Credit deflation and the reflation cycle to come (part 8)

[spunko]

Carrying on from Part 7:

 

[leonardratso]

canny

[Plan-b]

These stats from the FT paint a grim picture for the UK.

Originally posted by @LongTimeLurking

Edit: I know the GDP impact is considered  bullshit as its a count of transactions rather than the count of the creation of new work done. Looks like the import of new warm bodies is not working for the UK even though they've tried their best to max it out.

Edited February 3 by Plan-b

[DurhamBorn]

https://www.telegraph.co.uk/business/2024/02/01/bts-bill-hikes-always-unacceptable-now-we-have-the-proof/

MSM as useless as ever.BT cut the divi in half,so shareholders then took a 50% hit in income to fund fibre roll out (we didnt own it then).In the same time bennies and retired public sector got 18% increases.This is why this country is going poor.Capital formation hated,freebies loved,the scroungers and none producing.

BT is doing a fantastic job of rolling out fibre,its textbook,compared to anything the public sector rolls out,HS2 anyone?

BT need to publish their divis over the last few years compared to retired MPs,Coppers,Nurses etc.These articles are there to turn the public against the wealth makers,and away from the real theft going on.The state.

Im really enjoying see the roadmap play out,the state and its tentacles are losing control and getting desperate.

I guess the elite dont like the plebs being able to leverage the inflation they are creating.

 

Edited February 3 by DurhamBorn

[Democorruptcy]

47 minutes ago, DurhamBorn said:

https://www.telegraph.co.uk/business/2024/02/01/bts-bill-hikes-always-unacceptable-now-we-have-the-proof/

MSM as useless as ever.BT cut the divi in half,so shareholders then took a 50% hit in income to fund fibre roll out (we didnt own it then).In the same time bennies and retired public sector got 18% increases.This is why this country is going poor.Capital formation hated,freebies loved,the scroungers and none producing.

BT is doing a fantastic job of rolling out fibre,its textbook,compared to anything the public sector rolls out,HS2 anyone?

BT need to publish their divis over the last few years compared to retired MPs,Coppers,Nurses etc.These articles are there to turn the public against the wealth makers,and away from the real theft going on.The state.

Im really enjoying see the roadmap play out,the state and its tentacles are losing control and getting desperate.

I guess the elite dont like the plebs being able to leverage the inflation they are creating.

 

They could publish their share price, unlike bennies and public sector pensions, it's not protected any investors against the high inflation over the last couple of years.

 

[King Penda]

Anyone who can fluctuate between benifits and working and only a handful can won’t give much of a fuck .it realy needs a deviousness level behond the avarage persons comprehension 

Edited February 3 by King Penda

[King Penda]

The lower paid avarage worker (me in theory) simply can’t compete with benifits. The kids have rocked up for a stay with there toys they are not cheap . I know families where the kids have to share an iPad because both parents are on minimum wage . It’s not a dig at the person who bought them because the tax payer enabled me to buy 2 of these iPads (we have 4 ) and I did chip in half towards one of those other things .

[Bobthebuilder]

Part 8? fuck off.

 

[M S E Refugee]

Germany's decline continues, I wonder whether this was due to Putin,Brexit or both?

 

 

Business News

Iconic Berlin department store declares bankruptcy

Published: 4 Feb 2024 | 07:53 GMT

KaDeWe says soaring rents have harmed its profitability despite booming sales

 

Iconic Berlin department store declares bankruptcy

© Getty Images / imageBROKER/Ingo Schulz

KaDeWe Group, which runs the eponymous retailer in Berlin and two other high-end outlets in Hamburg and Munich, has filed for insolvency under self-administration, the corporation announced this week.

 

The company said that while the stores are operationally healthy, it has been “forced” to restructure due to exorbitant rent costs, which “make it impossible to operate profitably.”

 

The group’s sales in the 2022-2023 financial year reached €728 million ($786 million), the highest in its history and nearly a quarter more than prior to the Covid-19 pandemic. However, rents during that time have spiked by nearly 37%.

 

“This means that the business is clearly profitable ‘before rent’ – but clearly not ‘after rent’... There is no question that the group can have a strong future with normal rents,” Chief Executive Officer Michael Peterseim said, as cited by Deutsche Welle news outlet.

 

KaDeWe Group is majority owned by Thailand’s Central Group, and 49.9% owned by Signa Retail, an Austrian-based property empire which itself declared insolvency last year, citing the “severe economic pressure” brought about by interest rate hikes in Europe. Signa also owns the KaDeWe Group buildings, which it leases back to the department stores. According to Central Group, it was unable to reach an agreement on store rents with Signa due to the “intransigent position of the landlord,” Bloomberg reported, citing the Thai company’s statement. It added, however, that it “remains committed to providing full support to KaDeWe and its other European luxury stores.”

 

Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubbleREAD MORE: Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubble

KaDeWe’s management said that while the business will undergo restructuring, the stores will continue to operate. However, Bild reported on Friday that entire areas of the department store in Berlin have stopped sales and closed down, with signs informing customers that the stores are closed “temporarily” for technical reasons.

