Recession signs are flashing, WeWork pulls back the curtain, and a bank hack is probed: This Week in Finance

Welcome to This Week in Finance, your weekly roundup of the conversations trending among financial professionals on LinkedIn. Click Subscribe above to be notified of each edition. This week:

Yield curve signals trouble

Treasury yield inversions, a harbinger of recession, got scarier Wednesday. U.S. 10-year yields fell below those of two-year Treasuries for the first time since before the financial crisis, pushing the Dow Jones Industrial Average more than 800 points lower for its worst trading day this year. The flip means investors expect lower interest rates, growth, and inflation going forward. It followed news of Germany's economy contracting in the latest quarter and China's industrial output slowing to a 17-year low. ?? Here's what people are saying.

Americans keep up the spending

Retail sales surged in July, a sunny spot amid the doom and gloom of Wednesday’s market moves. Americans boosted spending at stores, restaurants, and especially online last month, with sales rising 0.7% from June, according to the Commerce Department. E-commerce was likely driven by Amazon’s discount Prime Day sales. With consumer spending accounting for more than two-thirds of U.S. gross domestic product, the report contrasted with signs of recession from the bond market amid the country's trade battle with China and slowing global growth. ?? Here's what people are saying.

Is the UK headed toward recession?

The British economy contracted in the second quarter for the first time since 2012, stoking fears that a recession could be looming. Uncertainty surrounding Brexit, the stockpiling ahead of the original Brexit date of March 29, and global trade tensions have all been blamed for the 0.2% decrease from the previous quarter. However, chancellor Sajid Javid maintained that despite a challenging period, the “fundamentals of the UK economy are strong,” citing rising wage growth and record-high employment. ?? Here's what people are saying.

Germany braces for a recession

Germany could be headed for a recession after data this week showed Europe’s biggest economy shrank by 0.1% in the three months ended June. Economists pointed to global trade tensions as the main factor, and DIW Berlin president Marcel Fratzscher told the BBC that Germany’s first recession since 2013 is “probably already under way.” Across the eurozone, GDP growth was sluggish at 0.2% in the second quarter. ?? Here's what people are saying.

U.S. hits pause on China tariffs

Washington said it will delay new tariffs planned for China imports until December and drop others altogether, citing “health, safety, national security and other factors.” The $300 billion of goods slated for a 10% duty starting next month include Apple iPhones made in China and clothing. The announcement came as the Labor Department reported a decline in job openings among U.S. industries affected by tit-for-tat tariffing between the two biggest economies. ?? Here's what people are saying.

WeWork files for IPO

Office-space giant WeWork filed for an initial public offering via its parent, The We Company, revealing rising revenue but sizable losses. The company delivered $1.54 billion in revenue in the first half of 2019 and a net loss of $689.7 million. WeWork is expected to go public in September, though the timing is not set, reported The Wall Street Journal, citing anonymous sources. ?? Here's what people are saying.

Bank staff 'spoke up before hack'

Cybersecurity staff at Capital One flagged concerns within the company before the bank was hacked, reported The Wall Street Journal, citing anonymous employees. They say they spoke to internal auditors, human resources, and other senior executives about high turnover in their unit. The employees also noted that software to detect hacks was not promptly installed. Last month, Capital One revealed that the personal information of 106 million people in the U.S. and Canada had been exposed in one of the worst-ever consumer hacks. ?? Here's what people are saying.

GE shaken by fraud allegation

Shares of General Electric fell the most in 11 years on Thursday following accusations of financial fraud by the same accountant who called out Bernie Madoff. Harry Markopolos said in a 175-page report that the conglomerate needs to put billions more into its insurance reserves and that it's hiding a more than $9 billion loss on its Baker Hughes holdings. GE fired back, with CEO Larry Culp calling the claims “market manipulation — pure and simple.” The stock rebounded on Friday. ?? Here's what people are saying.

—With Cate Chapman, Capucine Yeomans, Jessica Hartogs, and Monica Fike.

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