Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
Ahead of the deadline, U.S. President Donald Trump told reporters that Huawei was a national security threat.Technologyread more
Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Stocks in Asia edged up Monday afternoon as U.S. Treasury yields bounced higher after plunging last week.Asia Marketsread more
The problem with tanking equities lies elsewhere, writes Michael Ivanovitch, because traders see no end to America's unfolding trade disputes with Europe and China.World Economyread more
Beijing wants to use reforms to support a slowing economy.China Marketsread more
Trump said Cook made a "good case" that it would be difficult for Apple to pay tariffs, when Samsung does not face the same hurdle because much of its manufacturing is in...Technologyread more
The yield on the benchmark 10-year Treasury note briefly fell below the 2-year rate on Wednesday, a phenomenon in the bond market known as yield curve inversion, which is...Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
The hearing will now begin next Monday to allow time for the completion of a previous trial that revolves around former 1MDB unit SRC International, a Kuala Lumpur High Court...Asia Newsread more
"I don't want to do business at all because it is a national security threat," Trump told reporters.Technologyread more
The U.S.-China trade war is going to have a larger impact on growth than Goldman Sachs originally estimated.
The firm lowered its fourth-quarter growth forecast by 20 basis points to 1.8%, citing a larger than-expected impact of recent trade war events.
"We have increased our estimate of the growth impact of the trade war," said Goldman Sachs chief economist Jan Hatzius in a note to clients Sunday. "The drivers of this modest change are that we now include an estimate of the sentiment and uncertainty effects and that ﬁnancial markets have responded notably to recent trade news."
The trade war between the U.S. and China escalated in recent weeks after Trump's surprise announcement of 10% tariffs on the remaining $300 billion in Chinese imports that had eluded duties. Markets had their worst day of the year on Monday after China let its currency weaken, crossing the 7 yuan-per-dollar threshold and said it would halt imports of agricultural goods from the U.S. A drop in a currency's value makes that country's products cheaper on the international market.
Financial conditions, policy uncertainty, business sentiment and supply chain distribution will all contribute to lower-than-expected growth as a result of the trade war, said Hatzius.
"The policy uncertainty effect may lead ﬁrms to lower capex spending as they wait for uncertainty to resolve. Relatedly, the business sentiment effect of increased pessimism about the outlook from trade war news may lead ﬁrms to invest, hire, or produce less," said Hatzius.
Hatzius also said supply chain disruption of rising input costs may lead U.S. firm to lower their domestic activity.
Due to the recent trade war events, Goldman now estimates a cumulative drag on GDP of 0.6%, including a 0.2% drag from the latest escalation.
"Fears that the trade war will trigger a recession are growing," said Hatzius.
Goldman Sachs said it expects the new round of tariffs to go through in September and it no longer expects a trade deal before the 2020 election.
— with reporting from CNBC's Michael Bloom