Newbie
Welcome 2 d FIGHT RING
this will b colorful thread esp 4 those will like 2 bold n big fonts
Any1 can post? Yes
Any1 can comment? Yes
Every1 has own views? Yes
Any1 can criticize? Yes
Watch ur words otherwise u will b spending new yr hvg free coffee in lock up
Newbie
Mortgage Rates for 30-Year U.S. Loans Climb From Record Low
December 29, 2011, 12:03 PM EST
S&P Downgrade Proves Absurd as Investors Prefer U.S. Assets
BofA Agrees to Record $335 Million Fair-Lending Deal With U.S.
BofA Said Close to Settling Countrywide Fair-Lending Probe
Dudley Doesn’t See Additional Fed Action Against Europe Crisis
Mortgage Rates for 30-Year U.S. Loans Decline to Record Low
By Prashant Gopal
(Updates with pending home sales in last paragraph.)
Dec. 29 (Bloomberg) -- U.S. mortgage rates for 30-year fixed loans increased from the lowest on record as home sales rose amid improved consumer confidence and employment data.
The average rate for a 30-year fixed loan rose to 3.95 percent in the week ended today, from 3.91 percent last week, the lowest in records dating to 1971, Freddie Mac said in a statement. The average 15-year rate climbed to 3.24 percent from 3.21 percent, according to the McLean, Virginia-based mortgage- finance company.
New-home sales jumped to a seven-month high in November, figures from the Commerce Department showed Dec. 23. The unemployment rate declined to 8.6 percent last month, the lowest level in more than two years, and confidence among consumers reached an eight-month high in December.
“Low interest rates are a necessary condition to help the housing market but they aren’t sufficient,” Charles Lieberman, chief investment officer at Advisors Capital Management LLC in Hasbrouck Heights, New Jersey, said in an interview before Freddie Mac made the announcement. “We need some other things to happen to help housing. The most important of those is for job growth to continue at a stronger pace.”
The number of Americans filing claims for unemployment benefits decreased for the week ended Dec. 17 to the lowest level since April 2008, the Labor Department said last week.
Residential home values, weighed down by foreclosures, fell 3.4 percent in October from a year earlier, according to the S&P/Case-Shiller index of property values in 20 cities.
A measure of contracts to buy previously owned homes increased 7.3 percent in November to the highest level since April 2010 after climbing 10.4 percent the prior month, the National Association of Realtors said today in Washington.
Newbie
Oil prices rise on Mideast tensions
Posted: 30 December 2011 0436 hrs
NEW YORK: Oil prices edged higher on Thursday in volatile trading in New York, boosted by geopolitical tensions in the Middle East and better-than-expected US economic news.
New York's main contract West Texas Intermediate light sweet crude for February delivery, finished at $99.65 a barrel, an increase of 29 cents from Wednesday's close.
In London, Brent North Sea crude for February gained 45 cents to settle at $108.01 a barrel.
The WTI price took a hit after the government reported an unexpected increase in US crude oil stockpiles, by 3.9 million barrels, last week, reflecting weaker demand in the world's biggest oil-consuming nation.
Distillates also rose unexpectedly, by 1.2 million barrels. These stockpiles, which include heating fuel, are closely watched by the market at the beginning of winter.
Also tempering demand was a feeble Italian debt auction that helped push the euro to a 16-month low against the dollar. That makes dollar-priced crude less attractive to buyers using euros.
But oil prices rebounded into positive territory in late trade.
"The market is extremely lightly traded so it does not take a lot" to produce sharp price movements, said Tom Bentz at BNP Paribas.
"After getting down towards the $98 area the market got quiet, and we got a recovery," Bentz said.
"The reality is that there is a lot of stuff going on in the Middle East and that the market is nervous about it."
A showdown between Iran and the United States over Tehran's threats to close the strategic Strait of Hormuz to oil tankers worsened on Thursday.
Iran's Revolutionary Guards rejected a warning that the US military would "not tolerate" such a closure, saying they would act decisively "to protect our vital interests."
More than a third of the world's tanker-borne oil passes through the Strait of Hormuz, a choke point linking the Gulf's petroleum-exporting states to the Arabian Sea and beyond.
Also helping prices were better-than-expected reports on pending sales of US homes and manufacturing activity in the Chicago region, and a weekly jobless claims reading that confirmed the broader trend of improvement in the depressed labour market.
Exalted
tks for setting up this threadOriginally Posted by richie$$$
well done bro!
i take back my word saying basic=richie$$$
tks in advance for ur effort and time to post
Newbie
nptks for setting up this thread
well done bro!
i take back my word saying basic=richie$$$
tks in advance for ur effort and time to post
find a contender n get in2 d ring. BULL /Bear?
