Germany uses a crisis to shift its energy profile

<p>that Germany has decided to suck up the cost consequences, and separate itself from its dependence on Russian oil. It is a move that will fast-track one of the world's largest economies away from fossil fuels. But it doesn't come without high risk.</p><p>But first in the US, <a href="https://www.nar.realtor/newsroom/existing-home-sales-slip-2-7-in-march" target="_blank"><strong>residential resales fell</strong></a> -2.7% in March from February, a second straight decline and the sales rate is now it’s lowest since June 2020. Higher mortgage interest rates are weighing on this market. But median dwelling prices hit an all-time high of US$375,300 (NZ$552,000).</p><p>And <a href="https://www.mba.org/news-and-research/newsroom/news/2022/04/20/mortgage-applications-decrease-in-latest-mba-weekly-survey" target="_blank"><strong>mortgage applications fell -5%</strong></a> from the previous week, a 6th straight week of decline, as mortgage rates continue to march higher. The average contract rate on a 30-year fixed-rate mortgage increased to 5.2%, its highest since 2010.</p><p>The Fed's April <a href="https://www.federalreserve.gov/monetarypolicy/files/BeigeBook_20220420.pdf" target="_blank"><strong>Beige Book survey</strong></a> showed a resilient American economy despite high inflation and never-ending supply chain problems. They report their economy expanded at a moderate pace from February through early April even if there was little respite for businesses from high inflation and labour shortages.</p><p><a href="https://www150.statcan.gc.ca/n1/daily-quotidien/220420/dq220420a-eng.htm?HPA=1" target="_blank"><strong>Canada's CPI inflation</strong></a> came in much higher than expected. Analysts were looking for a 6.1% rate in March after a 5.7% rate in February. But it came in at 6.7% and that is a 31 year high. Actually, sharply rising dairy prices played a not-small part of this increase. The Bank of Canada has much work to do to tame inflation there. Join us for the New Zealand March CPI release at 10:45 am this mo