8/11/2019, 8:49 PM (Source: TeleTrader)
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Goldman Sachs sees slower growth in Q4 over trade war

Goldman Sachs said in a note to clients on Sunday that it revised down its growth forecast by 20 basis points to 1.8%. The bank said the revision comes over worsened relations between the United States and China amid the trade war and added it isn't likely that a trade deal between the two will be reached before the 2020 US presidential election.

Chief economist Jan Hatzius stated: "We have increased our estimate of the growth impact of the trade war. The drivers of this modest change are that we now include an estimate of the sentiment and uncertainty effects and that financial markets have responded notably to recent trade news." Stock markets dropped earlier this month after the US said it would introduce new tariffs on China starting from September 1.

Hatzius added that fears of a recession are increasing.

Breaking the News / VP