Sweden’s housing starts probably reached a new low last month as struggling home builders are continuing to postpone and cancel new projects, Bloomberg News reported. New home construction has fallen by 68% from a peak in August 2021, with a decline of 4.7% on month in December, an indicator published Wednesday by data provider Byggfakta Group showed. Previous months’ outcomes were also revised lower when factoring in new information on project cancellations, suggesting that a stabilization in activity is reversed.

The European Central Bank is likely to cut interest rates in the summer, according to President Christine Lagarde, Bloomberg News reported. She was asked at the World Economic Forum in Davos if there could be majority support for such a move, given that several policymakers have signaled that timing. “I would say it’s likely too,” Lagarde said.

Moldova’s central bank chief said a collapse in inflation showed that the abrupt turn away from Russian energy had paid off as the republic wedged between Ukraine and Romania seeks accession to the European Union, Bloomberg News reported. Central Bank Governor Anca Dragu said an influx of EU financial aid and fresh energy supplies from Romania were behind last year’s slowdown in inflation to 4.2% from more than 30% in 2022. The recovery after the turmoil brought on by Russia’s invasion of Ukraine was far more robust than Moldova’s authorities had initially expected, she said.

The number of UK companies going bust jumped 14% in 2023 as firms collapsed under the weight of higher borrowing costs and weaker economic growth, Bloomberg News reported. Retail, construction and hospitality firms helped to drive total company insolvencies up to 25,159 in 2023, according to the government’s Insolvency Service. There was a 2% year-on-year increase in December, which is typically a low month for insolvencies. The figures show growing strains on companies after a lull in the pandemic period, reflecting higher borrowing costs and a stagnating economy.

Swedish retail bank Resurs Holding AB plunged to a record low after posting a surprise fourth-quarter loss on souring consumer loans in its home market and neighboring Finland, Bloomberg News reported. The lender’s preliminary report, which came about a week ahead of earnings by the major Nordic banks, pointed to an operating loss of 335 million kronor ($32 million) in the final three months of 2023, according to a statement. Analysts had penciled in an operating profit of 175 million kronor.

China’s state-owned banks are tightening curbs on funding to Russian clients after the US authorized secondary sanctions on overseas financial firms that aid Moscow’s war effort in Ukraine, Bloomberg News reported. At least two banks ordered a review of their Russian business in recent weeks, focusing on cross-border deals, said the people, asking not to be identified discussing a private matter.

Sweden’s underlying inflation rate fell less than expected in December, suggesting the country’s central bank has some way to go before it can start monetary easing that would aid an ailing economy, Bloomberg News reported. A measure that strips out energy costs and the effect of interest-rate changes rose 5.3% from a year ago in December, according to a release from Statistics Sweden on Monday. While that marks a marginal retreat from November, prices increased slightly more than projected by economists, who had penciled in a 5.2% rise in a survey by Bloomberg.

The Italian government is asking for an additional review to clear the planned acquisition of alternative asset manager Prelios SpA by Andrea Pignataro’s ION Group after deciding against using its special powers to block the deal, Bloomberg News reported. The government is set to tell ION it will need to obtain another permission to complete the purchase after setting the final conditions for its financing, according to people familiar with the matter.

An Italian court on Monday cleared the way for energy companies to cut off gas supplies to steel company Acciaierie d'Italia (ADI), majority owned by multinational steel giant ArcelorMittal, over mounting debts, Reuters reported. Weighed down by an increase in energy prices and a drop in rolled steel coil prices, ADI has run out of cash and has accumulated a huge debt pile with suppliers. These include energy giant Eni, owed 104 million euros by the steelmaker as of end-June 2023.

Beleaguered bondholders of Signa Development Selection AG are looking to prevent a law enacted 150 years ago by the authorities of the Austro-Hungarian Empire from limiting their ability to pursue claims against the insolvent firm, Bloomberg News reported. Lawyers for the property unit of the Signa group recommended that a court-appointed kurator represent collectively the holders of the €300 million ($329 million) defaulted notes during the self-administration process, according to insolvency filings seen by Bloomberg News.