There is no longer a question of whether we are headed for a recession, according to many on both Wall Street and Main Street.
Economists from Morgan Stanley and Goldman Sachs this week said a worldwide recession is now a “base case,” and that the U.S. economy will see a decline of 5 percent in GDP in the second quarter.
More than 60 percent of Americans also think a recession will come in the next year, according to a new study by YouGov.
The good news, however, is that both banks anticipate a bounce back. But most Americans say they don’t feel the country is ready to withstand a downturn.
Goldman Sachs predicts a 3 to 4 percent growth in the latter six months of the year. Morgan Stanley sees global growth at 0.9 percent for the full year — worse than the 2001 recession, but less severe than the 2008 financial crisis.
YouGov’s study found just 29 percent of the country was at least somewhat prepared to get through a downturn, while a majority (59 percent) said no.
The outbreak of the coronavirus worldwide is the kind of unforeseen factor that has seized markets and economies globally. But respondents said the way government leaders have responded also plays a role in their viewpoints.
According to an exclusive YouGov poll conducted for Cheddar, 72 percent of Americans believe that a U.S. president has an influence on a country’s economic standing. The remainder — 28 percent — said they believe a president has not very much or no influence.
Across age groups, the vast majority responded in a similar breakdown:
When viewed across party lines the answers reflect bipartisanship, but still skew majority:
In terms of how personally ready Americans feel they are for a recession, more people were likely to say they were not very or not at all prepared for a recession (46 percent) than somewhat or very prepared (42 percent).
Those with higher incomes reported feeling more prepared
Those who felt not very prepared or not at all prepared were more likely to make less than $80,000
Respondents who reported making less than $80,000 were also more likely to respond that they weren’t sure if they were prepared or not — around 10 percent versus 4 percent of those who reported making $80,000 or more.
There have been various proposals on how to ease the financial burden on Americans during this situation. On Wednesday President Donald Trump signed a broad relief bill that promises healthcare-related assurances, including paid emergency leave and free testing for Covid-19 to start.
A potential expansion of the relief being discussed includes direct checks that could mean $1,000 per adult and $500 per child.
Some believe this may not be enough -- the New York Times editorial board wants the federal government to send $2,000 to every American immediately.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
