Page 25 - ARUBA TODAY

BUSINESS Friday 12 april 2019
A25

Top IMF official warns global economy facing various threats

Associated Press burdens for individual
WASHINGTON (AP) — The countries and corporations
head of the 189-nation In- and political missteps such
ternational Monetary Fund as a botched exit by Britain
said Thursday the world is from the European Union.
facing a time of high un- "We are at a delicate mo-
certainty with 70% of the ment," Lagarde said.
global economy caught The IMF, citing heightened
in a growth slowdown that trade tensions, this week
could be worsened by self- downgraded its forecast
inflicted wounds such as for growth this year in the
unnecessary trade battles. United States, Europe, Ja-
IMF Managing Director pan and the world overall.
Christine Lagarde said The fund's economists ex-
that while her agency is pect global growth to de-
forecasting a rebound in celerate from 3.6% last year
growth next year that fore- to 3.3% in 2019 -- tied with
cast is "precarious and sub- 2016 as the weakest perfor-
ject to downside risks" with mance since the recession
rising trade tensions a top year 2009.
threat. Growth in word trade is
Trade flows have been expected to expand just
shaken by the Trump ad- 3.4% — a sharp slowdown
ministration's efforts to International Monetary Fund (IMF) Managing Director Christine Lagarde speaks at a news confer- from the 4% trade growth
force China to stop stealing ence, during the World Bank/IMF Spring Meetings in Washington, Thursday, April 11, 2019. the IMF had expected in its
technology and coercing Associated Press previous forecast in Janu-
foreign companies to hand ary and down from actual
over trade secrets. about it was expected to cussions revolving around a synchronized upswing. growth of 3.8% in trade last
The trade war between the be the key agenda item the spring meetings of the Now, she said, 70% of the year.
United States and China, when global finance of- IMF and its sister lending in- global economy is endur- At a separate news confer-
the world's two biggest ficials hold meetings over stitution, the World Bank. ing slower growth. ence Thursday, David Mal-
economies, has disrupted the next three days in Speaking at an opening While she said the IMF is pass, the new president of
supply chains and shaken Washington. news conference, Lagarde forecasting a rebound to the World Bank, said that
business confidence and U.S. Treasury Secretary Ste- said when officials were stronger growth next year, the current slowdown in
contributed to a deteriora- ven Mnuchin and Federal gathering a year ago for numerous risks could de- global growth is jeopardiz-
tion in the global outlook. Reserve Chairman Jerome the spring finance meet- rail that forecast. She said ing the fight against ex-
That slowdown in global Powell will represent the ings, 75% of the global those include unresolved treme poverty, especially
prospects and what to do United States at those dis- economy was enjoying trade tensions, high debt in sub-Saharan Africa.q

Health care companies lead US stock indexes slightly lower

By ALEX VEIGA majority of officials want trial Average fell 76 points, Group fell 4.6%, Humana a key battery plant expan-
Associate Press to keep interest rates un- or 0.3%, to 26,080. The Nas- dropped 3.9%, Anthem lost sion in the U.S. The stalled
Major U.S. stock indexes changed in 2019. Investors daq composite slid 0.3%. 3.8% and Cigna gave up expansion follows Tesla's re-
edged lower in afternoon want the central bank to Major European indexes 3.4%. port earlier in April of a first-
trading Thursday, pulled take a more laid-back ap- were mostly higher. POWER OUTAGE: Tesla quarter slowdown in pro-
down by a broad decline proach to avoid triggering NOT FEELING WELL: Several slumped 3.2% following duction and demand.q
in health care companies. a market slump.
Insurers UnitedHealth Corporate earnings are the
Group, Humana, Anthem next key catalyst for inves-
and Cigna led the health tors. Major banks, including
sector decline, which out- Wells Fargo and JPMorgan
weighed gains in industrial Chase, will report their first-
stocks and banks. The mar- quarter results on Friday.
ket had been higher earlier Delta led a rally in airline
in the day. stocks Wednesday after re-
Fastenal led gains in in- porting solids results.
dustrial stocks after the Investors are also keeping
company delivered better- a close eye on internation-
than-expected quarterly al developments, includ-
results. Prudential Financial ing the European Union's
and Unum Group were deadline extension for Brit-
among the gainers in the ain's departure. Britain now
financial sector. has until October 31 to de- Trader John Panin works on the floor of the New York Stock Ex-
The modest slide gave velop a plan for its exit from change, Thursday, April 11, 2019.
back some of the ground the bloc. Associated Press
the market won a day KEEPING SCORE: The S&P
earlier, after minutes from 500 index was down 0.2%
the latest Federal Reserve as of 1:43 p.m. Eastern health insurers weighed on news reports that the elec-
meeting showed that the Time. The Dow Jones Indus- the market. UnitedHealth tric maker would hold off on