 

The 116-year-old Berlin KaDeWe or Kaufhaus des Westens, which can be translated as “department store of the West,” is an iconic feature of the city’s commercial and architectural landscape. The store has over 66,000 square meters of retail space, and sells brands including Yves Saint Laurent, Prada, Boss, Lacoste, Chloé and Ralph Lauren. It was once considered the largest in continental Europe and one of the five largest department stores in the world.

 

For more stories on economy & finance visit RT's business section

 

 

Edited February 4 by M S E Refugee

[Errol]

More related to the Signa Prime debacle, I suspect.

[Harley]

3 hours ago, M S E Refugee said:

Germany's decline continues, I wonder whether this was due to Putin,Brexit or both?

 

 

Business News

Iconic Berlin department store declares bankruptcy

Published: 4 Feb 2024 | 07:53 GMT

KaDeWe says soaring rents have harmed its profitability despite booming sales

 

Iconic Berlin department store declares bankruptcy

© Getty Images / imageBROKER/Ingo Schulz

KaDeWe Group, which runs the eponymous retailer in Berlin and two other high-end outlets in Hamburg and Munich, has filed for insolvency under self-administration, the corporation announced this week.

 

The company said that while the stores are operationally healthy, it has been “forced” to restructure due to exorbitant rent costs, which “make it impossible to operate profitably.”

 

The group’s sales in the 2022-2023 financial year reached €728 million ($786 million), the highest in its history and nearly a quarter more than prior to the Covid-19 pandemic. However, rents during that time have spiked by nearly 37%.

 

“This means that the business is clearly profitable ‘before rent’ – but clearly not ‘after rent’... There is no question that the group can have a strong future with normal rents,” Chief Executive Officer Michael Peterseim said, as cited by Deutsche Welle news outlet.

 

KaDeWe Group is majority owned by Thailand’s Central Group, and 49.9% owned by Signa Retail, an Austrian-based property empire which itself declared insolvency last year, citing the “severe economic pressure” brought about by interest rate hikes in Europe. Signa also owns the KaDeWe Group buildings, which it leases back to the department stores. According to Central Group, it was unable to reach an agreement on store rents with Signa due to the “intransigent position of the landlord,” Bloomberg reported, citing the Thai company’s statement. It added, however, that it “remains committed to providing full support to KaDeWe and its other European luxury stores.”

 

Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubbleREAD MORE: Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubble

KaDeWe’s management said that while the business will undergo restructuring, the stores will continue to operate. However, Bild reported on Friday that entire areas of the department store in Berlin have stopped sales and closed down, with signs informing customers that the stores are closed “temporarily” for technical reasons.

 

The 116-year-old Berlin KaDeWe or Kaufhaus des Westens, which can be translated as “department store of the West,” is an iconic feature of the city’s commercial and architectural landscape. The store has over 66,000 square meters of retail space, and sells brands including Yves Saint Laurent, Prada, Boss, Lacoste, Chloé and Ralph Lauren. It was once considered the largest in continental Europe and one of the five largest department stores in the world.

 

For more stories on economy & finance visit RT's business section

 

 

I wondered who they were until it said Kaufhaus.  Amazing.  I dread going back to Germany given what it might have become.

Edited February 4 by Harley

[Loki]

16 hours ago, spunko said:

Carrying on from Part 7:

 

The tapir 

[Plan-b]

2 hours ago, M S E Refugee said:

Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubbleREAD MORE: Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubble

Slowly at first then all of a sudden.

Every time.

[Yadda yadda yadda]

3 hours ago, M S E Refugee said:

Germany's decline continues, I wonder whether this was due to Putin,Brexit or both?

 

 

Business News

Iconic Berlin department store declares bankruptcy

Published: 4 Feb 2024 | 07:53 GMT

KaDeWe says soaring rents have harmed its profitability despite booming sales

 

Iconic Berlin department store declares bankruptcy

© Getty Images / imageBROKER/Ingo Schulz

KaDeWe Group, which runs the eponymous retailer in Berlin and two other high-end outlets in Hamburg and Munich, has filed for insolvency under self-administration, the corporation announced this week.

 

The company said that while the stores are operationally healthy, it has been “forced” to restructure due to exorbitant rent costs, which “make it impossible to operate profitably.”

 

The group’s sales in the 2022-2023 financial year reached €728 million ($786 million), the highest in its history and nearly a quarter more than prior to the Covid-19 pandemic. However, rents during that time have spiked by nearly 37%.

 

“This means that the business is clearly profitable ‘before rent’ – but clearly not ‘after rent’... There is no question that the group can have a strong future with normal rents,” Chief Executive Officer Michael Peterseim said, as cited by Deutsche Welle news outlet.

 

KaDeWe Group is majority owned by Thailand’s Central Group, and 49.9% owned by Signa Retail, an Austrian-based property empire which itself declared insolvency last year, citing the “severe economic pressure” brought about by interest rate hikes in Europe. Signa also owns the KaDeWe Group buildings, which it leases back to the department stores. According to Central Group, it was unable to reach an agreement on store rents with Signa due to the “intransigent position of the landlord,” Bloomberg reported, citing the Thai company’s statement. It added, however, that it “remains committed to providing full support to KaDeWe and its other European luxury stores.”

