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Citigroup warns that markets are ‘dangerously unsupported’ and there’s about to be a fallout
It’s been a tough year for investors.
There was the biggest Dow point drop of all time back in February. In March, the spread between the dollar London Interbank Offered Rate and the overnight index swap rate widened to levels exceeded only from 2007 to 2009. Then there was political and economic upheaval in Argentina and Italy.
Now the world is facing what China has called “the largest trade war in economic history.”
Square is withdrawing its banking license application
Square is withdrawing its banking license application, which it initially applied for last year, according to Reuters. The firm applied for an Industrial Loan Charter (ILC) with the Federal Deposit Insurance Corporation (FDIC), which is the most common type of banking license sought by nonbanks, as it allows firms to continue nonbank operations, like manufacturing card readers, for example.
US consumers and businesses are already starting to feel the pain from Trump’s trade war
Consumers and businesses have already begun to feel the pinch of President Donald Trump’s trade battles with the rest of the world, and the pain may be just starting.
Trump has launched protectionist trade campaigns aimed at countries from Canada toChina. Effects of Trump’s tariffs are starting to pop up in reports of inflation data and confidence indicators and in the decisions of some high-profile businesses.
Given Trump’s push for tariffs on auto imports and interest in yanking the US out of the World Trade Organization, it doesn’t look as if the trade tensions will ease up anytime soon.
In markets news
- BANK OF AMERICA: The stock market’s most important driver will be more powerful than we’d expected – and one sector towers over the rest
- CITI: A ‘full-on global bear market’ is coming – here’s where to put your money until it arrives