Newbie
Gloomy outlook for HK's exports sector
By Leslie Tang | Posted: 29 December 2011 1848 hrs
HONG KONG: Hong Kong's Trade Development Council is forecasting a gloomy outlook for the city's key exports sector.
It says Hong Kong's export growth will slow down to just one percent in 2012, down sharply from 10 percent this year.
The council uses Christmas sales in Hong Kong's major overseas markets as a gauge for prospects in the year ahead.
It says consumers in major markets such as the US and Europe are tightening their belts amid shaky economic outlook.
Daniel Poon, assistant chief economist, Hong Kong Trade Development Council, said: "US consumers will continue to be cautious and their demand for Hong Kong products will continue to moderate next year.
"And across the Atlantic, the EU is actually now on the brink of recession because of the sovereign debt crisis. And most European countries will have a very slow or negative growth next year.
"So consumers in general in Europe will continue to be very conscious and their demand for Hong Kong products will show no growth or even decline. So our exports to the EU will not be optimistic next year."
Exports account for about 25 percent of Hong Kong's GDP.
Exalted
exports acct for how many % of SG's GDP?
Newbie
New cooling measures may be scrapped if economy worsens
Dec 29, 2011 - PropertyGuru.com.sg
The latest property cooling measures could be removed if the Singapore economy deteriorates or stagnates amid the looming economic downturn, according to analysts.
However, if home prices continue to increase despite the new policy, home buyers can expect the measures to remain.
According to a report by The Straits Times, developers have been giving warnings since the implementation of the cooling measures, saying it could turn away foreign investment, drive down property values, and therefore, possibly damage an already volatile economy.
Wong Heang Fine, President of the Real Estate Developers Association, warned of a knock-on effect on mortgages that could lead to a decline in home equity values and shrinking wealth.
Record profits for property companies in Singapore
Sep 9, 2011 - PropertyGuru.com.sg
Most of the 97 companies that released their full-year earnings for the financial year ended June 2011 saw continued growth, with combined net profits of approximately S$2.4 billion, 14.6 percent higher than the total earnings recorded in the previous financial year.
Three of the top five earners for this year were property companies and analysts noted that real estate groups had benefited from strong sales in the past two to three years, according to a report by The Business Times.
Luxury property developer Wing Tai came in second with total earnings of S$314.2 million, while Sim Lian Group ranked fourth with S$200.1 million. Commercial and residential property developer GuocoLand was fifth, with S$130.2 million in full-year earnings.
Terence Wong, Co-Head of Research at DMG & Partners Securities, said many developers had locked in earnings from real estate sales over the past few years, which have been resilient, in light of the government’s tightening measures to cool the property market.
He noted that the strong sales recorded by most developers will likely “bring them through over the next two-three years.”
“That is why many of them have been reluctant to slash property prices,” he said. “Many also have cash to spare, and some are trying to buy more land.”
Newbie
China limits foreign auto investment
Posted: 30 December 2011 0107 hrs
BEIJING: China said on Thursday it will "withdraw support" for foreign investment in auto manufacturing to encourage domestic industry in the world's largest car market.
Some of the world's biggest car firms, including General Motors, Honda and Volkswagen, have long had operations in China, but the state news agency said Beijing would "withdraw support for foreign capital in auto manufacturing".
The move, announced by the National Reform and Development Commission and the Ministry of Commerce, comes as auto sales slump and Beijing tries to shore up the domestic economy against a forecast slowdown.
The new obstacles to foreign auto makers, due to go into effect on January 30, come "because of the need of the healthy development of domestic auto making," the NDRC and commerce ministry said, according to Xinhua.
The report did not provide specific details of what the withdrawal of support might amount to, nor were they immediately available from either organisation's web site.
But the measure comes as China's auto sales slow and just 10 days after Saab was forced into bankruptcy following successful efforts by GM to block Chinese companies from acquiring the Swedish car maker.
Sales in the world's biggest auto market rose more than 32 percent last year to a record 18.06 million units, but the sector has since lost steam after Beijing phased out sales incentives such as tax breaks for small-engine cars.
Auto sales in China slid 2.4 percent in November from a year earlier to around 1.66 million vehicles, marking the second straight monthly decline.
China, which overtook the United States to become the world's top auto market in 2009, has become increasingly important for global players such as GM and Volkswagen.
As China's overall auto sales have dropped, some foreign firms have fared well, with GM showing a more than 20 percent sales rise in November from a year earlier, bolstered by strong demand for passenger cars.
In the first 11 months of this year, GM sold around 2.35 million vehicles in China, up more than 8.0 percent from the same period last year.
In September, GM China Group president Kevin Wale forecast China's total auto sales will reach 19 million units this year, marking growth of around five percent from the record 18.06 million units sold last year.
Industry group the China Association of Automobile Manufacturers also expects growth in car sales for the whole of 2011 to be just five percent, down from an earlier forecast of 10-15 percent.
