UK PM's win on Rwanda bill, US inflation rise, downfall of Signa property developer
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Quick takeaways
UK Prime Minister Rishi Sunak secured a win in the Rwanda asylum vote, despite Tory divisions, which reveals potential future challenges for the legislation.
The downfall of Signa, a major European property developer, exposes the risks and financial instability in the commercial real estate sector, echoing the subprime real estate crisis.
Deep dives
UK House of Commons votes in favor of controversial bill to send asylum seekers to Rwanda
The UK House of Commons voted in favor of a bill that would send asylum seekers to Rwanda. UK Prime Minister, Rishi Sunak, had to convince members of his conservative party to support the legislation, resulting in no Tory MP voting against it at the second reading. However, the Labor Party stated that it would eliminate the scheme if it wins the next general election.
US inflation data shows a slight decline, but interest rates are expected to stay high
The US consumer price index report for November indicated a slight decrease in annual inflation, with the headline figure falling from 3.2% to 3.1%. While investors have priced in rate cuts for early next year, Federal Reserve Chair Jay Powell is unlikely to signal an imminent rate cut in today's meeting. The European Central Bank and the Bank of England also have upcoming meetings, with expectations of rate cuts in the Eurozone in the early summer.
Collapse of Signa Group raises concerns about commercial real estate in Europe
Signa Group, a prominent European property developer, collapsed under an enormous amount of debt and complex financial engineering. The commercial real estate sector in Europe is now facing potential contagion from Signa's collapse, with worries about overvalued properties and exposure among banks, insurers, and individual lenders. The crisis highlights the opacity in funding markets and echoes the subprime real estate crisis in 2007.
UK Prime MinisterRishi Sunak headed off a Conservative revolt over his flagship Rwanda migration bill, US core inflation rose last month, and the FT’s Sam Jones explains the downfall of Signa, one of Europe’s most prominent property developers.
The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.