In a development rattling the financial world, Citigroup, a titan in the global banking sphere, is facing intense scrutiny following allegations of workplace harassment against a senior US banker.

The unfolding saga has not only sent shockwaves through Citigroup’s equity capital markets group but has also ignited broader discussions about workplace culture and accountability within the finance industry.

Investigation Proclaims Allegations Against Edward Ruff

At the centre of this controversy is Edward Ruff, a prominent managing director stationed at Citi’s New York office.

With a cloud of suspicion looming, Ruff has been placed on leave since January as Citigroup launches an investigation into allegations of abusive conduct toward his subordinates.

The severity of the accusations suggests potential breaches of the bank’s stringent code of conduct and workplace protocols.

The investigation has honed in on at least two distinct incidents of misconduct allegedly perpetrated by Ruff. These incidents are said to have unfolded within the industrial, energy, and power teams under Ruff’s purview.

One particularly egregious event occurred on November 13th, during which Ruff purportedly unleashed a tirade of verbal abuse upon members of his team following a meeting at Citigroup’s New York headquarters.

Witnesses recount Ruff’s demeanour as aggressive and inappropriate, with his outburst directed indiscriminately at the entire team.

Citigroup’s Response: Emphasizing Ethical Standards

As the allegations reverberate across financial circles, Citigroup has adopted a cautious approach, refraining from disclosing intricate details about the ongoing investigation into Ruff’s behaviour.

However, a spokesperson for the banking behemoth reiterated Citigroup’s steadfast commitment to fostering a workplace environment characterized by respect and professionalism.

Any transgression against the bank’s exacting standards, the spokesperson emphasized, would be met with swift and decisive action, potentially culminating in the termination of employment for those found culpable.

The allegations against Ruff underscore the imperative of instilling a culture of respect and accountability within the finance sector, where reputations are paramount.

Citigroup’s response to this unfolding saga will be closely scrutinized, serving as a litmus test of the institution’s dedication to upholding ethical norms and ensuring a safe, inclusive, and dignified work environment for all employees.

JPMorgan Chase, the largest U.S. bank, recently disclosed penalties totalling around $350 million due to failures in reporting trading data to market surveillance systems.

The consequences of these lapses, revealed in a filing with the Securities and Exchange Commission, signify a significant regulatory setback for the financial giant.

Within its corporate and investment bank division, JPMorgan admitted to inadequately transmitting certain trading and order data to its trade monitoring platforms.

Failure in Data Transmission:

Despite being a fraction of total activity, the omission of trading information, especially concerning sponsored client access activity, was deemed significant by the bank.

Acknowledging the lapses, JPMorgan initiated a comprehensive remediation process and committed to an independent review of its systems.

Enhancements to venue inventory, data completeness controls, and ongoing remediation activities are underway to address the identified gaps in data transmission.

While the bank is in advanced discussions with two U.S. regulatory agencies regarding the penalties, uncertainties remain regarding the outcome of these negotiations.

Although JPMorgan is engaging with regulators, there’s no guarantee that these discussions will result in a resolution favourable to the bank.

Impact on Client Services:

Despite the regulatory challenges and impending penalties, JPMorgan assured that client services would not be adversely affected. The bank aims to navigate through these regulatory hurdles while maintaining its commitment to serving its clients effectively.

This is not the first instance of data reporting errors for JPMorgan. In October, the bank was fined $15 million by the Commodity Futures Trading Commission for failing to report swap transactions and inaccurately reporting cross-currency equity swaps.

These previous incidents underscore the importance of robust data reporting systems within financial institutions.

The penalties faced by JPMorgan Chase for data reporting lapses highlight the critical importance of accurate and timely reporting in the financial industry.

As the bank works towards remediation and regulatory compliance, maintaining transparency and accountability will be key in rebuilding trust with stakeholders.

A comprehensive study released on Thursday, March 14th 2024, by the US-based Atlantic Council think tank reveals that 134 countries, representing 98% of the global economy, are actively exploring digital versions of their currencies.

More than half of these nations have progressed to advanced development, pilot, or launch stages, signalling a widespread embrace of digital currencies globally.

While most G20 countries are advancing their digital currency initiatives, the United States stands out as falling behind. The report highlights that all G20 nations, except Argentina, are in advanced phases of CBDC exploration.

However, while progressing slowly with a “wholesale” digital dollar for banks, the US appears to have stalled in its efforts to develop a digital currency accessible to the wider population.

