HSBC Asset Management warns of potential US recession in 2023 and Europe recession in 2024

Per CNBC

HSBC Asset Management recently commented on the state of the US, saying that it would "enter a downturn" in Q4. Following this, it was also noted that a European recession was expected to happen in 2024.

This came from HSBC Asset Management Joseph Little, who stated that the economy was already in a mild profit recession. It was also noted that there could be rate-cut opportunities for policymakers.

Little: “We are already in a mild profit recession, and corporate defaults have started to creep up too... The silver lining is that we expect high inflation to moderate relatively quickly. That will create an opportunity for policymakers to cut rates.”

HSBC Asset Management gave few predictions, including interest rate cuts by the US Feds before 2023 ends. They also expected that in 2024, the European Central Bank and Bank of England would follow.

In May, Elon Musk said that a mild recession was "already here." He did note that a "severe" recession was still coming.

Musk said that the Fed rate hikes could cause a further downturn during that time.

In September, the Bank of Montreal said the "likelihood of a recession is 99.9%" in 2024. This came as BOM's Earl Davis said that although it could be a policy mistake, the playbook suggests a recession could be next.

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