China’s Property Crisis Is Rippling Through Its Biggest Banks
China’s protracted property downturn is eroding the balance sheets of the nation’s largest state banks as their bad loans creep up.
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China’s protracted property downturn is eroding the balance sheets of the nation’s largest state banks as their bad loans creep up.
Two years ago, Dubai became a hot favorite with Russians looking to park money or build new lives after President Vladimir Putin’s invasion of Ukraine. That allure is now dimming as the cost of living in the glitzy emirate surges and its banks get stricter in enforcing US sanctions.
The Bank of Korea warned Thursday that a further slump in the real estate sector would undermine broader economic activity, as it pointed to worsening delinquencies among developers in the latest signal of continuing woes in the credit market.
Australian retail sales moderated in February despite Taylor Swift-driven demand, as households remained cautious about their finances with inflation still elevated and interest rates at a 12-year high.
UK home sellers are offering smaller discounts as rising expectations of interest-rate cuts this year boost demand.
Nov 18, 2019
Bloomberg News
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A plan by the city of Berlin to freeze rents in the German capital for five years is unconstitutional, according to the federal government.
Issues such as limiting rent should be regulated on a federal level rather than by individual states, the German Interior Ministry said in an email to CDU lawmaker Kai Wegner seen by Bloomberg. Rent limits are already “comprehensively and conclusively regulated” by the federal government, the ministry told Wegner, a member of the Bundestag for the Berlin constituency of Spandau and Charlottenburg-Nord.
Berlin’s biggest residential landlord, Deutsche Wohnen SE, climbed as much as 4% in Frankfurt. The shares have dropped around 17% since since the measures against landlords were first mooted.
Among the most radical announced by any city, the rules are expected to come into force in the first quarter of next year. While some lawyers have said the plan may be unconstitutional, Berlin Mayor Michael Mueller said last month that he’s confident the measures could withstand legal challenges.
The uncertainty caused by the plan has prompted Deutsche Wohnen to review almost 1 billion euros ($1.1 billion) worth of renovation work and investments in new Berlin homes, the company said last week. It has also earmarked as many as 5,000 Berlin properties for disposal.
To contact the reporter on this story: Andrew Blackman in Berlin at ablackman@bloomberg.net
To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Iain Rogers
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