The Federal Reserve Chairman’s Statement:

Federal Reserve Chairman Jerome Powell’s recent statement that nothing resembling a retail digital dollar is close to implementation underscores the challenges facing the US in this arena.

Despite President Joe Biden’s directive to explore a digital dollar in 2022, the issue has become politically divisive, with Biden’s opponent in the upcoming election, Donald Trump, staunchly opposing its implementation.

Josh Lipsky of the Atlantic Council points to the growing divergence between major central banks, particularly noting China, Europe, and Japan’s advancements in CBDC development.

China’s digital yuan, in particular, stands as the most significant and advanced pilot, having undergone extensive trials across various scenarios, including public transport ticketing and COVID-related transactions.

The Rapid Global Adoption of CBDCs:

While proponents argue that digital currencies offer new functionalities and an alternative to physical cash, concerns over government surveillance have sparked protests in several countries.

However, the rapid global adoption of CBDCs could potentially lead to a fragmented international payments system, with Washington risking a decline in global financial influence if it fails to keep pace with evolving standards.

The report also highlights a surge in cross-border wholesale CBDC projects, with thirteen such initiatives currently underway.

These projects, including the “mBridge” connecting China, Thailand, the UAE, and Hong Kong, signify a growing trend towards alternative payment systems outside the traditional dollar-dominated framework.

Major economies such as those in the BRICS bloc, along with the European Central Bank, are poised to lead the way in CBDC launches by 2027, potentially reshaping the global financial landscape.

Oracle announced the launch of its pioneering generative AI capabilities for Fusion Cloud applications, marking a significant milestone in the realm of customer experience (CX).

This inaugural release introduces a range of innovative tools tailored for CX customers, spanning marketing, sales, and customer service functions.

Among the CX features available are web chat summaries for enhanced customer service interactions, assisted content creation for sales professionals based on past successful deals, and AI-generated content for marketing materials such as landing pages, email subjects, and body copy.

These tools harness the power of generative AI to streamline processes and enhance productivity across various CX touchpoints.

Oracle’s broader AI initiative encompasses a total of 50 generative AI features across multiple applications, including HR and supply chain management.

This strategic approach mirrors Salesforce’s early Einstein AI strategy, focusing on addressing specific pain points within distinct use cases to deliver tangible value to users.

What Does Paul Greenberg Have To Say?

According to Paul Greenberg, an analyst for The 56 Group, the shift towards specific use cases with Oracle’s GenAI tools signifies a step in the right direction.

As generative AI evolves from novelty to practical utility, companies like Oracle are poised to reap significant benefits by delivering meaningful solutions to their customers.

Rob Pinkerton, Oracle’s senior vice president, acknowledges the challenge of driving the adoption of generative AI among office workers in the nascent stages of the technology.

However, he remains confident that GenAI will demonstrate its value over time, drawing parallels to the transformative impact of autocomplete in Google search.

Oracle’s Integration & Financial Growth:

Backing Oracle’s GenAI capabilities is the Cohere large language model (LLM), with which Oracle forged a strategic partnership last year.

Cohere serves as the backbone for Oracle’s AI tools, providing exceptional performance while ensuring data security and privacy for Oracle’s enterprise customers.

Oracle’s integration of Cohere with its cloud platform underscores its commitment to data protection and privacy, a crucial consideration for large-enterprise customers.

The seamless integration of Cohere into Oracle’s ecosystem not only enhances performance but also safeguards sensitive customer data within the Oracle cloud environment.

Looking ahead, speculation arises regarding Cohere’s potential as an acquisition target for Oracle.

Analysts suggest that acquiring Cohere could offer Oracle a cost-effective means of bolstering its AI capabilities, leveraging a ready-made LLM to expedite the development of future GenAI features.

The release of Oracle’s generative AI tools coincides with Oracle CloudWorld London, underscoring the company’s commitment to innovation and customer-centric solutions.

In a significant move, Switzerland’s lower house of parliament passed a motion late on Wednesday aimed at imposing accountability measures on senior management of major banks in the event of a bailout with public funds.

The motion, which awaits further debate in the upper house, proposes that top executives of systemically relevant banks return half of their income earned over the past decade if the bank requires government rescue assistance.

This motion follows Switzerland’s provision of emergency liquidity amounting to billions of dollars to Credit Suisse, a major Swiss bank before it was eventually taken over by its rival UBS.

