Last Week's Developments:
๐บ๐ธ US Banks Tighten Lending: Banks reported stricter lending standards and weaker loan demand, with some improvement from the previous quarter.
๐ข WeWork Files for Bankruptcy: Once valued at $47 billion, WeWork faced a dramatic downturn due to heavy losses and failed IPO.
๐ฌ๐ง UK Economy Stagnates: Zero growth last quarter, with weaker consumer, business, and government spending.
๐จ๐ณ China's Mixed Economic Signals: IMF raises growth forecasts, but the country faces deflation and a drop in exports.
Detailed Insights:
๐ฆ US Banking Sector: The Federal Reserve's SLOOS survey shows banks are cautious, citing economic uncertainty and risk aversion. This raises concerns about a credit crunch, potentially leading to reduced consumer spending and business investment.
๐ WeWork's Downfall: The coworking giant, once a startup success story, succumbed to $19 billion in debt and changing work habits post-pandemic.
๐ฌ๐ง UK's Economic Challenges: The economy shows no growth, indicating prolonged stagnation. High-interest rates and global economic pressures add to the challenges.
๐จ๐ณ China's Economic Outlook: The IMF's optimistic forecast is tempered by ongoing issues in the property sector and weak external demand. China's economy is expected to grow but faces long-term challenges due to an aging population and productivity issues.
๐ China's Trade and Inflation: Imports rose unexpectedly, but exports fell sharply. The return to deflation highlights struggles in boosting domestic demand.
This Week's Focus: US Bank Lending
๐ The net proportion of banks tightening standards on loans decreased, but the overall trend remains concerning. Goldman Sachs analysis suggests that such caution in lending often precedes a recession.
Upcoming Events:
๐๏ธ Monday: Quiet day in the financial markets.
๐๏ธ Tuesday: Key reports include the UK labor market and US inflation data. Earnings reports from Home Depot.
๐๏ธ Wednesday: Japan's Q3 economic growth, China's retail sales,