News: 2013-12-30

Markets

“In a scenario where rates rise gently to 3 per cent by 2018 – still far below their historic average – some 1.12m people would be spending more than half of their take-home pay on debt repayments. That is the widely accepted yardstick for indebtedness.”

German Yields Rise to 3-Month High on Improving Economic Outlook – Bloomberg

Stocks $3.7 Trillion Year Beats Bonds Most Ever as Funds Revive – Bloomberg

Miami dopée par une frénésie de construction

The frenzy of construction in Miami has returned, buoyed by Asian capital and South American clients.

Home Prices Back at Peaks in Some Areas – WSJ.com

“Values are up more than 13% from their 2007 high in Oklahoma City and by more than 6% in the Denver metro area. Prices are back to all-time highs in 10 of the nation’s 50 largest metropolitan areas, according to a Wall Street Journal analysis of price data from Zillow, an online real-estate information service. Prices are within 5% of their previous peak in San Jose, Calif.; Nashville, Tenn.; and Dallas. “

Japan shares end bumper year on high note | Reuters

“Japan’s Nikkei has risen 56.7 percent in 2013, its best annual performance since 1972, urged on by aggressive monetary and fiscal stimulus.”

Rising Rates Favor Shorter Junk Bonds – WSJ.com

Bitcoin Is Evil – NYTimes.com

An Ubernerd Weighs In – NYTimes.com

“My current guess is that the Bitcoin bubble will collapse when there is some bad news, e.g., a regulator demands registration of Bitcoin wallets, people try and cash out, and find that that while it’s easy to buy bitcoins, it’s much harder to find people willing to buy back nontrivial amounts, very hard to collect the sales proceeds, and completely impossible without revealing exactly who you are.”

This German article is about the coming free labour movement in the EU for Bulgarians and Romanians. From a wage arbitrage perspective, this will suppress wages in western Europe as it was when previous labour mobility waves from the east came into the EU. Some are fearful, particularly in the UK where the PM is inveighing against foreigners living on state benefits.

BBC News – France’s 75% tax rate gains approval by top court

Monte Paschi faces nationalization threat after cash call delay | Reuters

Spain retail sales jump 1.9 percent in November | Reuters

Germans Bury Inflation Angst as Merkel Offers New Agenda – Bloomberg

ekathimerini.com | Bundesbank chief says no to Greek haircut, yes to reforms ekathimerini.com | Greek prison system collapsing – labeled ‘inhuman’

Michael O’Sullivan says that other peripheral eurozone countries cannot replicate Ireland’s recent economic upturn – nor should they want to. – Project Syndicate