Open Editor's Digest for freeRula Khalaf, editor of the Financial Times, picks her favorite stories in this weekly newsletter.Relief is coming for UK mortgage holders. But not, like, a lot of it.A Barclays note published today outlines a “positive consumption drive” on the horizon, as holders of flexible mortgages (minority-of-minority) and people with shorter fixed-term mortgages (minority-of-minority) start to feel that it's nice, nice interest rate easing:We wrote about mortgages a bit last summer, looking at how the shift in the composition of UK home borrowing to fixed (mainly five-year) terms has shifted the dynamics of monetary policy transmission from…
Author: ricardofrancois
Newly appointed Governor of the Central Bank of Turkey, Fatih Karahan in Ankara, Turkey on February 04, 2024. Amin Sensar | Anatolia | Getty ImagesTurkey's newly appointed Central Bank Governor, Fatih Karahan, has a difficult task ahead of him, having been appointed to the position by a presidential decree issued at the weekend following the surprise resignation of his predecessor, Hafiz Gay Erkan.Previously, Karahan was deputy governor of the central bank, and the biography highlights his years at prominent US institutions and companies. He earned master's and doctoral degrees in economics from the University of Pennsylvania, spent nearly a decade…
Open Editor's Digest for freeRula Khalaf, editor of the Financial Times, picks her favorite stories in this weekly newsletter.The real estate market in America is still stuck in the mud. Existing home sales, which make up most of the U.S. housing market, totaled just 4.09 million units in 2023, the lowest level in 30 years. However, median home prices reached a record high of $389,800.Neither of them prevented the stock prices of US mortgage lenders from regaining popularity among investors. Shares of Rocket, which owns Quicken Loans, the country's largest non-bank mortgage lender, have risen 66 percent since November. Shares…
Rising shipping costs as a result of ongoing tensions in the Red Sea could hamper global efforts against inflation, the Organization for Economic Co-operation and Development said on Monday.The Paris-based group estimates that the recent 100% rise in sea freight rates could increase import price inflation in its 38 member countries by about five percentage points if the increase continues.This could add 0.4 percentage points to the total price rise after a year, the OECD said in its latest economic forecasts.In late 2023, major shipping companies began diverting their ships away from Egypt's Suez Canal, the fastest trade route between…
A tram passes shoppers as it travels along Istiklal Street in the Beyoglu district of Istanbul, Turkey, Tuesday, December 19, 2023.Bloomberg | Bloomberg | Getty ImagesIn January, Turkish inflation recorded its biggest monthly jump since August, rising by 6.7% compared to December, while year-on-year inflation was around 65%, according to Turkish Central Bank figures released on Monday.The consumer price index in the country of 85 million people rose by 64.86% year on year, up slightly from 64.77% in December. The sectors that witnessed the largest monthly increase in prices were health by 17.7%, hotels, cafes and restaurants by 12%, and…
A networking and recruitment event for professionals of color in Minneapolis, MN.Michael Sellock | Getty ImagesBlack men lost ground in the labor force last month, signaling persistent disparities that have permeated the U.S. labor market.Black males who are at least 20 years old saw an unemployment rate of 5.3% in January, up from 4.6% in December, according to seasonally adjusted data released Friday by the U.S. Department of Labor. These workers had the highest unemployment rate when black, Latino, and white workers were broken down by gender.By comparison, white men saw an unemployment rate of just 3.3% in January, which…
Job growth posted a surprisingly strong increase in January, once again demonstrating that the US labor market is strong and poised to support broader economic growth.The Labor Department's Bureau of Labor Statistics reported Friday that nonfarm payrolls rose by 353,000 during the month, much better than the Dow Jones estimate of 185,000. The unemployment rate held steady at 3.7%, versus expectations of 3.8%.Wage growth also showed strength, with average hourly earnings increasing by 0.6%, double the monthly estimate. On an annual basis, wages jumped 4.5%, well above expectations of 4.1%. The wage gains came amid a decline in average hours…
Open Editor's Digest for freeRula Khalaf, editor of the Financial Times, picks her favorite stories in this weekly newsletter.Mounting losses from banks in the US, Asia and Europe have led to renewed concerns about weakness in the US commercial real estate market, a sector that has been under pressure due to low occupancy levels and high interest rates.US regional bank New York Community Bancorp revealed on Wednesday that it had incurred significant losses on loans linked to commercial real estate, while Japan's Aozora Bank and Deutsche Bank warned on Thursday of the risks of their exposure to US real estate.The…
Stay informed with free updatesSimply sign up for myFT Digest of UK house prices – delivered straight to your inbox.UK house prices rose more than expected in January, according to mortgage provider Nationwide, as easing mortgage interest rates helped stabilize the property market.Data published on Wednesday showed that home prices rose 0.7 percent between December and January, the fastest pace since October.The figure was much higher than economists polled by Reuters had expected a 0.1% increase, bringing the average house price to £257,656.Jake Stott, founder of Manchester-based broker Mondo Mortgages, said the increase in Nationwide data “highlights the optimism emerging…
Open Editor's Digest for freeRula Khalaf, editor of the Financial Times, picks her favorite stories in this weekly newsletter.Average UK mortgage interest rates have fallen for the first time in more than two years, according to data from the Bank of England, suggesting that the burden on homeowners is easing as borrowing costs fall.The data released on Tuesday added to signs of stability in the real estate market as mortgage approvals rose for the third time in a row to a six-month high in December.The 'effective' interest rate – the actual interest paid – on newly drawn home loans fell…