There Are Five Indicators That a Recession is Coming

A recession is now a matter of when, not if. As markets struggled to accept the certainty that the Federal Reserve will continue its most aggressive monetary tightening campaign in decades to squeeze inflation out of the US economy over the past week, the pulse of those flashing red lights intensified.

Even if doing so brings on a recession. And even if it comes at the expense of clients and companies outside the United States.

There’s now a 98% chance of a global recession, according to research firm Ned Davis, which brings some sobering historical credibility to the table. The firm’s recession probability reading has only been this high twice before — in 2008 and 2020. Over two-thirds of the US economy is comprised of consumer expenditure. Most of the time, economists base their predictions of a downturn on a range of indications.

Let’s examine five major trends:

1. The Powerful US Dollar

In the world economy and international finance, the US dollar has a significant influence. And at this moment, it is stronger than it has been in the past 20 years.

The dollar gains in appeal to investors worldwide when the US central bank rises interest rates, as it has been doing since March.

The dollar is viewed as a secure investment in any economic environment. Investors have even greater reason to invest in dollars during turbulent times, such as during a global pandemic or an Eastern European war, typically in the form of US government bonds.

2. The American Economy is Stagnant

The largest economy in the world is driven primarily by consumer spending. And shoppers in America are worn out.

Consumer spending has decreased after more than a year of steadily rising costs for almost everything, along with stagnant incomes.

Consumers are digging into their savings as a result of the difficulty brought on by inflation, according to a note sent on Friday by Gregory Daco, chief economist at EY Parthenon. According to Daco, the personal saving rate was only 3.5% in August, which is close to its lowest level since 2008 and far lower than its pre-Covid average of about 9%.

3. Corporate America is Making Cuts

For the most part of the epidemic era, business has been growing across all industries, despite record high inflation eating into earnings. That is due (again) to the perseverance of American consumers, as companies were able to pass on the majority of their higher expenses to customers in order to maintain profit margins.

The earnings boom, though, might not persist.

4. Greetings from Bear Country

In case anyone needs yet another awful historical comparison, equities are now on course for their worst year since 2008 and Wall Street has been dealt a whiplash.

However, things were completely different last year. Thanks to a flood of cash injected by the Federal Reserve, which unleashed a double-barrelled monetary-easing programme in the spring of 2020 to prevent financial markets from collapsing, equity markets flourished in 2021, with the S&P 500 rising 27%.

Bottom line: Until global inflation is under control and central banks relax their restrictions, there are currently few secure areas for investors to store their money.

5. Conflict, Skyrocketing Costs, and Radical Policy Clash

In no other country is the awful collision of economic, financial, and political tragedies more apparent than in the UK.

The UK has experienced price increases that are mostly caused by the catastrophic shock of COVID-19, followed by the trade interruptions brought on by Russia’s invasion of Ukraine, just like the rest of the world. The West has stopped importing Russian natural gas, which has caused energy prices to surge and supply levels to decrease.

Even without the other incidents, those were terrible.

With inflation over 10%, the highest of any G7 economy, Britons are already experiencing a cost-of-living crisis. Now, they are in a panic over rising borrowing costs, which might force millions of homeowners to increase their monthly mortgage payments by hundreds or even thousands of pounds.

Twilio Dismisses 11% of Its Workforce

As the customer interaction platform strives to control expenses during the general economic slump, Twilio today revealed that it will lay off between 800 and 900 employees, or 11% of its workforce. CEO Jeff Lawson described the layoffs in a statement to the workforce, attributing in part to them Twilio’s explosive expansion over the past several years.

Lawson asserts that the cuts will primarily affect R&D, Twilio’s general and administrative divisions. The impacted employees, who were informed this morning, will get at least 12 weeks’ pay in addition to one week for each year of employment with Twilio and the value of Twilio’s upcoming shares vest.

According to Lawson, Twilio’s talent acquisition team would compile a list that terminated workers can choose to join and share with other businesses that could be hiring as well as “investors who know many such businesses.”

According to paperwork submitted to the U.S. Securities and Exchange Commission, Twilio predicts that the staff reduction will cost between $70 million and $90 million, with the majority of expenses occurring in the third and fourth fiscal quarters of the business in 2022.

