Credit Suisse warns of impact of trade war, higher rates
GENEVA (AP) — Swiss bank Credit Suisse is warning that trade tensions and rising interest rates “are likely to trigger periods of heightened uncertainty through the remainder of 2018.”
In its earnings update Tuesday, the bank added: “That uncertainty has, over time, the potential to negatively affect confidence, which in turn could impact a wide range of asset classes and activities.”
U.S. President Donald Trump has triggered tariffs against a host of countries, particularly China, which could dent trade globally. Several central banks, meanwhile, are raising interest rates, making it more expensive to take out loans and invest.
Credit Suisse said that for now, the outlook for 2018 is still positive. It said its net income rose 114 percent in the second quarter, to 647 million Swiss francs ($654 million).