New Loans in China Strongly Exceed Expectations
Chinese banks recorded the highest lending pace in 3 months, reflecting a rebound in economic confidence.

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China

England

Europe

China

New loans in China rose at the fastest pace in three months, far exceeding expectations.
Chinese banks saw a significant surge in yuan-denominated lending during June,
with data released Monday by the People’s Bank of China (PBoC) confirming the jump.

The data showed that new loans totaled 2.24 trillion yuan in June,
beating market expectations of 1.96 trillion and significantly higher than May’s figure of 620 billion yuan.

This increase is a positive sign of growing confidence among consumers and businesses,
as there is a direct relationship between borrowing and spending.
As economic outlook improves, the appetite for credit rises, boosting economic activity and growth.

Meanwhile, the PBoC reported that the broad money supply (M2) increased by 8.3% in June compared to the same period last year,
surpassing expectations of 8.2% and improving from 7.9% in May.
This suggests a slight recovery in monetary liquidity within the Chinese economy.

England

Bank of England Governor Hints at Faster Rate Cuts if Labor Market Slows

Bank of England Governor Andrew Bailey signaled a possible acceleration in rate cuts if the UK labor market continues to weaken.

In comments to The Times on Sunday, Bailey said there are growing signs that British companies are scaling back hiring plans,
reflecting an economic slowdown that could help ease inflationary pressures.

“I strongly believe the overall direction of inflation is downward,” Bailey said,
adding that a faster-than-expected slowdown could prompt the Bank to adjust its monetary policy more swiftly.

His remarks come as UK inflation remains high at 3.4%,
with expectations that June’s reading—due Wednesday—will remain unchanged,
putting additional pressure on policymakers to decide the next move.

Europe

New Political Agreement Between EU and Indonesia Paves Way for Comprehensive Free Trade Deal

The European Union and Indonesia have reached a new political agreement aimed at accelerating negotiations for a comprehensive free trade deal,
in what Brussels described as a new chapter in economic ties with one of Southeast Asia’s largest economies.

In a joint press conference with Indonesian President Prabowo Subianto, European Commission President Ursula von der Leyen stated,
“This agreement comes at the perfect time, revealing untapped potential in our trade relationship and opening new markets for both sides.”

The deal is expected to remove many tariff and non-tariff barriers, facilitate the flow of goods and services,
and create wider opportunities for European companies in the Indonesian market—especially in renewable energy, technology, and infrastructure.

Indonesia hopes the agreement will attract more European investment and boost its agricultural and industrial exports,
as part of a broader strategy to diversify trade partnerships and reduce dependency on the Chinese market.

According to EU Commission data, trade volume between the EU and Indonesia surpassed €25 billion in 2022 and is expected to grow significantly in the coming years under the new agreement.

New Loans in China Strongly Exceed Expectations

New Loans in China Strongly Exceed Expectations

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