19 Burst results for "Fhfa"
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"Here we are talking about what is the landing look like? I'm looking backwards at 2022 and saying, that looks like the landing to me. The market collectively does not have a clue at this point in time. Hence we're going to get a choppy market. We're seeing the beginnings of a regime shift back to a point where interest rates matter. We are moving back both in growth and inflation to what we would refer to as the old normal. This inflation is not a concept that is dead. It may be around the corner. This is Bloomberg surveillance with Tom Keene, Jonathan farrow, and Lisa abramo. We should just do a whole hour of people saying I've got no idea. I don't have a clue. I think we do. I think that every morning we have no idea. A lot from New York City this morning. Good morning, good morning, for our audience worldwide. This is Bloomberg Savannah's with Tom Keane. Lisa brabant and Jonathan farrow futures right now up a quarter of 1% on the S&P 500. Plenty of data, fed speak, all that good stuff through the week. We need to pick up on European CPI this morning. Hot in France, hot in Spain, TK we got a read on Germany tomorrow. There is a lift in Eurozone sovereign bond yields this morning. The transitory further gone, this is the second tranche of hotter that we've had in, you know, I'm going to go back. People think it's physics envy. It's just the reality of you look at a trend on a chart and there's a vector, the vector and French inflation in no way shape or form signals disinflation. And now all of a sudden we're talking about 4% potentially at the European Central Bank. Try and get your head around that. That is absolutely ridiculous. That's the ECB. Let's talk about earnings in the United States through the week. Get a ton from the retail in America target, first out the gate. Bramah I've got to say, let's put the stock price action to one side. Let's just look at the numbers. The guidance is poor relative to what was expected for the quarter and for the year ahead. Correct, which is the reason why you'd expect the shares to be lower. They are not. They are higher. And this to me is really the question. Are people willing to look past any negative guidance and just say, they're playing a game with us, they're going to try to guide us down and then they're going to hurdle over that lowered estimate. And we've got your gig and we're going to get ahead of it and buy instead of just waiting for the data to come out. Now that we have television gravity, the math is back to what it was 16 years ago, just perchance security analysis actually matters. And you just heard that from Michael baker of DA Davidson, who's truly expert on inventory dynamics. And the answer is, I guess, is up because as he said, they're clearing inventory. Well, they had a big imagery problem last year and they could clear it out. As you know, it's been difficult for the retailers. That's for sure. That stock is up by about 3% in the pre market. Let's work through the broader price action for your futures. Just about positive by a quarter of 1% on the S&P 500, a lift in the equity market on the session and move lower on the month as we close out the month of February. We continue shifting higher on a ten year yield by three basis points, your ten year right now, Lisa, three 94, 54. So we talked about the target releasing earnings. The earnings release, we're also going to be watching the 9 a.m. earnings call that target is going to be holding. I'm actually more interested in that, especially in light of the share price reaction considering the fact. That have they cleared out the inventory issues. What are they doing on the digital front? How significant do they see the deterioration and demand as the year goes on? 9 a.m., we get a home price data, the FHFA, house price data, as well as the S&P CoreLogic case killer 20 city index, I know that you love it when I say that, but it's going to decelerate and that's the expectation. But by how much because you're starting to see a bit of a resurgence in some of the housing prices, you're laughing at misery brand. It just native reprint. It's the case shiller index, but now it's like merged to it. And then it's like, you know. It is what you said it was. Two 30 p.m.. I am curious about this. Chicago fed president, Austin cool speak. It's going to be making his first public appearance in this role. He's giving a speech in Indiana and he is a voting member. So let's hear from him. Let's see how far he thinks the fed has to go. How far away are we from some sort of terminal rate? I think about tourists and slots, no landing. And he kind of amended the no landing to no landing now and then a hard landing later because the fed's going to have to raise rates so much. And so how much do we start to hear that kind of thing? Hold on clarification. Renaissance macro offered one in the last 24 hours as well. It's not that Neil and company are saying the economy is never going to land. The economy is never going to weaken. The original pushback was against the expectation that we would see recession in early 2023, and they were pushing back and saying no. No, that's not going to happen and ultimately the data so far. At least for the month of January, it's pretty much confirmed there. And then the flip side of that, if we don't get that recession, do we get an even harder landing on the other side? Because of what central banks have to do, a 4% ECB rate, a potentially 6% fed funds rate. Okay, lucky this morning. Way less with a sweater good morning. From BlackRock, why lay thank you for being with us here in New York City. You came into this year conservative equities. The equity market rally, you stayed conservative on equities. The equity market started selling off. You're still cautious. Can you walk us through why? I have no clue. Just. That works perfectly. But the reason that we're cautious on our colleagues is really that if you look at where valuations are, it's pricing in still a very modest growth outlook for the economy, as well as for earnings as well. And if you look at where rates are, as you know, we have been over the view that they can not cut rates now markets are moving closer to our view, but markets are still looking at rate cards later in 2024 and we think that actually given how a resilient economy has been and how much the recession will be pushed out later. Down the line, I actually rate cuts also needs to be pushed out further as well. So equity markets in developed world are not quite appreciating some of the macro challenges that we see happening. And that's why we have been prudent now having said that our time horizon is 6 to 12 month and some of that metrics that we use to support the cautious view is valuation based, but there is not to say that we can not have shorter term bouts of rally which we saw in January, like driven by technical factors, short squeeze, driven by fomo, flows as well, real money investors are telling us that what, after a year, like 2022, they can not afford to miss the rebound. So they're just going to preposition for that. Even if they know or they fear that it could get worse before it gets better. In your beautifully elegant note, you talk about a new regime. I'm going to label it a black rock new regime. Now notice it's a way leaner regime. But whatever it is, it's a new regime. If we're not going back to securities analysis, in factor analysis, pre 2020, what are we going forward to? While the new regime is predicated in terms of the Marco drivers of the current environment that we are moving from the great moderation with economic cycles, shaved by us demand to the current environment shaped by supply and supply constrained in particular. Factor analysis is difficult because factors are time varying concepts and veterans can mean different things to different people. Interrupt because we got to
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"And radio. I'm David Weston. As we turn into the new year, we want to keep our eye firmly on the economy where it is headed. And to give us a summary of where she thinks it is, we welcome no Bloomberg Washington bureau chief Peggy Collins. So Peggy, it's a big topic, but the story of 2022 was clearly inflation. What are we anticipating in 2023, which inflation with the feds likely to do about it? Well, that's right, David. Certainly rising prices were the big story of 2022 and trying to get them under control was the fed. So we did get some data towards the end of the year showing that inflation was easing a bit. So that's the good news. The bad news is that Americans are still feeling the rising prices in their wallets. When it comes to basic things, like food and gas and energy prices. And one of the other things to really look out for going into the new year are rental prices as well. That has certainly been one of the things that people have been feeling a lot in many different parts of the U.S. economy. So I think how the consumer holds up under these rising prices and the fact that many people have eaten away some of those pandemic savings will be a big part of the story in 2023. Well, if the fed's job was trying to get inflation, I guess they're succeeding when it comes to housing. Isn't that right? Because that seems to be some people say it's even in a recession at this point. We've got some pending home sales numbers out today, which we're not very encouraging at least as I read them. That's right. Certainly a very low reading there I'm pending home sales this morning, as you said, David, and that is one of the things that the fed was trying to do was take some of the heat out of the housing market. We saw a lot of homes go for sale during the pandemic. A lot of refinancing. And when the fed jacked up rates in 2022, certainly people saw rates on mortgages go from lows of two and 3% to highs of 6 and 7%. So that jump was incredible and certainly took a lot of the heat out of the market. Where we go from here in 2023 though, it still remains to be seen. As I mentioned, it's not only home sales that we have to look at, but also what Americans are paying in rents, because rent is a big part of the inflation data that we've been seeing all this year. Yeah, the one question I have, I don't know if you know the answer, Peggy, even, is how much of a lag is there in these numbers. You know, certainly, I mean, there's at least a month lag there in terms of when we're seeing the figures for November would be in December and likewise in January. So at least there, but there's also data that's flowing in on the state level that's got even more of a lag there and then even if you drill down even further into the metro level. So I think it's hard to grasp some of the microcosms here, but overall the story of 2022 was that Americans saw prices rise and the fed is trying to take some of that out of the market and that we're seeing some signs that there could be some success happening there. Becky, thank you so much. It's really good of you to be with us. That's our Bloomberg Washington bureau chief Peggy Collins. Now that we're going to turn to somebody who knows the housing market specifically inside and out he's George ra two he's senior counters at realtor dot com. George, welcome. It's good to have you here. Give us your sense. First of all, start with the numbers today. Do you read much into these pending home sales? David, pending numbers really tell us that the housing market is firmly into a winter freeze. As you unpack it charted, we've seen mortgage rates really crimp buyer purchasing power. In fact, today's mortgage rates are a bit of a medium price home. It's looking at about 700 to $800 more than last year when prices were already rising. So in terms of transactions, both existing home sales as well as contract signings have been declining for most of this year. In fact, even on the new home side, we've seen declines with the exception of the last two months when we saw some volatility, particularly with rates retreating, it's obvious that for a lot of buyers, the combination of a newer home with a home warranty and very likely a developer or construction company feeling the pressure on operating expenses thereby giving them a probably a better deal saw sales pick up a bit. But by and large, homeowners have pulled back from the market where monitoring data on a weekly basis at realtor dot com and we've seen new listings pull back from late summer all the way into December. A clear signal that even homeowners who might otherwise move are taken a reprieve and stepping back from the market really waiting for the next spring to get a better read on the economy as well as where mortgage rates are likely to settle. Our price is coming down, housing prices coming down. I think I saw Kay schiller has like four months in a row, didn't it? Indeed, whether it's gay schiller, whether it's some of the other numbers like FHFA and they are realtor dot com, we track listing
