
JPMorgan Drops US Recession Call After US-China Trade Truce
JPMorgan Chase & Co. boosted its forecast for US economic growth after a temporary trade deal between the US and China, dropping its earlier call that the world's largest economy would sink into a recession in 2025.
'The administration's recent dialing down of some of the more draconian tariffs placed on China should reduce the risk that the US economy slips into recession this year,' JPMorgan Chief US Economist Michael Feroli said Tuesday in a note. 'We believe recession risks are still elevated, but now below 50%.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Bloomberg
13 minutes ago
- Bloomberg
Zambia Sees Economic Growth Surging to Highest Since 2021
Zambia's economy will expand at least 6% this year as Africa's second-largest copper producer reaps the benefit of improved rainfall and higher metal production, the finance minister said. Growth will accelerate to what would be the highest since 2021, Situmbeko Musokotwane said in an interview on Monday. The economy grew by about 4% last year.


Newsweek
14 minutes ago
- Newsweek
Donald Trump Says China 'Not Easy' As Trade Talks Kick Off
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump has described China as "not easy" to deal with, but touted progress between the two countries as negotiations go into their second day. "We are doing well with China. China is not easy," Trump told reporters at the White House on Monday. "Now I'm only getting good reports," he added, referencing the U.S. delegation currently meeting with Chinese officials in London. "It's a little early, but they'll be calling in soon. In fact, probably when I get back, I'll have my first call from them." On Monday, U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer met with Beijing's chief trade negotiator Vice Premier He Lifeng. Others in the Chinese delegation include Commerce Minister Wang Wentao and international trade negotiator Li Chenggang. In this photo released by Xinhua News Agency, Chinese Vice Premier He Lifeng, center right, and U.S. Treasury Secretary Scott Bessent, center left, pose for a group photo with delegations before their meeting to discuss... In this photo released by Xinhua News Agency, Chinese Vice Premier He Lifeng, center right, and U.S. Treasury Secretary Scott Bessent, center left, pose for a group photo with delegations before their meeting to discuss China-U.S. trade, in London, Monday, June 9, 2025. More Li Ying/Xinhua via AP Lutnick hailed the discussions as "fruitful," according to Bloomberg, while Bessent told reporters that the two delegations had a "good meeting." The talks may continue on Tuesday; China's Foreign Ministry has said that its delegation will be in the U.K. between June 8 and June 13. According to White House economist Kevin Hasset, Washington is seeking a "handshake" from Beijing, and the promise that the country will free up the flow of critical minerals to the U.S. "Our expectation is that after the handshake, immediately after the handshake, any export controls from the US will be eased and the rare earths will be released in volume and then we can go back to negotiating smaller matters," Hassett told CNBC ahead of the meetings on Monday. This is a developing story with updates to follow.


News24
18 minutes ago
- News24
Huawei chips are one generation behind US, but ‘no need to worry', says CEO
Huawei Technologies' chips are one generation behind those of US peers but the firm is finding ways to improve performance through methods such as cluster computing, Chinese state media quoted CEO Ren Zhengfei as saying on Tuesday. The chipmaker invests 180 billion yuan (R444 billion) in research annually and sees promise in compound chips - chips made from multiple elements - Ren said in an interview with the People's Daily newspaper of the governing Communist Party. There is "no need to worry about the chip problem", Ren said, addressing concerns stemming from US export controls. The article, published on the front page of the newspaper, come as top US and Chinese officials are set to resume trade talks for a second day in London where topics such US tech restrictions on China are expected to be discussed. Since 2019, a slew of US export curbs, aimed at curbing China's technological and military advancements, have restricted Huawei and other Chinese firms from accessing high-end chips and the equipment needed to produce them from abroad. Ren's comments are the first ever from him or Huawei about the company's advanced chipmaking efforts, which have become a flashpoint in US-China tensions. Huawei is just one of many Chinese chipmakers, Ren said in the interview, adding: "The United States has exaggerated Huawei's achievements. Huawei is not that great. We have to work hard to reach their evaluation." "Our single chip is still behind the US by a generation. We use mathematics to supplement physics, non-Moore's law to supplement Moore's law and cluster computing to supplement single chips and the results can also achieve practical conditions. Software is not a bottleneck for us," he said. Cluster computing is when multiple computers work together. Moore's law refers to the speed of chip advancement. Huawei's Ascend series of AI chips compete in China with offerings from Nvidia, the global leader in AI chips. The US commerce department last month said the use of Ascend chips would be a violation of export controls. Nvidia's AI chips are more powerful than Huawei's but the company has been barred by Washington from selling its most sophisticated chips to China, causing it to lose significant market share to Huawei. In April, Huawei launched "AI CloudMatrix 384", a system that links 384 Ascend 910C chips in a cluster that companies can use to train AI models, which has been described by analysts as able to outperform Nvidia's GB200 NVL72 system on some metrics. Dylan Patel, founder of semiconductor research group SemiAnalysis, said in an article that month that it meant that Huawei and China now had AI system capabilities that could beat Nvidia. Nvidia and the US commerce department did not immediately respond to a request for comment on Ren's remarks. Ren also said about a third of Huawei's annual research spending went to theoretical research while the rest was spent on product research and development. "Without theory, there will be no breakthroughs, and we will not catch up with the United States."