US house price rise at 15-year high
US single-family home prices in 20 key urban markets including Dallas, Miami, New York and San Francisco, rose by 14.9% over the 12 months to April, the highest increase in over 15 years the S&P/Case Shiller composite index reports. Record-low mortgage rates and increasing demand for homes in the suburbs, that may have been sparked to some extent by the covid pandemic, have driven the price surge. But Mark Zandi, chief economist of Moody's Analytics, argues in a column for CNN that “stress lines are beginning to show” and that because “home prices have risen so far, so fast, that they have become overvalued.” The FT, Irish Times and Wall Street Journal have details and analysis.
Record temperatures in Canada and US
A heatwave in in Canada and the north-west United States that has caused dozens of unexpected deaths shows little sign of letting up. Temperatures in Lytton in British Columbia reached a record 49.6C on Tuesday, setting a record for Canada for the third consecutive day. Portland reached 46.6C on Monday. Both temperatures smashed decades old records by more than five degrees and are around 20 degrees above average. The heatwave has caused blackouts following a surge in electricity demand from air conditioners and forced schools and businesses to close. The Guardian, the BBC, ABC and USA Today report.
Luxembourg: public finances favourable
Marc Wagener, president of public finances watchdog CNFP, has said that “the economic situation in Luxembourg looks very favourable in comparison with Europe.” Wagener was presenting the CNFP’s report on the government’s stability and growth programme for the period 2021 to 2025. While public debt continues to grow, the structural balance deficit remains under control and could even return to surplus be 2023. Delano has details.
Luxembourg: property tax reform some way off
Finance minister Pierre Gramegna (DP) and interior ministry Taina Bofferding (LSAP) said in a joint response to a parliamentary question that developing “a more transparent and fairer property tax” is proving to be difficult “without being able to test concrete scenarios”. Delano has more.
Dudelange steelworks part of Liberty merger
The Liberty Steel production site in Dudelange, already fused with the company’s site in Liège, is to be merged into Liberty Galati, the largest steelworks in Romania. Italian-based Liberty Magona will also fall under the new merger. The move prompted economy minister Franz Fayot (LSAP) to tell parliament that “trust in [GFG Alliance CEO] Sanjeev Gupta and his group is fading.” Delano reports.
Moderna effective against delta variant
Shares of Moderna jumped more than 6% after the pharmaceutical company revealed that lab tests show its coronavirus vaccine is effective against the highly contagious delta variant. The tests also proved the vaccine produced neutralizing antibodies against the beta and eta variants first found in South Africa and Nigeria respectively. Meanwhile, authorities in India have allowed a Mumbai-based pharmaceutical company to import the Moderna vaccine for restricted emergency use in the country. CNBC and The Indian Express report.
Ethiopian rebels fight on
The Tigray People's Liberation Front has vowed to continue fighting after its forces took control of the regional capital Mekelle on Tuesday. Government forces had held Mekelle since shortly after fighting began last November, leaving thousands dead, over two million people displaced and some 350,000 facing famine. The BBC and The Guardian report.
Florida condo collapse: more dead, warnings revealed
Local authorities in Florida have asked the federal government to send additional search-and-rescue teams to the scene of the Champlain Towers South condo site six days after it collapsed. 12 people are now confirmed dead, but with another 149 still unaccounted for the disaster will be among the deadliest building accidents in US history. Meanwhile, documents including a letter to residents sent in April indicate that the building was known to have structural issues. Reuters, CNN and The New York Times report.
Sweden: Kristersson asked to form government
Moderate party leader Ulf Kristersson has been given three days to gather enough parliamentary support for form a new government in Sweden following the resignation on Monday of prime minister Stefan Löfven. The Guardian and The Local Sweden have more.
Football: England and Ukraine progress
England beat Germany 2-0 at Wembley and Ukraine snatched a last-gasp 2-1 victory over Sweden in Glasgow to progress to the quarter-finals of Euro2020 on Tuesday night. The two winning teams will meet in Rome on Saturday for a place in the semi-finals. The BBC has an England match report, The Guardian has player ratings and ESPN reports on Ukraine’s win.
Heatwave pictures
And finally, Bored Panda has a collection of some of the best pictures people have taken during the record heatwave in Canada and the north-western United States.
Today’s breakfast briefing was written by Duncan Roberts