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"That include banning some guests from booking a property for a single night on New Year's Eve. Those without a positive account history, or who haven't previously booked on the platform, will be banned from making reservations altogether. The restrictions come after Airbnb put a party been in place over the summer, and with New Year's Eve, just a few days away, nearly 200 new waterford crystal triangles are headed to Times Square in New York City tomorrow. I'm Tammy trujillo And I'm Erica Hurst, Kuwait's from the Bloomberg newsroom. Wall Street is set to close out a brutal year as markets reopen Tuesday after the Christmas holiday. Hopes for a Santa rally or dim with stocks on track for their worst performance since the global financial crisis of 2008, investors fear of a looming recession have been weighing heavily on markets in the fourth quarter, trading volumes expected to remain light with few economic readings on tap for the holiday shortened week. The housing market will be something to watch this week as we limp to the end of a tough year for investments. Bloomberg's Nathan Hager reports. We get October home price data from FHFA and S&P core logic on Tuesday, then pending home sales on Wednesday, but they're already signs of a serious real estate slump, Redfin says home purchases in November plunged 35% compared to last year, the biggest dive since the company started keeping track. Mortgage rates are down for 6 straight weeks, but they're still twice as high as they were a year ago. In Washington, I'm Nathan Hager, Bloomberg radio. Then he came reports Apple is facing about 98 million in back taxes in Japan, a bill that appears to be tied to bulk sales of duty free devices to foreign tourists, according to the report Japan's tax free shopping for visitors staying less than 6 months does not apply to purchases for resale purposes, at least one transaction at an Apple store involved someone who purchased hundreds of handsets at one time. Apple halting tax free shopping in June and is believed to have filed an amended tax return. Some Chinese financial institutions are rushing employees back to the office as surging absences of traders and other key personnel due to the nation's massive COVID-19 outbreak start to disrupt operations. According to a memo seen by Bloomberg, sinnoh link securities is asking staff who were off sick or home quarantined for 7 days to return to work if they no longer show COVID symptoms, while those who have family members infected, but have not tested positive themselves, should also work from
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"Confirmed yesterday, the Erie county Department of Health medical examiner's office has confirmed an additional 12 deaths. Polling cars added the storm isn't over yet, saying up to another foot of snow is expected in some places through tomorrow afternoon, he lamented the forecast, saying it's not helpful as there's still a driving ban in the city of buffalo. He said city streets are impassable in most areas. Today is a USPS holiday, and that means the weight will continue for last minute gifts. It didn't make it by Christmas. USPS officials say one priority mail express packages are only going out in limited locations. Most city and county offices are also closed as well today. Russian opposition leader Alexei Navalny is speaking out against the harsh prison conditions he's experiencing in a tweet Navalny wrote Russian authorities are deliberately undermining his health by denying him medical care. He said his back pain is worsening due to long spells and solitary confinement, and doctors have refused to give him the diagnosis. Navalny also says he's being injected with unknown drugs. The Putin critic is serving a more than 11 year sentence on charges his supporters say are fabricated. Taiwan's his China sent almost 50 aircraft across the Taiwan strait yesterday, the military exercises come just days after the U.S. strengthened its support for Taiwan. China carried out a number of military exercises near Taiwan earlier this year following a visit from House speaker Nancy Pelosi. Chris Rock's March 4th show in Baltimore will be the first ever global live stream event for Netflix. The special titled selective outrage will be rocked second for the streaming giant. It will come just over a year after the infamous slap incident with Will Smith at this year's Oscar ceremony. I'm Tammy trujillo. While research shows more cardiac deaths happen on Christmas Day than any other day of the year, today there's also a bigger than usual danger. Mark Mayfield explains. A new study published in the medical journal circulation says December the 26th, follows close behind Christmas with January 1st, the third worst day on average, experts say they can't pinpoint the exact reason for the increased number of fatal heart attacks during the holidays, but several factors likely plan to the finding. They say the holidays bring all sorts of disruptions to people's everyday routines, and those can increase stress levels. They also add that people are more likely to ignore warning signs like fatigue and shortness of breath out of fear of spoiling holiday plans. I'm Mark Mayfield. A university of Idaho professor is suing a TikTok poster after she accused her of killing four college students last month. Ashley gilliard has posted dozens of videos accusing history department chair, Rebecca scofield of orchestrating the widely publicized murders based on information obtained in tarot card readings, schofield is seeking unspecified damages, says she's experienced emotional distress in addition to fears about her safety. A voter approved gun background check law could go into effect next week in Oregon, Michael castner has that story. A judge says he'll decide by next Tuesday whether to lift his ban on the new law, voters approved the plan to require all background checks be completed before guns can be sold right now gun dealers can finalize the sale if the background check takes too long. That's how a shooter in South Carolina bought a gun used in a church shooting back in 2015. The Oregon attorney general's office is pushing to have the law go into effect. In Portland, Oregon, I'm Michael kassner. Google is out with its annual yearend search list, and there's one thing noticeably absent this year, COVID wasn't among the top searches, instead people were busy searching for a lot of things pertaining to workouts and how to handle stress. Another topic that was among the most searched was a new addition to the list, 9 88, which is the national suicide prevention lifeline's number. I'm Tammy trujillo. And I'm Erica Hurst, Coates from the Bloomberg newsroom. Wall Street is set to close out a brutal year as markets reopen Tuesday after the Christmas holiday. Hopes for a Santa rally or dim with stocks on track for their worst performance since the global financial crisis of 2008, investors fear of a looming recession have been weighing heavily on markets in the fourth quarter, trading volumes expected to remain light with few economic readings on tap for the holiday shortened week. The housing market will be something to watch this week as we limp to the end of a tough year for investments. Bloomberg's Nathan Hager purports. We get October home price data from FHFA and S&P core logic on Tuesday, then pending home sales on Wednesday, but they're already signs of a serious real estate slump, Redfin says home purchases in November plunged 35% compared to last year, the biggest dive since the company started keeping track. Mortgage rates are down for 6 straight weeks, but they're still twice as high as they were a year ago. In Washington, I'm Nathan Hager, Bloomberg radio. Some Chinese financial institutions are rushing employees back to the office as surging absences of traders and other key personnel due to the nation's massive COVID-19 outbreak start to disrupt operations. According to a memo seen by Bloomberg, sinhalese securities is asking staff who were off sick or home quarantined for 7 days to return to work if they no longer show COVID symptoms, while those who have family members infected but have not tested positive themselves, should also work from the office. The better business bureau is out with a list of suggestions for people who need to return gifts they receive for the holidays, the bureau recommends folks try and find out the return policy for the store they need to visit before
