US Stock Futures Fall Sharply: US Economy Shocked by Combined Disasters, Chinese Leadership Transition Is Teetering On ‘Chaos’, Riots Intensify At Greek Protests, And Bubble Burst In Asia (HK)
Hurricane Sandy: NE Coast Shuts Down Mandatory Evacs.
Zone A – fire island Ny
NYC Evacuations Begin Over Hurricane Sandy; Public Schools Closed
New Jersey was set to close its casinos this weekend
Sandy Churns North, Officials Order Mass Transit Shutdown, Evacuations
Hurricane Sandy prompts evacuations in N.J., Delaware
Christie Orders N.J.’s Islands, Casinos Evacuated
Louisiana coast going west to texas.. burning.. check satellite feeds now
La Sinkhole Situation Just Got Much Worse! More Sinkholes Could Open Up! (Page 8)
Seismic activity all over the place, check it out
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Hurricane Sandy still hasn’t hit New York City, but it’s economic impact is already huge.
The so-called “Frankenstorm” could cause up to $1 billion in physical damages. But that figure doesn’t even take into account the impact on consumer spending, cancelled flights or closed businesses.
Here’s how the hurricane has impacted the economy so far:
- People rushed to buy supplies from grocery stores, discount chains and home-improvement retailers. Many stores sold out of their supplies. This could negatively impact spending next month, because storm expenses are unplanned.
- New York City stores including Saks, Bloomingdale’s, Starbucks, Uniqlo, Macy’s and Gap have all shut down until further notice, meaning days of lost sales. Areas normally booming with tourists are now deserted.
- Businesses are also completely shut down in parts of New Jersey, Delaware, North Carolina and Maryland.
- Apple has about 78 stores affected by the hurricane, according to Brian Sozzi, senior equities analyst at NBG Productions. Many of these stores are now closed.
- Major airlines, including United, US Airways, Delta and American have cancelled 9,000 flights. Planes won’t be departing from or coming to major cities affected by the hurricane until at least tomorrow afternoon.
Confirming that the US consumer is once again massively cash-strapped & is eating, literally, into their savings.
Today’s personal income and spending report for the month of September was just the latest datapoint confirming that the US consumer is once again massively cash-strapped and is eating, literally, into their savings. While Personal Income rose at the expected pace of 0.4%, Spending in the last month came well above expectations of 0.6%, printing at 0.8%, which meant that on a net basis Consumers, always hopeful, outspent themselves by a margin of 0.4%. This meant that the savings rate declined from 3.7% in August to a tiny 3.3% in September. This was the lowest Savings print in 2012, and higher only compared to last November’s 3.2%, which in turn was the lowest print since the start of the second great depression. In other words, overeager consumers saw their nominal incomes increase… and decided to outspend said rise at double the rate of increase! At this pace, by the time Thanksgiving rolls out, US consumers will have no savings at all left to tap and living will be strictly a month to month activity.
From Reuters: That meant households cut back on saving to fund purchases. This and sluggish job growth could hamper spending over the long-term. The saving rate slipped to 3.3 percent last month, the lowest since November 2011, from 3.7 percent the prior month.
“Households were only able to boost consumption in the third quarter by dipping into their savings,” said Paul Dales, senior U.S. economist at Capital Economics. “Faced with the prospect of major tax hikes in the New Year, however, they will soon become more cautious.”
The Athens Stock Exchange General Index is down 6.3 percent today.
Banks are leading the market lower, per Bloomberg:
Shares are plunging after the finance ministry announced that quarterly earnings results would be delayed a month to November 30.
Has Hong Kong popped its bubble? New property tax another sign of currency-peg stress
Property developer stocks are under pressure Monday as the market digests surprisingly tough new measures to cool Hong Kong’s property market.
By targeting non-resident buyers with a new tax, finally the government is acknowledging the role of offshore demand in its overheated property market. The key measure is the introduction of a transaction tax of 15% on non-permanent residents, as well as all corporates purchasing residential property.
Such taxes go against Hong Kong’s free-market ethos and are likely to hurt some unintended targets — expatriates for one. But it looks well designed in the sense it should change behavior and immediately choke off some external investment demand for residential property.
Two rounds of earlier measurers largely focused on taxing an early resale and rationing mortgage availability. This was never likely to make much difference to one of the biggest sources of buying: wealthy mainland Chinese seeking to diversify their holdings into Hong Kong’s tax haven.
The tax brings a number of potential risks, however. The obvious one is that it could topple the property market.
The leaders of Italy and Spain said their economies — Europe’s third and fourth largest respectively — did not need a bailout after a meeting in Madrid on Monday.
Political turmoil in Italy and Spanish hesitancy over seeking euro zone assistance have put the two countries on the front line of the currency area’s debt crisis in recent days.
“On this day in 1929, the stock market crashed, capping a two-day slide in which nearly 25% of the market’s value was wiped away.”
From Wikipedia, the free encyclopedia
The Wall Street Crash of 1929, also known as the Great Crash and the Stock Market Crash of 1929, began in late October 1929 and was the most devastating stock market crash in the history of the United States when taking into consideration the full extent and duration of its fallout. The crash signaled the beginning of the 10-year Great Depression that affected all Western industrialized countries and did not end in the United States until the onset of American mobilization for World War II at the end of 1941.
Will be very interesting. If Sandy becomes the DOOM they say it will and the stock market does crash after a week of being closed, will be hard to say Sandy was a “natural” event.
REPORT: STOCK MARKETS TO BE CLOSED TUESDAY
Europe Closes Red For 7th Day Of Last 8
more than economists forecast