Tag Archives: Real Estate Market

EUROPEAN POWER – Friday prices rose due to lower German winds, solar power output | Instant News


PARIS, February 25 (Reuters) – European spot electricity prices for delivery on Friday rose on Thursday due to lower forecasts for wind and solar power generation in Germany.

* Over-the-counter baseload prices for Friday delivery in Germany rose 6.2% to 48.30 euros per megawatt hour (MWh) at 1009 GMT.

* France’s future contract added 6.2% to 48.25 euros / MWh.

* Power generation from German wind turbines is expected to fall 1.8 gigawatts (GW) day-on-day to 13.4 GW, while solar generation is expected to drop 2.2 GW to 3.6 GW, Refinitiv data show.

* “We expect wind power output to fall in the first half of the day, and increase in the latter half of tomorrow,” Refinitiv analysts said.

* French wind power supply is expected to increase by 1 GW to 3.6 GW, data show.

* Refinitiv forecast shows the average daily German wind power supply will fall to around 3 GW early next week before rising to 8 GW next Friday.

* France’s nuclear capacity reaches 75% of the total installed.

* More than half of EDF’s nuclear reactors could be operational for a decade longer than planned after maintenance work was carried out, French nuclear security watchdog ASN said on Thursday.

* French electricity demand on Friday is expected to rise 700 megawatts (MW) to 56.9 GW and fall in Germany by 390 MW to 64.2 GW, Refinitiv data show.

* Further along the curve, German Cal ’22 baseload power edged up 0.1% to 53.20 euros / MWh, following higher fuel prices.

* France 2022 contract added 0.2% to 54.25 euros / MWh.

* European CO2 allowances expiring December 2021 edged down 0.1% to 39.10 euros per tonne.

* Coal for northern European delivery in 2022 rose 0.9% to $ 69.1 a tonne, after hitting the highest level since February 1 at $ 69.20 earlier in the session. (Reporting by Forrest Crellin; Editing by Emelia Sithole-Matarise)

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New Zealand Has Lessons for the Fed on House Prices and Inflation | Instant News


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Piaggio Aerospace Italia invited five bidders to make purchase bids | Instant News


MILAN (Reuters) – Piaggio Aerospace Italy, which applied for creditors’ protection at the end of 2018, said on Wednesday that it had officially invited five bidders to make a buyout bid for the group.

The deadline for five bidders to submit non-binding bids was set for March 5, the company said in a statement, adding they were interested in buying the group’s aircraft and engine businesses.

Company special administrator Vincenzo Nicastro has sent out the letters as a further step in the company’s sales process, which began last year when Piaggio Aerospace initially withdrew expressions of interest from 19 international bidders.

“Having five applicants on the short list is very positive, especially if we consider that the pandemic has objectively discouraged many foreigners,” said Nicastro.

Nicastro said that a non-binding offer would be assessed by the Italian Ministry of Economic Development and then talks would start on arriving at a binding offer.

Reporting by Giulio Piovaccari, editing by Agnieszka Flak

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UPDATE 2-New Zealand’s central bank to consider the impact of monetary policy on housing | Instant News


* Housing is added to RBNZ authority, but not mandate

* The RBNZ needs to explain its impact on housing on a regular basis

* Mortgage debt-to-income and interest-only ratio considered (Adding background, comments from analysts and opposition leaders)

WELLINGTON / SYDNEY, February 25 (Reuters) – The New Zealand government on Thursday tasked the country’s central bank with considering the impact of its monetary and financial policy decisions on housing prices, a move to help calm the country’s fiery property market.

Finance Minister Grant Robertson said the Reserve Bank of New Zealand (RBNZ) should consider government policies regarding more sustainable housing prices.

“Today’s announcement is just the first step as the government weighs broader suggestions on how to cool the housing market,” Robertson said in a statement. “We know the rapid improvements we’ve seen in recent months are not sustainable, which means many first-time home buyers have a hard time accessing the market.”