The moves against the international auto sector come fast on the heels of Beijing's decision earlier this month to hike tariffs on US passenger cars and sports utility vehicles with engine capacities of 2.5 litres or more.
China challenged the US to bring a complaint to the World Trade Organisation.
The NDRC and commerce ministry also said China will ease restrictions on foreign investment in some sectors while lifting caps on the proportion of foreign capital in others.
In the first 11 months of 2011, China attracted $103.77 billion in foreign direct investment, up 13.15 percent from a year earlier, Xinhua said.
Signs that China's economy is in for a hard year ahead are seen in government forecasts which halve the export growth on which the nation's economy heavily depends, as economic turmoil in Europe and the United States bites.
Newbie
Taiwan central bank leaves interest rate unchanged
Posted: 29 December 2011 1950 hrs
TAIPEI: Taiwan's central bank on Thursday left its key interest rate unchanged, saying the island's economy was being hit by weakening overseas demand.
"The global slowdown is affecting our economy... and the central bank will maintain the current rate in order to boost economic growth and stabilise consumer prices," it said in a statement after its quarterly board meeting.
Taiwan's trade-dependent economy has shown signs of weakness in recent months as demand slows from its major markets in China, the United States, and debt crisis-hit Europe.
Last month, Taiwanese industrial output fell for the first time in two years, while export orders grew at their slowest pace in 27 months due to sluggish overseas demand for its signature high-tech products.
Taiwan's economy grew a slower-than-expected 3.42 percent in the third quarter and the government has lowered its 2011 forecast from 4.56 percent to 4.51 percent.
Newbie
Prices of shoebox apartments slide in November
Dec 29, 2011 - PropertyGuru.com.sg
Prices of completed shoebox apartments peaked in August and dropped three percent in November, according to the flash estimates from NUS’ Institute of Real Estate Studies.
Month-on-month, prices of these units dropped 0.2 percent in November.
The flash estimates also showed that prices of larger apartments in both Central and Non-Central regions continued to rise in the previous month.
Since 2010, the price hike for shoebox apartments in Singapore has been slower compared to larger apartments in the Non-Central region (NCR) but faster than for larger apartments in the Central Region.
Meanwhile, flash estimates for the Singapore Residential Price Index (SRPI) revealed that the sub-index for shoebox apartments in the country dropped 0.2 percent month-on-month in November. The index has declined three percent since peaking in August.
The SRPI for the NCR (excluding shoebox apartments) climbed 1.8 percent month-on-month, while the sub-index for the Central region rose 1.5 percent in November.
In addition, the Overall SRPI rose 1.7 percent month-on-month in November, up from the one percent month-on-month growth in October.
“As more of these units are completed, those who can’t hold may be under pressure to sell. So far, rents of small apartments have held well, but competition for tenants may intensify when more such stock is completed,” said Ong Choon Fah, Chief Operating Officer of DTZ Southeast Asia.
Newbie
Economy
GDP (2010 nominal prices): $222.7 billion.
Annual real growth rate: 8.8% (2007), 1.5% (2008), -0.8% (2009), 14.5% (2010).
Per capita GDP (2010): $43,867.
Natural resources: None.
Agriculture (under 0.5% of GDP): Products--poultry, orchids, vegetables, fruits, ornamental fish.
Manufacturing (22.2% of real GDP): Types--electronic and electrical products and components, petroleum products, machinery and metal products, chemical and pharmaceutical products, transport equipment (mainly aircraft repairs/maintenance, shipbuilding/repair and oil rigs), food and beverages, printing and publishing, optical and photographic equipment, plastic products/modules, instrumentation equipment.
Trade (2010): Exports--$351.18 billion: petroleum products, food/beverages, chemicals, pharmaceuticals, industrial machinery and equipment, electronic components, telecommunication apparatus, transport equipment. Major markets--Malaysia (11.9%), Indonesia (9.4%), Hong Kong (11.7%), EU (9.8%), China (10.3%), United States (6.4%), and Japan (4.7%). Imports--$310.39 billion: aircraft, crude oil and petroleum products, electronic components, radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, electricity generators. Major suppliers--EU (12.3%), Malaysia (11.7%), United States (11.2%), China (10.8%), and Japan (7.9%).
Newbie
Newcastle United to beat a weakened Liverpool 3-1 tonight pays 60 to 1 at Singapore Pools. bet of the year!
Newbie
New mortgage loans in HK down 8%
Dec 29, 2011 - PropertyGuru.com.sg
New mortgage loans in Hong Kong declined eight percent to HK$10.6 billion (S$1.77 billion) in November, according to data released by the Hong Kong Monetary Authority (HKMA).
The data showed that the value of new loans approved last month dropped 4.7 percent to HK$11.9 billion (S$1.99 billion), while loans approved for new property climbed 0.9 percent to HK$2.2 billion (S$368.22 million) from the previous month.