What Is The Next Aim?

The proposed measure is a response to such instances, aiming to ensure that bank executives are held responsible for the financial health of their institutions.

According to the motion, if a systemically important bank receives government assistance during a crisis, its senior management should reimburse 50% of its regular pay and bonuses earned over the previous 10 years.

The goal is to enhance accountability and discourage risky behaviour among bank executives, particularly in scenarios where taxpayer money is utilized to stabilize financial institutions.

The motion, introduced by a politician from the right-wing Swiss People’s Party (SVP), explicitly references the 2023 Credit Suisse case and the 2008 bailout of UBS during the global financial crisis.

It received significant support in the lower house, with 120 votes in favour, 55 against, and 18 abstentions.

However, despite the lower house’s endorsement, the Swiss government, which is set to present its recommendations for managing banks deemed “too big to fail,” has proposed rejecting the motion.

The government’s stance suggests a divergence in opinion regarding the most effective means of ensuring financial stability and accountability within the banking sector.

United Overseas Bank (UOB), a prominent Singaporean lender, has revealed ambitious plans to double its private wealth assets under management (AUM) in the coming years.

The move comes as the bank capitalizes on the burgeoning wealth inflows into Singapore and the broader Southeast Asian region.

According to Chew Mun Yew, UOB’s head of private bank, the bank’s total AUM surged to a record S$176 billion ($132.04 billion) as of December last year, with assets from private wealth clients constituting over half of this total.

Wealth Flow Opportunities in ASEAN Region

Chew expressed confidence in the growth prospects of the wealth management sector, citing increased opportunities for wealth flow into the ASEAN region.

With Singapore experiencing strong organic growth and becoming a preferred destination for affluent individuals, UOB anticipates sustained momentum in wealth management.

This outlook aligns with the broader trend observed in Singaporean wealth management, which has witnessed significant inflows from regions like China and Hong Kong amidst economic uncertainties and geopolitical tensions.

Southeast Asia’s Rising Wealth

Southeast Asia emerges as a significant driver of wealth growth in the region, with countries like Malaysia, Vietnam, and Indonesia poised to witness substantial increases in their ultra-high net worth population.

According to a wealth report by Knight Frank, these countries are projected to experience growth rates outpacing the global average, further underscoring the region’s attractiveness for wealth management activities.

Singapore’s strategic positioning as a wealth hub within Southeast Asia is bolstered by favourable policies, including tax incentives that encourage the establishment of family offices, according to Knight Frank.

UOB’s Expansion and Collaboration Strategy

UOB’s expansion efforts, including the acquisition of Citigroup’s Southeast Asia retail business in 2022, have bolstered its presence in Southeast Asia.

Chew highlighted the bank’s focus on cross-segment collaborations within the organization to maximize cross-selling opportunities and enhance client penetration rates.

With more than half of UOB’s total assets contributed by Singapore and significant contributions from other Southeast Asian countries and North Asia, the bank is strategically positioned to capitalize on the region’s growing wealth landscape.

As Japan’s major corporations gear up to implement some of the most substantial pay hikes in decades, the experience of Ikuko Sakata, owner of a small trucking firm, paints a starkly different picture.

Despite operating in one of the country’s tightest labour markets with sustained demand, small delivery companies like Sakata’s find themselves barely staying afloat financially.

Sakata’s Tokyo-based company, with approximately 80 employees, can only afford to pay the minimum wage, amounting to around 280,000 yen ($1,900) per month before overtime.

This scenario highlights the significant disparity between the lavish wage increases anticipated at major corporations like Toyota Motor and Nippon Steel and the financial constraints faced by smaller enterprises like Sakata’s.

Challenges to Wage Normalization and Monetary Policy

Sakata’s predicament raises questions about the timing of Japan’s central bank to normalize monetary policy, particularly amidst calls for sustainable wage increases as a prerequisite for ending negative interest rates.

While most economists anticipate the Bank of Japan to raise interest rates for the first time in 17 years, the stark difference in wage dynamics between large and small firms adds complexity to this decision.

Hopes for Trickle-Down Effect and Challenges Ahead

The Japanese government pins hopes on wage increases at major corporations to trickle down to smaller and medium-sized enterprises, which constitute a significant portion of the country’s workforce.