The government’s authority ceases to impose new monetary policy objectives in the RBNZ, the first step in the world that RBNZ Governor Adrian Orr warned late last year when the government first pitched the idea.

Orr argued that adding housing to the bank’s mandate could make monetary policy less effective and affect the efficiency of financial markets, adding that monetary policy alone cannot fix the housing problem.

Orr on Thursday welcomed the addition of remits, which take effect March 1, noting that monetary and financial policy is one of the “many influences on house prices.” He also stressed the monetary policy committee’s targets – maintaining price stability and maximizing sustainable employment – remain unchanged.

Prime Minister Jacinda Arden’s government is under pressure to fix the country’s housing crisis, especially after the failure of its flagship public housing program failed. Property prices have skyrocketed in the past six months due to severe housing shortages and low interest rates.

Like many central banks during the coronavirus pandemic, the RBNZ has pushed interest rates to record lows, relaxed mortgage lending restrictions and incorporated NZ $ 100 billion ($ 70.4 billion) into quantitative easing programs.

These measures, while boosting the economy, have sparked an unprecedented housing market boom. In its latest forecast, the RBNZ sees house price inflation rising to 22.4% by the middle of this year, much higher than the November forecast of 7.9% for this year to June.

POLICY REGULATION

The New Zealand dollar touched its highest level since August 2017 following the government’s announcement, as it reinforces the view that monetary policy will be tighter. The ten-year New Zealand government bond yield was 1.82%, the highest since May 2019.

“Paying attention to housing may make the Reserve Bank more inclined towards meeting its inflation and employment targets … that means monetary policy is tighter than expected in the near term,” said Westpac senior economist Michael Gordon.

An immediate impact on the housing market itself is unlikely, said Gordon.

“The thing that is going to lower house prices are higher interest rates,” said Gordon. “It’s still cheaper to borrow now because it’s been going on for decades.”

Under the amendment, the RBNZ will retain autonomy over how its decisions take into account potential housing consequences, but will need to explain regularly how it takes into account the housing market outcomes.

Banks should also consider the government’s goals to support more sustainable housing prices, including by reducing investor demand for existing housing stocks to help increase the affordability of first-home buyers.

The RBNZ said it was investigating government requests for advice on implementation tools such as debt-to-income ratios and interest-specific mortgages. (Reporting by Renju Jose and Praveen Menon; editing by Jonathan Oatis, Rosalba O’Brien and Jane Wardell)

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Qantas Australia posted a loss of $ 820 million in the first half, pushing back its international travel targets | Instant News


SYDNEY (Reuters) – Qantas Airways Ltd said on Thursday it does not expect a resumption of wide-ranging international travel from Australia until the end of October after posting an underlying A $ 1.03 billion ($ 820.40 million) pre-tax loss for the first half. .

FILE PHOTO: A crew member walks from a Qantas aircraft at the domestic terminal at Sydney Airport in Sydney, Australia, 16 November 2020. REUTERS / Loren Elliott

The pre-tax loss in the six months ended December 31, the airline’s most watched financial measure, compared to A $ 771 million a year earlier.

On a bottom-line level, Qantas lost A $ 1.47 billion from a $ 648 million gain the previous year at a time when many state borders remained closed, hampering a recovery in the domestic market.

“We are now planning international travel to resume at the end of October this year, in line with the date the Australian vaccine launch is effectively completed,” Chief Executive Alan Joyce said in a statement.

The airline has suspended its international fleet with the exception of government repatriation charters and cargo airlines. It has put international tickets on sale starting July, but has pushed it back, with the exception of New Zealand.

Australia on Sunday began vaccinating its citizens against COVID-19.

Qantas said it expects international travelers to be vaccinated to board its aircraft.

In the domestic market, where Qantas usually reaps the most of its profits, capacity has run well below pre-pandemic levels due to closure of state borders.

The airline expects to operate 80% of its usual domestic capacity in the fourth quarter ending June 30, up from 60% in the third quarter.

($ 1 = 1.2555 Australian dollars)

Reporting by Jamie Freed; Edited by David Gregorio

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