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European countries reel from deadly storms – Europe – Al Jazeera English
European countries reel from deadly storms – Europe – Al Jazeera English.
Deadly hurricane-force winds and torrential rain have brought havoc to transport networks Britain and France.The death toll rose to at least six people on Tuesday, as winds of up to 145kph hit both sides of the Channel with heavy downpours causing flooding, traffic jams, and cancellations of rail, flight and ferry services.
Aidan McGivern, a meteorologist, told Al Jazeera people were preparing themselves for more bad weather.
In Britain, the number of people killed in two days of storms rose to at least five after a man died trying to rescue his dog from fast-flowing waters in Devon, southwest England. A teenager died in France on Monday after a wall collapsed on him. Airports in southern England were disrupted, with some flights from Britain’s busiest airport, Heathrow, cancelled or delayed. Britain’s second busiest airport, Gatwick, said one terminal had been hit by a major power outage on Tuesday and storm damage had temporarily cut all trains to the airport. Several hundred passengers were stranded at the airport and airport police had to be called in to help deal with angry passengers. British train operators cancelled hundreds of services on Tuesday morning, by which time the storm had abated, leaving hundreds of thousands of people scrambling to get on to later services in and out of London. Thousands without power Brittany and Normandy were among the regions worst hit in France, where 240,000 homes lost electricity, while in southern England, 150,000 homes were cut off from the power grid, the Energy Networks Association said. Energy company Southern Electric said that some customers would be without power on Christmas Day. McGivern told Al Jazeera another storm was expected to strike on Friday. “That is expected to bring another spell of wet and windy weather,” he said. IHS analyst Howard Archer said the weather was expected to hurt British retailers, eager to cash in on the traditional pre Christmas rush. “Given retailers’ hopes that the last couple of days before Christmas would see a final strong surge in sales, the awful weather could not have come at a worse time,” Archer said. |
Bank of Canada says housing, debt still pose stability risks | Canada | Reuters
Bank of Canada says housing, debt still pose stability risks | Canada | Reuters.
By Louise Egan
OTTAWA (Reuters) – Soaring consumer debt and a robust housing market pose an “elevated” risk to Canada’s financial stability, but the overall level of danger has fallen from six months ago, the Bank of Canada said on Tuesday.
“In Canada, the high level of household debt and imbalances in the housing sector are the most significant domestic vulnerabilities to address,” the central bank said in its semi-annual Financial System Review.
These risks could make Canadians vulnerable to an adverse macroeconomic shock and a sharp correction in the housing market, it said.
The bank cut its overall level of risk to the country’s financial system to “elevated” from “high”, citing among other factors continuing stabilization in the euro zone and the start of a modest recovery in that region. Despite the brighter outlook for Europe, it remains the biggest threat to Canada, the bank said.
Tuesday’s report marked the first time the bank has eased its overall risk level since it began classifying risk in this way in December 2011.
The overall level of risk could fall further with continued progress on banking sector reform and other reforms in the euro area. That said, the level could increase if the current low interest rate environment in advanced economies persists longer than anticipated, it added.
The bank listed risky financial investments in a prolonged period of low interest rates as a “moderate” risk and added financial vulnerabilities in emerging markets as another moderate threat.
Canada’s housing market has been a source of concern for policymakers and economists since a property boom helped fuel the economy’s rebound from the 2008-09 recession.
After four government interventions to tighten mortgage rules, the market cooled in late 2012 only to regain momentum through the spring and summer of this year.
The bank, the finance ministry and the banking regulator monitor the market closely. The bank noted an oversupply of multiple-unit dwellings in some areas, and cited an elevated number of high-rise condos under construction in Toronto.
“If the upcoming supply of units is not absorbed by demand as units are completed over the next few years, there is a risk of a correction in prices and construction activity,” it said.
Such a correction could spread to other parts of the market and hit the overall economy, it added.
The bank said simple indicators suggest there is overvaluation in the housing market overall and it said any sharp downturn in a large city could spread, ultimately affecting sentiment, lending conditions as well as jobs and income.
While the latest data suggest some stabilization in the market, there is still much debate among economists over whether housing is poised to crash and damage the economy, or have a so-called “soft landing”.
Bank of Canada Governor Stephen Poloz has placed himself in the latter camp, saying he expects record-high household debt to ease gradually as the housing market softens.
The report on Tuesday supported that view.
“The overall moderating trend is expected to resume in due course,” it said. “As long term interest rates normalize with the strengthening global economy, the risk will diminish over time.”
The ratio of household debt to income in Canada hit a record high in the second quarter of 163.4 percent, although the pace of credit growth has been slowing.
Statistics Canada will release third-quarter data on household debt on Friday.
(Reporting by Louise Egan; editing by David Ljunggren; and Peter Galloway)