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"Of quieting down and finding faith that the message New York cardinal Timothy Dolan is sharing on Christmas Day, appearing on Fox News Sunday, the religious leader explained that a lack of faith is behind the mess people are currently witnessing in American society and beyond. Stolen said it's possible to find mutual respect among people with different beliefs, adding in other words hate the sin but love the sinner. I'm Tammy trejo. And I'm Erica Hurst quits from the Bloomberg newsroom. China's national health commission will stop publishing daily COVID-19 case numbers after the accuracy of its data was questioned as millions were infected nationwide in the official tally remained, strikingly low. The commission did not provide a reason for the change in policy in a statement on Sunday, but said that the Chinese Center for Disease Control and Prevention will release COVID related info for studies in reference. Some Chinese cities have reported daily infections that far surpassed the official tally adding to doubt of the numbers provided by the NHC. Bloomberg is reporting as many as 248 million people or nearly 18% of the population likely contracted the virus in the first 20 days of December. That's according to minutes from an internal meeting of China's national health commission held on Wednesday. The Federal Reserve's favorite reading of inflation, the one it follows most closely when deciding what to do with interest rates, ease back in November, rising only .2% from October and 4.7% from last year. The same report from the commerce department also shows that our collective consumer spending stagnated last month, coming in flat when inflation adjusted, suggesting the Central Bank's interest rate hikes are helping cool both price pressure and the overall economy. Corporations are expected to rush to issue new bonds in the U.S. investment grade market in the first week of January before funding costs increased and the economy deteriorates. More from Bloomberg, Susanna Palmer. Wall Street expects as much as $40 billion in four days following the New Year's Day holiday, according to an informal survey of debt underwriters, that's more than four times what's been issued in all of December. January is typically busy for borrowers and a drop in funding costs from recent peaks should spur them to get ahead of higher rates and what could be a hard landing in the U.S., companies from all sectors are expected to tap the high grade market. Syndicate desks predict a total of about $130 billion worth of issuance in January. Susanna Palmer Bloomberg radio. And it looks like for consumers, a tough 2022 is ending on an upswing, following a much stronger than forecast reading of U.S. consumer confidence last week. We have the University of Michigan's final consumer sentiment reading of the year, and it too is stronger than expected with our expectation on prices at its lowest in a year and a half. The housing market will be something to watch this week as we limp to the end of a tough year for investments, Bloomberg's Nathan Hager reports. We get October home price data from FHFA and S&P core logic on Tuesday, then pending home sales on Wednesday, but they're already signs of a serious real estate slump, Redfin says home purchases in November plunged 35% compared to last year, the biggest dive since the company started keeping track. Mortgage rates are down for 6 straight weeks, but there are still twice as high as they were a year ago. In Washington, I'm Nathan Hager, Bloomberg radio. Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than a 120 countries. I'm Erica Hurst, this is Bloomberg. Bloomberg radio on demand and in your podcast feed. On the latest edition of the sound on podcast, a conversation with Eli yokley senior reporter at morning consult. On the most resonating stories this year. It's been quite a year. There's been a lot on Americans, but this is the 5th year we've done this project we call seeing red and herd. We based it on hundreds of surveys we conduct throughout the year. And so this year, we were watching the midterms, we were watching everything happening with legislative action on capital hill. But one thing that's been true for the last 5 years of this project is the events of the moment stand out. I mean, this year, the biggest news event, and it's time was the shooting and you've all day Texas have an elementary school and that was followed by the fall of roe V wade and then the death of the queen. You know, all these stories that make the top three list hurricane ends up there too, as well as the Russian invasion of Ukraine. All these stories in this top list are like made for TV moments and we were wall to wall coverage earlier this year for the Russian invasion. The two weeks of coverage are more of the queen's death. The one that stands out in terms of how we think about the midterms is probably roe. Yes. This was a decisive moment in the minds of the American people as a 50 year precedent change. It had big weight in terms of just news value. But then it also weighed on a lot of voters. I mean, I'm standing talking to you from Kansas City right now. Over in Overland Park, Kansas is sort of the heart of the abortion debate this year. That's where we saw a lot of people respond pretty viscerally in quite a red state and voting to put the abortion rights in the constitution cases. That was a big moment for the American people that stood out in a pretty big way. Get more of this and other conversations on the latest Bloomberg sound on podcast. Subscribe on Apple Spotify and anywhere else you get your podcasts. Plus, listen anytime on the Bloomberg business app and Bloomberg
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"Time Christmas Eve may not seem much improvement today. Fighter ware reports over 900 delays nearly 1300 cancellations so far today. It comes as severe winter weather in particular frigid temperatures continue to affect several states, 5 are under arrest in Minnesota, their connection to a fatal shooting at the mall of America Minnesota police say a 19 year old man was killed Friday night during an altercation inside a Nordstrom store. On Saturday, three 17 year olds and two 18 year olds were arrested in connection to the incident. Police say they are confident they were arrested at least one shooter, but haven't ruled out the possibility of a second gunman. I'm tray Thomas. Ukraine's president volodymyr zelensky is condemning Russia following a deadly Christmas Eve missile strike Saturday Russia launched a series of strikes on the Siri of Kirsten, killing at least ten injuring at least 55. I'm Scott Carr. And I'm Erica Hurst quits from the Bloomberg newsroom. China's national health commission will stop publishing daily COVID-19 case numbers after the accuracy of its data was questioned as millions were infected nationwide in the official tally remained, strikingly low. The commission did not provide a reason for the change in policy in a statement on Sunday, but said that the Chinese Center for Disease Control and Prevention will release COVID related info for studies in reference. Some Chinese cities have reported daily infections that far surpassed the official tally adding to doubt of the numbers provided by the NHC. Bloomberg is reporting as many as 248 million people or nearly 18% of the population likely contracted the virus in the first 20 days of December. That's according to minutes from an internal meeting of China's national health commission held on Wednesday. The Federal Reserve's favorite reading of inflation, the one it follows most closely when deciding what to do with interest rates, ease back in November, rising only .2% from October and 4.7% from last year. The same report from the commerce department also shows that our collective consumer spending stagnated last month coming in flat when inflation adjusted, suggesting the Central Bank's interest rate hikes are helping cool both price pressure and the overall economy. Corporations are expected to rush to issue new bonds in the U.S. investment grade market in the first week of January before funding costs increased and the economy deteriorates. More from Bloomberg, susannah Palmer. Wall Street expects as much as $40 billion in four days following the New Year's Day holiday, according to an informal survey of debt underwriters, that's more than four times what's been issued in all of December. January is typically busy for borrowers and a drop in funding costs from recent peaks should spur them to get ahead of higher rates and what could be a hard landing in the U.S. companies from all sectors are expected to tap the high grade market. Syndicate desks predict a total of about $130 billion worth of issuance in January. Susanna Palmer Bloomberg radio. And it looks like for consumers, a tough 2022 is ending on an upswing, following a much stronger than forecast reading of U.S. consumer confidence last week. We have the University of Michigan's final consumer sentiment reading of the year, and it too is stronger than expected with our expectation on prices at its lowest in a year and a half. The housing market will be something to watch this week as we limp to the end of a tough year for investments, Bloomberg's Nathan Hager reports. We get October home price data from FHFA and S&P core logic on Tuesday, then pending home sales on Wednesday, but they're already signs of a serious real estate slump, Redfin says home purchases in November plunged 35% compared to last year, the biggest dive since the company started keeping track. Mortgage rates are down for 6 straight weeks, but there are still twice as high as they were a year ago. In Washington, I'm Nathan Hager, Bloomberg radio. Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than a 120 countries. I'm Erica Hurst, this is Bloomberg. Bloomberg radio on demand and in your podcast feed. On the latest edition of the sound on podcast, a conversation with Eli yokley senior reporter at morning consult. On the most resonating stories this year. It's been quite a year. There's been a lot on Americans, but this is the 5th year we've done this project we call seeing red and herd. We based it on hundreds of surveys we conduct throughout the year. And so this year, we were watching the midterms we were watching everything happening with legislative action on capital hill. But one thing that's been true for the last 5 years of this project is the events of the moment stand out. I mean, this year, the biggest news event, and it's time was the shooting and the ball day. Texas has an elementary school and that was followed by the fall of roe V wade and then the death of the queen. You know, all these stories that make the top three list hurricane ends up there too as well as the Russian invasion of Ukraine. All these stories in this top list are like made for TV moments and we remember wall to wall coverage earlier this year over the Russian invasion of the two weeks of coverage or more of the queen's death. The one that stands out in terms of how we think about the midterms is probably roe. Yes. This was a decisive moment in the minds of the American people. It was a 50 year precedent change. It had big weight in terms of just news value. But then it also weighed on a lot of voters. I mean, I'm standing talking to you from Kansas City right now. Over in Overland Park, Kansas is sort of the heart of the abortion debate that this year. That's where we saw a lot of people respond pretty viscerally in quite a red state and voting to put the abortion rights in the constitution cases. That was a big moment for the American people that stood out in a pretty big way. Get more of this and other conversations on the latest Bloomberg sound on podcast. Subscribe on Apple Spotify and anywhere else you get your podcasts. Plus, listen anytime on the Bloomberg business app
