The Swedish Real Estate Market Will See Significant Price Drops
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The year 2022 hit the economy significantly. The real estate and equity markets suffered as a result of the fight against inflation and the real estate crisis.
In this article:
- Banco BTG Pactual SA
- The real estate market
- IMF and the Minister of Finance in Bangladesh
- The 11 most undervalued stocks in the Morningstar Defensive Super Sector Index
Banco BTG Pactual SA
Brazilian bank Banco BTG Pactual SA appealed the court order on Friday. The bank protected Americanas retailer.
In an appeal filed on Saturday, BTG's lawyers argue that the court order unlawfully orders the reversal of a payment made by Americanas to BTG.
Brazil's BTG Pactual appeals decision protecting billionaire-backed Americanas from creditors https://t.co/eJ9Ej81qmE pic.twitter.com/Kddyoc9GRQ
— Reuters Business (@ReutersBiz) January 15, 2023
The real estate market
The real estate market remains tense. The situation in Sweden shows this. House prices in Sweden have grown quite solidly over the last decade, but are now falling.
House prices in Sweden have risen quite reliably over the last decade. This has been reinforced by very low interest rates in a system where about half of mortgages are financed using variable interest rates and many of the rest are based on short-term fixed interest rates.
House prices across Europe continued to rise during the Covid-19 pandemic, and Sweden was no exception. The demand for real estate has skyrocketed as working from home and preferring vacations at home have driven people to expand their spaces.
In 2022, the Swedish central bank launched an aggressive cycle of interest rate increases, which backfired on the real estate market.
Currently, property prices in Sweden are facing a serious decline as the former governor of the country's central bank warns of high levels of household debt.
Some economists predict a 20% drop in house prices from peak to trough.
House prices in Sweden have risen fairly reliably over the last decade, but now they are tumbling. https://t.co/8xXlMfr7Cc
— CNBC (@CNBC) January 15, 2023
IMF and the Minister of Finance in Bangladesh
After World War II, there was a need for action aimed at leveling the changes that had taken place in many war-torn countries, through e.g. creation of an international organization counteracting perturbations on the international currency market. So today we see how the IMF, created for this purpose, works all over the world. Trying to mix the roses.
Currently, the IMF on its twitter informed about a fruitful meeting with the Minister of Finance in Bangladesh. the IMF and Minister of Finance discuss can support Bangladesh's efforts to foster strong, inclusive and green growth.
Joint actions can contribute to the development of this country.
DMD Sayeh: Enjoyed meeting with #Bangladesh's Minister of Finance and @Bangladesh_Bank governor to discuss how the IMF can support Bangladesh’s efforts to foster strong, inclusive and green growth. Learn more at: https://t.co/AeUnrJTm5S pic.twitter.com/04mjrlkcGQ
— IMF (@IMFNews) January 15, 2023
The 11 most undervalued stocks in the Morningstar Defensive Super Sector Index
Last year was tough for the stock market, but 2022 was a good year for defensive stocks. Defensive stocks tend to be resilient to economic cycles because their products are essential in good times and bad.
Morningstar analysts are looking at several such stocks. The most underrated defensive company is Veeva Systems, trading at a 39% discount to its estimated fair value as determined by Morningstar analysts.
Veeva, Clorox, and Kellogg are among the defensive stocks trading below our analysts’ fair value estimates.
— Morningstar, Inc. (@MorningstarInc) January 15, 2023
These were the 11 most undervalued stocks in the Morningstar Defensive Super Sector Index as of Jan. 2: https://t.co/QQICMS3TvA
