US: Manufacturing weakness – BNP Paribas
|Analysts at BNP Paribas, notes that the US economy, especially in the manufacturing sector, has shown some signs of weakness recently, prompting the US Federal Reserve to cut rates preventively.
Key Quotes
“The materialization of US “trade war” through tariffs increases on worth $300bn of imports is likely to weigh on firms profitability, then activity.”
“The inverted yields curve is a bearish signal. It could be followed by sizeable downward adjustments in highly leveraged sectors such as energy and IT.”
“As a consequence, the monetary policy would continue to ease.”
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