RR Reading http://rrreading.com/ Tue, 22 Nov 2022 16:12:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://rrreading.com/wp-content/uploads/2021/03/rrrreading-icon-70x70.png RR Reading http://rrreading.com/ 32 32 Spain approves mortgage support for over a million households https://rrreading.com/spain-approves-mortgage-support-for-over-a-million-households/ Tue, 22 Nov 2022 16:12:00 +0000 https://rrreading.com/spain-approves-mortgage-support-for-over-a-million-households/
  • For families earning less than 25,200 euros
  • Help also for households earning less than 29,400 euros
  • Banks worried about increased provisions
  • Measures include grace periods, extended repayment periods
  • Banks have one month to comply with the measures

MADRID, Nov 22 (Reuters) – The Spanish government on Tuesday gave its approval for mortgage relief aid for more than a million vulnerable households and aid for middle-class families a day after the government and the banks have reached an agreement in principle.

The measures are subject to final negotiations with banking associations, Economy Minister Nadia Calvino said, adding that banks had a month to sign up before their planned implementation next year.

Santander (SAN.MC), Spain’s biggest lender, warned the measures could lead to higher bank provisions and more credit hurdles for customers, while other big banks said they always studied the fine print.

The ministry did not provide details of the potential cost to lenders and the extent of additional provisions banks may need to make remains unclear.

Santander CEO Jose Antonio Alvarez told reporters on Tuesday that loan extensions could also lead to higher capital consumption while making it harder for some customers to access credit. Read more

Alejandra Kindelan, head of Spanish banking association AEB, said her organization was still evaluating the measures, as was Caixabank (CABK.MC) CEO Gonzalo Gortazar.

Non-performing loans from Spanish lenders in August were at a near-record high of 3.9%, well below the record high of 13.6% recorded in December 2013.

In Spain, around three-quarters of the population are homeowners, with most opting for variable rate mortgages exposed to rising interest rates.

The planned measures are part of a broader package of support measures aimed at easing cost-of-living pressures, which includes a rebate on fuel costs and exceptional tax proposals. Other countries, such as Hungary, Portugal, Poland and Greece, have approved different forms of mortgage support.

Spanish banks will provide mortgage support to vulnerable families earning less than 25,200 euros ($25,815) a year through an amended industry-wide code of practice.

They will be able to restructure mortgages at a lower interest rate for a five-year grace period.

This will allow borrowers to delay payments on the loan principal without having to pay late fees and avoid loan defaults or cancellations.

The deadline for debt cancellation has been extended by two years and provides for a second restructuring if necessary, the ministry said.

Vulnerable families who devote more than 50% of their monthly income to repaying their mortgage but do not meet the condition set by the old code of a 50% increase in their monthly mortgage payments can benefit from a grace period. two years.

Middle-class families with an income of less than 29,400 euros who are at risk of defaulting will also benefit from additional protection.

In these cases, lenders must offer a 12-month repayment freeze, a lower interest rate on deferred principal, and loan extensions if a mortgage charge is more than 30% of household income and the cost has increased. at least 20%.

These measures will also make it cheaper for families to switch from variable rate mortgages to fixed rate mortgages.

($1 = 0.9762 euros)

Reporting by Jesús Aguado; additional reporting by Belen Carreno, Emma Pinedo, Inti Landauro and David Latona; edited by Emelia Sithole-Matarise and Jason Neely

Our standards: The Thomson Reuters Trust Principles.

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Building Momentum for a More Inclusive World Order – World https://rrreading.com/building-momentum-for-a-more-inclusive-world-order-world/ Tue, 22 Nov 2022 01:35:00 +0000 https://rrreading.com/building-momentum-for-a-more-inclusive-world-order-world/

During his one-on-one meeting at the G20 summit with President Xi Jinping, US President Joe Biden reiterated that despite vigorous competition, mutual conflict should be avoided. He also spoke of the need for cooperation in a range of transnational challenges, including climate change, debt relief, health security and global food security.

Chinese media say Biden doubled down on previous pledges of non-confrontation, not seeking regime change or a new Cold War, not ganging up on China, not supporting ‘Taiwan independence’ or “two Chinas”, and no intention to conflict with China or decouple from China as well as no intention to impede China’s economic development or contain China .

However, these nine specific promises do not appear in Washington’s minutes of the meeting.

With the possible exception of some of America’s closest allies in the Five Eyes intelligence alliance, which includes Canada, Australia, New Zealand, the United Kingdom and the United States. , many countries do not want to be forced to take sides, as China has become the largest trading partner for 128 of the 190 nations around the world.

China’s centrality in the global supply and value chain is particularly important in the world’s largest trading bloc – the Regional Comprehensive Economic Partnership.

China’s approaches to what Xi calls a global “crossroads” amid “momentous changes not seen in a century” are embedded in his speeches at the 17th G20 summit in Bali on Nov. 15, at the China CEO Summit. APEC in Bangkok on November 17 and at the APEC Economic Leaders Meeting in Bangkok on November 18.

Xi presented a clear vision of an “Asia-Pacific community with a shared future”. The region is “no one’s backyard” nor should it become “an arena for high power competition”. It should embrace “openness and inclusiveness”, guided by “diversity and non-discrimination”, allowing for “win-win cooperation” and “regional economic integration” without any disruption or dismantling of the supply chain. supply.

Rejecting a “cold war mentality” and “bloc confrontation”, Xi put forward the idea of ​​”common, comprehensive, cooperative and sustainable security” in a global security initiative based on the UN Charter.