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"Typical for American buying a typical price home is up to 7, 800 bucks from where it was about a year ago. And that's just not affordable. So we need a combination to get restore affordability and get demand moving in the right direction again. We need a combination of lower mortgage rates, lower house prices, and rising incomes. And my sense is if mortgage rates come in back to 5 and a half percent, which is where I would expect them in the long run incomes continue to rise. We don't go into recession. We need about a 10% decline in house prices to restore affordability sufficiently. That probably won't happen until late 24 going into 25. So I think we've got a couple of years here before affordability. We'll get to a place where demand will start to improve again. Significantly improve. Now, Mark zandy, chief economist of moody's analytics also tells us, he thinks the fed does not need to go too much higher on its benchmark interest rate, and one reason he thinks inflation is abating is that rents are coming down. Market rents, the rents that are being charged people that are signing leases today. They suddenly gone weak and down for in part because rents are so high that people can't afford to rent so you have so called demand destruction. And a lot more supply to supply chains are using and builders can get appliances and building materials, labor markets are using foreign immigrants that work in construction sites or getting on the job. So getting a lot more properties going across the finish line to completion, more supply less demand, rents are weak and that's going to show up in the cost of housing services over the course of the next 6 to 12 months. And that's one reason I feel reasonably confident that inflation is going to be coming in here pretty quickly. We're also going to be getting the S&P CoreLogic home price index this coming Tuesday. That is expected to show home prices fell about one and a half percent monthly in October, but still gained more than 8% year on year. Michael Fred antoni is chief economist at the mortgage bankers association and says if mortgage rates stay lower than the October peak, we could see a big wave of home buying starting this coming March and April. If we can keep rates 6, maybe a little bit below 6 as we get into the first quarter of next year, when we're at the beginning of the spring buying season, that's really going to be impactful. A lot of the folks that stepped away from the market in 2022 in May and June because of that sticker shock and stayed away to the fall. They still need to live somewhere. They're still seeing their rent increase. So I'm not going to be surprised if the market shifts a bit more to work sort of the first time home buyers segment because, again, a lot of the folks that would have planned to have bought last year put it on, given the spike in rates. We get just a little bit of lethal relief in mortgage rates. They could come back. Michael Fred and Tony is chief economist at the mortgage bankers association, and he also tells us he thinks that nationally home prices won't fall too much more next year, maybe one to 2% down on the year, we'll be getting more data on that from the FHFA this coming Tuesday as well. Housing demand very affected by the ability to get a mortgage. Another thing we're watching in the housing market, how big banks are doing on their promise to boost lending to black home buyers. Joining me now to talk about this very important part of the housing story that's shaping the economic health of housing and black Americans in the months and years to come, Bloomberg senior economics writer Shawn donnan. Shawnee is always a pleasure. Thanks for taking the time with us. Hey, thanks so much for having me. Now, set the stage for me here. You did a deep dive into a block in Baltimore. And this actually wound up being a feature story in a Bloomberg big take on the Bloomberg terminal. It's really fascinating. Tell us what you found. Yes. What we dive into was really one of the main causes of the racial wealth gap in America. We have learned a lot about in recent years about how there's this persistent gap in wealth between black families and white families and how that kind of gnaws at the economy. One of the main causes of that is the home ownership gap. Black families, about 45% of them own the homes that they live in versus about 75% of white families. And that is a gap that is persisted for years. And one of the things we saw in recent years is the big banks in America alongside other companies make some big promises to the black community to the U.S. economy to try and close that racial wealth gap that home ownership gap. And so we dove into that. And that took us all the way down to the 2900 block of Wahlberg Campbell. Now, when you got there, when you dig when you were digging deep, let's say. Did you find that promises were made and, well, not kept necessarily, but at least the attempt was there? So the promises that we looked at were some big ambitious promises made by the banks. Wells Fargo in 2017 made the biggest of those. It's said that it would lend $60 billion that's billion, not million, $60 billion to create 250,000 black homeowners in America within a decade. And so we looked at the data and what we found was that actually every year since making that promise Wells Fargo, which was the biggest bank player is actually the biggest player in the mortgage market and back in 2017. But every year since making that promise, Wells Fargo has actually backed fewer mortgages to black home buyers than it did the year before. And it's gone down to a point where actually the San Francisco based lender underwrote 42% fewer mortgages to black buyers in 2021 than it did in 2017 when it made that promise. It isn't the only bank to have made such a promise. JPMorgan in October 2020 after that summer of racial reckoning that we had in America made a promise to create or originate mortgages to an additional 40,000 black and Latino buyers over 5 years. Now it's much earlier into delivering on its promise. But in 2021, it originated just a 122 more mortgages to black home buyers than it did in 2019 the year it said of the benchmark and it's lending to Latino home buyers actually went down in 2021. Bank of America has made some slightly different promises. They're broader, they're harder to measure, but it's pledged $30 billion in lending and down payment assistance to minority and low income homeowners in America. All of this matters because what we're seeing across the board and what we've seen over the last 15 years has been a big dip in originations and mortgages that are issued to black home buyers in America and that hasn't caught up with where we were back if you remember the last financial crisis. 2008, 2009, the subprime crisis was the type of lending we had back in the early 2000s. Even caught up to those levels until 2020 actually in the middle of the pandemic. And in that time, we've had a huge housing boom, a property boom in America, and there's a lot of wealth that's been created for homeowners in America that black families simply have missed out on because they have that lower homeownership rate. All right, just terrific reporting Sean, thank you so much for digging deep into this issue. You can find it on Bloomberg's big take. And on the Bloomberg terminal, thank you so much, Sean. Thanks for having me. Bloomberg senior economics writer Shawn donnan, and coming up on Bloomberg daybreak weekend
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"October as buyers faced mortgage rates pretty much at 20 year highs, pending home sales are a leading indicator. So we're watching that when closely for you here this coming Wednesday with live coverage breaking it all down for you on Bloomberg radio, existing home sales also fell in November, but it's interesting some are saying home sales may not fall much more from here, including mark zandi of moody's analytics. Yeah, I think in terms of home sales, I think we're pretty close to the bottom pretty close to the bottom. And that reflects the peak in mortgage rates, which were back a couple months ago when they were significantly north of 7% for a 30 year fix. Now we're down closer to 6%. And I don't think we're going back to over 7 again. So I think we're pretty close to the bottom in sales. Now, Mark zandi of moody's analytics also tells us that home prices could fall more from here because mortgages are still just taking up too much of people's paychecks right now. You're right. I mean, affordability has been completely hammered here and that's the fundamental issue. You mix the high mortgage rates with the high previously high house prices. It's just too much to bear. I mean, I think the average monthly payment for a typical for American buying a typical priced home is up to 7, 800 bucks from where it was about a year ago. And that's just not affordable. So we need a combination to get restore affordability and get demand moving in the right direction again. We need a combination of lower mortgage rates, lower house prices, and rising incomes. And my sense is if mortgage rates come in back to 5 and a half percent, which is where I would expect them in the long run incomes continue to rise. We don't go into recession. We need about a 10% decline in house prices to restore affordability sufficiently. That probably won't happen until late 24 going into 25. So I think we've got a couple of years here before affordability. We'll get to a place where demand will start to improve again significantly improve. Now, Mark zandi, chief economist of moody's analytics also tells us he thinks the fed does not need to go too much higher on its benchmark interest rate and one reason he thinks inflation is abating is that rents are coming down. Market rents, the rents that are being charged people that are signing leases today, they suddenly gone weak and down for in part because rents are so high that people can't afford to rent so that you have so called demand destruction. And a lot more supply to supply chains are using and builders can get appliances and building materials, labor markets are using foreign immigrants that work in construction sites or getting on the job. It's getting a lot more properties going across the finish line to completion. More supply less demand, rents are weak and that's going to show up in the cost of housing services over the course of the next 6 to 12 months. And that's one reason I feel reasonably confident that inflation is going to be coming in here pretty quickly. We're also going to be getting the S&P core logic home price index this coming Tuesday. That is expected to show home prices fell about one and a half percent monthly in October, but still gained more than 8% year on year. Michael Fred antoni is chief economist at the mortgage bankers association and says if mortgage rates stay lower than the October peak, we could see a big wave of home buying starting this coming March and April. 6, maybe a little bit below 6 as we get into the first quarter of next year when we're at the beginning of the spring buying season, that's really going to be impactful. A lot of the folks that stepped away from the market in 2022 in May and June because of that sticker shock and stayed away through the fall. They still need to live somewhere. They're still seeing their rent increase. So I'm not going to be surprised if the market shifts a bit more towards sort of the first time home buyers segment because, again, a lot of the folks that would have planned to have bought last year put it on, given the spike in rates. We had just a little bit of lethal relief in mortgage rates. They could come back. Michael Fred and Tony is chief economist at the mortgage bankers association, and he also tells us he thinks that nationally home prices won't fall too much more next year, maybe one to 2% down on the year, we'll be getting more data on that from the FHFA this coming Tuesday as well. Housing demand very affected by the ability to get a mortgage. Another thing we're watching in the housing market, how big banks are doing on their promise to boost lending to black home buyers. Joining me now to talk about this very important part of the housing story that's shaping the economic health of housing and black Americans in the months and years to come, Bloomberg senior economics writer Shawn donnan. Shawnee is always a pleasure thanks for taking the time with us. Hey, thanks so much for having me. Now, set the stage for me here. You did a deep dive into a block in Baltimore. And this actually wound up being a feature story in a Bloomberg big take on the Bloomberg terminal. It's really fascinating. Tell us what you found. Yes. What we dived into was really one of the main causes of the racial wealth gap in America.
