Trade tensions between the US and China have the potential to spark a recession, says Sir Michael Hintze, who manages CQS, a London-based hedge fund firm with about $17bn under management.

President Donald Trump has imposed tariffs on imports like steel and aluminum. Critics warn that tariffs, and escalating retaliatory actions, will hurt US producers and slow global growth. So far, expectations for corporate earnings have remained strong, even as gluts appear in the US economy for things like lobster and whisky.