Global Economic Update, Second Quarter 2019

Discussions between the U.S. and China regarding trade and tariff issues remain fluid. Markets are increasingly optimistic that an agreement between the two countries can help restore globalization trends, but protectionism could still weigh on growth. In Europe, the economy continues to report signs of weakness. In the U.S., labor conditions remain robust, with 3.8% unemployment rate. Sentiment indicators have been mixed, and surveys of corporate CFO priorities show a shift into more defensive strategies (away from expansion).