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"Prime minister and over 200 years or that he's the first British Asian in office. It's the fact that he's rich. And I think that it's interesting when you contrast that with American politics where that seemed to serve Donald Trump well. It was almost giving him credibility. Hey Lizzie, wonderful to hear from you. And that side number 10 Downing Street minutes after hearing from the British prime minister Rishi sunak, the message the headline difficult decisions to come. From New York, let's whip through the price action for you on the S&P 500 slightly negative with down a quarter of 1% on the S&P with a big dev earnings still to come. Futures and negative just a little bit yields are lower by 7 basis points four 1732 and the earnings keep coming through. And I can tell your Coca-Cola out just moments ago, raising their full year guidance, full year adjusted organic revenue, now looking at plus 14% to plus 15% on the estimate had been positive 13. .4%, better numbers from Coke. Nailed it. And this has to do with pricing persistency. Can you raise prices into inflation? Julian Emmanuel has a modeled 8.8% revenue lift and here's Coke. Just as a quick blush, John, I'm gonna say leading the way. A revenue beat as well organic revenue up 16%, the estimate Lisa, 9.81. And that's even including a 5 to 6% currency headwind. So it wasn't an excuse, even though they did a nod to it, which is sort of your question of, it's one thing to blame the FX issue. It's another to say, that's the reason for the disappointment. Reaffirming your outlook is as good as a beat these days, I would suggest. GM did that as well about 15, 20 minutes ago later, and we catch up the CEO in about an hour from now. Yeah, that's one of the things that we're going to be watching. Just to whip through some of the other things that we're looking at today, we get a slew of economic data, including August U.S. FHFA house price index as well as the S&P core logics, 20 city index, how much do you start to see those prices roll over? And what's the bleed time, really, into the core CPI measures that we look at, 1 p.m., the U.S. is selling $42 billion of two year notes, who shows up for these bond auctions. It looks attractive for some and others say, perhaps it has to go higher if we're looking at a 5% fed funds rate for a year or more. And today, the earnings do continue after the bell we are sort of drum beating to Microsoft and alphabet given that those account for such a huge portion of the overall index. And Microsoft, I believe John is expected to come in with the lowest sales increase going back to 2017. So how much does that really give a guide for where we are right now? A couple of names that will have something to say about foreign exchange I'm sure it's a little bit later this afternoon and then the big names like Apple coming up on Thursday. I think it's like two, 3% is sort of the typical average model and we're clearly out over that four even 6%. You may have a few that are 7 or 8% hits that substantial. We get lucky this morning jump out around the table with us. The head of the BlackRock investment institute and formerly so much more than that, Jean fantastically catch up with you. I read the weekly note from the BlackRock investment institute that came out just yesterday and you talked about the significance of the midterms and you guys don't think they're that significant for future returns over the next several months. Why? First of all, it's so great to be here. No, we think that usual playbook for the midterm is that if you have divide divided government or houses, it tends to be a boost for markets. But as anything else, this time around, unusual playbooks don't apply. We think the main story is about the foretold recession that we're going to have. We believe in the current. The next year. And as a result, we think that this is our second side show the important for the future of the country and everything, but in terms of markets we don't think that's an important driver. Swap lines, front and center, major discussion at the meetings in Washington here a week or so. Ago, give us BlackRock's estimate of how countries will have to go to the fed given a global dollar shortage the illiquidity that are out there is seen in FRA OIS. Yeah, the important thing is here, we're seeing the most rapid tightening of financial condition in a generation in a very long time. We haven't seen really the cracks yet. Here. And the system. It's remarkable to see all the strengthening of the U.S. dollar. We have seen without the knock on effect or cracks. We will have seen other circumstances. I think that creates a level of anxiety. I was really clear and the IMF, a lot of conversations about how we shore up the system in that context, swap line will be will be a key tool potentially in that environment. But I think so far, what is very surprising is that it's been very stable despite your academics. It prints in your work with the bank of Canada. If we believe it's non linear as we disinflation, do you think we can succeed at that was stability or are there going to be instability witness with Damien sassari yesterday? We looked at a Columbia piece going from 98 down to 63, on a price of bun. That's a crack. I think it's very hard to see something that's going to be smooth lending in any way. That's true for the economy. That's true for the financial market and this context. That's why we think we're in a clear part towards over tightening of monetary policy. But it's going to be very rocky. We are on the way to equities as Paris as we've ever been against in terms of broad risk-taking at this moment. At some point, it's going to change, but the reason is really because that tightening is, it could be non linear, as you say. And we haven't seen readers cry. I think the UK, we've seen over the last month, is an accelerated peak in the future. And I think that's what we need to guard against. John, if you believe in a hard landing, why not buy treasuries here? That's a great question. And that's another aspect of the current environment we wear the playbook, the typical playbook might not be applying. We don't think it's going to apply. We are going to see a recession, but it's going to be a recession that context where inflation is going to be under control. And it's a foretold recession. It's really the recession caused by monetary policy ready as a way by which inflation will get under control. And as a result, when we get to that recession, you won't see the typical reaction of yields falling and bonds playing their safety role. So the typical playbook of go find refuge in bonds in this recession I think multiply. Is this part of the reason why perhaps the stability that you talked about, the surprising resilience of markets is almost a headwind to them because it won't necessarily stop the rising rate environment. It won't necessarily change where we are in a wholesale value. How high can yields go and stay for a prolonged period of time before something breaks in the financial system? So in our estimates, like if we go to 5% as now we kind of assume for early next year, this is a world where we're going to see a very significant slowdown of activity, decline activities, 2%, we think as a minimum of GDP is 3 million jobs that would need to be lost in that context. So in the world where 5% of sustained and I think in the world like this, the financial system leverages as it is, we'll start to see some response and that's so 5% is where we're heading. We don't think we can do much further than that. That's why over the course of the first half of next year, we're going to see central banks having forced into some stopping pause. Before they can go further. And you said recession fought out. I'm interested by that phrase. You've also talked about the appropriate time horizon to bring inflation back to target. And I think you've explained conveyed your disappointment that central banks aren't having that discussion. A whole lot more. Does it have to be this way? I think what is very interesting and we've written about this is the fact that there used to be two sides to any decision in central banking. It's not typically obvious what you have to do. And I think this environment is as tricky as it has ever been. I mean, I don't think there's been any so sharp tradeoff that we have to deal with. We have to go back to 70s and the 70s with the different situation altogether. There's a tendency to apply the
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"We're here each and every week at this time Tapping into our Bloomberg intelligence analyst covering some 2000 companies in 130 industries worldwide Mortgage rates are going up That means buyers are trying to get a little bit more creative about how they finance their houses And the question is what does that mean for the mortgage backed securities market and the folks that trade that stuff We were joined by Erica attenberg right now She is a senior analyst at Bloomberg intelligence Erica again kind of some interest rates are going up I'm seeing I'm wondering if people are getting a little bit out over the skis in terms of maybe some of the types of mortgage loans they may be taking and what does that mean for the MBS market I would say that at this point there isn't necessarily the type of risk of people taking out risking mortgages to purchase homes The reason for that is because unlike before the great financial crisis early 2000s lending standards are far superior there's been a lot of regulations that consumer finance protection bureau has also instituted regulations So as a result if anything some homeowners may be getting priced out of the market from an affordability standpoint others are perhaps looking for different ways to find out some mortgages such as adjustable rates to some degree but that's risky ones And some are even turning to cash You might wonder how they're finding that cash in some cases they're actually getting cash out of their current homes using cash out refi is but even their loan to valuations are generally at least 80% Right and that's kind of where I want to go because coming out of the financial crisis So you can remember this ability to repay statute What is that Is it working It seems to be working so far Of course it's a little hard to distinguish over the last couple of years because with the pandemic a lot of homeowners were granted forbearance as they lost their jobs and had other financial strength related to the pandemic So we did have a default picking up But now that the economy is back on track most people went back to work They have been largely repaying their loans and default rates are actually one of red historically low So that was the one exception perhaps because the rule but there were a lot of safety measures that were put in place to make sure that didn't result in the housing crisis Tell us about agency versus non agency mortgage backed securities because I remember again these painful memories from back in the financial crisis it was the non agency part that kind of really got the market in trouble It was It was indeed a lot of it was related to the subprime market and even to derivatives in the financial market at large to ensure those loans that leveraged that risk That was largely the subprime market And there's significantly less issuance of actually just a true part of the mortgage market that's now issued in the subprime sector There has been a very kind including last year a little bit of a pickup in prime jumbo loans And in fact FHFA the federal housing finance authority is if anything pushing people a little bit towards that direction as well again because they're raising the guarantee rates for jumbo jumbo loans as well as second homes But these are again the super prime borrowers So even if we see a little bit of a jump in issue and that agency is related to those fees I wouldn't expect that to really be a risk for the housing market or for the financial system We are certainly in an era right now and it seems like this is going to be this market for a while of rising interest rates How's the MBS market performed going into again what seems to be a pretty sustained rising interest rate environment Well the longer the security market actually has been the spreads have been widening And what that's related to is the fact that the Federal Reserve has been a huge purchaser of mortgage backed securities to try to support the economy in the wake of this pandemic And they are now already starting to reduce their footprint while technically they've stopped purchasing and adding to that portfolio And they will start allowing runoff probably as soon as May it may be a little bit later in the spring And they've even mentioned recently the possibility of selling some of those mortgage backed securities from their portfolio So that has also pushed spreads a little bit wider All in all it's pushed interest rates up which is what's being pushing up mortgage rates in general along with wider spreads for more respect securities Yeah so is the assumption that when the fed begins to run off its balance sheet whether it's in May or some other point it will be first with mortgage backed securities as opposed to other securities Actually it's going to be simultaneous So far they've set about a $60 billion cap treasury runoff which we mostly based on maturities And a $35 billion cap from mortgage securities runoff although that runoff is going to be based on pay downs and mortgage securities pay downs with rates as high as they are They're based on standard refinancing Now that fewer mortgages are being refinanced they're paid out it's probably won't even reach that $35 billion cap That's why they've talked now perhaps about additionally selling mortgage backed securities outright to try to shift that portfolio forge treasuries a little bit faster Good good stuff there Erica attenberg Bloomberg intelligence analysts coming up on the program We stay focused on Europe and look at European utilities You're listening to Bloomberg intelligence on Bloomberg radio providing in depth research and data on 2000 companies The 130 industries you can access Bloomberg intelligence via BI.
