Sunday newspaper round-up: China, Russia, Property prices

(Sharecast News) - Chinese policymakers are targeting the slowest rate of growth for their economy this year since 1991 in the wake of Russia's invasion of Ukraine. At the opening of the National People's Congress, Premier Li Keqiang said the government's target for GDP growth in 2022 had been set at 5.5% and promised to increase fiscal spending, including on defence. For their part, private economists anticipate that the People's Bank of China will cut interest rates, even as western countries do the opposite in order to brake price growth. Nevertheless, Beijing's target is higher than the International Monetary Fund's own for growth of 4.8%. - The Sunday Times Russia's economy is headed for a recession on a scale similar to the one that ensued following the 1998 financial crisis, according to analysts at JP Morgan. Gross domestic product is seen plunging by 11.0% over the coming months. For their part, Kay Neufeld and Pushpin Singh at the Centre for Economics and Business Research, say that, if taken to an extreme, the financial sanctions could see the country's banking system collapse. "Inflation will likely be rampant. This would wipe out the savings of the Russian middle-class and lead to serious impoverishment for the less well-off." - The Sunday Telegraph

Dearer mortgage rates, elevated inflation, surging bills and domestic and global economic headwinds will "put the brakes" on surging property prices in 2022, according to Zoopla. The property website owner has forecast a slowdown in house price growth from 7.8% in January to 3.5% by December. "The global uncertainty and volatility resulting from the invasion of Ukraine will have economic impacts around the world, including the UK." - The Financial Mail on Sunday

Marshall Wallace has become the first hedge fund to take out a significant short position against stock in Deliveroo, to the tune of £1.0m. Up until now, no short positions had been listed on the Financial Conduct Authority's monitoring list. Mark Hiley, at The Analyst, thinks the stock's price could fall by a further 40.0%. Hiley was among the first to the sound the alarm over collapsed payment giant Wirecard and before stock in The Hut Group plunged. Among Deliveroo's biggest backers are Amazon and DST Global, with the latter being the investment vehicle of serial tech investor Yuri Milner. - The Financial Mail on Sunday

America's DoorDash looked into acquiring Deliveroo over the summer. The tie-up would have created a delivery giant with annual sales of nearly £4.0bn. In November, DoorDash opted to purchase Finland´s Wolt in a transaction worth roughly £5.8bn. Shares in Deliveroo, which has a complex ownership structure that gives its founder outsized power and voting rights, have fallen by 72.0% since listing on the London Stock Exchange in March. - The Sunday Times