Furthermore, the number of new loan applications climbed seven percent to 7,074 cases, while the outstanding value of mortgage loans surged 0.2 percent to HK$802.3 billion (S$134.27 billion).
Meanwhile, the proportion of new loans priced with reference to Hong Kong interbank offered rates (Hibor) fell to 19.2 percent in November from 28.1 percent in October, attributed to banks’ upward adjustments of mortgage rates.
Newbie
Euro rebounds after hitting 15-month lows
Posted: 30 December 2011 0730 hrs
NEW YORK: The euro rebounded slightly on Thursday after sinking to 15-month lows against the dollar, in trading coloured by a mixed-result Italian bond auction.
The European single currency tumbled to $1.2858 - the lowest level since September 14, 2010 - before pushing back to $1.2960 at 2000 GMT, for a gain from Wednesday's $1.2934.
The fall was sparked by some disappointment in Italy's market-testing auction of long-term debt.
"This came after the Italian debt auction showed borrowing costs slipping from recent highs but still remaining at an 'unsustainable' level. Moreover, the Italian government failed to reach the auction target of 8.5 billion euros," said Joel Kruger of DailyFX.
Rome was only able to find buyers for seven billion euros worth of bonds, but the rate it paid remained lower than the seven percent threshold.
But the single currency bounced back in late trade, possibly the victim of the low holiday period trading volume.
At 2200 GMT, the euro was at 100.61 yen, down from 100.80 on Wednesday. The dollar bought 77.62 yen, down from 77.90.
The dollar traded at 0.9400 Swiss francs compared to 0.9427 francs. The British pound continued to sag, buying $1.5411, from $1.5450 a day earlier.
- AFP/de
Newbie
China Factory Activity Shrinks Again in December
Published: Thursday, 29 Dec 2011 | 9:35 PM ET Text Size
By: Reuters
China's factory activity likely shrank again December as demand at home and abroad slackened, a purchasing managers' survey showed on Friday, reinforcing the case for pro-growth policies to underpin the world's second-largest economy.
Getty Images
HSBC Purchasing Manager's Index, designed to preview the state of Chinese industry before official output data are published, inched up to 48.7 in December from a 32-month low of 47.7 in November but fell short of the flash reading of 49.
The HSBC PMI has been mostly under 50, which demarcates expansion from contraction, since July.
Underlying indices showed softening demand at home and abroad, according to the data collated by UK-based information firm, Markit.
The sub-index for overall new orders edged up to 46.9 in December from November's 45, but still signalled falling demand. New export orders also shrank.
"While the pace of slowdown is stabilising somewhat, weakening external demand is starting to bite," said Qu Hongbin, China economist at HSBC.
"This, plus the ongoing property market corrections, adds to calls for more aggressive action on both fiscal and monetary fronts to stabilise growth and jobs, especially with prices easing rapidly."
China will avoid a hard economic landing so long as policy easing measures filter through in the coming months, Qu added.
HSBC believes a PMI reading of as low as 48 in China still points to annual growth of 12-13 percent in industrial output.
China's GDP growth has slowed in successive quarters, from an annual 9.7 percent in the first quarter to 9.1 percent in the third. The consensus call among economists for the fourth quarter is for growth to slip below 9 percent.
Both the official and HSBC PMIs are stuck near their weakest levels since early 2009.
Still, analysts are looking for signs of stabilisation in the factory sector and are anticipating a shift by Beijing to a more supportive economic policy stance to prevent a sharp slowdown.
China's central bank cut reserve requirements for commercial lenders late in November for the first time in three years, signalling a shift in policy to ease credit conditions for business borrowers.
Newbie
Euro Slide Could Be Preview of a Troubled New Year
Published: Thursday, 29 Dec 2011 | 2:24 PM ET Text Size
The euro’s dramatic slide to the year’s lows in light trading is a likely prelude to more weakening in the New Year and highlights the long haul ahead for the euro zone’s debt crisis.
Analysts say the euro’s fall, to a level of 1.2858 against the dollar Thursday morning, was in part due to the lack of participants in the market but also because the list of hurdles facing the euro zone remains long. The euro later recovered from its 15-month low and was trading above 1.29 in afternoon trading.
The euro fell to a decade low against the yen. As the euro recovered Thursday morning, stocks also rose, turning the S&P 500 [.SPX 1263.02 13.38 (+1.07%) ] slightly positive for the year. Gold [GLD 150.34 -0.69 (-0.46%) ] also came off its low of $1,523 per ounce, a 20 percent decline from its September highs, which put it in bear market territory.
“I think the euro is telling us it’s a very thin market, but people are preparing for the worst next year,” said Brown Brothers Harriman chief currency strategist Marc Chandler.
