UK edges towards recession as service sector sinks

This article talks about how the UK is now the closest it has been to a recession since the financial crisis. It is a no shocker that this is a reaction to Brexit but what's interesting and rather scary is how the entire global economy is affected. The service sector, which consists 80% of the economy has seen a downfall, not surprisingly, the US service sector too has seen a downfall. The German private sector has also seen it's first decline in six years. Trade tensions between US and China have affected the global economy with a decrease in manufacturing output and export volumes. The FTSE, the London stock exchange has seen a significant plunge and companies have been shedding jobs at the fastest rate since 2010. Investor confidence is low as the future remains uncertain. All of this news is worrisome and strong measures need to be put in place to avoid a second major global financial crisis.

https://www.theguardian.com/business/2019/oct/03/uk-edges-towards-recession-as-service-sector-sinks

The Father of the Yield Curve Indicator says now is the Time to Prepare for a Recession

The inverted yield curve has predicted the past seven recessions, however many articles claim that the inverted yield curve cannot predict WHEN the recession will hit. The first thing I want to mention is how the title says "the father of the yield curve indicator". This is a way for authors to scare people who are reading the article because if the person who "invented" or "discovered" the yield curve indicator says that consumers and producers should start preparing, then it is credible. That does not imply that the father of the yield curve indicator is the most knowledgeable. That is simply a scare tactic.
The key points of the article mentions that Harvey encourages investors, business executives, and consumers to prepare now for the upcoming recession. However if businesses and consumers begin to prepare now for a recession, it would speed up the process for a recession to "hit". A recession occurs when there are two or more consecutive quarters of negative economic growth. However, if businesses start to prepare for a recession, they will most likely start to save their money instead of investing which decreases GDP. The same will happen to consumers except they will stop consuming as much which is a large contributing factor to GDP. I believe that preparing for a recession is not what people should be doing, but instead slowly saving money so that they will be okay in the future.

Trump is Worsening Trade Fights All Around the World

US set to impose tariffs on $7.5 billion EU exports

Tariffs, tariffs everywhere, and not for any good reason. President Trump really wants to support domestic manufacture and services, which is a respectable goal, but the current strategy is one of macroeconomic ignorance. If Trump wants to help Boeing, he can subsidise them with as many taxpayer dollars as he desires. However, he does know this won't hurt EU corporations like Airbus as much as a tariff, but what seems to be lost is the fact that economics is not a zero-sum game. Those hurt most by these tariffs are the consumers that the President has been also promising to protect. You can't do both at the same time, Mr. President. Remove the tariffs and focus on making US products of higher quality and of cheaper price, and we will thrive. All that tariffs do is reduce economic growth, which is why we are now stagnating. Not ideal.

Hiring rates are low, but a recession is not near

The job growth rate for this September was at a slower pace than the previous year. Even with experts projecting 145,000 jobs added, Economists predict that this is not a sign of an upcoming recession. With a potential upcoming recession, these signs of a slowly-growing economy can be alarming. However, experts are confident that the United States should not fear a recession given the country's current economic health. Are we safe to agree with these experts on the projection of a recession? With today's environment in the trade market, things may not be so safe. As international affairs are gaining more tension, our economy may see itself in a recession if trade restrictions continue to be implemented.

https://www.cnbc.com/2019/10/03/fridays-jobs-report-should-show-hiring-is-slowing-but-not-that-a-recession-is-near.html