Trade wars could lead to world-wide recession

Global markets appear to have called time on the dangerous game of hardball US president Donald Trump is playing with China, as a plunge in shares, government bond yields, and the price of oil signalled his trade wars could lead to world recession.

The selloff was sparked after growing evidence that Germany was heading into recession later this year as new figures confirmed its key manufacturing exports have slowed dramatically, and data suggested the output of Chinese factories, which make everything from iPhones to car parts for the world’s consumers, was also slowing sharply because of the trade wars.