CNN throws BOMBA: two of the world's major economies have fallen into recession – News on sources


Investors have abandoned fears about the pace of global growth, choosing optimism after the "phase one" announcement of US-China trade conflict, but expected economic data from Europe next week could change their mood, CNN says.

Also read: Mugur Isarescu, a blow to the speeches of Orban and Iohannis: The economy is not at the bottom of the precipice

Germany can announce data on Thursday indicating that it is in recession. Economists polled by Reuters believe that the fourth economy in the world decreased 0.1% between July and September – marking two consecutive quarters of negative growth.

It is possible that Germany – which was hit by the trade war, as well as the drop in global demand for vehicles – has, however, avoided the fall. Exports returned unexpectedly in September, up 1.5% from the previous month. August data was also revised upwards. "With the data now, a technical recession is not a plausible scenario," Carsten Brzeski, ING's chief economist, told Germany, noting that Germany could have avoided a contraction "at the last minute."

The recession or not, the reality is that Germany's economy, the largest in Europe, seems weak. "The fact remains that the German economy has been de facto stagnating for over a year," Brzeski said.

Also, next week's calendar is the testimony of Federal Reserve Chairman Jerome Powell in front of Congress on the US economy, which takes place on Wednesday and Thursday.

Powell will be questioned after the three interest rate cuts announced by the Fed, but will likely face questions about weak data on production and business investment, and what can he say about the power of the largest economy in the world .

And the UK will report GDP data on Monday. The country's economy has slowed for the first time since 2012, in the second quarter, as global growth and fear of Brexit have raised great fears, but economists polled by Reuters believe the country will avoid a recession, registering a 0.4-fold increase. % between July and September.

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