Enduring trade tensions and weakening economies worldwide are causing a significant decline in global commerce, the World Trade Organization warned on Tuesday. The instability led the Geneva-based organization to cut its forecast for trade volume growth to just 1.2 percent in 2019, an over 50 percent drop from an earlier estimate.
"Beyond their direct effects, trade conflicts heighten uncertainty, which is leading some businesses to delay the productivity-enhancing investments that are essential to raising living standards," said Roberto Azevêdo, the WTO's director-general.
The WTO took particular issue with trade policies dominated by punitive tariffs, which its report said can "produce a destructive cycle of recrimination." Financial volatility and looming geopolitical strife, along with escalating trade wars, could also trigger an accelerated downturn, the report said.
"Resolving trade disagreements would allow WTO members to avoid such costs," Azevêdo added. "The multilateral trading system remains the most important global forum for settling differences and providing solutions for the challenges of the 21st century global economy."
Fitch Ratings, a leading London-based financial information firm, also lowered its economic outlook this week, citing similar trade concerns as the WTO. For both 2019 and 2020, Fitch lowered its global GDP growth forecasts by 2 percent, dropping the estimates down to 2.6 percent and 2.5 percent, respectively. The WTO also lowered its trade growth forecast for 2020 from 3 percent to 2.7 percent.
"There can be few precedents since the 1930s of global growth prospects being affected so significantly by trade policy disruptions," said Brian Coulton, Fitch's chief economist.
The lowered guidance comes as governments and economists around the world are increasingly cautioning of an economic slowdown.
In the U.S., consumer spending — one of the primary drivers of economic growth — fell in August to just 0.1 percent growth, a sharp decline from the 0.5 percent growth in July, according to the Commerce Department's Bureau of Economic Analysis. The U.S. Federal Reserve also cut interest rates twice in recent months to spur growth and sustain expansion.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
