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The stock market’s worst fears are coming true — and Trump isn’t helping: Bloomberg

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Economists have warned that a recession is on the horizon and President Donald Trump has an opportunity to soften the blow. Instead, he’s making it worse.

Bloomberg News began its Thursday report on the economy by saying that the fundamentals aren’t looking as strong as they once did.

The huge decline in Apple revenue sent the markets into a tumble, but Kevin Hassett, President Donald Trump’s chairman of the Economic Council of Advisors did little to reassure the country everything would be fine. Instead, he predicted Apple wouldn’t be the last American company to take huge losses due to their business in China.

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“Anything that suggests cracks in the earnings and macro foundation would go down poorly on Wall Street,” Bloomberg wrote. The statement came less than an hour after Hassett did the exact opposite.

“There are a heck of a lot of U.S. companies that have sales in China that are going to be watching their earnings being downgraded next year until we get a deal with China,” he said in a Thursday CNN interview.

Bloomberg warned of an economy on “the brink of a bear market.” But investors are being told not to panic and that corporate earnings still remain strong. Confidence in that promise are taking a hit in the markets on Thursday. So far, the Dow Jones Industrial Average has fallen 600 points and the Nasdaq also dropped 3 percent.

The stimulus that was ushered in after the recession in 2008 will taper off in 2020. Jared Bernstein, a former economic advisor to Vice President Joe Biden, wrote in a July op-ed that existing economic “expansion” is approaching its 10th year, making it one of the longest. While expansions don’t die as the result of age, he noted bubbles and “central-bank mistakes or some unforeseen shock to the economy’s supply”could prophecy an economic disaster. Another predictor is a trade war.

“When it makes a big move, up or down, it’s telling you positive or negative things about future developments. The extreme move down was telling you we’d get this type of news-flow,” explained Alec Young, managing director of global markets research at FTSE Russell.

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Trump’s trade war, ongoing war with the Federal Reserve and “stretched valuations” is only adding to the problem.

“The market is pricing in recession no matter what — the market has priced it in,” Bloomberg cited Jeff Carbone, managing partner at Cornerstone Wealth. “Now to what extent and when? That history hasn’t been written yet.”

Laurence Benedict, founder of Opportunistic Trader explained that when the markets aren’t doing well, the tumble feeds into itself and results in a self-fulfilling prophecy.

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Read the full report at Bloomberg News.


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VIDEO: Wild scene unfolds as shoppers tackle and restrain man who coughed on supermarket produce

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A man was tackled and held down by shoppers after he allegedly coughed and spit on produce at a Stop and Shop in Kingston, Massachusetts, CBS21 reports.

Cellphone video shows around two or three shoppers holding the man down after a scuffle. Witness told Kingston Police that the 65-year-old man from Duxbury was coughing and spitting while being confrontational.

Stop and Shop released a statement saying that any potentially affected product has been discarded and the store is conducting a deep cleaning and sanitizing of all impacted areas.

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Kentucky governor: ‘Our biggest problem’ is competing with the federal government to purchase life-saving medical equipment

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New York Gov. Andrew Cuomo has not only been warning about the critical shortage of ventilators and personal protective equipment (PPE) his state is facing during the coronavirus pandemic — he is also complaining about the companies that are forcing states to compete with each other over who can pay the most. And similarly, Kentucky Gov. Andy Beshear is complaining that it has been “very hard” for his state to obtain medical equipment when it has to compete with the federal government.

At a press conference on Saturday, April 4, Beshear told reporters, “Our biggest problem is that just about every single order that we have out there for PPE, we get a call right when it’s supposed to be shipped — and it’s typically the federal government has bought it. It’s very hard to buy things when the federal government is there, and any time they want to buy it, they get it first.”

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Military vets say Trump’s acting Navy secretary ‘spit on their service’ with attack on fired captain

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Some of the sailors aboard the USS Theodore Roosevelt weren't the only people with military ties to be upset by acting Secretary of the Navy Thomas Modly's speech denouncing Capt. Brett Crozier.

Modly, who ordered Crozier's dismissal last week after he wrote a memo detailing the dire COVID-19-related situation aboard the USS Theodore Roosevelt that subsequently leaked to the meda, drew jeers from the ship's crew after he called Crozier "stupid" and accused him of committing "betrayal."

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