24 November 2018 FT — Articles to Read

24 November 2018


Question: According to MSN: Money, what are seven (7) ways retirees can profit from downsizing?


Bank of Italy warns higher bond yields will cost an extra 9bn (euro) a year by 2020 – Pg. 1

–          …could threaten the stability of banks and insurers

–          Banks have seen a deterioration in “liquidity and capital adequacy indicators”, ….while a further sell-off could have “significant effects on the solvency position of insurers” and “heighten the risk to stability”

–          Sovereign debt yields hit their highest levels since 2014 last month as the EU threatened sanctions over Italy’s draft budget, reflecting worries over lending to a government with the second-largest debt as a proportion of GDP in the Eurozone after Greece


Eurozone economy set to slow further – Pg. 2

–          The so-called PMI data, which ECB officials view as the best indicator of what will happen to growth, are the last before the bank’s crucial December vote, when Mario Draghi, president, is set to confirm new plans to rein in its 2.6tn (euro) crisis-era programme of bond purchases, known as quantitative easing

–          Eurozone growth has been unexpectedly weak throughout 2018, yet ECB policymakers have held fast to the view that poor data are a blip and should not divert them from plans to halt the expansion of QE at the end of the year

–          Italy, the region’s third-largest economy, looks likely to enter recession soon

–          If an extension of QE is ruled out, the central bank may need to ease monetary policy by making a stronger commitment to carry on reinvesting the proceeds of bonds that have now matured


Global tornado deposits investors in Land of Oz – Pg. 13

–          A market tornado that began in the US technology sector broadened into a global stock sell-off this week, transporting investors to an environment that looks very different from the benign and predictable one they have enjoyed since the recovery from the financial crisis

–          With rising interest rates and intensifying debate about a tipping point in the global economy, cash is now on track to beat the returns of global stocks, bonds and commodities this year.

–          …another sharp 3.5% decline in the S&P 500 this week…

–          The benchmark is now heading for its worst quarter in seven years

–          …other aberrations, such as how highly rated bonds are failing to provide their usual safety


Answer: (1) Unlock equity in your home; (2) Lower your utility bills; (3) Avoid health/safety emergencies; (4) Reduce property taxes; (5) Save on routine travel; (6) Cut down on repairs/maintenance; (7) Pay for fewer services