Banking Behemoth HSBC Warns of Looming Recession in US and Europe


28 Jun 2023 2:47 AM

In an assessment of the world economy HSBC Asset Management, the investment arm of the banking behemoth warned that the United States is set to face economic headwinds in the latter part of this year, in what could potentially usher in a global recession....

  • HSBC Asset Management warns of economic headwinds in the United States and predicts a global recession.
  • Europe is also expected to face economic contraction in 2024.
  • The warning lights for a recession are "flashing red" across multiple economies.
  • HSBC predicts central banks will slash interest rates, but inflation may pose a challenge.
  • The recession is forecasted to result in a 1-2% contraction in GDP.
  • HSBC remains cautious on risk and cyclicality, with interest rate exposure being appealing.
  • China and India are seen as optimistic growth stories.
  • HSBC has introduced cryptocurrency services for clients.

The article presents a grim outlook on the world economy, with warnings of a global recession and economic headwinds. However, there is optimism regarding China and India's growth prospects. The sentiment is mostly negative due to the recession concerns.

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You May Ask

What are the key concerns raised by HSBC Asset Management in their mid-year economic outlook?Which regions are expected to face economic contraction according to HSBC?How does HSBC predict central banks will respond to the recession?What is the forecasted impact of the recession on GDP?What are HSBC's views on cryptocurrency and what services have they introduced?

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