Slowing Inflation Primes G-7 Central Banks for June
Inflation-related releases across the Group of Seven will prime central bankers for crucial June interest-rate decisions, just as they meet in Italy to discuss the state of the world economy.
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Inflation-related releases across the Group of Seven will prime central bankers for crucial June interest-rate decisions, just as they meet in Italy to discuss the state of the world economy.
Big US bond investors have been aggressively shifting money into long-dated notes, betting that the unloved asset class will be one of the winners from eventual interest rate cuts.
A measure of underlying US inflation cooled in April for the first time in six months, a small step in the right direction for Federal Reserve officials looking to start cutting interest rates this year.
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.
Sep 9, 2020
Bloomberg News
,Construction on new homes surged to the highest level in more than a decade as Canada’s housing market continues to defy expectations of a slowdown.
Housing starts surged to 262,396 units in August on an annualized basis, up 6.9% from an already elevated 245,425 units a month earlier, Canada Mortgage and Housing Corp. said Wednesday in Ottawa. The highest monthly total since September 2007 was powered by new construction in Toronto and Vancouver, particularly multiple units like condos.
It’s the latest sign of a housing market that’s booming, even as the economy emerges from the steepest downturn since the Great Depression. Prices for existing homes in the largest cities such as Toronto have climbed to record highs on the back of strong demand, scant inventory and historically low borrowing costs.
Multiple-unit starts in Toronto surged in Toronto, Vancouver and Ottawa, CMHC said. But there may be drawbacks.
“The fact that so much of the recent strength has been focused in the multi-unit sector presents a risk,” Rocye Mendes, an economist at Canadian Imperial Bank of Commerce, said in a report. “As demand from both immigration and students has waned recently, rents have been falling, potentially leading to less interest from investors in the months to come.”
Mendes predicts the pace of building activity will “cool as the year winds down, particularly as mortgage and other loan payments resume after a period in which many households took advantage of deferrals.”