What's going on?

The World Bank warned that its June forecast � global economic growth of 2.6% this year compared to last � might prove too optimistic. So much for slow and steady wins the race…

What does this mean?

The trifecta of reasons for its dour outlook shouldn�t come as a much of a surprise to economists, investors, or Finimizers. One: British businesses appear to have postponed some investment until there�s clarity on Brexit, weighing on growth. Two: the German economy is shrinking, which may well drag the rest of the eurozone into recessionary doldrums. And that�s partly due to � three � the ongoing US-China trade war with the US.

But you know what they say: misery loves company. So the World Bank�s heart will be all aflutter next week when the International Monetary Fund (a sort of bank for countries) publishes its own updated economic forecasts � probably slashing its predictions.

Why should I care?

For you personally: Nothing but mood music.
Large institutions like the World Bank aren�t renowned for being quick to make fresh economic predictions. By the time the World Bank updates its estimates, investors usually have a handle on the state of the global economy thanks to official data releases and company earnings reports. Still, these forecasts often guide companies in their own predictions. They�re worth keeping an eye on, then, to see how the various goings-on drive the bigger economic picture.

For markets: In a slowdown, bonds pep up.
It�s harder for companies to grow their profits when economies are slowing or shrinking. So rather than owning shares that might fall in value, investors typically buy bonds that should pay investors whatever the weather. Bond investors were afforded a refreshing option this week: PepsiCo sold $1 billion worth of �green� bonds that�ll be used for things like improving waste-water management. Investors gulped them down: Pepsi raised more than it hoped at a lower interest rate than expected.