Zombie companies are dropping like flies

Commercial real estate market, and the non-bank lenders that finance it, face liquidity crises.

Valuers are not properly marking to market illiquid assets, with big active real estate investment trusts (REITs) trading at enormous, 30 per cent discounts to their claimed net tangible asset backing.

Investors say many unlisted property trusts are now being frozen as investors rush for the exits, while fund managers that operate these trusts are reluctant to sell the underlying assets.

Inflation ex-volatile items/transport rose at a slightly faster rate in July , climbing 0.5 per cent after a 0.3 per cent increase in June .

The latest inflation data signal that interest rate relief is unlikely to bail out zombie borrowers.

Sticky inflation is proving to be a problem in Europe , too.