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Nobel economics winner Fama says risk of global recession in 2014

STOCKHOLM (Reuters) - One of the three Americans who won this year's Nobel prize for economics said bloated public deficits on both sides of the Atlantic meant that recession remained a real risk for 2014. Eugene Fama, who shares this year's 8 million crown ($1.2 million) prize with Robert Shiller and Lars Peter Hansen, said on Saturday that highly indebted governments in the United States and Europe posed a constant threat to the global economy.

Nobel Prize economist warns of U.S. stock market bubble

BERLIN (Reuters) - An American who won this year's Nobel Prize for economics believes sharp rises in equity and property prices could lead to a dangerous financial bubble and may end badly, he told a German magazine. Robert Shiller, who won the esteemed award with two other Americans for research into market prices and asset bubbles, pinpointed the U.S. stock market and Brazilian property market as areas of concern.

News Analysis: Home prices in Chinese cities to continue rising

BEIJING, Nov. 30 (Xinhua) -- In response to record high house prices and public discontent, local authorities in more than 10 major Chinese cities have rolled out new tightening measures since last month. Financial institutions and analysts, however, expect prices in major Chinese cities, especially those with tight supply, to continue rising in 2014, defying local government's latest macro-control efforts. TIGHTENING AMID RECORD HIGH PRICES

News analysis: Italy's real-estate prices still declining but at slower pace

By Marzia De Giuli MILAN, Italy, Nov. 29 (Xinhua) -- With the Italian economy still mired in recession, real-estate analysts expect further declines in property prices but foresee less unfavorable developments in the market. The outbreak of the global financial crisis in 2008 and the consecutive debt crisis in 2011 led to credit freeze and decreased household income in Italy.

Bank of England to take fresh look at securitization market

By Huw Jones LONDON (Reuters) - The Bank of England said it may step in to kickstart the securitisation market, which was discredited by the U.S. subprime crisis but is now seen as a valuable option for financing business growth. Securitisation, where banks bundle pools of loans and sell the resulting package to raise funds for lending, has tumbled in Europe from $1.2 trillion in 2008 to $322 billion last year.

Bank of England cuts mortgage support to avoid housing bubble

By David Milliken and Huw Jones LONDON (Reuters) - The Bank of England moved to head off the risk of a housing bubble in Britain on Thursday, making a surprise announcement that it would put the brakes on a scheme launched last year to help boost mortgage lending. The central bank said the Funding for Lending Scheme (FLS) would cease to offer banks incentives for mortgage lending and instead be refocused on helping small firms to borrow. The news caused shares in house-building firms to tumble.

ECB supervisor promises to come clean on banks' health

By John O'Donnell BRUSSELS (Reuters) - The euro zone's future bank supervisor on Wednesday promised a warts-and-all probe into the bloc's still fragile financial system, conceding that she and other supervisors had made mistakes in the past. Seeking the backing of the European Parliament to become the supervisor for euro zone banks, Daniele Nouy listed sovereign debt among the banks' potentially riskiest assets as she laid down her ambitions for testing the health of lenders.

European Central Bank sees financial system stress at lowest since crisis started in 2007

BERLIN - The European Central Bank says the overall stress level in the euro area's financial system has fallen to its lowest level since the early days of the global financial crisis six years ago. ECB vice-president Vitor Constancio said as he presented the bank's twice-yearly Financial Stability Review on Wednesday that a composite indicator of systemic stress across major financial-asset classes "is now at the levels of 2007." He said there has been a consistent improvement since July last year.

Home prices rise in September, yearly gain highest since Feb 2006: S&P

NEW YORK (Reuters) - U.S. single-family home prices rose in September and posted their strongest annualized gain in 7-1/2 years, a closely watched survey said on Tuesday. The S&P/Case Shiller composite index of 20 metropolitan areas gained 0.7 percent in September on a non-seasonally adjusted basis, matching the Reuters forecast.

Bank of Canada's Poloz speaks in Ottawa

(Reuters) - Below are key quotes from an appearance by Bank of Canada Governor Stephen Poloz before a parliamentary committee in Ottawa: ON WHETHER HIGH OIL PRICES CAUSING DUTCH DISEASE IN CANADA
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