Citi sees no trade deal before 2020 election

Investing

President Donald Trump answers questions in the Oval Office of the White House in Washington, August 20, 2019.

Kevin Lamarque | Reuters

Citi no longer sees a conclusion to the trade war with China before the next U.S. presidential election, the investment bank said in a research report on Wednesday.

“[The] base case for the trade war now is no deal before the 2020 US election,” Citi said.

Negotiations between the U.S. and China broke down last month and both countries added new tariffs on each other, beginning on Sept. 1. As the trade war continues, Citi expects U.S. economic metrics, such as consumer fundamentals, will “likely deteriorate further,” the firm said.

“Implied probabilities of a 2020 recession are now high enough to warrant caution,” Citi said.

– CNBC’s Patricia Martell contributed to this report.

Articles You May Like

Here are 6 buying categories cheaper today than they were before the pandemic
Burberry shares drop 16% after the luxury giant issues profit warning and replaces CEO
From ‘quiet quitting’ to ‘coffee badging’ — why employees are less interested in work
Lower capital gains tax, cuts to food benefits: What Project 2025 could mean for your wallet in a Trump presidency
How on-time rent payments can help ‘credit invisible’ consumers be seen

Leave a Reply

Your email address will not be published. Required fields are marked *