However, the reality for many small delivery companies remains challenging, with a Japan Chamber of Commerce survey indicating that only 57% are planning wage hikes in the upcoming fiscal year.

This disparity underscores the unique strains faced by small businesses, particularly in industries like freight, where weak bargaining power prevails due to the proliferation of players.

Sector-Specific Challenges and Economic Outlook

Experts attribute some of the challenges in the freight industry to the wave of deregulation in the 1990s, which led to the proliferation of small companies with limited bargaining power.

This situation underscores the complexities within Japan’s labour market and the need for nuanced policy interventions to address the disparities between large corporations and small businesses, particularly in industries marked by intense competition and regulatory changes.

Billionaire investor Ken Griffin, Founder and CEO of hedge-fund giant Citadel, has cautioned the Federal Reserve against hasty interest rate cuts.

Speaking at a Futures Industry Association event, Griffin emphasized the potential repercussions of premature cuts, stating that a swift change in policy direction could be the “most devastating course” for the Fed to pursue.

Griffin urged the Federal Reserve to proceed cautiously in cutting interest rates, emphasizing the importance of avoiding abrupt policy reversals.

He expressed concern that a scenario involving rapid rate cuts, followed by a pause and a subsequent shift back toward higher rates, would have detrimental effects.

Challenges for the Federal Reserve:

Acknowledging the challenges faced by Fed Chair Jerome Powell, Griffin referred to the chairmanship as “the worst job in America.”

He highlighted the limitations of the position, noting that while the Fed controls monetary policy, it has to navigate the uncertainties arising from political developments in Washington, D.C. Griffin pointed out the Fed’s efforts to tighten monetary policy against the backdrop of government spending.

Inflation Dynamics and Monetary Policy:

Griffin acknowledged that the Fed’s tighter monetary policy has been effective in bringing down inflation.

However, he identified fiscal spending and ongoing deglobalization as “pro-inflationary” forces that the Fed needs to contend with. The complex interplay between monetary policy and external factors presents challenges for the central bank.

Discussing the stock market, Griffin highlighted divergent themes. He noted the transformative changes represented by the “Magnificent Seven” in equity markets, driven by technological advancements.

Additionally, Griffin observed that much of the rest of the market trades at price-to-earnings ratios in line with historic averages, particularly in the industrial base.

Investment Opportunities and Multistrategy Approach:

Griffin suggested that investors can explore big, bold artificial intelligence (AI) bets or opt for areas where prices align with fundamentals.

With a touch of humour, he expressed satisfaction in running a multistrategy hedge fund. The broader market reaction included a surge in chip maker Nvidia Corp.’s shares, contributing to record closes for the S&P 500 and gains in the Nasdaq Composite.

Ken Griffin’s caution against premature interest rate cuts reflects concerns about potential pitfalls associated with rapid policy changes.

As the Federal Reserve navigates the complex economic landscape, managing inflation dynamics and responding to market themes remain key challenges.

A recent report by British asset manager Janus Henderson reveals that global dividend payouts to shareholders reached an unprecedented $1.66 trillion in 2023.

The Global Dividend Index report, released on Wednesday, indicates a 5% year-on-year increase in payouts on an underlying basis, with a 7.2% rise in the fourth quarter compared to the previous three months.

Banking Sector’s Dominance:

The banking sector emerged as a significant contributor, accounting for nearly half of the world’s total dividend growth.

Record payouts were attributed to the sector’s robust performance, fueled by elevated interest rates boosting lenders’ margins.

Major banks, including JPMorgan Chase, Wells Fargo, and Morgan Stanley, announced plans to increase their quarterly dividends after successfully clearing the Federal Reserve’s annual stress test, determining the amount of capital banks can return to shareholders.

While the banking sector thrived, challenges surfaced in the form of substantial dividend cuts from the mining sector.

Noteworthy companies like BHP, Petrobras, Rio Tinto, Intel, and AT&T implemented significant cuts, offsetting the positive impact of the banking sector. Despite these challenges, the report highlighted broad-based growth in various parts of the world.

Global Landscape and Regional Highlights:

Approximately 86% of listed companies worldwide either increased or maintained dividends in 2023.

A total of 22 countries, including the U.S., France, Germany, Italy, Canada, Mexico, and Indonesia, witnessed record payouts. Europe emerged as a “key engine of growth,” experiencing a substantial 10.4% year-on-year increase in payouts on an underlying basis.