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"fhfa" Discussed on Bloomberg Radio New York
"We're here each and every week at this time Tapping into our Bloomberg intelligence analyst covering some 2000 companies in 130 industries worldwide Mortgage rates are going up That means buyers are trying to get a little bit more creative about how they finance their houses And the question is what does that mean for the mortgage backed securities market and the folks that trade that stuff We were joined by Erica attenberg right now She is a senior analyst at Bloomberg intelligence Erica again kind of some interest rates are going up I'm seeing I'm wondering if people are getting a little bit out over the skis in terms of maybe some of the types of mortgage loans they may be taking and what does that mean for the MBS market I would say that at this point there isn't necessarily the type of risk of people taking out risking mortgages to purchase homes The reason for that is because unlike before the great financial crisis early 2000s lending standards are far superior there's been a lot of regulations that consumer finance protection bureau has also instituted regulations So as a result if anything some homeowners may be getting priced out of the market from an affordability standpoint Right Others are perhaps looking for different ways to find out some mortgages such as adjustable rates to some degree but that's risky ones And some are even turning to cash Yeah you might wonder how they're finding that cash In some cases they're actually getting cash out of their current homes using cash out refi but even their loan devaluations are generally at least 80% Right and that's kind of where I want to go because coming out of the financial crisis So you can remember this ability to repay statute What is that Is it working It seems to be working so far Of course it's a little hard to distinguish over the last couple of years because with the pandemic a lot of homeowners were granted forbearance as they lost their jobs and had other financial strange related to the pandemic So we did have a default picking up But now that the economy is back on track most people are back to work They have been largely repaying their loans and default rates are actually what I've read historically low So that was the one exception perhaps to the rule but there were a lot of safety measures that would put in place to make sure that didn't result in the housing crisis Tell us about agency versus non agency mortgage backed securities because I remember again these painful memories from back in the financial crisis it was the non agency part that kind of really got the market in trouble It was It was indeed a lot of it was related to the subprime market And even to derivatives in the financial market at large to ensure those loans that leveraged that risk That was largely the subprime market And there's significantly less issuance of actually just a true part of the mortgage market that's now issued in the subprime sector There has been a very kind including last year a little bit of a pickup in prime jumbo loans And in fact FHFA the federal housing finance authority is if anything pushing people a little bit towards that direction as well again because they're raising the guarantee rates for jumbo jumbo loans as well as second homes But these are again the super prime borrowers So even if we see a little bit of a jump in issue in that decision related to those fees I wouldn't expect that to really be a risk for the housing market or for the financial system We are certainly in an era right now and it seems like this is going to be this market for a while of rising interest rates How's the NBS market performed going into again what seems to be a pretty sustained rising interest rate environment Well the moment that security market actually has been the spreads have been widening And what that's related to is the fact that the Federal Reserve has been a huge purchaser of mortgage backed securities to try to support the economy In the wake of this pandemic And they are now already starting to reduce their footprint well technically they've stopped purchasing and adding to that portfolio And they will start allowing runoff probably as soon as May It may be a little bit later in the spring And they've even mentioned recently the possibility of selling some of those mortgage backed securities from their portfolio So that has also pushed spreads a little bit wider All in all it's pushed interest rates up which is what's being pushing up mortgage rates in general along with the wider spreads from securities Yeah so is the assumption that when the fed begins to run off its balance sheet whether it's in May or some other point it will be first with mortgage backed securities as opposed to other securities Actually it's going to be simultaneous So far they've set about a $60 billion cap for treasury runoff which we mostly based on maturities And a $35 billion cap from mortgage backed securities runoff although that runoff is going to be based on pay downs and mortgage backed securities pay downs with rates as high as they are They're based mostly on refinancing Now that fewer mortgages are being refinanced their pay down is probably won't even reach that $35 billion cap That's why they've talked now perhaps about additionally selling mortgage backed securities outright to try to shift that portfolio towards treasuries a little bit faster Good good stuff there Erika attenberg Bloomberg intelligence analysts coming up with a program We stay focused on Europe and look at European utilities You're listening to Bloomberg intelligence on Bloomberg radio providing in depth research and data on 2000 companies The 130 industries you can access.
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"fhfa" Discussed on Bloomberg Radio New York
"Administration was ramming a flawed rule through the OCC a civil rights advocate banks and other affected parties looked to you as a serious voice in the room And if confirmed I have no doubt that you'll continue in that spirit as we approach doctor king's birthday commemoration of this coming week I think about this as one of the essential elements of a move towards a more just society So let me first ask during the past few years as you were engaging in that work What did you hear from minority led organizations about the CRA changes needed to further incentivize investments in minority communities who were disproportionately impacted during the pandemic Well thank you for your question And yes I was pleased that the board unanimously put out an advanced notice of proposed rulemaking that I think really does provide a nice foundation for community groups and banks to give us feedback on what would be some good modernization measures So what we hear still from many communities around the country is that they still don't have similar access to credit There are still barriers in terms of getting that access They really like having bank branches in their neighborhoods but particularly in rural areas That's not always the case And they want to be able to have more interaction with financial institutions They want minority depository institutions and community development financial institutions which do tend to be very good at serving those underserved communities to be strengthened And they just really care deeply about the community reinvestment act as do many banks So would you commit to making it a top priority to work with the other regulators to issue a strong new rule in a timely fashion I'll certainly support that effort at the board and with the other regulators yes Okay I appreciate that because minority communities are hurting right now And this needs to be a priority The pandemic has brought to light how severe the lack of credit and investment dollars problems are for minority small business owners And I think it's past time for our regulators to work together an issue and updated an effective CRA rule So I look forward to your leadership Miss Thompson New Jersey is what I call a blue chip state a state that spurs innovation and drives the nation's economy According to U.S. news and World Report New Jersey has the second best public school system in the country and the highest per CAPiTA income in the country In other words we do a great job of educating our kids and giving them the ability to reach their potential That's not just because New Jersey is smarter than their fellow Americans But it's because we invest in our people So this is a state that's part of a region that generates 20% of GDP for the entire nation So we make money for the federal treasury But as we met yesterday and I appreciated our visit I explained how many New Jersey homeowners are being hit with a one two punch of rising flood insurance rates and unfair cap on state and local tax deduction the oldest reduction in the federal internal revenue code And based on thanks to the Trump tax bill which we're fighting to reverse both of those bad policies but I want to make sure that as director of the FHFA your sensitive to the concerns of homeowners not just in New Jersey but other high cost state Yes we want to be fiscally responsible to the entities the GSAs that are under your purview But we can simply do it on the backs of those that are actually generating revenue for the federal treasury Can you comment on that Sure senator and thank you for the question We care very much about the high cost loans As you know last year we had a historic increase in home prices And that hit states that have high cost areas probably harder than most One of the actions that we undertook was to increase the fees for some of the higher balanced loans and that may unduly impact a number of countries a number of counties across the country Most of the country is not impacted but there are about a 104 counties across the country that are having said that we do recognize that there is a difference between buying a home in New Jersey versus buying home and Aiken South Carolina And we have excluded from this fee first time home buyers with area median incomes less than a 100% And we've also excluded our affordable products so that there is no fee associated with first time homebuyers who live in high class areas But we know that there is a huge affordability issue especially with first time homebuyers and we did not want to exacerbate that problem Thank you Finally governor brainard the fed has a serious diversity problem Something I keep pressing I had it chairman Powell and I compelled to raise it with you as well If you're confirmed what steps are you going to take to improve minority representation particularly Latino representation which is among the worst of the diversity that exists at the Federal Reserve Well thank you for your question The Federal Reserve was actually founded on a recognition of the importance of bringing a diversity of perspectives to the table That's why we have 12 reserve banks all across the country and we have branches and communities all across the country So we have regional diversity We've always valued sexual diversity It's very important to have different kinds of backgrounds But we really have lagged on racial and ethnic diversity We're seeing some very important changes that we've worked very hard on at the reserve banks in terms of the boards of directors If you look there at Latino representation it's gone up Three fold just in the last four years And so now we have about 25% of our class C directors are Latino We have about a third that are black and we have now more than half who are minorities of one sort or another So we've made progress there But in terms of actual leadership positions we've only ever had when black president we've never had a Latino president And so that remains a very high priority Many of those boards have spent a great deal of time making sure that we have more diverse pools of candidates and that our procedures in hiring are as good as best practices everywhere And why Because we know as those who wrote the Federal Reserve act new is that having more diverse perspectives at the table diversity of every type leads to less groupthink and better outcomes Thank you for sure Thanks sir I sit in the rounds of South Dakota's recognized As Republican senator Mike rounds of South Dakota begins his questioning at the Senate banking committee the S&P 500 is down 5 points Dow Jones Industrial Average up a 145 composite is down 85 points in the ten year treasury at 1.73% yield Live coverage of the Senate banking committee on Bloomberg radio To create credit risk transfer or CRT.
