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Housing loan. The installment plan could grow by more than 100 euros



Housing loan.  The installment plan could grow by more than 100 euros

Again sound the alarm around a new increase in interest rates by the European Central Bank (ECB). This is the third ascent this year, and the meeting is scheduled for tomorrow. According to experts heard by i, everything indicates that the organization led by Christine Lagarde will once again choose the most pessimistic scenario: a 75 basis point increase. All to try and stop the escalation of inflation.

An increase in interest rates will affect Euribor rates, which will also rise, making credit more expensive, for example, by increasing monthly mortgage payments. A situation that will also have implications for those who are thinking about applying for a loan.

What does this mean? In an analysis by ComparaJá.pt for oi, for a property worth 125 thousand euros due in 33 years, if the installment in June 2020 was fixed at 383.11 euros per month, this value rose to 423.87 euros in July this year and for 432.09 euros in August. If you combine this installment with the predicted increase in interest rates, you will pay 481.27 euros in November. That is almost 50 euros more per month – and 100 more than two years ago.

For a property valued at €186,000 payable over the same period (33 years), if you paid €565.54 in June 2020, the installment rose to €578.77, the following year the value rose to €642.95 in August. With this increase in interest, he will pay 716.13 euros in installments in November. That is a monthly increase of 73.19 euros.

The scenario worsens for a house of the order of 275,000 euros. In June 2020, the contribution was set at 836.15 euros per month, in July this year this amount increased to 932.52 euros, and the next month to 950.50 euros. If this 0.75% increase occurs, the monthly payment in November will be 1058.80. After all, more than 108 euros per month.

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João Melu, director of the platform, recalls that “never in the history of banking have Euribor rates risen so much in such a short time, and the Portuguese have already begun to feel the exponential growth of loan premiums in their portfolios.”

Regarding the future and trends in banking, he guarantees that “it is difficult to predict what will happen, but everything indicates that interest rates will continue to rise.” In addition to this increase, one must count on “inflation in the economy and the constant increase in the prices of electricity and gas, which contribute very little to the financial well-being of the Portuguese.”

What to expect? Ricardo Evangeliste, senior analyst at ActivTrades, has a hard time predicting what the trend will be until the end of the year, but he reminds that the market expects the benchmark rate to reach 3% when the current up cycle ends in February. .

“The 75 basis point increase expected this Thursday will take that to 1.75%. Since we have three more monetary policy decisions before the end of February, the next increase could be either 0.75 or 0.5 or even 0.25%,” he tells our newspaper.

The official guarantees that the impact of the ECB interest rate hike will be felt on Euribor rates, which will also tend to rise, making credit more expensive. “Such a scenario would be negative for those paying mortgages and not opting for fixed rates,” he guarantees.

Enrique Tome, analyst at XTB, also believes that after this projected 0.75% hike this Thursday, the ECB should raise interest rates again by the end of the year, but this time by 0.50%. “But these are just forecasts and they are subject to change if inflation continues to show signs of resilience,” he analyzes.

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He adds: “With the increase in base rates, it is expected that all other rates will also increase, namely the Euribor rates. Portuguese who have floating rate mortgages (which is more than 90% of mortgages in Portugal) will be punished by increased bank fees.”

Paulo Rosa, economist at Banco Carregosa, is also betting on a 0.5% rise at the next meeting, but recalls that until then Euribor-related interest rates will reflect this expected rise for the evolution of the ECB’s monetary policy and related rates . , interest on your deposits.

“The 12-month Euribor is currently at 2.78% and ECB interest rates are expected to peak next summer at 2.84%. The monthly fee will only increase on the maturity date of his index. In the case of a three-month Euribor, the installment will be reviewed and the interest rate updated every quarter. In the six-month Euribor, every semester and in contracts whose index is 12 months, the review is only annual. The 6-month Euribor is 2.11% and the 3-month Euribor is 1.54%, in line with the ECB deposit interest rate outlook,” he stresses.

interest against inflation Enrique Tome recalls that raising interest rates is the most frequently used instrument of the banks to fight inflation. “By raising interest rates, central banks manage to cool economic activity, ultimately containing the effects of inflation.” He adds that “this is not the only option, but of all possible it is the least” aggressive “.

However, he acknowledges that the decision could jeopardize growth targets. “This is the price you have to pay to stop inflation: a decline in economic activity that ultimately hurts GDP.” However, he adds that these measures do not always lead to periods of deep recession.

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“Most of the time we see short periods of GDP contraction (recessions) that serve to balance prices in the economy. Despite everything, the economy is strong at the moment, and although banks have bet on a sharp increase in interest rates, there are still no concrete indicators that this increase could lead to a deep recession.

Ricardo Evangelista recalls that higher interest rates affect demand, which helps control price increases, but this is not enough. “Some of the inflation we’re feeling right now is supply-driven, especially in energy. It is not enough to raise interest rates alone, as exogenous factors also influence this phenomenon.”

But he warns: “Higher interest rates cause investment and consumption to decline, which also has a negative impact on employment.”

Paulo Rosa is more pessimistic, pointing to a scenario of stagflation similar to that which took place in the 1970s: “It is true that the war in Ukraine further accelerated energy inflation and worsened food prices, but in fact inflation in the Eurozone is becoming more widespread, and service prices have also followed this continuous rise in prices. The possible replacement of some purchasing power after a significant drop in household disposable income, namely by employees, also increases the likelihood of a wage/inflation spiral, increasing the likelihood of a stagflationary scenario.”

