Three Reasons Trump’s Trade War Will Become a Pain for the U.S. Economy
President Donald Trump’s trade war with China is about to start causing some real pain for the U.S. economy, according to Bank of America Corp. analysts. While the tariff fight has so far made a bigger dent on China’s growth and the large-scale impact on the U.S. seems to be muted, that’s likely to change in the coming months, economists Ethan Harris and Aditya Bhave said in a report Friday.
This Actually Could Be the Year for Emerging Markets
Global stocks underperformed Wall Street in 2018 as escalations in the U.S.-China trade war dragged down markets around the world, with the MSCI Emerging Markets Index ending the year down more than 16 per cent and the MSCI World Index off more than 10 per cent. While many economists are projecting global growth to slow further in 2019 and 2020, some firms expect emerging economies to get back on track and outperform the U.S.
Bank of Canada Keeps Key Rate at 1.75%, Downgrades Economic Forecast
The Bank of Canada (BoC) kept its benchmark interest rate steady at 1.75 per cent on Wednesday, in a widely anticipated move that reflects a clouding global economic outlook. The central bank also said it now expects the economy to grow at a slower pace in 2019 than earlier anticipated, with GDP projected to expand by 1.7 per cent instead of 2.1 per cent. It’s the second consecutive time the central bank has pressed the pause button on rates. It raised the key rate in October but held steady with its December rate announcement.