Economic problems build and weigh on many countries

<p>Kia ora,</p><p>Welcome to Thursday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the international edition from Interest.co.nz.</p><p>And today we lead with news it may be the summer holidays in the northern hemisphere, but that isn't making the economic news quiet. While they are holidaying the commercial world seems to be bleeding a bit.</p><p>Mortgage interest rates jumped in the US last week, taking the 30 year benchmark to 7.09% with a +16 bps rise in a week and their highest in eight months. Unsurprisingly, <a href="https://www.mba.org/news-and-research/newsroom/news/2023/08/09/mortgage-applications-decrease-in-latest-mba-weekly-survey" target="_blank"><strong>mortgage applications fell</strong></a> and it was quite a sharp weekly change. The <a href="https://www.mba.org/news-and-research/newsroom/news/2023/08/08/mortgage-credit-availability-decreased-in-july" target="_blank"><strong>availability of mortgage credit tightened</strong></a> too as banks prioritised quality lending.</p><p>One corner of the commercial office building market is in utter turmoil. <a href="https://en.wikipedia.org/wiki/WeWork" target="_blank"><strong>WeWork</strong></a> shares suddenly became <a href="https://www.reuters.com/business/wework-raises-going-concern-doubt-shares-tank-2023-08-08/" target="_blank"><strong>almost worthless</strong></a> yesterday after the one-time startup darling warned it could go bankrupt in a stunning reversal of fortune for a company that was once privately valued at US$47 bln. Co-working firms are finding life very tough in the post-pandemic world.</p><p>Canadian building consents continue to impress. In May they rose an outsized +12.6% and it was expected that in June they would fall back to even up. But in fact they <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/230809/dq230809a-eng.htm?HPA=1" target="_blank"><strong>rose another outsized +6.1%</strong></a>. It was commercial construction that shone,