European Real Estate Deals Slump to Lowest Level in 13 Years
The deep freeze that’s gripped Europe’s real estate markets since borrowing costs jumped worsened at the start of the year as deals plunged to their lowest levels since 2011.
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The deep freeze that’s gripped Europe’s real estate markets since borrowing costs jumped worsened at the start of the year as deals plunged to their lowest levels since 2011.
Investors are looking for the next policy domino to fall in Asia amid an escalating campaign against a resurgent dollar, after Indonesia used a surprise interest rate hike to defend the rupiah.
Vietnamese billionaire Pham Nhat Vuong pledged to invest at least another $1 billion of his personal wealth into VinFast Auto Ltd., providing the capital needed for expansion of the struggling electric vehicle maker.
Macrotech Developers Ltd., a real estate firm that operates under the brand name Lodha, expects pre-sales to grow about 20% in the year to March after reporting its highest ever quarterly revenue.
Distressed Indonesian property developer PT Agung Podomoro Land has hired financial advisory firm Kroll Inc. to advise on an exchange of $132 million of bonds due in June, according to people familiar with the plan.
Sep 10, 2019
Bloomberg News
,(Bloomberg) -- Australia’s central bank could cut interest rates three more times and adopt unconventional monetary policies unless the government reverses course and deploys fiscal stimulus, National Australia Bank Ltd. says.
The Reserve Bank will ease in November and February, when it will signal a move to alternative measures in response to rising risks at home and abroad, NAB said. That would most likely involve government bond purchases, or quantitative easing, it predicted.
However, the economy needs additional fiscal stimulus, either through new infrastructure investment or bringing forward planned tax cuts, NAB said. Treasurer Josh Frydenberg maintains that tax rebates being delivered now are sufficient.
“Unless something meaningful is done on fiscal stimulus, we think the RBA could cut the cash rate further to 0.25% by mid-2020, simultaneously undertaking unconventional monetary policy,” NAB chief economist Alan Oster said Wednesday. The RBA has said that would most likely involve buying government bonds, “but we anticipate additional steps, such as long-dated repurchase agreements to lower bank funding costs.”
Oster’s call comes as business and consumer surveys in the past 24 hours showed sentiment deteriorating across the board, suggesting the economy’s 12-month slowdown shows no sign of abating. Australians are struggling with record-high household debt and weak wage growth, prompting them to cut back spending. RBA chief Philip Lowe cut rates in June and July to try to support growth, but so far the only sector that’s impacting is property.
“Our internal data suggest that rate cuts and tax refunds have done little to boost consumer spending,” Oster said. “House prices have picked up in a number of cities, which should help limit further wealth effects on consumer spending, but leading indicators suggest that the sharp downturn under way in residential construction could be deeper than previously forecast.”
To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net
To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Chris Bourke, Victoria Batchelor
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