FT News Briefing Is Signa’s downfall a canary in the coalmine?
Dec 13, 2023
Rishi Sunak navigates a turbulent vote on the UK's Rwanda migration policy, revealing deep divisions within the Tory party. Meanwhile, US core inflation rises, complicating central banks' strategies. The downfall of Signa, once a powerhouse in property development, is dissected, highlighting its founder's excessive debt. As financial troubles mount, concerns grow about the implications for Europe's commercial real estate market, leaving bankers uneasy about stability in the sector.
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Inflation's Last Mile
- US November inflation edged down slightly, indicating high interest rates are working.
- Getting inflation down from 3% to the 2% target will be tricky, says Claire Jones.
Rate Cut Expectations
- Investors expect rate cuts early next year, but Fed Chair Powell may push back on this.
- Powell has warned that disinflation will be "lumpy and bumpy."
Other Central Banks
- Bank of England may cut rates after the Federal Reserve.
- European Central Bank might cut rates sooner than previously expected, possibly around early summer 2024.