Looking ahead to 2024, Janus Henderson anticipates total dividends to reach $1.72 trillion, indicating underlying growth of 5%. Despite challenges and sector-specific variations, the trend suggests continued strength in global dividend payouts.

The report underscores the resilience of global dividends, with the banking sector driving growth despite challenges from other sectors.

As companies navigate various economic factors, the outlook for 2024 suggests a positive trajectory, reflecting the ongoing importance of dividends in the global financial landscape.

In a significant development for the media giant, Trian, led by Nelson Peltz, has launched an aggressive proxy fight against Disney, urging investors to nominate Peltz and former Disney CFO Jay Rasulo to the board at the upcoming annual general meeting on April 3.

Peltz, in a comprehensive 133-page white paper released earlier this month, outlined demands for a leadership restructuring and a revamp of Disney’s traditional TV channels, citing their perceived decline.

The activist investor is pushing for Disney to target and achieve “Netflix-like margins” of 15% to 20% by 2027, asserting that Netflix poses the biggest competition to Disney in the current landscape.

Competitive Landscape and Rivalry with Netflix:

Peltz’s belief that Disney needs to emulate Netflix’s success underscores the intensifying competition in the streaming industry.

He views achieving Netflix-like margins as a pivotal goal for Disney’s sustained growth and relevance. This perspective positions Disney’s CEO, Bob Chapek, in a challenging spot as he navigates the company through this proxy battle.

While Peltz advocates for a substantial overhaul, Disney’s current leadership, led by Bob Chapek and former CEO Bob Iger, has been focusing on streamlining the company to ensure profitability for its Disney+ streaming platform.

Iger, who continues to play a role in Disney’s strategic direction, has initiated widespread restructuring, including significant layoffs, in an effort to control spending and drive profitability for Disney+.

Financial Performance and Investor Sentiment:

In February, Disney reported a robust quarter, exceeding earnings expectations and narrowing streaming losses.

However, the positive financial report did not appease Peltz, who remains steadfast in his calls for a more drastic reconfiguration of Disney’s leadership and business model.

As the proxy battle between Trian and Disney intensifies, the outcome of the upcoming annual general meeting on April 3 will undoubtedly shape the future trajectory of Disney’s leadership and strategic direction.

The clash between traditional media channels and the evolving streaming landscape is at the forefront, emphasizing the critical decisions that lie ahead for one of the entertainment industry’s behemoths.

Pension insurance specialist Rothesay has entered into an agreement to purchase the approximately £6 billion ($7.67 billion) Scottish Widows in-force bulk annuity portfolio from Lloyds Banking Group.

This strategic move, announced on Wednesday, represents Rothesay’s sixth acquisition of annuities and underscores the company’s focus on expanding its presence in the annuity market.

Key Details of the Deal:

The bulk annuity transaction encompasses the pension benefits of approximately 42,000 individuals, adding significant value to Rothesay’s portfolio.

This acquisition aligns with Rothesay’s expertise in pension insurance and its commitment to providing comprehensive solutions in the annuity sector.

For Lloyds Banking Group, the sale enables a strategic shift, allowing the organization to concentrate on growing markets, including insurance, pensions, investments, retirement, and protection.

Growing Popularity of Bulk Annuities:

Bulk annuities have gained prominence in the UK, especially among pension scheme trustees seeking to offload liabilities to insurers.

This financial strategy provides companies with a means to transfer pension risks, enhancing financial stability.

The UK bulk annuity market is anticipated to reach record levels exceeding £50 billion this year, reflecting the increasing adoption of this form of insurance.

Industry Expectations and Record Growth:

Chira Barua, CEO of Scottish Widows and of insurance, pensions, and investments at Lloyds, emphasized the sale’s role in enabling the organization to refocus and invest in key growth areas.

This move aligns with broader industry trends, as companies strategically reallocate resources to capitalize on emerging opportunities within the insurance, pensions, investments, retirement, and protection markets.

Industry consultants foresee the UK bulk annuity market experiencing record levels of growth in 2024, with expectations exceeding £50 billion.

The Rothesay acquisition of Scottish Widows’ annuity portfolio exemplifies a proactive approach to capitalizing on this trend, further solidifying Rothesay’s position as a prominent player in the pension insurance sector.

The European Central Bank (ECB) is charting a course to shift banks away from dependency on free cash, marking a departure from a nearly decade-long strategy.

