Central Bank Watch: Banks in Wait-and-See Mode, Some Moves Expected by Year End
August 12, 2008
Another round of major world central bank decisions
are out of the way, yet rates are still where they were at prior to the
decisions. However, many economists expect at least some of the banks to
start moving on rates before the end of the year.
Fed's Stern Says Inflation Outlook Has Improved
August 12, 2008
Speaking in an interview with CNBC, Minneapolis Federal Reserve
President Gary Stern (voter) said the outlook on core
and headline inflation has improved.
One Quarter of U.S. Homes Sold in Past Year Were at a Loss, Report Says
August 12, 2008
U.S. home values fell by nearly 10% in the second quarter of 2008,
causing one in four home sales over the past year to be at a loss,
according to a new real estate survey.
Will Vacant Retail Space Fuel the Next Real Estate Bust?
August 12, 2008
Five years ago I moved from Boston to Southeast Georgia and was
immediately plunged into shoppers’ hell. Not only was there no Costco (70
miles to the closest one) or Crate and Barrel (five hours away in
Atlanta), there wasn’t a major retailer of pet supplies, a decent
department store, or even a whole foods market.
Freddie To Stop Buying New York State Subprime Mortgages
August 12, 2008
According the Dow Jones, Freddie Mac has announced that they will
no longer be purchasing subprime mortgages secured by
properties in the state of New York. This includes all
mortgages with a note date on or after Sept 1.
U.S. Trade Deficit Expected to Boost Q2 GDP
August 12, 2008
Economists say the unexpected narrowing in the June trade deficit was
helped by continued strength in the export market, which
should give second-quarter GDP a boost when revisions are released later
this month.
What's Priced In: Current Market Expectations for Future Monetary Policy
August 12, 2008
Markets are currently pricing in the following probabilities for
future interest rate moves as of the close on Monday:
FED - OIS Implied Rates
Trade Deficit Unexpectedly Shrinks to $56.8 Billion in June
August 12, 2008
The U.S. monthly trade deficit unexpectedly shrank in
June to $56.8 billion, a much narrower deficit than the -$62.0 billion
balance expected by markets. May’s deficit figure was upwardly revised to
$59.2 billion from a previously reported $59.8 billion, the U.S. Census
Bureau reported Tuesday.
Tuesday's Events: U.S. Trade Balance, Canadian International Trade
August 12, 2008
Trade data will the highlight of the day for both the U.S. and
Canadian economies. The U.S. trade balance will be the subject of
scrutiny as the deficit is expected to continue to mushroom despite
growing exports. The Canadian trade balance for June is also forecast to
rise in the face of a slowing economy.