Specifically, Xi proposed building an Asia-Pacific free trade area, including reform of the World Trade Organization and better alignment between RCEP, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement.

For the world as a whole, Xi points out that “drawing ideological lines or promoting group politics and bloc confrontation will only divide the world and hinder global development and human progress.” It espouses the Global Development Initiative, under which more than 60 countries have joined a group of GDI friends.

China has established the Global Fund for South-South Cooperation and Development and will increase its funding for the China-UN Fund for Peace and Development, within the framework of the UN 2030 Agenda for Sustainable Development.

Opposing the politicization of food and energy issues, Xi points to China’s Joint Initiative for International Cooperation on Resilient and Stable Industrial and Supply Chains, the Global Clean Energy Cooperation Partnership and the international cooperation on global food security within the G20.

It is clear that under Xi, China is taking on a much greater role in helping to build a better world in a community of shared destiny, bound together by global challenges such as climate change, pandemics, food and water security, the terrorism and development bottlenecks. This should be welcome.

The crucial question is whether the United States, as the world’s sole superpower, can rise above “American exceptionalism” and a zero-sum, “win-lose” mindset. .

For decades, the Chinese Communist Party has been consistently misunderstood, misjudged and distorted, if not completely demonized, by the West, including some of the most respected authors, broadsheets, think tanks, journals and other media.

The so-called “Chinese threat” is reaching a crescendo, portraying the US-China competition as a “life or death” competition between “democracy and autocracy”. According to the Washington-based Pew Research Center, unfavorable views of China are reaching historic highs in many countries.

Rhetoric aside, Biden’s reassurances during his three-hour meeting with Xi in Bali focused on guardrails rather than blue sky thinking. The upcoming US presidential election of 2024 and the election of the Taiwanese leader are also likely to politicize issues that could upend the applecart.

However, according to calculations by the Organization for Economic Co-operation and Development, developing countries will account for almost 60% of global GDP on a purchasing power parity basis by 2030. More are becoming confident enough to make assert their national interests, individually or collectively. , in defiance of heavy-handed hegemonic tactics.

The recent refusal of OPEC to increase oil production according to the United States is a good example. Others are likely to have China as their main trading partner and welcome, as Xi advocates, a more inclusive world order not based on ideological lines.

Peace and development remain common aspirations. Xi’s panoply of ideas, initiatives and concrete proposals for a global community of shared destiny are likely to gain momentum and momentum, restoring China to its rightful place in the sun as the Chinese dream of national rejuvenation is finally being realized.

The author, a freelance Chinese strategist, was Hong Kong’s main official representative for the UK, Eastern Europe, Russia, Norway and Switzerland.

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Stocks drop to start short Thanksgiving week; disney pop https://rrreading.com/stocks-drop-to-start-short-thanksgiving-week-disney-pop/ Mon, 21 Nov 2022 16:03:00 +0000 https://rrreading.com/stocks-drop-to-start-short-thanksgiving-week-disney-pop/

Stocks fell on Monday at the start of a short Thanksgiving holiday week as traders eagerly awaited speeches from the Federal Reserve and earnings reports.

The Dow Jones Industrial Average fell 100 points, or 0.31%, but was slightly offset by shares of Disney, which jumped 8.7% after news that Bob Iger will replace Bob Chapek as CEO. The S&P 500 lost 0.62% and the Nasdaq Composite fell 1.07%.

Investors have been reflecting on the strength of a recent bear market rally, which began earlier in the month with the reading of the October consumer price index and gained momentum with the reading of last week on wholesale prices.

Last week, traders were stymied by messages from Federal Reserve officials, who were less impressed with the numbers and reassessed their optimism about the possibility of slowing inflation. The market will get more information on the central bank’s way forward to digest when Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard speak on Tuesday.

Retail sales rose in October, but at the corporate level, Target reported slowing demand and Amazon announced it would lay off 10,000 employees – although Home Depot and Walmart posted strong results.

“With 375 basis points of Fed rate hikes so far, an inverted yield curve, inflation spikes and commodity prices still part of the story, we can almost conclude that we are behind. in the economic cycle,” Liz Young, SoFi’s chief investment strategist, said in a note over the weekend.

This week, short due to the Thanksgiving holiday, investors will be busy with another retail income group. Best Buy, Nordstrom, Dick’s Sporting Goods and Dollar Tree are among the businesses on deck.

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A little-known mortgage could make buying a home more affordable https://rrreading.com/a-little-known-mortgage-could-make-buying-a-home-more-affordable/ Mon, 21 Nov 2022 06:00:00 +0000 https://rrreading.com/a-little-known-mortgage-could-make-buying-a-home-more-affordable/

A type of loan that offers homebuyers a lower initial interest rate is coming back into fashion as lenders try to make home ownership more affordable amid high interest rates.

Known as a mortgage buyout, the loan typically involves a cash payment from the seller that effectively lowers the borrower’s mortgage interest rate for a limited time, usually two to three years, before it is due. back to full rate. The seller collects the money as the monthly mortgage is paid. That could give buyers struggling with high house prices and inflation for groceries and other goods a temporary respite from their monthly spending.

Lenders are offering buyout loans at a time when demand for mortgages is down due to high interest rates. The average interest rate on a conventional 30-year fixed mortgage fell to 6.61% for the week ending November 17, from 7.08% the previous week. But that’s still double the average rate of 3.1% a year ago.