Chandler said the market is looking ahead to the huge rollover of sovereign debt next year, with a total of more than $150 billion in the first quarter. Italy auctioned 7 billion euros in long dated bonds on Thursday, and the yield on its 10-year fell to 6.93 from November’s 7.56 percent rate. But in trading the yield continued to touch 7 percent, perceived by the market as an unsustainable level for Italy.
Italy alone has to raise at least another 50 billion euros in the first quarter, he said.
Chandler said there were several factors at play for the euro. “We saw money supply implode in the euro zone,” he said. M3 money supply growth, the broadest measure of money supply growth in the euro zone, was reported Thursday to have slowed to an annual pace of 2 percent in November, down from 2.6 percent in October. Economists had expected a 2.5 percent rate. At the same time, loan growth to the private sector slowed to 1.7 percent from 2.7 percent in October.
“All this money is not going anywhere. It’s not translating into loans. The banks are sitting with it. They are flush with cash and they’re not using it because they don’t know what’s going to happen next year,” he said, adding the banks need to raise 800 billion euros in capital. “They haven’t issued senior debt. Many of the banks are frozen out of the market.”
BNP Paribas strategist Mary Nicola said the two-day drop in the euro really started Wednesday morning with heavy corporate flows. “The afterthought was the market didn’t react immediately, but it later on realized that the ECB balance sheet expanding to a record high is that the ECB is in fact engaging in some credit easing,” she said.
The market also anticipates another rate cut from the ECB which cut its interest rate to 1 percent earlier this month, and that too could send the currency lower.
The European Central Bank balance sheet rose to a record 2.73 trillion euros, after its latest program launched last week to lend banks money at cheap rates for a longer term. The ECB gave more than 500 banks loans totaling 489 billion euros in an effort to encourage lending and boost liquidity.
“The thing is there’s such big linkages between the sovereigns and the banks,” said Chandler. “In many of these countries, sovereigns and banks are trading as if they already got downgraded.”
Even as the New Year’s holiday approaches, there continues to be speculation that several euro zone sovereigns could be downgraded by rating agencies, making borrowing more costly.
“What you do tend to find is that in thin markets, trends seem to be exacerbated and the tendency is for weakness and that’s what’s happening,” said Alan Ruskin, chief G-10 currency strategist at Deutsche Bank [DB 38.22 1.03 (+2.77%) ].
Ruskin said the ECB balance sheet expansion did not cause the euro’s decline. “It’s not a causal relationship but the size of the balance sheet is indicative of euro area problems, which are associated with euro weakness,” he said.
He said the euro decline also parallels a strengthening of the dollar on better U.S. data. As for the euro, the decline could continue. “1.25 is fairly easily in sight,” Ruskin said.
Chandler said the weaker euro would be part of the solution for the euro zone, helping exports in its weakest members and its wealthiest—Germany.
What’s really going on is an attempt to cure the patient. Castor oil doesn’t taste good, but it helps,” he said.
Newbie
More local investors look to offshore properties
Dec 28, 2011 - PropertyGuru.com.sg
With the bleak outlook on local property prices, more local investors are eyeing offshore properties, said industry watchers and real estate agents.
According to a PropertyGuru survey, 19 percent of over 1,737 respondents polled were “tempted” to invest overseas, up from 14 percent in June.
The poll — conducted before the government’s recent cooling measures — also cited that Malaysia was the top overseas investment destination, with 32 percent interested, followed by Australia with 24 percent, while the Philippines and New Zealand both landed in third spot with nine percent.
As the residential market in Singapore is expected to slow, PropertyGuru also expects the number of foreign and local investors looking overseas to increase in the next six months.
Malaysia-based developer Eastern & Oriental noted a 20 percent increase in inquiries from Singaporean home hunters about its Penang projects.
Analysts believe that the cooling measures have taken some of the heat out of the luxury residential market and this will likely continue next year, as investors turn to opportunities in Western markets. This could affect demand for luxury homes in Singapore, Beijing, Hong Kong and Shanghai, where prices have risen by approximately 25 percent in recent years.
“While we saw very strong activity by high-net-worth investors, particularly from the Asia-Pacific region…the course might change in the next 12 months, where we see more outflow in terms of money going into markets like in Europe, in key markets in the US, by high-net-worth Asian investors,” said Donald Han, Vice-Chairman of Cushman & Wakefield.
Newbie
29 December 2011 Last updated at 13:41 GMT
Hungarian government abandons part of debt auction
S&P raised doubts about the independence of the Hungarian central bank
Hungary ups interest rates to 7%
EU and IMF end Hungary debt talks
Hungarian debt downgraded to junk
The Hungarian government has abandoned part of a planned bond auction and seen interest on the debt it did issue rise.
When Hungary scrapped an auction in 2008 it was forced to seek IMF help.
The country, which is not part of the eurozone, is already in talks with the European Commission (EC) and IMF over a refinancing package.
