U.S. Economic Indicators

The ISM Non-Manufacturing Index dropped 1.3 percentage points to 56.7 in January. The New Orders Index dropped 5.0 percentage points to 57.7 while the Employment Index rose 1.2 percentage points to 57.8. ISM Report

U.S. News

The Wall Street Journal reports that a recent survey conducted by the Fed found a growing minority of banks reported tightening standards for some loans in the fourth quarter and expected loan demand and performance to weaken. This finding suggests that an increasing number of institutions are anticipating a lending slowdown in 2019. WSJ

Paul Hannon reports for the Wall Street Journal that Europe’s economy had a weak start to 2019, as Italy remains stuck in recession and uncertainty around Britain’s exit from the E.U. has dragged on U.K. growth. The eurozone’s economy slowed more sharply than expected in 2018 and appear set to cool further this year. WSJ

The Financial Times reports that Europe would be the biggest winner of a U.S.-China tariff war by picking up the largest portion of bilateral trade diverted from the two largest economies. A report, published by the U.N.’s trade and investment body, concluded that tariffs imposed by Beijing and Washington would do little to protect their domestic economies because most of the trade would switch to other countries, particularly the E.U. FT