Foreign aid package comes with new sanctions risks for companies. Prosecutors will now have up to 10 years to investigate sanctions violations, and banks will be required to flag suspicious transactions that could be tied to fentanyl trafficking. (WSJ)

FTC votes to ban noncompete agreements. The Federal Trade Commission (FTC) voted 3-2 on Tuesday to ban noncompete agreements that prevent tens of millions of employees from working for competitors or starting a competing business after they leave a job. (The Hill)

TikTok will not be sold, Chinese parent tells US. TikTok's Chinese parent company ByteDance says it has no intention of selling the business after the US passed a law to force it to sell the hugely popular video app or be banned in America. (BBC)

Baltimore port to open deeper channel, enabling some cargo ships to pass after bridge collapse. Officials in Baltimore plan to open a deeper channel for commercial ships to enter and leave the city’s port starting on Thursday—a significant step toward reopening the major maritime shipping hub that has remained closed to most traffic since the Francis Scott Key Bridge collapsed last month. (AP)

ECB’s Panetta warns cuts needed to avoid ultra-low rates later. European Central Bank Governing Council member Fabio Panetta warned that a return to ultra-low interest rates may be required if cuts aren’t made soon. (Bloomberg)

Argentina economic activity seen plunging 6% in February. Argentina's economic activity likely plunged 5.9% year-on-year in February, a Reuters poll of market analysts showed on Monday, which would make a fourth straight monthly slide amid tough austerity measures under new libertarian President Javier Milei. (Reuters)

US economy grew at 1.6% annualized rate in first quarter. The economy slowed significantly from the end of last year—a sign the nation may be entering a more moderate period of growth. (Axios)

Bank of Japan’s Stand Pat decision fuels further yen jitters. The Bank of Japan held interest rates steady and simplified its language on bond-buying and policy, an outcome that pushed the yen down to a fresh 34-year low and stirred up market jitters. (Bloomberg)

Singapore economy likely to strengthen this year, but faces long-term pressures. Singapore’s economy is expected to strengthen this year, but faces challenges sustaining growth as global and domestic cost pressures rise, said the city-state’s central bank. (WSJ)

How tight labor markets fuel the productivity surge. Productivity is the dark matter of economics: a tremendously important concept that is not deeply understood at the microlevel. (Axios)

UK consumers get spring in step as confidence mounts. Consumers are feeling substantially more optimistic, with feelings around personal financial situations notably remaining positive. (WSJ)

Behind the IMF's warning to Biden and Congress on deficit spending. President Biden insists he's committed to cutting federal deficits. The International Monetary Fund doesn't seem convinced he'll go far enough. (Axios)

White House earmarks $1.5B in push for freight decarbonization. Federal funds will support the electrification of ports and electric truck charging infrastructure, among other projects. (Supply Chain Dive)

France faces economic headwinds: Budget and growth forecast cuts ahead

Kendall Payton, editorial associate

Economic growth in France is less than expected for this year with weaker consumer spending and investments, according to the central bank’s recent forecast. The European Commission cut its 2024 GDP growth forecast from 1.2% to 0.9%—as French manufacturing worsened toward the year-end of 2023.

Remarkable debt levels across major economies across the globe have bled into France as the country now faces a potential austerity budget mainly impacting the financial health of homeowners and consumers. The budget proposal contains a €16 billion savings to reduce the deficit to 4.4% of economic output for 2024, according to French Finance Minister Bruno Le Maire. "This budget represents a notable effort and is the first step on the trajectory of an ambitious plan to restore our public finances," Le Maire said at a news conference.

The revision of the GDP growth forecast can be attributed to a weaker-than-expected second half of 2023. However, economic activity is expected to gather momentum in the second half of 2024.

The main challenges in the French economic sector include:

• Labor shortages
• A decline in production levels
• Continuation of interest rate hikes
• Geopolitical unrest

President Emmanuel Macron of France plans to work through layers of bureaucracy that are holding back French businesses as the economy faces headwinds. Le Maire also will present a bill of measures to the cabinet that targets thickets of administrative obligations the government says are a key reason for the economy’s long-term poor performance, per Bloomberg. “Our Europe today is mortal,” Macron said. “It can die and that depends solely on our choices … Europe must become capable of defending its interests, with its allies by our side whenever they are willing, and alone if necessary.”

Both wars in Gaza and Ukraine have contributed to the economic slowdowns in Germany and China making record-high interest rates take a much bigger-than-expected toll on growth. Cuts of up to 10 billion euros ($10.8 billion) in government spending on items including environmental subsidies and education in addition to the €16 billion in cuts announced means tighter restraints on consumer financial health.

By the numbers: Customers in France have averaged 10 days beyond terms, with 45% of credit professionals saying payment delays have stayed the same, per the FCIB Credit and Collections Survey. The most common causes for payment delays are customer payment policy (83%), cultural norms and customs (50%) and billing disputes (50%).

What FCIB Credit and Collections Survey respondents are saying:

• “Payment promptness over the summer is typically slower due to French companies operating with many staff members on holiday. Any billing disputes open in June may have to wait until August for resolution.”
• “There are some cultural differences like unwillingness to work in English vs French language.”
• “Follow up with the customer’s procurement and finance department as many times as necessary.”
• “Obtain financial statements on your customers and backstop sales with credit insurance.” 

The FCIB Credit and Collections Survey is now open. It covers Brazil, New Zealand, Singapore and Turkey. You will earn ICEU/participation credit for your input. Be sure to share the link with your credit and collections network.  

Week in Review Editorial Team:

Annacaroline Caruso, editor in chief

Jamilex Gotay, editorial associate

Kendall Payton, editorial associate