However negotiators from the EC and IMF left Hungary earlier in December due to worries over the independence of its central bank.
The government sold 15bn forints ($62m, £40.5m) of debt in the auction, compared with a target of 18bn forints.
The average interest rate on its 10-year bonds increased from 8.78% to 9.7%.
The country's debt agency, AKK, said it had cancelled the three-year auction because the range of yields offered was too wide.
However it said there was not a shortage of lenders, as had happened in 2008.
"The 16 billion (in bids) is not too much but is an acceptable amount relative to the 15 billion on offer, but yields came in such a wide range that the AKK decided to reject all bids," said deputy chief executive of the AKK Laszlo Andras Borbely.
Downgrade
The unsuccessful auction follows a downgrade of Hungary's debt to junk status by Standard & Poor's (S&P) last week.
S&P cited changes to the constitution that had undermined the independence of the central bank and other institutions as part of the reason for the downgrade.
"In our view, the predictability of Hungary's policy framework continues to weaken, harming Hungary's medium-term growth prospects," the agency said after the downgrade.
S&P also cited heightened risks to the country's ability to repay its debts due to the weakening domestic and global economic outlook.
Economists say Hungary can continue to fund its spending from the markets in the short term but may eventually need IMF assistance again.
The head of the IMF mission to Hungary, Christoph Rosenberg said on Wednesday that no decision had been made on when and if formal negotiations over a new standby facility would begin.
Newbie
30 December 2011 Last updated at 00:39 GMT
Recession 'to return' to Europe, say economists
Government austerity has undermined growth and caused a great deal of anger around Europe
Continue reading the main story
Global Economy
What caused the eurozone crisis?
How will the euro crisis end?
Crisis jargon buster
Europe's four big dilemmas
The vast majority of leading economists polled by the BBC believe recession will return to Europe next year.
One fifth said the eurozone would not exist in its current 17-member form, while the majority put the possibility of a eurozone break-up at 30%-40%.
The poll also found that most economists expect UK interest rates to remain at 0.5% throughout next year.
It was conducted among 34 UK and European economists who regularly advise the Bank of England.
Of the 27 who responded, 25 forecast recession for Europe next year.
Closer union
Growth in Europe has slowed in recent months as the eurozone debt crisis has forced governments to rein in spending and has undermined confidence in global financial markets.
The eurozone economy grew by 0.2% between July and September, while the 27 economies of the European Union grew collectively by 0.3%.
Politicians have attempted to resolve the crisis, including an agreement to forge closer ties between EU members, but markets have yet to be convinced the measures they have taken are sufficient.
The longer the debt crisis rumbles on, the more likely Europe will return to recession, economists believe.
'Deficit pain'
Growth in the UK during the third quarter was 0.6%. However, growth in the previous three months was flat.
The CBI business group said that 2012 could be the beginning of a more prosperous future if the "pain" of deficit reduction passed quickly.
In his New Year message, the CBI's John Cridland said the eurozone crisis posed a "significant threat" to the British economy, because 40% of UK exports were sold there.
Mr Cridland added that the faltering recovery and the continuing debt crisis were stark reminders of the need to rebalance Britain's economy away from household and government debt.
Newbie
US mortgage delinquencies to slide further next year
Dec 28, 2011 - PropertyGuru.com.sg
Mortgage delinquency rates in the US are predicted to decline in the last three quarters of next year, after hitting a high of 6.02 percent in the first quarter of 2011, according to TransUnion.
The global information management services firm noted that mortgage loan delinquencies are expected to drop one full percentage point to approximately five percent.
“Although house prices and unemployment will likely face continued pressure next year, this forecast calls for gradual improvements in the second half of 2012 to other key variables, like improving credit quality of new originations, consumer confidence and GDP, that will positively influence homeowners’ ability and willingness to pay their mortgages,” said Tim Martin, Group Vice President of US housing in TransUnion’s Financial Services Business Unit.
Mortgage delinquency rate declines in the US have become more common in recent years, falling seven percent in 2010 and another seven percent this year. TransUnion said the decline next year could be even more significant.
“If things go as expected, there are no additional negative shocks to the US economy and the average borrower’s situation, mortgage delinquencies could fall as much as 16 percent in 2012 compared to 2011,” said Martin.
Newbie
29 December 2011 Last updated at 17:25 GMT
Italian long term cost of borrowing stays high
The Italian government raised around 7bn euros ($8.96bn, £5.86bn) of medium and long-term debt on Thursday.
The interest rate on Italian 10-year bonds was 6.98%, viewed as unsustainably high by investors.
Italy has 161bn euros in debt repayments due between February and April, all of which it will have to finance through new borrowing.
Following the auction the euro fell to its lowest level against the dollar for 15 months, at $1.287, ending at $1.29 on Thursday.