The Operational Framework Review, proclaimed on Wednesday, March 13th 2024, aims to gently wean banks off the era of massive bond purchases and free cash injections that were initially implemented to combat too-low inflation.

Adapting to Higher  Interest Rates:

In response to changing economic conditions characterized by higher inflation and interest rates, the ECB seeks to transition from an exceptionally generous system.

The previous strategy flooded banks with cash to stimulate lending and inflation. However, as the liquidity pumped into the system is now being drained, the ECB recognizes the need for adaptation.

The new framework introduces measures to incentivize banks to engage in more interbank lending, moving away from the reliance on central bank deposits.

The intention is to revive a more dynamic interbank market, fostering increased lending activity among financial institutions. This shift is part of a broader strategy to normalize the central bank’s balance sheet and adapt to the evolving economic landscape.

Balancing Act for Stability:

While urging banks toward a more sustainable lending model, the ECB remains mindful of potential risks to the financial system.

The framework includes safety nets to limit the risk of financial tension, ensuring a smooth transition without disrupting the stability of the financial sector.

ECB President Christine Lagarde emphasized the need for the new framework to be effective, robust, flexible, and efficient as the central bank’s balance sheet normalizes.

Christine Lagarde’s statement emphasizes that the new framework is designed to ensure that policy implementation remains effective, robust, flexible, and efficient in the future.

As the ECB adapts to a changing economic landscape, the focus is on maintaining stability, encouraging lending, and navigating the challenges associated with transitioning away from a period of exceptionally generous cash injections.

Amidst the global real estate industry’s most significant downturn in over a decade, the MIPIM property conference in Cannes reveals a landscape of falling commercial real estate (CRE) prices and uncertainty regarding the fate of offices vacated due to the pandemic.

Delegates at MIPIM, attended by around 20,000 investors, developers, and agents, engage in discussions around potential recovery strategies.

Major players such as LaSalle, Greystar, Hines, Federated Hermes, AEW, and Patrizia report tentative signs of rebounding deal activity, though caution remains prevalent.

Philip La Pierre of LaSalle warns of “hot air” circulating through discussions, urging careful navigation amid uncertainties.

Market Challenges and Disparities:

Rising borrowing costs and empty offices have adversely impacted property investments, resulting in a 13.9% year-on-year decline in European commercial capital values in Q4 2023.

Data centres and logistics, however, have displayed resilience. U.S. cities, including San Francisco and Los Angeles, witness sharp price declines and soaring vacancy rates nearing 30%. La Pierre suggests that 30% of European office space may be deemed obsolete.

In 2023, commercial property deal volumes in Europe plummeted by half to 166 billion euros ($181 billion), marking the worst year for office sales on record. Investors are currently hesitant to realize losses, contributing to the market standstill.

Despite these challenges, some foresee a potential turnaround if central banks reduce interest rates, alleviating corporate debt burdens.

Cautious Optimism Amid Challenges:

James Seppala, head of real estate in Europe for Blackstone, expresses a renewed sense of confidence and enthusiasm for the upcoming year, citing recent activity.

However, the market’s resilience faces a significant test at MIPIM itself, which traditionally celebrates successful deals. Jose Pellicer of M&G Real Estate notes that the worst-performing properties are now deemed “unsellable.”

While Europe has seen fewer visible signs of property distress compared to the U.S. and China, sharp sell-offs in Germany and Sweden hint at underlying issues.

Also, collapses such as Signa Group’s in November, contribute to a global real estate crisis that may take time to fully unfold.

Lenders and Potential Risks:

Major banks have navigated the crisis relatively unscathed so far, with European banks reducing CRE lending.

However, alternative lenders, including more leveraged entities like asset managers and insurers, may face increasing exposure to losses.

These alternative lenders currently constitute 20-30% of Europe’s CRE loans, heightening concerns about potential financial repercussions.

Some lenders adopt an “extend and pretend” approach reminiscent of the 2007-09 financial crisis, delaying foreclosure on properties to avoid crystallizing losses in the current market conditions.

The trajectory of office prices hinges on whether banks and developers can withstand the downturn until borrowing costs decrease or demand returns.

While property prices in markets like Britain may be closer to bottoming out, German office prices are anticipated to decline further.

Selena Ohlsson of Federated Hermes notes that despite the challenges faced in 2023, investor interest is showing signs of returning, particularly from the Middle East and Asia Pacific.