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00:00:00
another market downturn Wednesday as the Dow dropped as many as four hundred points per the damaging its stock market that's been pummeled three weeks in a row the longest Wall Street losing streak in eight years interest rates on government bonds also fell hitting lows not seen in almost two years renewed turmoil in global markets are sending a message of fear fear the world economy is veering toward a recession , orders economics and markets editor Dan burns for weeks now %HESITATION the bond market is been telling a story that the stock market didn't want to hear %HESITATION and the stock market finally is waking up to that and that's the that that story as a narrative about %HESITATION %HESITATION a real growing probability of of of a darker outlook for the economy and %HESITATION in the months and quarters ahead %HESITATION largely as a as a result of of this trade standoff between the United States and China alarm bells really started ringing in the bond market in early may when president trump signal trade talks had broken down and more terrorists were being slapped on Chinese made goods , emptied into US government bonds which drive interest rates lower that's because the rates for something like a ten year bond down much faster than for a shorter day forcing the kind of wall street's with at historically points to a recession down the road typically this in version as we call it of the yield curve is a harbinger of a recession is it one hundred percent accurate now but on balance yellow eighty to ninety percent of the time when you get an inverted yield curve and it sticks as it has now up sometime within the next six months to twelve months sometimes a little shorter case little longer you usually get an economic contraction and it's not just stocks and bonds worried about the threat of a recession , Amanda the prices have been falling as well crude oil has plunged twenty five percent since the peak in October one concerns a drop in demand would make a global glut in supplies much worse