 

Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubbleREAD MORE: Goliath falls: Sudden bankruptcy of financial empire exposes Europe’s real estate bubble

KaDeWe’s management said that while the business will undergo restructuring, the stores will continue to operate. However, Bild reported on Friday that entire areas of the department store in Berlin have stopped sales and closed down, with signs informing customers that the stores are closed “temporarily” for technical reasons.

 

The 116-year-old Berlin KaDeWe or Kaufhaus des Westens, which can be translated as “department store of the West,” is an iconic feature of the city’s commercial and architectural landscape. The store has over 66,000 square meters of retail space, and sells brands including Yves Saint Laurent, Prada, Boss, Lacoste, Chloé and Ralph Lauren. It was once considered the largest in continental Europe and one of the five largest department stores in the world.

 

For more stories on economy & finance visit RT's business section

 

 

A strange one. Sales of 2 million euros per day sounds very low for a large department store. Could be that they operate concessions and a lot of sales don't flow through their books. The landlord being a retailer and owning 49.9% is a red flag. I would guess that they're bankrupting the business in order to buy it out of insolvency on the cheap.

[leonardratso]

https://www.dailymail.co.uk/news/article-13043911/boiler-tax-scrapped-net-zero-heat-pumps-claire-coutinho.html

How dare they, after i spend my entire lifes savings on net zero bollarx, the bastards.

 

Ps. sorry i actually spent it all on oil based products and meat.

[reformed nice guy]

30 minutes ago, leonardratso said:

https://www.dailymail.co.uk/news/article-13043911/boiler-tax-scrapped-net-zero-heat-pumps-claire-coutinho.html

How dare they, after i spend my entire lifes savings on net zero bollarx, the bastards.

 

Ps. sorry i actually spent it all on oil based products and meat.

"What you need is proper chimney and some coal. Will always keep ya warm"

[RJT1979]

Gold falling. I reckon that is the top. Down to 1800 now. Dyor

[JoeDavola]

It’s always interesting to get a view of the bennies class via my mates wife and her chav mates.

The latest highlights were:

1. Using untaxed diesel to run their cars.

2. Her and her mates are obsessed with Herbalife; buying the overpriced snake oil supplements and selling them on to their friends.

I was shocked when I heard this as I didn’t realise Herbalife was still a thing but evidently that where some of the uk benefit money is flowing to.

The amount these types spend even on things like monthly phone contracts and multiple streaming services is eye watering.

Edited February 5 by JoeDavola

[Loki]

1 hour ago, RJT1979 said:

Gold falling. I reckon that is the top. Down to 1800 now. Dyor

Observe and comprehend 

[wherebee]

1 hour ago, RJT1979 said:

Gold falling. I reckon that is the top. Down to 1800 now. Dyor

miners getting smashed here on the monday morning aussie trading sessions.  

[Eventually Right]

12 minutes ago, wherebee said:

miners getting smashed here on the monday morning aussie trading sessions.  

Most of that is surely just catching up with the US/Canadian markets, after Friday’s PM carnage.

[TNS]

3 hours ago, JoeDavola said:

It’s always interesting to get a view of the bennies class via my mates wife and her chav mates.

The latest highlights were:

1. Using untaxed diesel to run their cars.

2. Her and her mates are obsessed with Herbalife; buying the overpriced snake oil supplements and selling them on to their friends.

I was shocked when I heard this as I didn’t realise Herbalife was still a thing but evidently that where some of the uk benefit money is flowing to.

The amount these types spend even on things like monthly phone contracts and multiple streaming services is eye watering.

Some mug I know is currently using their shakes on a diet, sounds like the usual gimmicky crap.

[Pip321]

6 hours ago, RJT1979 said:

Gold falling. I reckon that is the top. Down to 1800 now. Dyor

So fiat is strengthening? All time highs on the US stock market….

Must mean the world has never been safer, the economy never stronger and fair values everywhere. Bloomberg & Co leading the usual charge….nice melt up as predicted.

Thise jib numbers etc just keep coming…it’s all good  

It’s like when my iPhone says it’s sunny but I look out of the window and it’s pouring down.

I am waiting for a dip in gold or miners (hopefully to those Sept 2020 levels) to place one of my house sales into gold and miners…..because (long term) I believe it will be a great hedge against printing. 

[kibuc]

23 hours ago, M S E Refugee said:

KaDeWe says soaring rents have harmed its profitability despite booming sales

Sales don't mean shit without profit.

https://www.giantitp.com/comics/oots0135.html

[JoeDavola]

I don't follow this econcomic stuff to the detail you lot do but I enjoyed listening to this; the comments suggested that some sectors have just hit a limit in terms of how much they can raise their prices and are losing customers at those prices as people just say "nope" to that product or service.

Dunno if this is genuine but reminded me ot a clothes shop I went into in Belfast recently and near had a heart attack when I saw the prices:

"The Midwest here! I went to the local mall and the parking lot was packed but I don't see anyone buying anything. I looked at a short-sleeved shirt at Nordstrom - $354.00. Jeans are $360.00 at Macy’s. Those prices seem out of reach for average Americans."