LONDON -- U.K. households injected a net GBP7.0 billion of equity back into their homes in the second quarter of 2009, the fifth straight quarter that there has been a net injection, the Bank of England said Friday.
That was little changed from the GBP7.3 billion repayment in the first quarter of this year, a figure that was revised lower from an originally reported GBP8.5 billion. Between April and June last year, homeowners put a total of GBP1.6 billion of equity back into their homes.
The data show the portion of borrowing that is secured on residential property but isn't invested in the U.K. housing market, instead used to finance consumption or invest in financial assets.
Although the U.K.'s economic outlook is improving, consumers' confidence remains below average levels, suggesting they are likely to continue for some time putting money back into their homes rather than withdrawing it.
Housing equity withdrawal in the second quarter represented -2.9% of U.K. residents' post-tax income. That compares with -3.1% in the first quarter of the year and -0.7% in the second quarter of 2008, the data showed.
IMF Strauss-Kahn: Global Econ Has Turned The Corner
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ISTANBUL -- The global economy has "turned the corner" after its biggest contraction in decades, but downside risks persist, especially due to rising unemployment, Dominique Strauss-Kahn, the managing director of the International Monetary Fund, said Friday.
Banks still need to be weaned off their penchant for taking excessive risks, regulatory reform of the financial sector must proceed, and policy makers should be aware that any growth recovery registered so far has been due to fiscal stimulus packages, Strauss-Kahn said at a press conference here.
However, the IMF can play a key role as an international lender of last resort, a function that the multilateral lender's founders always envisioned, Strauss-Kahn said.
Banks still need to be weaned off their penchant for taking excessive risks, regulatory reform of the financial sector must proceed, and policy makers should be aware that any growth recovery registered so far has been due to fiscal stimulus packages, Strauss-Kahn said at a press conference here.
However, the IMF can play a key role as an international lender of last resort, a function that the multilateral lender's founders always envisioned, Strauss-Kahn said.
Euro Zone PPI up 0.4% MoM in Aug, -7.5% YoY
Posted in on byEUR/USD (Oct 02 at 09:31 GMT)
1.4551/52 (0.07%)
H 1.4565 L 1.45
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.4479 | 1.4516 | 1.4552 | 1.4566 | 1.4602 | 1.4639 |
| [?]Trend Index | [?]OB/OS Index |
| Slightly Bullish | Neutral |
| Data updated on Oct 02 at 09:20 (15-minute timeframe) | |
Forex: USD/JPY: Dollar remains capped below 89.60
Posted in on byThe Dollar continues trading within a downward trending channel since it retreated from 90.15 high on Wednesday, as the pair's attempt to pick up from 89.20 low was capped at 89.60, sending the Dollar back to 89.30.
On a wider perspective, the Varengold Wertpapierhandelsbank AG foresees further decline after its fail to break 90.20 resistance: "The USD has been trading in a bearish trend channel against the JPY. When it tried to cross the upper line from the trend channel, the currency pair rebounded always back. The last attempt failed at its resistance at 90.20 to leave the trend channel. Also it seems that the MACD will cross the signal line from the top which could support a further bearish trend."
On the downside, next support levels lie at 89.15, and below here, 88.25 (Spt 28 low) and 88.00. Resistance levels are 89.85/90, and above here, 90.15/20 (Oct 1 high) and 90.40 (Sept 30 high).
USD/JPY (Oct 02 at 09:28 GMT)
89.40/41 (-0.19%)
H 89.63 L 89.18
| S3 | S2 | S1 | R1 | R2 | R3 |
| 88.9132 | 89.1366 | 89.3600 | 89.5000 | 89.7238 | 89.9475 |
| [?]Trend Index | [?]OB/OS Index |
| Neutral | Neutral |
| Data updated on Oct 02 at 09:20 (15-minute timeframe) | |
Spain 2Q Housing Prices -0.4% On Qtr, -7.7% On Yr - INE
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MADRID -- Spanish housing prices continued to fall in the second quarter, Spain's National Statistics Institute said Wednesday, after the collapse of a decade-long housing boom.
In a statement, the INE, as the Statistics Institute is known, said second-quarter housing prices fell by 0.4% from the first quarter and by 7.7% from the second quarter of last year.
Data released in July by Spain's Housing Ministry showed a steeper annual decline in second-quarter housing prices of 8.2%.
Spain's home-building boom, one of Europe's largest, started to deflate in 2007 after prices reached nearly three times their 1997 levels and after years of overbuilding.
The correction was hastened last year by tougher financing conditions in the aftermath of the global banking crisis.
In a statement, the INE, as the Statistics Institute is known, said second-quarter housing prices fell by 0.4% from the first quarter and by 7.7% from the second quarter of last year.
Data released in July by Spain's Housing Ministry showed a steeper annual decline in second-quarter housing prices of 8.2%.
Spain's home-building boom, one of Europe's largest, started to deflate in 2007 after prices reached nearly three times their 1997 levels and after years of overbuilding.
The correction was hastened last year by tougher financing conditions in the aftermath of the global banking crisis.
Turkish Industry Min: "No Extension On Tax Cuts" - IHA
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ANKARA -- Turkish Industry Minister Nihat Ergun said Wednesday there will be no extension to tax cuts that the government implemented for some sectors in order to revive the economy, the Ihlas News Agency, or IHA, reports.
In March, the Turkish government introduced various tax cuts for some sectors, including automotive, white goods, and electronics.
The government in June extended the period of tax cuts for a further three months in a bid to boost the economy.
In March, the Turkish government introduced various tax cuts for some sectors, including automotive, white goods, and electronics.
The government in June extended the period of tax cuts for a further three months in a bid to boost the economy.
DATA SNAP: Italy Aug Producer Prices -6.7% On Year
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ROME -- Italy's producer price index in August fell less than expected on the year, as energy prices dropped at a slower pace, data from statistics office Istat showed Wednesday.
In August, producer prices fell 6.7% on the year, after a downwardly revised 7.6% annual fall in July. On the month, producer prices rose 0.6%, compared with a downwardly revised 0.5% fall in July.
A poll of economists predicted a 7.3% fall on the year and a 0.5% rise on the month.
Italian manufacturing prices have been falling every month since December 2008, due to lower energy prices and the slowing economy, which fell into a recession last year.
In August, producer prices fell 6.7% on the year, after a downwardly revised 7.6% annual fall in July. On the month, producer prices rose 0.6%, compared with a downwardly revised 0.5% fall in July.
A poll of economists predicted a 7.3% fall on the year and a 0.5% rise on the month.
Italian manufacturing prices have been falling every month since December 2008, due to lower energy prices and the slowing economy, which fell into a recession last year.
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