Just days after President Trump broke bread with Chinese president Xi Jinping in Buenos Aires and agreed to a ceasefire in the US-China trade war, Trump tweeted that his administration is working closely "on seeing whether or not a REAL deal with China is actually possible". If not, the self-proclaimed "Tariff Man" warned that new levies could soon be on the table.Roughly two hours after those mid-morning tweets, US markets tanked. The Dow plunged more than 800 points. And the S&P 500 closed down 3.24 per cent, it's biggest one-day decline in two months.Of course it wasn't just renewed trade tensions that sparked the sell-off. Part of the yield curve, which is the difference between shorter-and longer-term US borrowing rates, turned negative this week. A favourite recession signal, the
FT Alphaville considers the following as important:
This could be interesting, too:
Bradford DeLong writes Weekend Reading: The Downfall of Mother Bank
Tyler Cowen writes Matthew Bishop at the NYT reviews *Big Business*
Tyler Cowen writes Saturday assorted links
Bradford DeLong writes Brad DeLong's Grasping Reality 2019-05-18 13:47:53
Just days after President Trump broke bread with Chinese president Xi Jinping in Buenos Aires...