Twilio, a publicly traded company situated in San Francisco, has been aiming for profitability by 2023, according to CNBC. As demand for its cloud services increased during the epidemic, the company’s headcount nearly doubled. Twilio purchased Zipwhip, a toll-free messaging service provider, for $850 million in 2021, and the data security platform Ionic Security.

But as people began to work in person again, sales plummeted.

Twilio’s Q2 2022 sales growth was 41%, the lowest since the December quarter in 2017, as the company faced a cyberattack that compromised the data of more than 100 customers. In its most recent fiscal quarter, Twilio – while exceeding Wall Street’s expectations – reported a loss of $322.8 million on $943.4 million in revenue.

Shares were up about 1% on news of the layoffs; Twilio’s stock has fallen about 73% this year.

Majic Signs Investment Banking Agreement with Donald Capital

Majic, a Delaware corporation, that is positioning itself as a player in the disruptive industries of fintech and software development by means of acquisitions, announces that it has signed an agreement with New York based Investment Bank Donald Capital, LLC.

The Company is proud to announce it has signed an agreement with Donald Capital, LLC. to provide M&A Strategic Advisory and Investment Banking services to the Company as a lead placement agent. Donald Capital will assist the Company to raise capital in a private offering of up to $50,000,000.

The Company believes this agreement will further increase the scope and size of its acquisitions strategy and create a leverage to exponentially create growth and value for its shareholders.

Donald Capital, LLC is a FINRA Member Investment Bank founded with the intent to build a legacy based upon the fundamentals of Honesty & Integrity.

The principals’ highly regarded Wall Street reputations, broad experience across multiple industries and geographies, plus a results-oriented approach enables Donald Capital to provide solutions to the complex problems facing companies in today’s challenging business environment.

Donald Capital focuses on a market that has not been properly served for some time – the Private, Micro, Small and Midcap Markets.

“As we keep growing the Company through the organic growth of our existing business lines and the acquisition of synergistic value adding candidates, our Company will be well advised by the extensive experience of Donald Capital’s team.

This is another step towards our NASDAQ up listing goal. Institutional backing is essential to a successful up list and we feel this step represents another milestone in the NASDAQ direction.” said David Chong, Chief Executive Officer of Majic Wheels Corp.

About Donald Capital, LLC

Donald Capital founded in 2019 by senior Wall Street veterans with a long-term goal to become the premiere boutique investment bank in all sectors for both domestic and foreign companies. Donald Capital is headquartered in New York City with an office in St. Petersburg, FL.

Future satellite offices planned in Los Angeles, Vancouver, and Shanghai.

Contact information for Donald Capital, LLC:

Phone number: 914-806-2066

About Majic Wheels Corp.

Majic Wheels Corp., a Delaware corporation, intends to position itself as a player in the disruptive industries of Fintech and software development by means of acquisitions and mergers.

Majic Wheels Corp. is listed and traded on the Over-the-Counter Market under the trading symbol “MJWL”.

For more information about the Company visit:

Our OTC Markets Profile:

Our website is:

Our Twitter account is:

Our Discord:

About CGCX Ltd.

Founded in 2018, Calfin Global Crypto Exchange CGCX set out to offer a highly sophisticated cryptocurrency exchange for a seamless & secure crypto trading experience.

Unlike most exchanges that offer only cryptocurrency trading, CGCX caters to the larger blockchain community by providing four services under a single platform.

CGCX Website:


This press release contains forward-looking statements that can be identified by terminology such as “believes,” “expects,” “potential,” “plans,” “suggests,” “may,” “should,” “could,” “intends,” or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results implied by such statements.

These factors include, but are not limited to, our ability to continue to enhance our products and systems to address industry changes, our ability to expand our customer base and retain existing customers, our ability to effectively compete in our market segment, the lack of public information on our company, our ability to raise sufficient capital to fund our business, operations, our ability to continue as a going concern, and a limited public market for our common stock, among other risks.

Many factors are difficult to predict accurately and are generally beyond the company’s control. Forward-looking statements speak only as to the date they are made, and we do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

SOURCE: Majic Wheels Corp.

David Chong