Fresh Stimulus Propels Emerging Markets to Fourth Week of Gains
Emerging-market currencies dipped Friday on dwindling optimism over Federal Reserve rate cuts, paring their fourth-straight week of gains.
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Emerging-market currencies dipped Friday on dwindling optimism over Federal Reserve rate cuts, paring their fourth-straight week of gains.
The owner of a historic office building in Manhattan’s Financial District has filed bankruptcy to sell the property, which has been subject to foreclosure and suffered from a lack of tenants due to the Covid-19 pandemic.
Deutsche Bank AG has entered a capital-relief deal with the European Investment Bank that allows the German lender to grant discounts on more than €600 million ($652 million) of green mortgages in its home market.
A unit of Abu Dhabi’s Mubadala Investment Co. said it anticipated a roughly $315 million credit hit related to loans issued to the now-insolvent Signa real estate conglomerate.
The Teranet-National Bank composite house price index which tracks home prices in 11 of Canada's largest cities remained stable from March to April.
Sep 20, 2019
BNN Bloomberg
,If the Canadian housing market had a spirit animal, a cat could be fitting.
Benjamin Tal, deputy chief economist of CIBC Capital Markets, says global and domestic developments that have led to lower interest rates have continually buoyed Canadian housing at times when it was poised to soften.
“The housing market has nine lives. Every time it’s supposed to slow down, something bad happens elsewhere that keeps interest rates low and the party’s still going,” Tal told BNN Bloomberg in a Friday interview.
An increasing number of economists are now forecasting the Bank of Canada to cut interest rates as the U.S.-China trade war takes a toll on the global economic outlook – a move that would provide yet another boost to the Canadian housing market and threaten to blunt the impact of government measures, such as the B-20 mortgage rules.
Tal adds that he believes the Bank of Canada prefers to avoid fuelling the housing market through lower rates, but trade pressures and monetary policy easing by central banks around the world might force its hand.
“That’s something the Bank of Canada would like to avoid. However you have to look at the economy as a whole and housing is only one part of it,” he said. “The consumer is not there, clearly investment is not there, exports are missing in action and the only thing that’s moving is actually the housing market again.”
Tal says the central bank will have to weigh the pros and cons of a rate reduction, but ultimately believes Bank of Canada Governor Stephen Poloz will follow suit with his fellow central bankers.
“So they will have to do the balancing and say, ‘Okay, maybe housing will go a little bit higher.’ But given where we are, given where the economy is, given where the Canadian dollar might be going if we’re not moving, they will have to make this decision.
“Our forecast is that they will cut by 25 basis points and will call it a day.”