FT News Briefing China deals a blow to Blackstone’s ambitions
Sep 15, 2021
US consumer prices are finally showing signs of moderation, while spending remains strong despite pandemic fears. Blackstone's ambitious $3 billion takeover of a Chinese property developer was thwarted by regulatory delays, highlighting the tricky landscape for foreign investment. Meanwhile, China's property market is grappling with government restrictions on land auctions aimed at cooling soaring prices. The shifting dynamics have even impacted outdoor advertising as commuting habits change in a post-pandemic world.
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Cooling US Inflation
- U.S. consumer prices are leveling off, rising only 0.3% from July to August.
- This supports the Federal Reserve's view of inflation as transitory.
Strong Consumer Spending
- US consumer spending continues exceeding pre-pandemic levels, according to bank executives.
- J.P. Morgan reports debit and credit card spending is 18-19% higher than in 2019.
Blackstone's China Setback
- Blackstone abandoned a $3 billion Soho China acquisition after Chinese regulators refused approval.
- This deal was meant to be the centerpiece of Blackstone's China property portfolio.