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As talk of global recession emerges amid US-China trade war, deal flows and sentiment take a hit

Companies are taking a much more cautious view on mergers and acquisitions this year, particularly when it comes to transactions involving the United States and China, as the world’s two biggest economies square off in an escalating trade war, according to deal advisers.Transaction volumes – and the value of deals – are down, driven by fewer mega deals and increased uncertainty about the global economic outlook, advisers said.According to research and financial data provider Mergermarket, the… Source link

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China 

Trade war could cause global recession, Beijing official warns, as US investment growth in China sinks

May’s escalation in trade tensions led to a sharp drop off in the growth of American investment in China, according to data released on Thursday, which highlighted the chilling effect the trade war is having on investor confidence.The data release from the Chinese Ministry of Commerce (Mofcom) showed that US investment in China grew 7.5 per cent between January and May, year on year, a much slower pace than the 24.3 per cent recorded between January and April and also significantly lower than… Source link

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Uncertainty over US-China trade deal between Donald Trump and Xi Jinping at G20 fuels global recession fears

Almost a year into the US-China trade war, Billy Wang, who runs a trading business in Shanghai, has grown increasingly resigned that the end of the dispute is nowhere in sight and will continue to chip away at his earnings.The businessman, who supplies electronics parts like flash integrated circuits to exporters, believes it will be at least another six months before any deal will be struck between the world’s two largest economies.“Some of our clients’ products are headed for the US, so for… Source link

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China 

Central banks set to flood market with cheap loans as trade war threatens to plunge global economy into recession

The era of cheap funding is set to return as central banks worldwide cut interest rates to stimulate slowing growth amid an escalating global trade war that could tip the world economy into recession, according to analysts.The chances of a global recession have risen after the US last month raised tariffs on US$200 billion worth of Chinese goods to 25 per cent from 10 per cent while threatening to impose tariffs on another US$300 billion more of Chinese goods. China hit back by raising tariffs… Source link

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Gold rips to two-month high as recession concerns burnish safe-haven appeal

Gold prices rose on Monday to their highest in more than two months as heightened Sino-US trade tensions and Washington’s threat of tariffs on Mexico stoked worries of a global recession and drove investors to seek refuge in safe-haven bullion.Spot gold was up 0.5 per cent at US$1,312.37 per ounce, after touching its highest since March 27 at $1,312.60.US gold futures rose 0.5 per cent to $1,317.50 an ounce.“We are seeing a lot of traditional safe-haven hedging … coming back to the fray,” said… Source link

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The bond market flashes a ‘recession warning’, but it’s not time yet to panic

The bond market has started to flash what could be a warning sign as interest rates on longer-term United States government bonds – also known as Treasury bills – fall below those on short-dated bonds. This phenomenon is known as a yield curve inversion, and often signals a worsening economic outlook in the medium term, or even a recession.Investors often compare the interest rates, or yields, on shorter-dated Treasury bills – such as those maturing in three months or two years – with those on… Source link

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Stocks Blog: China, Hong Kong markets struggling over fears about trade, recession

Good day traders — Only two trading days left in the month. And for those who keep a close tab on their gains and losses, those who end up ahead in May should feel pretty good. It’s been a stomach-churner for sure.  Ongoing concerns weighing down sentiment include growing tensions between the US and China over trade and tech. And now the US Treasury yield curve has warned of recession. We’ll keep you up on the lastest in mainland and Hong Kong markets. We welcome your feedback and questions… Source…

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Shanghai shares eke out small gain while Hong Kong stocks slip as recession fears resurface

Hong Kong stocks ended lower Wednesday, while mainland benchmarks were mixed, as fears of a global recession resurfaced.The Hang Seng ended down 0.57 per cent, or 155.1 points, at 27,235.71, after the yield of the benchmark three-month US Treasury once again rose above that of the 10-year. The so-called yield curve inversion is seen as warning signal of a looming recession.China benchmarks were mixed, with the CSI 300 ending down 0.23 per cent or 8.35 points at 3,663.91, while the Shanghai… Source link

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China 

Will the escalating US-China trade war and its catastrophic aftermath push the global economy into its next recession?

Heightened trade tensions between the United States and China have raised the risk of a recession next year if the dispute between the world’s two largest economies is prolonged and escalates further, according to economists and portfolio managers.Just over two weeks ago, Washington and Beijing seemed poised to reach an agreement to end a trade war that has hurt American businesses that rely on products made in China, increased costs for US companies and consumers, and contributed to an… Source link

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Global 

Donald Trump’s ‘Thanos-like’ tariff threat to China adds to ‘risk of global recession’, analysts say

US President Donald Trump’s vow to increase tariffs on US$200 billion of Chinese goods from 10 per cent to 25 per cent “will definitely heighten the global recession risk”, according to analysts.Despite the widespread assumption that trade talks were progressing smoothly and that negotiators from China and the United States were close to reaching a deal, Trump tweeted on Sunday that “the 10 per cent will go up to 25 per cent on Friday”. He also threatened to impose a 25 per cent tariff on “US… Source link

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