Analysts hit by recession anxiety

Rising worries over US-China trade tensions; Morgan Stanley foresees slump in 9 months

A store that has closed down in Manhattan, New York. The United States is still in robust growth, with historically low unemployment rates, but underlying the worry is dwindling investor confidence.
A store that has closed down in Manhattan, New York. The United States is still in robust growth, with historically low unemployment rates, but underlying the worry is dwindling investor confidence.PHOTO: AGENCE FRANCE-PRESSE

Worries about a potential recession have grown, following the events of recent days when - in a fundamental shift - it has dawned on markets, businesses, analysts and pundits that no United States-China deal is in the offing for the foreseeable future.

Morgan Stanley, in a note to clients last week, said a recession would come in nine months if US President Donald Trump goes one step further than the 10 per cent tariff he has threatened on Chinese goods from Sept 1.

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A version of this article appeared in the print edition of The Straits Times on August 10, 2019, with the headline 'Analysts hit by recession anxiety'. Print Edition | Subscribe