Spike
in Mortgage Rates Throws a Wrench Into U.S. Housing Market - (www.bloomberg.com) The
spike in borrowing costs in response to President-elect Donald Trump’s
pro-growth agenda is causing some heartburn in America’s housing industry. San
Diego mortgage broker Shanne Sleder said a third of his clients, many of whom
were already stretching budgets to buy homes in pricey southern California, are
having to reconsider what they can afford as rates soar. “With a number of the
people we were in the middle of pre-approving, as rates are going up, it’s
getting tighter and tighter qualifying them,” Sleder said. He’s urging them to
lock in rates. “In some cases, the higher rates are making it so they are not
as comfortable with the payment.”
Google
Fiber Lays Off 9%, “Pauses” Expansion, as Alphabet Cracks Down on Costs,
Division CEOs Quit - (www.wolfstreet.com) Five
years ago, when Google announced that it would build a super-high-speed
fiber-optic network in Kansas City, and then roll it out in other cities, it
started an effort to own and control the data pipelines going into homes and
businesses. Given how frustrated consumers are with their ISPs, it seems people
couldn’t wait for Google Fiber, now operated by Alphabet’s Access. Google then
spent a fortune building out the network in select cities around the country.
This could have been huge. At a huge cost. “Amazing bet,” is
what Craig Barratt, senior VP at Alphabet and CEO of Access, called Google
Fiber in a blogpost yesterday. In the same breath, he also
announced that they would “pause” the build-out of Google Fiber in cities where
it had been planned, that there would be layoffs and reassignments, though he
didn’t say how many, and that he’d “step aside” as CEO of Access.
Dollar
Is New Fear Index as Easing Renders VIX Useless, BIS Says - (www.bloomberg.com) The
world’s most-traded currency is becoming a fear gauge. That’s the opinion of
Hyun Song Shin, head of research at the Bank for International Settlements. A
stronger dollar can depress demand for credit while reflecting reduced investor
appetite for the riskiest assets, Shin wrote in a report released
Tuesday by the BIS. The research signals that the dollar’s surge after Donald
Trump’s U.S. electoral victory shouldn’t be interpreted as a clear sign of
confidence across markets. In fact the dollar has become a new fear gauge,
replacing the Chicago Board Options Exchange VIX volatility index, Shin wrote.
Britain's
Brexit plan? There is no plan, leaked memo says - (www.reuters.com) Britain
has no overall strategy for leaving the European Union and splits in Prime
Minister Theresa May's cabinet could delay a clear negotiating position for six
months, according to a memo for the government that was leaked to The Times
newspaper. The document, prepared by consultancy firm Deloitte for the
government department that supports the prime minister and her cabinet, casts
Britain's top team in a chaotic light: May is trying to control key Brexit
questions herself while her senior ministers are divided and the civil service
is in turmoil. "The Prime Minister is rapidly acquiring the reputation of
drawing in decisions and details to settle matters herself - which is unlikely
to be sustainable," according to the document, dated Nov. 7 and published
by The Times.
Why
India wiped out 86% of its cash overnight – (www.bbc.com) Do
not believe reports that this is primarily about bribery or terror financing,
the real target is tax evasion and the policy is very daring indeed... Because
so much business is done in cash, very few people pay tax on the money they
earn. According to figures published by the government earlier this year, in
2013 only 1% of the population paid any income tax at all. As a result huge
numbers of Indians have stashes of tax-free cash hidden away - known here as
"black money". Even the very poorest Indians have some cash savings -
maybe just a few thousand rupees stored away for a daughter's wedding, the
kids' school fees or - heaven forbid - an illness in the family.
Asian Currencies Tumble to Seven-Year Low Amid Stock Outflows - (www.bloomberg.com)
Asia stocks under pressure as dollar hovers near 14-year high - (www.reuters.com)
German Bonds Outperform in Selloff as Safe Status Remains Intact - (www.bloomberg.com)
Retail Sales in U.S. Jump More Than Forecast in Broad Advance - (www.bloomberg.com)
Fed''s Lacker: Fiscal Stimulus ''Would Bolster Case for Raising Rates'' - (www.nasdaq.com)
Italy polls get worse for Renzi as referendum nears - (www.reuters.com)
German Cooling, Italy Rebound Keep Euro-Area Growth at 0.3% - (www.bloomberg.com)
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