High Interest Rates Hit America's Home Buyers; Argentine President-Elect Wants to Ditch the Peso for the U.S. Dollar By James Christie
Good day. Numbers on U.S. existing-home-sales for October are due out today, with economists in a Wall Street Journal survey expecting the figures to hit a new 13-year low. Indeed, existing-home sales for all of 2023 are on track to be the lowest since at least 2011, according to forecasts, as high prices and elevated mortgage rates have made homes far less affordable. The Federal Reserve's rate-raising campaign helped propel mortgage rates to fresh two-decade highs this fall, jacking up payments for home buyers. Elsewhere, Javier Milei, the self-styled anarcho-capitalist who won Argentina's presidency on Sunday, plans to strip the country's central bank of its power to print money and wants to ditch his nation's peso and adopt the U.S. dollar as the national currency.
Now on to today's news and analysis.
Top News October Home Sales Likely Fell to New 13-Year Low
Tuesday's existing-home-sales report is expected to show that the number of home sales in October fell to a new 13-year low .
Economists surveyed by The Wall Street Journal estimate sales of previously owned homes fell a seasonally adjusted 1.5% in October from September.
High home prices and elevated mortgage rates have made home purchases far less affordable for buyers, pushing many out of the market.
U.S. Economy Houses Too Expensive to Buy Underpin Lofty Rents
Big public companies that rent out single-family homes are beating the rest of the rental market this year, thanks to tenants who are paying large rent increases on the sorts of homes they increasingly can't afford to buy.
The Pay Raise People Say They Need to Be Happy
Many studies have found a link between income and happiness , both in terms of day-to-day mood and life satisfaction. Having more money would help many people afford necessities, and on average, richer people report being happier.
These Workers Plan to Vote on Union at Wells Fargo
Workers at two Wells Fargo bank branches in New Mexico and Alaska launched unionization efforts Monday, shifting the attention of the resurgent labor movement to an industry that has historically been cool to it.
Biden's Electric-Vehicle Push Hits a Speed Bump
America's transition to electric vehicles is running into an unexpected snarl . A surprising crash in prices for lithium, cobalt and other metals used in EV batteries has prompted mining companies to suspend or delay projects.
Key Developments Around the World Argentina's New President Wants to Adopt the U.S. Dollar as Currency
President-elect Javier Milei's top campaign proposal was aimed at eradicating rampant inflation that has for decades ravaged Latin America's third-biggest economy by removing the battered national currency from circulation.
Brazil's Maturing Private Markets Attract U.S. Investment Firms
International investor interest in Brazil, Latin America's largest economy, has varied in recent decades as the country went through economic growth and recessionary cycles and had governments of different political leanings.
Financial Regulation Roundup Two GOP Lawmakers Demand Records From FDIC
Two Republican lawmakers on the House Oversight Committee are investigating allegations of a toxic workplace at the Federal Deposit Insurance Corporation, requesting records and a briefing by senior officials.
SEC Sues Crypto Exchange Kraken, Alleges It Is Unregistered Broker
The Securities and Exchange Commission sued Kraken on Monday , alleging that it violated investor protection laws that require it to comply with the same rules stock exchanges face. It alleges that Kraken acted simultaneously as a broker, dealer, exchange and clearing agency without registering with the agency. The lawsuit seeks unspecified financial penalties.
Company Led by Former NYSE President Buys CoinDesk
Bullish, the crypto exchange run by former New York Stock Exchange President Tom Farley, bought 100% of crypto-focused media company CoinDesk in an all-cash deal . Financial terms of the deal weren't disclosed.
CFPB Orders Toyota to Pay $60 Million Over Lending Practices
Federal regulators have ordered Toyota Motor's auto-lending arm to pay $60 million in fines and consumer redress for allegedly preventing borrowers from canceling product bundles that raised their monthly loan payments.
Chinese Premier Heads New Financial Body, Warns of Risks
Chinese Premier Li Qiang on Monday chaired a meeting as head of the Communist Party's new agency that oversees the nation's financial sector, the Central Financial Commission, urging to step up regulation and ward off risks .
Forward Guidance Tuesday (all times ET)
8:30 a.m.: Canada consumer-price index for October; Chicago Fed National Activity Index; Philadelphia Fed Nonmanufacturing Business Outlook Survey
10 a.m.: U.S. existing homes sales for October
11 a.m.: European Central Bank's Lagarde speaks in Berlin
12:15 p.m.: European Central Bank's Schnabel speaks in Würzburg, Germany
2 p.m.: FOMC minutes of Oct.31-Nov. 1 meeting
Wednesday
8:30 a.m.: U.S. durable goods for October; U.S. weekly jobless claims
10 a.m.: EU ECCI flash consumer confidence indicator for November; University of Michigan final consumer survey for November
11:45 a.m.: Bank of Canada's Macklem speaks to Saint John Region Chamber of Commerce
Research U.S. Rents Remain High, But Concessions Also Rising
Rental concessions in the U.S. such as free months of rent or free parking are at their highest level in more than two years despite strong renter demand, Zillow says. That is because property managers are now competing for tenants, as primarily upscale buildings from the recent construction boom enter the rental market. About 30% of rental listings on Zillow advertised concessions in October, a surge signifying a notable shift in the rental market. Within the past five years, concessions reached a peak in February 2021, with 36.7% of rentals offering incentives, coinciding with low renter demand during the pandemic. Those concessions then dropped as far as 19.4% in July 2022. Zillow data shows 43 of the largest 50 metropolitan areas have seen a rise in rental concessions compared with last year.
-Chris Wack
Commentary Dollarization May Work Better on YouTube Than in Reality
Argentina ultimately needs to close the productivity gap through the kind of export-led industrial policies that worked in South Korea and Vietnam, Jon Sindreu writes, adding that populist recipes have failed to deliver these .
Basis Points The Conference Board Leading Economic Index fell 0.8% to 103.9 in October after falling 0.7% in September, marking 19 months of consecutive decline , the private research group said Monday. Its index was expected to fall by 0.7% last month, according to economists polled by The Wall Street Journal. (MarketWatch) A record-breaking share of auto loan applicants say they have been rejected for loans this year , according to the Federal Reserve Bank of New York. Based on surveys collected in February, June, and October, an average of 11% of auto-loan applicants said they had been rejected, the highest yearly car-loan rejection rate since the New York Fed began tracking the figure in 2013. (MarketWatch) Germany's central bank expects the country's economy to contract again in the fourth quarter, though a rebound could be expected at the start of 2024. "The German economy continues to navigate choppy economic waters," the Bundesbank said in a monthly bulletin, published Monday. (Dow Jones Newswires) Ghana's central bank may not announce further interest rate hikes amid receding inflationary pressure in the world's second largest cocoa producer, Oxford Economics Africa said. Oxford expects the central bank to hold the key lending rate at 30% at its final monetary policy committee meeting of the year next week after inflation receded to a 14-month low of 35.2% in October, from 38.1% in September. (DJN) New car registrations in Europe rose in October, driven by demand in France, Italy and Spain, and a jump in fully-electric vehicle sales. Registrations, which reflect sales, rose 15% to 855,484 in October compared with a year ago, the European Automobile Manufacturers' Association, known as ACEA, said Tuesday. U.K. public-sector borrowing grew on year in October, an indication that finance chief Jeremy Hunt will find little fiscal headroom to pass tax cuts in Wednesday's autumn budget statement. Feedback Loop
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11-21-23 0716ET
