Morgan Stanley says economy is on 'recession watch' as bond market flashes warning

[Quixote1818]

PUBLISHED TUE, MAY 28 2019 12:46 PM EDT UPDATED 4 HOURS AGO
Thomas Franck
@TOMWFRANCK


Renewed trade tensions and a slump in economic data put U.S. profits and economic growth at risk,
Morgan Stanley warned Tuesday.

“Numerous leading companies may be starting to throw in the towel on the second half rebound--something we have been expecting,” the bank writes.

Wilson adds that market risks have been reflected in the bond market, pointing to an unusual phenomenon in government debt yields.

The stock market and economic outlook in the United States are “deteriorating,” according to an analysis from one of Wall Street’s top investment banks.

Renewed trade tensions and a slump in economic data — ranging from falling durable goods and capital spending to a downshift in the services sector — has put U.S. profits and economic growth at risk, Morgan Stanley warned Tuesday.

“Recent data points suggest US earnings and economic risk is greater than most investors may think,” wrote Michael Wilson, the firm’s chief U.S. equity strategist.

More: https://www.cnbc.com/2019/05/28/morgan-stanley-says-economy-on-recession-watch-amid-bond-warning.html?fbclid=IwAR0ChgziEMBXMrEoq8-_bi92WY8qiUE-yJ9vXc213Ai1W2Y6odbjWmitRME

[procon]

1. Well, what will Trump the stable genius do

to get us out of this mess without burning the whole place down. His ignorance will likely plunge us back into another Great Recession, but this time we won't have Obama around to save us.

[riversedge]

2. Conducting trade policy via tweet is stupid, yet Repugs let him do it.

[safeinOhio]

3. He will do what Publicans always do...

double down of tax breaks for the rich. The only reason the tax cuts aren't working is because they weren't large enough.

[hatrack]

8. Yes, Republicnomics can never fail - they can only be failed . . .

Lack of faith, and insufficient support for Duh Grate Leedur.

[Takket]

7. Tax cuts for the rich of course!

[BadgerMom]

4. I don't want a recession, but...

if we must endure one, it would be better it start before 2020 rather than after the election.

[Achilleaze]

5. republican economics always creates disaster

The repubes have been coasting along on the Obama Wave of Prosperity, and pretending they did it. Fake claim.

But now republican Tax Breaks for the Rich are active, and the overall economy has begun it's inevitable downward republican spiral into the crapper.

[democratisphere]

6. drumpf slump dump recession wholly owned by the King of Bankruptcy.

MAGA.