UK would lose £130bn in growth if Brexit deal passed, figures suggest

         According to recent British economic figures, the United Kingdom is expected to lose over £130 billion in economic growth if Boris Johnson’s Brexit plan is ratified by British parliament. Johnson’s Brexit deal with the European Union is a limited free trade deal, that is expected to strip 6.7% from the UK’s projected economic and GDP growth. According to these economic figures, the decrease in projected economic growth is significantly worse than the previous arrangement reached by former Prime Minister Theresa May. May’s deal was only expected to decrease economic projections by 3.9%. Boris Johnson’s trade arrangement would also decrease the projected GDP per capita by £2,250.

https://www.theguardian.com/business/2019/oct/17/uk-lost-gdp-growth-brexit-deal-passed-official-estimates

The bond market may do something unusual for this time of year

Year-end bond market volume is dropping off earlier than usual and is expected to fall around Thanksgiving instead of mid-December. Well's Fargo Securities' Michael Schumacher says that because of the geopolitical tensions that have been occurring recently it's putting bond investors on edge. "This week it's Brexit. Probably Brexit again next week. Trade after that. Hong Kong. Iran. You could go on and on and on." The angst from this "atypical" backdrop has Schumacher recommending high-yield investments and to also avoid long-duration bonds, such as the 10-year Treasury due to the possible negative outcome of Brexit. Therefore, he says that short duration bonds could have decent yield and not a ton of downside. What do you think of Schumacher's recommendations? 

https://www.cnbc.com/2019/10/18/the-bond-market-may-do-something-unusual-for-this-time-of-year.html

China's Economic Growth Drops to Lowest Level Since 1992

Time to panic, or just economics 101? With Chinese economic growth rates dipping to a 27 year low, economists are blaming the trade war with the United States. The trade war is definitely playing a role, but it is also entirely possible that China's economy is finally slowing down after unprecedented growth as they get closer to their steady-state.. They are still growing at a rate of 6%, much higher than the United States growth rate. So, do you believe that China is in trouble, or is this decline in growth natural?

https://www.cnn.com/2019/10/17/economy/china-gdp-economy-trade-war/index.html

Elijah Cummings, Baltimore congressman, and civil rights leader, dies at 68

'A giant of integrity and knowledge has fallen': congress reacts!

What happens to his congressional post in MD.?

Cheap money could end up hurting the economy down the road

Becoming addicted to being able to acquire loans at an extremely low interest rate will inevitably end up hurting the US economy. But this is what President Trump continues to push for from the fed when he asks for interest rates to continue to go lower. The pain will start from the lenders whose margins continue to get more narrow as the loans are pushed out at lower rates. analysts are even predicting that rates could drop down to 0 in order to stimulate the economy again but all that cheap/ free money will be soaked up in the first 6-12 months and will eventually push us into a recession. What would you do if you were the Fed right now?

https://www.cnbc.com/2019/10/17/central-banks-cutting-interest-rates-to-zero-or-negative-bad-for-economy.html

US economy is just one bad recession away from zero rates or worse

Larry Summers stated that the United States is just one bad recession away from the interest rates falling to zero. He said that if this were to happen that we should immediately think of a stabilization policy to raise them to a stable rate. Corporations will have to figure out how their investment policies can be adjusted to fit the lower interest rates. He also pointed to the fact that he believes that there is a recession on the horizon but has no expectations of it happening within the next year. the interest rates have been cut twice this year alone and before that the last time that it happened was over a decade ago. prior to the cuts in the interest rates, the fed was more interested in the raising of these interest rates. The Trump administration is a big reason for the recent cuts and he is looking to try and cut the rates again before the year is over. My big question is what effects do you think the zero interest rates will have? and how dangerous do you think this will be?

Global Economy on Course for Weakest Growth Since Crisis

Due to tensions that have brought international trade to a near standstill, the global economy in 2019 is on track for the weakest year of growth since the financial crisis. According to the International Monetary Fund, global growth is expected to drop to 3%, down from the estimate of 3.2%. Only two years ago in 2017, the global economy was growing at 3.8%. The IMF attributed the sharp slowdown over the past two years primarily to rising trade barriers that have stunted manufacturing and investment around the world. They now forecast that world trade volumes will only grow by 1.1% this year, less than half of the July estimate of 2.5%. The IMF's chief economist said "With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot.”

What can be done through either monetary or fiscal policy to put growth back on track? Can the United States influence global economic growth? If yes, how so?

U.S. Business Investment Weaker Than Previously Estimated

U.S. economic activity has been significantly impacted by trade and global growth over recent years. With increasing uncertainty of the future amid U.S.-Chinese relations, markets have began to experience repercussions. U.S. business investment has contracted by more than expected, declining by 0.4% higher of an annualized rate than estimated for the second quarter. This has been the steepest decline in almost five years. This was fueled by a large 11.1% annualized rate of decline in spending on structures, meaning that businesses are not making as many long term investments on things such as PP&E (property plant and equipment). Surely, the trade conflicts with China have impacted such decisions and will continue to do so as tariffs remain high. Policies must change in order to revert some of this fallen investment, what should be done in order for this to happen?

China to Reduce Interest Rate

The Chinese central bank has recently made claims to reduce the national interest rates in the country.
This is in a bid to boost the slow growth of the economy amidst the trade war with the USA. 

The People's Bank of China in a statement said “We must spare no effort to improve monetary policy
transmission and insist on market-oriented reforms to promote a noticeable decline in real interest rates”

It is believed that if the interest rates are reduced it will serve as an incentive to private businesses to
expand their businesses or to invest in other businesses which would hopefully boost productivity thereby
strengthening the economy 

https://www.scmp.com/economy/china-economy/article/3030820/chinas-central-bank-eyes-noticeable-decline-interest-rates