Housing market gets more bad news:
US existing homes sales were down a dramatic 4.1% in July coming in at a two and half year low of only 6.33 million on an annualized basis. This is the fourth month in a row of declining home sales and was well below the consensus of 6.55 million. The housing market received more bad news as the inventory of homes for sale in July rose 3.2% to 3.86 million or a 39.9% year over year increase. The only bright spot was that median sale prices were up marginally to $231,200 a 0.5% increase over June.
It seems that the Federal Reserve is seeing an impact from the interest rate hikes of the past year or so. If this trend in home sales continues it will not be too long before home prices actually start to decline as it becomes a buyers market. When home prices start to decline the consumer will see their spending power reduced and that is not going to be good for economic growth.
Big merger news in the forestry sector as Domtar and Weyerhaeuser announce a merger of some their paper divisions. The $3.3 billion deal will create the largest free-sheet paper producer in North America. Free-sheet papers are products such as those used in copiers and printers. The new company will retain the Domtar name and will be 55% owned by Weyerhaeuser shareholders and 45% by the current Domtar shareholders. The merger offers Domtar an opportunity to move into the global market as one of the largest free-sheet producers in the world.
Interesting news on global trade as Japan suggests an Asian free trade zone that would include Japan, China, India, Australia, South Korea, New Zealand and the current 10 member Association of Southeast Asian Nations (ASEAN).
This is just in the very early discussion stages but it could create the largest free trade zone in the world that would function along similar lines to the European Community (EC) and The North American Free Trade Agreement (NAFTA). The implications for growth in Asia are huge as Asia will be in a much better position to grow regardless of access to other markets such as the US and Europe.
It will be very interesting to watch and see if this idea gets off the ground.
For more information go to www.campbellreport.com
It seems that the Federal Reserve is seeing an impact from the interest rate hikes of the past year or so. If this trend in home sales continues it will not be too long before home prices actually start to decline as it becomes a buyers market. When home prices start to decline the consumer will see their spending power reduced and that is not going to be good for economic growth.
Big merger news in the forestry sector as Domtar and Weyerhaeuser announce a merger of some their paper divisions. The $3.3 billion deal will create the largest free-sheet paper producer in North America. Free-sheet papers are products such as those used in copiers and printers. The new company will retain the Domtar name and will be 55% owned by Weyerhaeuser shareholders and 45% by the current Domtar shareholders. The merger offers Domtar an opportunity to move into the global market as one of the largest free-sheet producers in the world.
Interesting news on global trade as Japan suggests an Asian free trade zone that would include Japan, China, India, Australia, South Korea, New Zealand and the current 10 member Association of Southeast Asian Nations (ASEAN).
This is just in the very early discussion stages but it could create the largest free trade zone in the world that would function along similar lines to the European Community (EC) and The North American Free Trade Agreement (NAFTA). The implications for growth in Asia are huge as Asia will be in a much better position to grow regardless of access to other markets such as the US and Europe.
It will be very interesting to watch and see if this idea gets off the ground.
For more information go to www.campbellreport.com
posted by Grant | 4:36 PM
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