
China Developers Flag Worst Earnings in Years on Historic Slump
China’s unprecedented housing slump and construction halt led to the worst earnings for real estate developers in at least seven years, according to Bloomberg estimates.
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China’s unprecedented housing slump and construction halt led to the worst earnings for real estate developers in at least seven years, according to Bloomberg estimates.
The Hong Kong dollar is rapidly heading toward the weak end of its trading band against the greenback as traders sell the currency to buy higher-yielding US assets.
Australia’s central bank is all but certain to increase interest rates at its first meeting of the year, with some observers pointing to the risk of a resumption of outsized moves to counter a surprising surge in inflation.
British billionaire Mike Ashley is in advanced talks to buy two UK shopping malls valued at a combined £100 million ($121 million), The Times newspaper reported.
It’s been some time since companies could raise cash in debt markets and come away feeling like they got the better end of the deal.
Dec 7, 2022
Bloomberg News
,Canada’s biggest banks saw the slowest growth in their domestic mortgage books in more than two years as interest-rate hikes cooled the country’s housing market.
The value of mortgages in the domestic businesses at Canada’s six largest banks totaled $1.36 trillion in the fiscal fourth quarter ended Oct. 31, up 1.6 per cent from the previous three months. That was the slowest quarter-over-quarter growth since 2020’s second fiscal quarter, when the onset of COVID-19 briefly brought home sales to a near standstill.
The Bank of Canada has raised interest rates by 3.5 percentage points since March in one of the most aggressive hiking cycles in its history. That has sent Canadian home prices down 10 per cent from their peak and slashed the number of sales.
That’s a sharp turnaround from the previous year, when rock-bottom interest rates sent home prices surging and made mortgages the top money-maker for big banks. The housing-market slowdown is just now showing up in the results at Canada’s banks, which control about three-quarters of the mortgage market, and they expect the deceleration to continue.
Royal Bank of Canada, the country’s largest lender by assets, increased its domestic mortgage book by 9.8 per cent in the last fiscal year. Chief Executive Officer Dave McKay said on the firm’s earnings call last week that he expects growth in the “mid-single digits” this fiscal year amid rising interest rates.