Charting the Global Economy: The Fed’s Brand New Housing Boom

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The U.S. housing market is firming up in the wake of Federal Reserve interest-rate cuts, U.K. election spending pledges come too late for many, and Japanese companies are still hoarding cash.

Here’s some of the charts that appeared on Bloomberg this week, offering a pictorial insight into the latest developments in the global economy. If you’re French, scroll to the last one for bragging rights.

U.S.

Construction starts of single-family homes and building permit applications continue to climb, signs the Fed’s interest-rate reductions are bearing some fruit as the economy gets a modest boost from residential investment.

Atlanta now as the dubious title of inequality capital of the U.S. In fact, cities in the South take the top three spots, with Miami and New Orleans in second and third. Bloomberg measured the distribution of household income in 87 cities using 2018 data from the Census Bureau’s American Community Survey.

Europe

Italy and France are at risk of breaching European Union spending rules, the bloc’s executive arm said, warning that only countries with a healthy budget position should be pushing expansionary policies.

Britain’s decade of austerity is coming to an end as politicians pursue an arms race of spending pledges before next month’s election. For the 90,000 or so people of Hartlepool, relief will be too late.

Asia

Bank of Japan stimulus has contributed to a weaker yen, delivering record corporate profits and higher stock prices. And while capital spending has picked up, companies are still hoarding cash that the Shinzo Abe government would rather see invested or used to boost worker wages.

Emerging Markets

India’s peak festival season did little to drive economic activity in October, according to a gauge of eight high-frequency indicators compiled by Bloomberg.

The South African Reserve Bank held its benchmark interest rate, with the decision splitting the board after two unanimous meetings. The central bank signaled that it may only start easing again in the second half of next year.

World

France topped a worldwide nationality ranking for an eighth straight year, based on factors including the freedom to travel and settle, peace and stability, economic strength and human development.

--With assistance from Andrew Atkinson, Viktoria Dendrinou, Lucy Meakin, Ana Monteiro, Anirban Nag, Prinesha Naidoo, Yoshiaki Nohara and Alex Tanzi.

To contact the reporters on this story: Vince Golle in Washington at vgolle@bloomberg.net;Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Simon Kennedy at skennedy4@bloomberg.net, Fergal O'Brien

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