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"Country We worked to make sure that Main Street financing was available We made sure to ensure that financial market turmoil was calmed And we provided a lot of support to the economy And here we are Two years later and we've regained all of that massive loss of GDP We have businesses that are thriving around the country People are back to work So I was proud to work on that alongside all of my colleagues I did not disagree with any of the actions that we took In fact I strongly supported them and worked hard to make them work Okay thank you governor director acting director You know better than almost anyone how critical it is that financial institutions to have appropriate capital to be transparent about their risks What have you done so far and what more needs to be done to make sure GSEs have the capital they need to continue providing access to housing in good and bad times Thank you Thank you for the questions senator Sandra Thompson And the safety and soundness of the housing GSC's Fannie Mae and Freddie Mac specifically they've just been allowed to retain to build capital and retain earnings And we think that that is very important One of the steps that we've taken is to encourage the use of the credit risk transfer program which as you well know Fannie Mae and Freddie Mac are the largest holders of mortgage credit risk in the United States I daresay the world And one of the things that we like to do is facilitate moving that credit risk off the backs of the taxpayers and into the hands of the private sector And we believe that some of the changes that we've made to the capital rule will help facilitate the credit risk transfer program and move credit risk away from the GSE's and the taxpayers and into the hands of private investors Thank you acting director Doctor Brennan second question for you for the first time in decades warriors are starting to see a bit more power in our economy record job gains record wage increases We need to continue to that progress to catch up to all the costs that have been rising for decades You'll work closely with chair Powell and a few are both confirmed and oversee the feds monetary policy How does the fed's monetary policy framework allow us to ensure we have stable prices in an economy where all workers have a good job and reap the benefits of economic growth So our monetary policy framework puts stable prices and maximum employment on an equal footing and I think we are taking actions and the monetary policy front that I have confidence will be bringing inflation down while continuing to allow the labor market to return to full strength over time So we're going to achieve that maximum sustainable employment while we bring inflation down to 2% Last question asking director Thompson GSEs have reported about 4% of their new mortgages over the past two years went to black borrowers fewer than 11% went to Latino barrier at the borrowers For refinance loans the shares are even lower compared that to FHA which most recently reported that 17% of loans went to black borrowers more and more than 25% to Latino borrowers What should GSEs do to make sure that they're serving borrowers of color equally FHFA nominee Sanger Thompson Certainly we believe that every American ought to have sustainable and affordable housing and also places to live if their renters with regard to the black and ownership gap one of the things that we've done is we've asked the enterprises to come up with some equitable housing plans And they are supposed to focus on and identify barriers that underserved communities particularly in communities of color have as it relates to getting a mortgage they're supposed to identify barriers and they come up with specific plans to execute the requirements that they've developed We also have a focus as you all know on all underserved communities whether they're rural or tribal and other areas around the country But we think that these housing equitable plans will go a long way to help minority home ownerships in underserved communities across the country have access to mortgage credit Thank you acting director Thank you mister Republican Thanks Viking member of the Senate banking committee pat toomey beginning his question of nominees loud brainer It was Sandra Thompson Live coverage on Bloomberg radio Nonpartisan status Of the Federal Reserve It's very important that fed decisions on monetary and regulatory policy are entirely free from political interference So I think this is simply yes or no question Will you commit to considering yourself independent from The White House regardless of which party occupies it Yes Thank you And will you commit to make your decisions without regard to political or electoral consequences Yes Thank you So I think you have acknowledged the importance of the independence of the fed How crucial that is for maintaining the trust and confidence of the American people.
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"And preserving affordable housing If confirmed it would be an honor for me to serve as the FHFA director and I will continue to be fair balanced and transparent Thank you for the opportunity to testify before you today and I'm happy to answer any of your questions Thank you directing director I appreciate both of you Came in under your 5 minutes and I asked you to continue to be rarely to people do that that are witnesses I ask you to continue to be briefly I have two questions for each And this is the Senate banking committee chairman Ohio beginning the question of the nominees The fed took extraordinary action as we know to support the economy Some of my colleagues seem to have forgotten what a critical state our economy was in when the pandemic first hit workers of small businesses in this country certainly haven't forgotten Why were those actions necessary And did you support all of them Governor For asking the question So I worked day in and day out alongside secretary Mnuchin at treasury chair Powell vice chair corals and other colleagues to stand up the necessary facilities to calm financial markets as you no doubt recall our financial markets were in turmoil as they absorbed the news of the pandemic a lot of workplaces had to shut down because of the risk of infection before vaccines were available And millions of Americans overnight were placed on layoff And we really risked losing small businesses around the country We risked losing medium sized businesses and the tens of millions of Americans that those businesses employed And so I think due to the very important actions that Congress took we worked closely with treasury.
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"Greatest honor Brown career to appear before you today Thank you to the senators and the staff members with whom I've met in advance of this hearing If I'm fortunate enough to be confirmed I look forward to working with all of you on the important issues at FHFA I would like to introduce my sons Jarrett and Aaron who are here with me today and I'd like to recognize and thank my parents Herman and Helen lathe then While due to COVID considerations they are not able to be here in person The fact that my parents are still alive to witness today's hearing is very meaningful to me I was born and raised on the south side of Chicago to my extraordinary parents who came to Chicago for Mississippi as part of the Great Migration My parents and family along with the Chicago public school system and my beloved Howard University right here in Washington taught me hard work dedication determination and perseverance I was a standard time to recognize The Senate bank industry Technical high school all on the south side My nomination for director of the FHFA is a great privilege I recognize that it is rare for a career public servant to have the opportunity to lead a federal agency and as the first African American woman nominated for this position I appreciate the opportunity to demonstrate my expertise good judgment and leadership in this position I am proud of the.
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"Bill good morning And good morning Karen That's right U.S. features are in the green after yesterday's surge with Dow futures of 82 points S&P gained 11 while NASDAQ futures rise by 77 The U.S. tenure yield at 1.48% gold is up 5 oil is climbing but Bitcoin is down by 3.6% Japan rose 1.4% overnight while European markets that are open are also in the green this morning Back in the U.S. on the economic front at 9 o'clock the FHFA house price index and a 10 o'clock the Richmond fed In other news Apple shuts 16 retail stores across New York amid rising infections and Indonesia lifted a ban on the Boeing 7 37 max Wrapping things up wet Bush said that Tesla has 30% upside in 2022 due to Chinese demand Live from the first European news desk on Bill Malone care Ray Phil thank you and hairline breaking news over your Bloomberg type squawk on your terminal SU AW K that's a Bloomberg business flash Now here's Michael Barr with more on what's going on around the world Uncle Karen thank you very much The world is in a record for daily COVID cases more than 1.4 million worldwide In the U.S. hundreds of flights have been canceled because of staffing shortages impacted by the pandemic today Meanwhile the top U.S. infectious disease expert says the nation should consider a vaccination mandate for domestic air travel Doctor Anthony Fauci says such a mandate might drive up the lagging U.S. vaccination rate and the CDC says people who have COVID-19 can leave isolation after 5 days if they are no longer experiencing symptoms cutting the previously recommended period in half In the NFL the dolphins beat the saints 23 In the NBA the nets won the Celtics lost Global news 24 hours a day on air and on Bloomberg quick tank powered by more than 2700 journalists and analysts more than a 120 countries and Michael Barr This is Bloomberg Karen Harry Michael thank you Well it's 6 49 on Wall Street and it's time to turn to news and science and technology and now with the Bloomberg and JIT stem report And here's what's making news and science technology engineering and math China is complaining to the United Nations about satellites from SpaceX Beijing said the satellites came close to hitting its space station in July and October a foreign ministry spokesman said that forced astronauts on board to take evasive action As a result China claims the U.S. is not meeting its obligations under the outer space treaty Apple is closing stores in response to a surge in COVID cases the iPhone maker shutting 16 retail locations from New York City to Long Island Apple has those many stores in recent weeks but is trying a different approach with New York The company is still letting customers place orders online and pick them up at the stores Shoppers won't be able to enter the store to browse and technical support from the genius bar will not be available And an unlikely name is getting into blockchain assets Ozzy Osbourne reportedly making a foray into NFTs Osborn is the former Black Sabbath lead singer who reportedly bit the head off a bat at a concert and now he's creating nearly 10,000 NFT baths and plans to sell them to fans Nathan so they say nearly 10,000 deaths Actually going to feature and this is very Ozzy so I have to add this Okay One 9666 of these crypto bags And I must apologize because I just got my mom for the holidays Anyway lovely That's the Bloomberg and JIT stem report Nathan All right let's hop off this crazy train and get back to the Bloomberg interactive broker studios Karen where it is coming up to 6 51 on Wall Street Time now to check what's going on in D.C. or some of the top stories include the Centers for Disease Control cutting COVID isolation times as oma cron cases surge President Biden promising to expand COVID testing and senator Elizabeth Warren urging a crackdown on Wall Street over climate change Let's get more now on what's happening in Washington A policy outlook for 2022 with Terry Haynes founder of pangaea policy Terry good morning Thanks for being with us Let's start with the omicron response from The White House because that's obviously a major concern for the country and the world What is this testing shortage that the president is having to get back ahead of say about that response Good morning Nathan Happy holidays to everybody on the program What it says is not good frankly It says that despite the president talking about the need to ramp up testing since March on at least half a dozen occasions The frankly that they haven't done it And that what you've got here is you've got a real serious problem and kind of a three pronged problem The first part is that testing will not change anywhere near enough in order to make a dent and which is I think bad for markets economically That the administration itself says in the person of the vice president that it was blindsided and the president himself also says that he was blindsided on the future variants and of course everybody's been talking about the likelihood of future variance for quite a while So I don't blame them for not anticipating overcrowding specifically but the fact that there were variants is very well known and the sort of virus And so finally what you've got is you've got a further damaging of credibility of experts upon whom the administration relies to keep the public informed and kind of move the economy along So this is a very bad kind of three pronged problem for the president and it's not going to change anytime soon Frankly because we can't I wonder if this says anything as well about the supply chain issues that are still lingering for this economy as we try to get through recovery here with the pandemic and whether that will feed into.
