“U.S. online lenders such as LendingClub Corp, Kabbage Inc and Avant LLC are scrutinising loan quality, securing long-term financing and cutting costs, as executives prepare for what they fear could be the sector’s first economic downturn.
“A recession could bring escalating credit losses, liquidity crunch and higher funding costs, testing business models in a relatively nascent industry.
“Peer-to-peer and other digital lenders sprouted up largely after the Great Recession of 2008. Unlike banks, which tend to have lower-cost and more stable deposits, online lenders rely on market funding that can be harder to come by in times of stress.”
“Wall Street analysts are predicting shrinking profits for companies in the S&P 500 for the second quarter, setting up the prospect of an earnings recession.”
“The US economy increasingly looks like it’s past the point of no return … According to David Rosenberg, the Chief Economist & Strategist at Gluskin Sheff.”
“XM. com, the well renewed FX broker, is recognising the tumultuous nature of global currency markets. Ongoing US-China trade tensions, the possibility of Fed rate increases and China’s slowdown are all concerning trends.”
“High street decline and paralysis over Brexit has triggered the most UK profit warnings since the financial crisis. London-listed firms issued 89 alerts in the first three months of 2019, a fifth higher than last year, according to Ernst & Young.
“The ailing retail sector, particularly clothing, and the travel industry were among the hardest hit as TUI, Ryanair, Ted Baker and Debenhams gave profit warnings.”
“A growing number of large British-based businesses are prioritising cashflow, fearing a downturn, as their view of the long-term economic impact of Brexit has darkened to its most negative so far, accountancy firm Deloitte said on Monday.
“Some 81 percent of chief financial officers surveyed expect Brexit to lead to a long-term deterioration in Britain’s business environment, the highest since the question was first asked at the time of June 2016’s referendum on leaving the European Union.”
“Germany and France aren’t exactly looking like a power couple when it comes to firing up Europe’s slowing economy.”
“European economic power Germany is coming under increasing pressure to boost spending to accelerate economic growth, as its massive surpluses create growing friction with other countries. The dispute has simmered since the 2008 global financial crisis but French Finance Minister Bruno Le Maire warned Friday that widening differences over economic policy among eurozone countries could undermine.”
“Banks in Italy are still loaded up with non-performing and poor-quality loans”
““While debt financing remains an important source for achieving positive development outcomes in LDCs, the recent trends are a cause for concern” UNDP Administrator Achim Steiner said at the meeting on strengthening resilience to LDCs’ debt vulnerability.
“He mentioned that some countries, such as Mozambique, Zimbabwe and Malawi where Cyclone Idai wreaked havoc last month, faced intersecting development threats.”
“Global finance officials are pledging closer cooperation in efforts to lift the world economy out its current slowdown, but tensions persist on a number of fronts between the United States and other nations over trade and other issues.
“Officials wrapped up the spring meetings of the 189-nation International Monetary Fund and the World Bank on Saturday, expressing hope the slowdown that began last year will be followed by stronger growth in the second half of this year and into 2020.”