Week Sept 28 2012 – Weekly Recap & The Week Ahead
“When everybody thinks alike, everyone is likely to be wrong.” — Humphrey B. Neil
1. European Banks set to shed €20bn property loans — Europe’s banks are on track to dispose of €20bn worth of loans backed by offices, shops and hotels this year as lenders across the continent race to reduce exposure to the volatile real estate sector ahead of tough regulatory changes. Banks, including Lloyds, Santander and the Bundesbank, have already sold portfolios worth €7.5bn during 2012. Activity is set to accelerate though, with lenders working on offloading another €11bn before the end of the year, according to data from CBRE, the property services group.
2. Senate passes $500B spending package — the Senate authorized a $500B spending bill that will finance the government for half a year from October 1, adding to approval from the House. Congress has now broken up ahead of the elections on November 6.
3. Durable-goods orders sink 13.2% in August, largest drop in three years tied to lower airplane bookings — ex transportation, orders fell a much smaller 1.6% in August. The weaker level of orders reflects a global economic slowdown — U.S. exports to Europe and China have softened.
4. Data show China’s central bank injected $58 bln — according to MarketWatch, data showed the People’s Bank of China injected 365 billion yuan ($57.9 billion) into the financial system via open-market operations, marking its highest-ever level for a single week.
5. Spain unveiled more austerity amid protests — Spain announced €39B worth of more austerity and its 2013 budget. The reforms are expected to include a new tax oversight body, more tax hikes, extended wage freezes and early retirement limits.
6. Spain Banks Stress Tests Needs $77 Billion — per CNBC, Spanish banks need around 60 billion euros ($77 billion) to return to health, an independent audit showed last Friday. Spain, the euro zone’s fourth largest economy, replaced Greece, Ireland and Portugal earlier this year as the main threat to the survival of the euro currency project.
7. S&P/Case-Shiller home price indices for July — courtesy from BIG, On a month-over-month basis, every single one of the 20 cities tracked by Case-Shiller increased in July. And 16 of the 20 cities are up year-over-over year, with Phoenix up the most at 16.59%. Minneapolis, Detroit, Denver and Miami are the four other cities with YoY gains of more than 5%.
