This week in money
“Some of us are worried that consumers are going back into old habits, but the US consumer was in a much different position before the financial crisis and even before in the late 1990s.”
Ryan Sweet, an economist with Moody’s Analytics on consumer debt concerns in the US
Pessimism seeps into Canadian sentiment
Canadians became less confident this month about housing and prospects for the economy amid the troubles of a Toronto mortgage lender, according to telephone polling. The Bloomberg Nanos Canadian Confidence Index fell to 58.5 in the week ending May 26. That is down from 59.4 at the end of April, the first monthly decline in four.
Emirates Islamic launched the Booster Wakala Deposit on Friday offering expected profit rates up to 2.57 per cent per annum. The bank says it aims to provide its affluent customers with a Sharia-compliant market-leading Wakala deposit proposition that strengthens their savings portfolio. Customers can open their Booster Wakala Deposit with a minimum balance of Dh100,000 and can expect annual profit rates ranging from 2 per cent for one year; up to 2.57 per cent for five years.
Home loan approvals fall in the UK
UK mortgage approvals fell to a seven-month low in a sign the housing market is slowing, although Britons are continuing to take advantage of low interest rates to take on unsecured debt. Lenders approved 64,645 home loans in April, the fewest since September.
Property bubble needs fixing down under
Australia is experiencing a “spectacular housing bubble” which needs to be addressed with tougher regulatory measures, said Willem Buiter, the Citigroup Inc’s chief economist. The city’s home prices jumped 16 per cent in the 12 months through April, stoking record household debt and putting ownership increasingly beyond the reach of many.
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