Scanning the CFA Newsbrief for headlines from around the world, the one that caught my eye yesterday was: 'China prepares banks for a sharp reduction in property prices'. The article originated from the Economist and is titled: 'Warning Signs'.
China's banks were instructed to stress-test for a decline of as much as 60% in house prices, and it will be bad news for the world if a housing meltdown materializes, according to The Economist. The government likely would respond to a housing-market collapse with additional support for the export sector, the magazine notes. "If it does, it will siphon demand away from other economies," according to The Economist. "But if it doesn't, the housing hit to China's economy will be more severe, which will have much the same effect -- a reduction in the demand boost from China to the rest of the world."
Other headline news, and closer to home, yesterday's front page of the Globe & Mail featured a story on the Canadian real estate market. This a great follow-up to my blog back on July 29 titled: 'Vancouver's Real Estate Bubble Troubles', and goes into more detail about the recent slow down.
The last headline I'll bring to your attention was on the front page of yesterday's Report on Business under the title 'Agriculture'. It talked about the recent run-up in grain prices, particularly wheat. Back on July 19, 27, and 28 I featured agriculture as a seasonal trade along with some current fundamental positives. Check it out for further reference at yourlifeyourplan.ca.
Turning to the markets, disappointing jobs reports in Canada and the US, plus a weak new home sales report in the US, has North American indices continuing their sell-off from yesterday.
GB
China's banks were instructed to stress-test for a decline of as much as 60% in house prices, and it will be bad news for the world if a housing meltdown materializes, according to The Economist. The government likely would respond to a housing-market collapse with additional support for the export sector, the magazine notes. "If it does, it will siphon demand away from other economies," according to The Economist. "But if it doesn't, the housing hit to China's economy will be more severe, which will have much the same effect -- a reduction in the demand boost from China to the rest of the world."
Other headline news, and closer to home, yesterday's front page of the Globe & Mail featured a story on the Canadian real estate market. This a great follow-up to my blog back on July 29 titled: 'Vancouver's Real Estate Bubble Troubles', and goes into more detail about the recent slow down.
The last headline I'll bring to your attention was on the front page of yesterday's Report on Business under the title 'Agriculture'. It talked about the recent run-up in grain prices, particularly wheat. Back on July 19, 27, and 28 I featured agriculture as a seasonal trade along with some current fundamental positives. Check it out for further reference at yourlifeyourplan.ca.
Turning to the markets, disappointing jobs reports in Canada and the US, plus a weak new home sales report in the US, has North American indices continuing their sell-off from yesterday.
GB
posted by Gordon Bell at
6:08 AM
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