The BofE warms of global slowdown if policy makers do not solve the Euro debt problem. They signaled there may be more stimulus to come and the Pound fell while the Gilt yield hit new record lows.
Comments »Economic Growth Rises in Germany
South Africa Considers Risk of Stagflation
The reserve bank of S.A. said the risks of stagflation is rising. Last week the bank kept interest rates at 30 year lows of 5.5%
Comments »The IMF Does it Again; An Interesting Twist in Iceland’s Recovery
Fed Paper: Chance of U.S. Recession Tops 50%
Rosenberg Opines on a Depression
Eurozone industrial output fell 2%
Oh goody, this is of course super bullish for oil prices, as now the EU has room to recover. I am sure bullshit production coming out of Costa Rica or someplace will more than suffice to keep demand static in the meantime…
Comments »OECD: All Major Economies Headed for a Slowdown
Warren Buffet Has No Interest in European Banks
Japan’s Economy Expands at a 6% Clip
Documentary: Merchants of Cool
Finding disposable income in our kids. What are the implications and or results on culture.
Comments »Strategist Pavlik: U.S. Stocks Can Withstand Europe
“Many investors are concerned about the impact of Europe’s debt crisis on the U.S. stock market. Just this past Wednesday, the Standard & Poor’s 500 Index plunged 3.7 percent on Italian bond fears, just the latest in many fluctuations stemming from news out of the troubled eurozone.
But Bob Pavlik, chief market strategist at Banyan Partners, says Europe won’t have much of an impact on the U.S. market beyond the short term.
Looking longer-term, “think about all the other countries that have defaulted on their sovereign debt and how much of a lasting impact that had on the worldwide economy,” he tells Yahoo.
“I think this is going to be the same situation. It’s just that we have a few more of them going on at the same time.”
That’s not to say that coming weakness in European economies doesn’t matter. “But I’m looking out three to five years down the road,” Pavlik says. “That’s how I’m investing my clients’ money.”
Full article
Rental apartment construction on the rise
I haven’t spoken about the multifamily space in a little while, but it is still booming.
Comments »Construction cranes are coming back on the scene after a stay in storage.
But their handlers are choosy, returning them for now to the lone sector of the commercial real estate market that is fertile ground: rental apartments.
Amid an arid new-development landscape in commercial real estate, the apartment market is blooming. Vacancy rates are falling, demand is surging and new supply is scant, letting landlords raise rents for seven straight quarters, says Ryan Severino, senior economist with Reis, a commercial real estate research firm.
“More people in the (rental apartment) industry are getting excited about new projects,” he said.
Besides tight supply, new construction is being driven by falling homeownership rates and growing numbers of people in their 20s and early 30s who are finally landing jobs and moving to their own place.
Rental apartment operator AvalonBay Communities (NYSE:AVB – News) has $1 billion in development projects under way, and notes that rental household formation has grown by over 1 million units the past 12 months.
AvalonBay broke ground in the third quarter on four projects on both coasts, at a cost near $210 million. Plus, $600 million in projects is starting this quarter, including in Manhattan where rental vacancy has dropped to the low single digit percentages, pushing rents up.
An additional $3 billion in the development pipeline should keep AvalonBay busy the next two or three years, President Timothy Naughton told analysts recently.
UDR (NYSE:UDR – News), another big apartment operator, has more than 2,500 units in development for an estimated $751 million. Management says it’s looking for more sites to buy.
Construction of rental housing is even starting in hard-hit Florida housing markets. Colonial Properties (NYSE:CLP – News), which focuses on multifamily apartments in the Sun Belt, began construction recently on a 232-unit apartment community in Orlando — Colonial Grand at Lake Mary — with completion set for late 2012.
IMF Warns Developed Nations May Fall Into Recession
El-Erian: Economy Hitting Stall Speed Because of Debt
“Policymakers have taken the wrong approach in dealing with the global economy’s numerous problems, shuffling debt around while avoiding making difficult decisions, Pimco’s Mohamed El-Erian said….”
Comments »Deflation May Take Hold As Debt Woes Increase
India’s Industrial Production Grows at the Slowest Pace in Two Years
A global slowdown has hurt industrial production. In other news India’s Tata Steel has seen profits slip by 89%.
Comments »Spain’s Economy Stalls; Recession Expected in Coming Quarters
The Fed Says They Are Focused on Reducing Unemployment; No Inflation Worries
“Federal Reserve Chairman Ben S. Bernanke said the central bank is concentrating “intently” on reducing unemployment and projects inflation to stay under control for the “foreseeable future.”
“For a lot of people, I know, it doesn’t feel like the recession ever ended,” even with the economy growing for two years, Bernanke said today in prepared remarks for a town hall- style meeting with soldiers at Fort Bliss in El Paso, Texas.”
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China’s Exports Rise Less Than Expected
Imports rose more than expected while exports reached the slowest pace in two years.
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