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Tesla announces another recall of 80,000 vehicles, and some even have to be recalled



Imagem Tesla recall

Tesla cars suffered this year a large number of requests for “collection”better known as the process revoke🇧🇷 Trouble again and 80,000 vehicles in China will be recalled. If many of recalls was an easy decision as it was over the air (OTA) it really obliges the owners to take the car to the workshop.

In fact, this year, many millions of Tesla electric vehicles received revoke for fixes.

Many of the reviews are related to issues resolved via OTA.

Whenever there is a safety issue, the NHTSA must issue a "safety recall", even if the car manufacturer does not have to physically recall any vehicles, leading to some confusion.

Once again last month, Tesla's "1 Million Vehicles" collection of vehicles generated a lot of news as the impact on drivers was almost negligible considering the update only changed via OTA the software that runs the car system. to work with windows.

These cases have prompted Tesla CEO Elon Musk to complain about the term "recall = collection" and how it is being used in the media against Tesla. Today The American company again announced new collections in China about 80,000 cars.

13,000 Tesla electric vehicles have seat belt problems

The recall includes 67,698 imported Model S and Model X vehicles with a battery-related software issue, according to Chinese authorities. Again, the fix is ​​a simple software update. Nonetheless, this time there is also a physical collection due to the problem with the seat belt in approximately 13,000 Model 3 vehicles: 2,736 imported and 10,127 made in China.

over 20 recalls there were many collections in 2022. However, Tesla is not the only automaker to be hit by major recalls this year. OUR Ford also just confirmed that it is recalling another half a million vehicles. due to fire hazards, and many car manufacturers have also recalled millions of vehicles this year.

In any case, the fact that the vast majority of calls from electric brand a quick fix with over-the-air (OTA) software updates — rather than taking cars back to the dealership like other car manufacturers — shows that Tesla's level of connectivity to its cars is a huge advantage in the industry.

The software update system (OTA) allows the buyer to fix many problems easily and conveniently, and for Tesla itself means big money savings.

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Lidl wants to dominate the fast-charging market for electric vehicles at affordable prices



Estação de carregamento, no Lidl, aberta 24 horas por dia

One of the EU’s goals for electric vehicles is to guarantee charging points so that tram drivers don’t have to worry about being on the road when they travel. To meet this need and dominate this market, Lidl intends to offer affordable prices.

We may soon see this initiative in more supermarkets.

Despite being a supermarket chain, Lidl has been guaranteeing electric vehicle charging stations in its stores for some time. However, a new journey has now begun, the launch of the first ultra-fast charging station, which has the distinction of guaranteeing a price well below what can be found on the market.

With this new equipment, in addition to the aesthetic aspects, Lidl takes on technical and cost commitments, guaranteeing the best on the market. After all, she not only placed the charger in her supermarkets, but also created, in turn, a space with protection for vehicles, users and chargers, in an area open 24/7 (i.e. 24 hours a day, 7 days in Week). . . .

This provides better visibility of the infrastructure and reduces the risk of internal combustion engine vehicles occupying space reserved for electric vehicles.

Lidl bets on affordable charging points

The first station will be installed in a Lidl supermarket near the French city of Lyon. The space is equipped with five charging points ranging from 22 to 360 kW. Thus, each client will be able to choose the one that best suits his needs.

For example, a 22 kW charger has a competitive cost of 25 cents per kWh. When we move to more powerful stations of 90, 180 or 360 kW, the price becomes 40 cents higher per kWh.

The strategy adopted by Lidl in some of its stores is already rolling out to other countries, such as Germany, where the supermarket chain is installing its first fast-charging stations, with 150kW stations priced at 48 cents per kWh.

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European Stock Markets Fall, Interest Rates Rise, Oil Rebounds – Markets in a Minute



Europe is turning green.  Oil and gold down.  Percentage Increases - Markets Per Minute

Euribor climbs three and six months to new highs in almost 14 years

Euribor rates rose today to new highs since early 2009 at three and six months and fell at 12 months.

The six-month Euribor rate, most used in Portugal for home loans and entering positive territory on June 6, rose today to 2.374%, plus 0.006 points, the highest since January 2009.

The six-month average Euribor rose from 1.596% in September to 1.997% in October.

The six-month Euribor has been negative for six years and seven months (from November 6, 2015 to June 3, 2022).

The three-month Euribor, which entered positive territory for the first time since April 2015 on July 14, also rose today, setting a new high since February 2009 at 1.922% plus 0.014 points.

The three-month Euribor was negative between 21 April 2015 and 13 July last year (seven years and two months).

The three-month average Euribor rose from 1.011% in September to 1.428% in October.

On the other hand, over a 12-month period, Euribor fell today, settling at 2.860%, down 0.019 points from Thursday, after rising to a new high since January 2009 of 2.879% on Thursday.

After rising to 0.005% on April 12, positive for the first time since February 5, 2016, the 12-month Euribor has been in positive territory since April 21.

The average Euribor rate for 12 months increased from 2.233% in September to 2.629% in October.

Euribor began to rise more significantly from February 4, after the European Central Bank (ECB) admitted that it could raise key interest rates this year due to rising inflation in the eurozone, and the trend accelerated with the start of the Invasion of Ukraine on February 24.

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On October 27, to curb inflation, the ECB raised three key interest rates by 75 basis points, the third consecutive increase this year, after raising three interest rates by 50 basis points on July 21. growth after 11 years, and on September 8 by 75 basis points.

Changes in Euribor interest rates are closely linked to increases or decreases in ECB key interest rates.

Three-, six- and 12-month Euribor rates hit record lows respectively: -0.605% on December 14, 2021, -0.554% and -0.518% on December 20, 2021.

Euribor is set on the basis of the average rate at which a group of 57 Eurozone banks are willing to lend money to each other in the interbank market.


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