(Original title: Overseas financial media focus: U.S. housing prices fell for the fourth consecutive month month-on-month; Russia retaliates against Western oil price caps)
Financial Associated Press, December 28, overnight, overseas markets focused on global economic dynamics and company dynamics. In terms of the global economy, imports have fallen sharply, and the U.S. goods trade deficit in November hit the lowest level in two years; European Central Bank Vice President Guindos said that the euro zone is facing a “very difficult economic situation.” In terms of company dynamics, Southwest Airlines continued to cancel a large number of flights, attracting the attention of Washington; second-hand Tesla is not good? The selling price fell off a cliff by 17%, and the inventory time was also significantly higher than that of its peers. In addition, Russia, retaliating against Western oil price caps, will ban oil sales to countries that abide by the cap.
WSJ: U.S. home prices fall for fourth month in a row
U.S. home sales fell month-over-month in October as higher mortgage rates continued to weigh on homebuying demand.
The S&P CoreLogic Case-Shiller National Home Price Index fell 0.5% in October from the previous month, the fourth straight month of decline.
On a year-over-year basis, the index rose 9.2 percent in October, down from a gain of 10.7 percent in the previous month.
A surge in mortgage rates this year ended a pandemic-fueled housing boom that pushed up home prices and pushed many buyers out of the market. Existing home sales fell for the 10th straight month through the end of November.
Bloomberg: Imports fell sharply, the U.S. goods trade deficit in November hit the lowest level in 2 years
The U.S. goods trade deficit narrowed in November to its lowest level since December 2020 as imports fell sharply.
On Tuesday, preliminary data from the Commerce Department showed that the goods trade deficit, not adjusted for inflation, fell 15.6% to $83.3 billion in November, the largest drop since 2009, compared with the median forecast of $96.3 billion by economists. . Imports fell 7.6% to $252.2 billion, the lowest level in more than a year; exports fell 3.1% to $168.9 billion.
There were broad-based declines in a number of categories of goods imports, with the value of consumer goods imports down 13%. Other merchandise imports of motor vehicles, food and beverages and industrial supplies also fell, as did most export categories.
While imports of consumer goods are down from record levels earlier this year, they remain well above the pre-pandemic average. In recent months, Americans have been spending more on services than goods.
More complete U.S. trade data for November will be released on Jan. 5.
Bloomberg: ECB Vice President Guindos Says Eurozone Faces ‘Very Difficult Economic Situation’
European Central Bank Vice President Luis de Guindos said the euro zone faced a “very difficult economic situation” that would test individuals and businesses.
“The high inflation that we are seeing across Europe is happening with a slowdown and low growth,” he said in a Dec. 16 interview with the Spanish Federation of Young Entrepreneurs Associations, which was published on the ECB website on Tuesday. “It is very important for individuals and businesses to remain cautious and focused on the long term.”
In his speech, Guindos reiterated the message of the Dec. 15 interest rate decision, including the new economic forecasts released that day. Asked how high rates would rise, he reiterated the ECB’s mandate that “it will be decided meeting-by-meeting, based on newly released data”.
Guindos also stressed that the euro zone is experiencing a “short and shallow recession” and will begin to resume growth in the second quarter of next year.
“This situation definitely presents challenges for businesses and their sustainability,” Guindos said. “The current high level of uncertainty makes it more difficult for businesses and entrepreneurs to allocate capital as a recession looms. So, in this context, it is important to be cautious.”
Bloomberg: Japan’s big bank executives expect Japan’s negative interest rates to continue
Executives at Japan’s biggest lenders expect negative interest rates to persist and earnings to hold off for now, after the Bank of Japan’s surprise move sent bank stocks up 13 percent last week.
Profits won’t see a significant boost unless the BOJ removes negative interest rates, said three executives who spoke on condition of anonymity to discuss the central bank’s policy publicly.
Unless an outsider is chosen to lead the BOJ, the BOJ may not raise rates immediately even after a new governor next April, one executive said. It may be difficult for insiders to break current policy, the person added.
Investors and strategists have grown more bullish on Japanese banks, saying the Bank of Japan’s allowing 10-year yields to rise to around 0.5 percent is a harbinger of a broader policy shift. Goldman Sachs sees the possibility of abandoning negative interest rates has increased.
WSJ: Southwest Airlines continues to cancel a large number of flights, attracting Washington’s attention
Southwest Airlines Co. said on Tuesday it would limit new bookings for flights it plans to fly in the coming days, as the airline drew more scrutiny from Washington for its sweeping rout against the holiday winter storm.
Southwest canceled 2,623 flights, 64% of its scheduled departures on Tuesday, according to FlightAware. The airline said on Monday that the flight reductions would remain in place until at least Thursday. The airline has canceled nearly 11,000 flights since last Thursday and has struggled to stabilize operations disrupted by bad weather.
Meanwhile, Southwest Airlines passengers across the country are still unable to reach their destinations, with many being separated from their luggage en route.
Senator Maria Cantwell, D-Washington, said Tuesday that the Senate Commerce Committee will investigate Southwest’s flight disruption.
The Transportation Department said on Monday it would examine whether Southwest could have controlled the cancellation and whether the airline followed its own customer service plan.
Southwest called the disruption unacceptable and said it was working to resolve the issue.
Reuters: Is second-hand Tesla no longer popular?The price fell off a cliff by 17%, and the inventory time was also significantly higher than that of peers
Over the past two years, Tesla owners have had the option to sell their vehicles to more desirable buyers, in many cases at a higher price than they paid for them, but that may not last long. too much.
Prices on used Teslas have fallen much faster than other cars. The average price of a second-hand Tesla in November was $55,754, down 17% from a July peak of $67,297, according to auto industry research firm Edmunds.com, while the average used-car market fell just 4% over the same period.
In addition, the average time Tesla has been in the inventory of used dealers is 50 days, which is significantly higher than the average of 38 days.
According to media analysis, due to factors such as the conflict between Russia and Ukraine, soaring gasoline prices once boosted the demand for Tesla cars. Tesla also led other automakers with a very high price increase rate during the year.
Among them, some Tesla buyers took advantage of the boom in the market, selling their relatively new cars for a profit and then ordering new cars later, which in turn drove demand for Tesla’s new cars.
But now things have changed. U.S. gasoline prices are easing, interest rates are rising, Tesla’s production has increased significantly, and competition in the electric vehicle market is increasing. These factors have caused the price of used Teslas to fall even faster, even for New car prices are also having a knock-on effect.
Reuters: Russia retaliates over Western oil price caps, will ban oil sales to countries adhering to caps
Russia on Tuesday retaliated against Western countries for imposing caps on Russian oil prices. Russian President Vladimir Putin has issued an order banning oil sales to countries that abide by a price cap imposed on Dec. 5.
Under the cap, oil traders would have to pledge not to pay more than $60 a barrel for Russian seaborne oil in order to secure Western financing for many key parts of global shipping, including insurance.
The decree, published by Putin on government portals and the Kremlin website, is seen as a direct response to “unfriendly and violations of international law by the United States and foreign countries, as well as international organizations that are members of these countries.”
Under the Kremlin’s ban, Russia will stop selling crude oil to countries participating in the price cap from February 1 to July 1, 2023. A separate ban on refined products such as gasoline and diesel will come into force on a separate date set by the government. Putin will have the power to veto the measures in exceptional circumstances.
Russia is the world‘s second-largest oil exporter after Saudi Arabia, and any disruption in actual sales would have a profound impact on global energy supplies.