Manufacturing orders from China down 40% in unrelenting demand collapse
- U.S. manufacturing orders in China are down 40% in what a logistics manager described to CNBC as an unrelenting demand collapse.
- Asia-based shipping firm HLS recently told clients it is a “very bad time for the shipping industry.”
- Chinese factories are shutting down two weeks earlier than usual ahead of Chinese New Year.
- As the Federal Reserve and other central banks around the world attempt to fight inflation by raising interest rates and cooling the economy, there is significant risk that a slowdown in demand turns into a recession.
Wall Street Goes Risk Off as Bank CEOs Sound Alarm: Markets Wrap
- Goldman’s chief David Solomon cites ‘some bumpy times ahead’, warns of job cuts
- JPMorgan’s Jamie Dimon sees ‘mild to hard recession’ next year
- Morgan Stanley will cut 2,000 jobs ahead of potential US recession
- Bank of America slows hiring
Goldman Sachs Group CEO David Solomon warned about pay and job cuts, citing “some bumpy times ahead.” Bank of America Corp. is slowing hiring as fewer employees leave ahead of a possible economic contraction, chief Brian Moynihan said. Morgan Stanley will reduce its global workforce by about 2%, while JPMorgan Chase & Co.’s Jamie Dimon told CNBC a “mild to hard recession” may hit next year.
“We have not yet seen the bottom on equity prices,” said Lauren Goodwin, portfolio strategist at New York Life Investments. “While this phase of equity market volatility is likely to end in the next few months, earnings have not yet adapted to a recessionary environment.”
World Economy Heads for One of Its Worst Years in Three Decades
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Bloomberg analysis anticipates recessions in Europe and the US
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China seen rebounding, monetary policies on divergent paths