannot hold this week."
Pros will often use options or other derivatives to hedge their portfolios when they fear a big decline is coming.
More fund managers highlighted "trade war" as the No. 1 global tail risk to stock performance.
The Dow Jones Industrial Average and the have struggled since their close on May 3, the last trading session before President Donald Trump announced via Twitter at the beginning of last week that the U.S. would hike tariffs on Chinese imports. The Dow — off more than 1,100 points since the president's tweet on May 5— has sunk amid steep losses in trade bellwethers Intel, Apple and Caterpillar.
And many investors believe the selling isn't over, according to the survey. The recorded pivot to a more conservative market outlook has also led to a shift in what investors want to see from the companies in their portfolio.
Demand for corporate deleveraging, for example, rallied to near a record high at 46% as more investors prefer CEOs use any extra funds to pay down debts as market's grow more turbulent.
That's instead of the 12% of survey respondents who wanted to see more stock buybacks and the 34% who hoped companies use money to buy new factories or equipment, known as capital expenditures.
The risk is that "corporate deleveraging becomes self-fulfilling … credit spreads remain best recession 'tell,'" Hartnett added. "The percentage of [Fund Manager Survey] investors that want corporates to delever rose 3 percentage points month over month to 46% ... while there was a 4 percentage point drop in demand for returning cash to shareholders (12%)."
The Bank of America survey, conducted May 3 through May 9, included 250 panelists with $687 billion in assets under management.