Bloomberg Radio New York
"fhfa" Discussed on Bloomberg Radio New York
"A new home as a non fungible token It was sold at auction in Paris for $150,000 It read Merry Christmas It was sent on December 3rd 1992 I'm mark may do This is Bloomberg law with June grosso from Bloomberg radio I've been talking to the Supreme Court reporters for Bloomberg news and Bloomberg law Greg store and Kimberly strawberry Robinson about this year at the court So guys let's look back at some of the most important cases of last term that came down in the last month of the term and I emphasize that because the most watched case is always seem to come down at the end of the term The court took up ObamaCare for the third time and Kimberly the decision was kind of anticlimactic It was but I do think that that's something that makes it a significant ruling from the Roberts court So this particular challenge was about an amendment to the law that was passed under the GOP led Congress in 2017 without going into the nitty Gritty The question was whether or not that amendment kind of undid the whole of ObamaCare And the answer from the justice was we don't really know And said they found a procedural off ramp as the justices are known to do when they don't want to decide a particularly thorny issue And here they said that the individuals who have brought the challenge didn't show that they had been harmed enough in order to be able to sue in court And I think the significance is that the Affordable Care Act once again survives is kind of existential challenge And it seems like critics of the Affordable Care Act are going to have to turn to Congress rather than courts if they want to undo the law Next a case that didn't get as much attention as ObamaCare but it did lead to president Joe Biden ousting Fannie Mae and Freddie Mac's regulator Greg tell us about the investors challenge and how they fared This is the case about Freddie Mac and Fannie Mae and the government agreement back after the housing crisis where the government bailed those two entities out and in exchange basically took all the profits And so you had a bunch of investors who sued the government saying hey you have cost us billions of dollars that was illegal And the investors had two basic kinds of claims one they said that the federal government lacked the authority to do this under federal statutes And secondly they said there was a big constitutional problem with the agency that oversees Fannie and Freddie which is that it was set up in a way that director of the agency couldn't be fired by the president without cause And they said that unconstitutional arrangement meant you had to throw out this entire arrangement of taking the profits And basically what the court did is it sharply narrowed the scope of this suit So the investors lost in a big way in terms of what they were seeking They were allowed to go forward only on a very narrow portion of their claim And more broadly what the court said was we do actually think there's a constitutional problem here This official the head of the FHFA was insulated from being fired by the president unconstitutionally So we're going to strip out the director's job protections and that means the president can fire the director for any reason That's not really what the investors wanted but that's what the Supreme Court held And that's what gave Joe Biden the authority to fire the holdover Trump director a guy named Mark Calabria which the president did almost immediately as soon as the Supreme Court issue issued his ruling and that's the kind of ruling that extends a line of decisions that can serve as conservatives tend to like that puts the executive branch of the government more firmly under presidential control Comprehensive answer to a complicated case Kimberly the court curbed voting rights by limiting the reach of the landmark Voting Rights Act and this was one of the 16 decisions that went strictly down partisan lines That's right So this was brnovic versus Democratic National Committee And it involves a challenge to two Arizona voting regulations that the challengers had said disproportion proportionately affect voters of color The court ended up holding those provisions But that in and of itself wasn't all that earth shattering Instead it seems like the significance of this case is going to be the legal test that the justices used to uphold those rules And that's because these claims were brought under section two of the Voting Rights Act that you mentioned And that section has really taken on more important since the Supreme Court effectively cut off challenges under another section of the law in Shelby county that was deemed to be more favorable to these claims So in this case out of Arizona the court really seemed to set up a test that will make it harder for groups to challenge states and their voting regulations But we may get a pretty early test that's because the DoJ under attorney general Merrick Garland has sued Georgia for its recent election changes under the section two So we'll see that one and how it plays out pretty soon It's a case with real immediate repercussions Thou good news decision Good news for everyone perhaps but the NCAA I suppose the court cleared the way for greater compensation for student athletes Greg Yes June This was an antitrust for the court upheld a district court's order that said schools must be allowed to offer athletes things like post graduation internships and academic achievement awards of about $6000 The NCAA had argued that we get have broad antitrust immunity at least when it comes to our eligibility rules because those eligibility rules let us offer this distinct product of amateur sports And the Supreme Court unanimously said no we don't quote reflect reflexively reject all challenges to the NCAA's compensation restrictions Court instead said we look at them under what's known as the rule of reason And that's what the district court did in this case It allowed a pretty limited amount of additional compensation something that the Supreme Court.
Clark Howard Show
FHFA delays refinance fee start date to Dec. 1
"I had told you. Guess about a week ago. About a new rip-off fee. The was coming to mortgage refi is. Going to cost people refiling during the month of September and beyond. Typically about fifteen hundred dollars in additional junk fees mandatory on. Traditional mortgages that you would do. Those are the ones you do conventional with Fannie Mae Freddie Mac. Which is where most loans end up? And this fee. Had Been Dreamt up on the fly. By the by the feds as a way of covering the possible increase in foreclosures the we may see over the next couple of years because of the economic arm, the country is suffered in. So many of us who suffered from corona virus. So, there was an absolute uproar. By the mortgage lending industry and the real estate industry and their push back was so strong that the federal government is backed down. And delayed this junk fee till. No earlier than December. So people in the process of refining right now, you may have already been told you're going to have to pay. This junk fee that could be it could be substantially more than fifteen hundred, but typically, it would be fifteen hundred more or less. That that is now canceled. Or postponed. So people in the mortgage refi pipeline will be able to get refried without having to worry about it. and. Then another change is that if you're buying an amount less than one, twenty, five, hundred and twenty, five, thousand, you are exempt from the junk fee. So we'll see what happens in December but for now. Don't worry about it.
Sean Hannity
FHFA Director Mel Watt under investigation for alleged sexual harassment
"Forty eight forty eight text happy to forty eight forty eight. Forty eight to try babble for free that's h. a. p. p. y. two four eight. Four eight four eight More details on the claims of sexual harassment and misconduct against CBS chief less mood vest who denies the, allegations reporter for the New. Yorker Ronan Farrow several women, are making claims and dozens of employees report a culture of harassment at CBS these are stories, one after another varying degrees of severity. Up to, and including cases in which women. Say they were pinned down and struggled to escape CBS says it's, investigating the, allegations against moon vests the network ads the picture of the company. Created in the New Yorker. Article is not Representative of the, organization as a whole confirming the two years ago. At the. End of July they got two calls from neighbors who said. They saw an African American man entering a home and they didn't think he lived there Santa Monica California police officers arrived in minutes. They say the immediately determined that. The man inside was movie star Ving Rams and that it was, his house. According to Raines open the door disarray. Dot pointed out monthly he's from. A nine millimeter cops say they walk with rains to meet his name Why is this coming up now Rams talked about it, on the clay Cain show on Sirius. XM radio, on air promoting the new mission. Impossible movie displaying seven foot tall maple syrup jugs to remind travellers, they can, by the state staple online instead of losing it at security when. They're liquids get confiscated Burlington. International.