Financial markets have flashed a warning sign about the economic outlook for the United Kingdom and the US. Germany's economy contracted in the second quarter, while China's industrial output grew at its slowest pace in 17 years. In December, for example, the yield on the five-year Treasury dropped below the two- and three-year Treasury yields. The inversion of that curve has preceded every recession in modern history.
The Nasdaq slipped 7, or 0.1% to 7,766. Both 10-year and 30-year Treasury bonds, which tumbled to record lows Wednesday , stabilized with gains Friday. Stocks in Asia and Europe paved the way for the volatile day on Wall Street early Thursday after China said it would take "necessary countermeasures" if President Trump follows through on a threat to impose tariffs on more than $100 billion worth of Chinese goods on September 1.
While an inverted bond yield curve is a classic warning sign of a recession - having preceded every economic decline in the past 60 years - some experts, including former Fed chief Janet Yellen , believe that a USA recession can still be avoided.
New Hampshire was one of three states Trump said saw "serious voter fraud" during the 2016 election. Politicians in Denmark have ridiculed the idea of a possible USA acquisition. Secretary of State Mike Pompeo said Russian Federation was behaving aggressively in the Arctic and China's actions there had to be watched closely as well.
China hopes to find mutually acceptable solutions through dialogue and consultation on the basis of equality and mutual respect, she added. President Donald Trump's new tariffs on Chinese agricultural products are likely to hurt the Asian nation a lot less than the retaliatory duties Beijing already imposes on the US.
As Hong Kong's police have steadily adopted brutal tactics to clamp down on Hong Kong's increasingly chaotic protests, US politicians on the left and the right united in the last few days to denounce the escalating violence and urged China's authorities to accede to the protesters' five demands, a list which include calls for universal suffrage in the city-state.