The tariff delay announced by the U.S. on Tuesday “doesn’t really change the outlook on the trade tensions,” said Louis Kuijs, chief Asia economist at Oxford Economics in Hong Kong. “We expect further policy easing in the coming months to help stabilize growth amid the above headwinds.”
Just this week, Dusseldorf-based Henkel AG issued a profit warning that summed up Germany’s woes. The industrial firm is facing pressure on two fronts, a slowdown in the auto industry and weaker demand in China, the same environment that’s crippled manufacturing across the country.
“Germany has tooled up as this massive global manufacturer, benefiting from lower interest rates and a weaker currency than if they hadn’t been in the euro,” said Trevor Greetham of Royal London Asset Management. “And now the world’s deglobalizing, and we’re at the low ebb in the business cycle. So its really hard pressure.”
This article was provided by Bloomberg News.