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  "documentTitle": "Distress Alert July 2025",
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      "text": "The latest data, based on the financial analysis of nearly 8,000 businesses, reveals that 32% of European corporates had fragile balance sheets even before the introduction of tariffs, the highest proportion since 2021.",
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      "text": "European corporates with fragile balance sheets: 32%",
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      "text": "2025 began with cautious optimism for a moderate recovery, driven by ongoing disinflation and bets that easing rates would support growth. But the U.S. announcement of sweeping tariffs in April dealt a fresh blow to corporate outlooks. Global growth projections have since been revised downwards, with the World Bank recently lowering its 2025 forecast to 2.3%, the slowest rate since 2008, citing trade disruptions and uncertainty.",
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      "text": "Meanwhile, rising geopolitical tensions, including the ongoing war in Ukraine, and escalating conflicts in the Middle East, threaten to drive up global energy prices and exacerbate inflation risks.",
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      "text": "The A&M Distress Alert aims to provide insights that can help answer these questions. The latest data, based on the financial analysis of nearly 8,000 businesses, reveals that 32% of European corporates had fragile balance sheets even before the introduction of tariffs, the highest proportion since 2021. Businesses with weak capital structures may tip into distressed territory sooner rather than later in an environment of earnings deterioration resulting from high tariffs and inflation.",
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      "text": "The last 12 months have tested the resilience of European businesses as elevated interest rates, waning consumer confidence and political instability weighed heavily on corporate performance.",
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      "text": "If tariffs are fully implemented, industries highly exposed to global trade, such as automotive and chemicals, are expected to face earnings pressures from rising input costs and lower demand. Many more sectors may be indirectly affected, as the uncertain economic outlook hits consumers spending and business investment.",
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      "text": "In such turbulent times, business leaders and financial stakeholders face critical questions: how financially sound is my business to weather this new wave of challenges? How resilient are balance sheets in withstanding these and other potential economic shocks?",
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      "text": "1 https://www.cnbc.com/2025/06/10/world-bank-cuts-2025-growth-outlook-to-2point3percent-as-trade-tariffs-weigh-heigh.html",
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      "text": "INTRODUCTION",
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