European markets closed up on Thursday despite the concerns over Italy's financial future.
The FTSE-100 ended 1.08% up, while the Paris CAC rose 1.84% and the German Dax edged up 1.34% at the close.
Interest payments
The interest rate on Italy's ten-year debt was just over 0.5 percentage points lower than the 7.56% it had to pay at its last auction of 10-year bonds on 30 November.
Economists had hoped for a larger fall to make Italy's interest repayments more sustainable.
"The rate is still quite high but the most important thing is they are finding buyers for their debt," said Neville Hill, European economist at Credit Suisse.
The government paid 5.62% on new three-year debt, down from the 7.89% paid a month ago.
On Wednesday, the country raised 9bn euros ($11.8bn, £7.56bn) of very short-term debt at far lower borrowing costs.
ECB intervention
In a press conference Italy's new Prime Minister, Mario Monti, said he was "relieved" by the auctions.
"Auctions held yesterday and today went rather well, but the financial turbulence absolutely isn't over," said the former economist and EU commissioner.
The auctions were the first since the European Central Bank provided European lenders with 489bn euros of its new three-year loans just before Christmas.
Euro v US Dollar
LAST UPDATED AT 30 DEC 2011, 04:00 GMT
€1 buys change %
1.2944 -
-0.00
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-0.14
Just over half of the money was used to service banks' existing debts leaving lenders with around 190bn euros in spare cash to invest elsewhere, possibly including government bonds.
The injection of money into the banking system may have reduced Italy's short-term borrowing costs.
Mixed news
The latest auction came on a day of mixed economic news for the single currency bloc.
The euro fell sharply against most major currencies, reaching 100.35 against the yen, its lowest level since July 2001 and a 15-month low against the dollar
Spain's central bank has said that its economy shrank in the final 3 months of 2011 based on incomplete economic data
Italian business confidence in December fell, according to official data from Istat. Confidence fell most sharply in the construction and retail sectors
Markets were affected by the news that European banks had deposited record amounts overnight with the European Central Bank, raising fears of a credit crunch.
One interpretation of this increased usage of the ECB's deposit facility is that it reflects nervousness among Europe's banks about lending the money to each other due to the economic uncertainty.
"It could be a sign of market tension," said James Ashley a senior economist at the Royal Bank of Canada.
"But there are a number of other interpretations. We don't know which banks are depositing and in which size."
Some suggest, instead, that the increased use of the facility is simply a response to the recent intervention by the ECB.
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http://www.oneshift.com/news/news.php?newsid=5828
The all-new 2012 Hyundai Veloster earned a GOOD DESIGN™ Award in the Transportation category for its innovative and unique three-door design.
The all-new 2012 Hyundai Veloster earned a GOOD DESIGN™ Award in the Transportation category for its innovative and unique three-door design.
The GOOD DESIGN Awards are presented annually by The Chicago Athenaeum: Museum of Architecture and Design together with The European Centre for Architecture Art Design and Urban Studies. Founded in Chicago in 1950, GOOD DESIGN bestows international recognition upon the world's most prominent designers and manufacturers for advancing new, visionary, and innovative product concepts, invention and originality, and for stretching the envelope beyond what is considered ordinary product and consumer design.
Hyundai’s Veloster continues to grab consumer attention and media headlines from experts both inside and outside the automotive industry. For 2011, The GOOD DESIGN Awards were judged at the American Institute of Architects in Los Angeles by an international jury of design professionals, architects, experts, and cultural leaders.
“With Veloster, we want to show consumers that high style, fuel efficiency and affordable pricing can all be found in one vehicle,” said Scott Margason, director, Product Planning, Hyundai Motor America. “Veloster stands out from the crowd with a stylish yet functional design. We’re honored that GOOD DESIGN is recognizing the beautiful design and unique personality of the car.”
Veloster’s cutting edge integration of the third-door combined with a breakthrough design inspired by a high-performance sport bike allows Veloster to stand-out from its competition and makes a bold statement about Hyundai’s commitment to innovative design. Distinctive black A-pillars give the glass a motorcycle helmet visor appearance and in the front is an aggressive form of Hyundai’s signature hexagonal front grille and unique Hyundai-signature LED position lights. Veloster’s dynamic rear design has a distinctive glass hatch, dual centered chrome exhaust tips and black lower fascia that complement the assertive front fascia. Inside, the center stack and controls resemble a sport bike fuel tank and the air vents are inspired by motorcycle tailpipes, while the floor console mirrors the seat of a bike.
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mortgage delinquency drop = good news for property isn't it?? not all falls are bad
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Affordable housing lifts volume of land sales
By Wang Yanlin | 2011-12-30 | NEWSPAPER EDITION
The story appears on Page A11
Dec 30, 2011
People check Shanghai's first residential complex built for public rental housing in Xuhui District yesterday. The program is open to families with Shanghai residency and who reside in a living space per capital of less than 15 square meters. The lowest rent for a one-bedroom apartment in the complex was only 1,649 yuan (US$260).
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THE value of land sales in Shanghai fell in 2011 for the first time in three years although the volume of land sold rose, Soufun.com said yesterday in a report.
The increase was attributed to more land allocated for the construction of affordable housing while land prices fell amid restraining measures on home purchases.
The city saw 281 land parcels totalling 13.4 million square meters sold this year, up 4.72 percent from a year earlier, said Soufun, a major real estate website.
However, the value of sales dropped 14.4 percent to 118.3 billion yuan (US$18.7 billion) from that in 2010, the first fall in three years.
"A growing allocation of land for affordable housing is the main reason the volume of land sales rose," said Zhang Wanyu, a Soufun analyst.
The land parcels designated for government-funded affordable housing grew 42.6 percent annually to 5.5 million square meters. Their sales value surged 68.3 percent to 21.2 billion yuan.
By contrast, the parcels allocated for regular residential uses declined 16.9 percent annually to 4.8 million square meters, and their sales value dived 39.5 percent to 47 billion yuan.
The report said the value and volume of land sales for commercial uses were relatively stable.
Of the 281 land parcels sold this year, 170 were auctioned at the asking prices. Their average premium rate was 17.6 percent this year, down from 46 percent in 2010.
"The price drop reflects an overall weak land market in Shanghai, especially in the last quarter of this year," Zhang said.
He added the auctions of 27 parcels were terminated due to lack of interest from buyers this year, and 20 of them took place in the fourth quarter.
Despite the rapid drop in land prices Shanghai reiterated last week its determination to strengthen efforts next year to rein in housing speculation and enhance enforcement of home-purchase curbs.
Sky Xue, an analyst at China Real Estate Information Corp, said land prices may continue to fall next year as home sales may not rebound soon.
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Chinese shares close up at midday Friday
Source: XINHUA | 2011-12-30 | ONLINE EDITION
BEIJING, Dec. 30 (Xinhua) -- Chinese shares closed up for the morning break on Friday, with the benchmark Shanghai Composite Index up 0.82 percent, or 17.90 points, to close at 2,191.46.
The Shenzhen Component Index rose 1.12 percent, or 98.36 points, to finish at 8,879.68.
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FEO's The Tennery sold out
Dec 30, 2011 - PropertyGuru.com.sg
All 338 units at The Tennery in Bukit Panjang have been sold, said developer Far East Organization (FEO).
It noted that the small office, home office (Soho) apartment project was sold over the span of a year at an average price of S$1,200 psf.
Over 80 percent of the buyers were Singaporeans and permanent residents (PRs), it added.
Located at the junction of Upper Bukit Timah Road and Woodlands Road, the new trans-urban development comprises 338 Soho units situated above a three storey retail podium, Junction 10, which houses the Ten Mile Junction LRT station. The units, with sizes ranging from 614 to 936 sq ft, come with high ceilings. Full recreational facilities such as a meeting pod, dining pod, entertainment pavilion, lap pool, hammock court, tennis court and sky garden terrace are located on the roof of the retail podium.
“For residents of The Tennery, travelling to the Jurong Lake District is just a few LRT and MRT stops away. Under the URA 2008 Master Plan, the Jurong Lake District is earmarked as the biggest lakeside destination for business and leisure in the West,” said FEO.
It added that residents at the project will enjoy unparalleled convenience, given its connectivity to the Bukit Panjang MRT and LRT stations, as well as the upcoming Bukit Panjang bus interchange.
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Aussie home prices to decline further next year
Dec 30, 2011 - PropertyGuru.com.sg
Mortgage customers in Australia foresee further decline in home prices next year, which may leave many home loan borrowers facing negative equity issues.
According to a report by Realty Biz News, several property experts warned that some people on the property ladder may be left “under water” next year, despite Australia’s real estate market having fared much better than other countries since the economic downturn.
The report noted that cases of negative equity, where a person ends up owing more than their property value, are still quite rare, though a four percent decline in home prices this year has not helped the issue.
The percentage of late loan payments, which dropped from 1.77 to 1.42 percent in September, is also a good sign.
Moreover, experts are now predicting that home prices in the country could fall by as much as five percent next year, which could test the steadiness of the Aussie property market.
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Local News: COE Results for December Round 2
Posted by Bjorn 21 Dec 2011
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COE results bring you something to cheer about this Holiday Season. The second round of this month’s Certificate of Entitlement (COE) bidding results is out and the good news from last round continues.
COE results bring you something to cheer about this Holiday Season. The second round of this month’s Certificate of Entitlement (COE) bidding results is out and the good news from last round continues. COE bidding results continue to drop, this time across the board in all categories.
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more gd news in States
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