Surprisingly Strong Housing Report

Suzanne O 'Halloran analyzes the latest business news.
8:25 | 12/20/11

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Transcript for Surprisingly Strong Housing Report
Dow futures were up ahead of the bell on news out of Europe. And a strong housing report here at home joining me now to discuss that. And all the other business headlines is Susanna Haller ran from Bloomberg TV Suzanne good morning good morning so let's start with the numbers on housing starts which came -- just an hour ago they were up at nine point 3% from October that's like a big job yes the full story yeah. Lee -- we're talking about starts and permits permits is of the highest level of the year a -- for November at like this number Stephanie because it's actually forward looking up permits of course taken by builders when they're ready to do a project and starts is actually breaking ground on a projects -- this is very good news for the housing market it shows. And the housing market is perhaps stabilizing heading into 2012. December came -- a lot better than expected. Surprising even some of the most negative economists on the US has certainly good news here he let teachers actually were higher even before we got this report. And then of course we took another jump up and as we see now stocks are rallying. Big part is because of these housing numbers swelled. That's great news is little Christmas gifts for I guess the housing market are another big -- -- late yesterday we found out that AT&T. Has dropped its 39 billion dollar bid for T-Mobile was this a plan that was doomed from the start. -- eighteenth he didn't -- cents a really fascinating story because AT&T spend about sixteen million dollars last check this year on lobbying Washington's a lot of analysts say they really under estimated the opposition got from on the steal from the government from the FCC and from consumer advocates. -- certainly a big surprise and yeah it probably was -- from the start the company realize -- -- the opposition -- -- and -- and -- And it also tells us the Obama administration is going to be tougher on mergers that may hurt the consumer so what we're seeing today is -- deal of course is completely dead 39 million dollars it was the biggest deal of this year then -- now we're wondering what eight AT&T is going to do next as well as Deutsche Telekom. But -- -- -- see as we did see AT&T shares start to come back a little -- they -- down as much as you might expect and that's in part because people are kind of bracing for this news because we -- -- encountering some problem Bryant seems kind of anti climactic -- after all the weeks of talking about this merger where do both of these companies go from here. Well what we're hearing it's like to Telecom probably will stay independent for the foreseeable future. Perhaps until we get into the first half of next year and gets more clarity on the sector the more interesting story is about AT&T analysts say ATT doesn't have a lot of options. Verizon has really. Kicking there but we know that she now are battling out for iPhone customers Bryant has a better reputation don't have as many dropped calls when here folks talking about using a cell phones NE TT Connie gets -- -- -- -- So we're gonna -- AT&T and see what they decide to do but again not a lot of options they can perhaps try to buy more spectrum. That's something that they kid. Bill the government. Also options is off -- perhaps pick up something in the Airways but certainly there -- a tough spot and we're going to be watching very closely because. This deal actually it was sort of the key to their next leg of growth and now -- -- the table and aren't very many other attractive acquisition candidate this would have -- -- -- match but it's not half as we now okay. Apple is just -- a big patent ruling against phone maker HTC but the biggest loser in this -- -- to be Google -- that yeah that's right local local as -- -- -- -- -- out with their android phone in the android operating system name you call me back when. Steve Jobs actually -- Google was working off the I've found they had a fierce rivalry and they still do it. But what we did learn -- -- -- now actually is. -- -- for apple it does show that perhaps Steve Jobs was right that some of the patents. Not all of the ones that apple was seen more copies being copied but one of the patents. Well the government did agree that that HTC was in fact -- patents and now and harder for Google to get some of these phones. Into the US and next year so this is an important story as well because Google as we now it's the ultimate threat revenues from advertising -- -- -- operating systems are sort of growth area for Google as well so certainly this is developing story that we're keeping and I am but certainly apple one this. Boardroom fight on the patent front we'll see it school comes back perhaps with some other type of assistant to get around the patent -- -- Okay we've also had some positive developments out of Europe today -- personal Spain -- its target -- sale and this is a pretty big deal. Yet for bonds because as we knew we talked about many times borrowing costs in Spain and Italy actually spiky. Compared here in the US but we did have a bond sale today that went very well short term notes three. Three years roughly was the debt. -- it did go very well that shows -- that perhaps. There is some demand for European debt we haven't seen this plan is actually and even over the past couple weeks -- of the European crisis but it does show. That there is some confidence in the in the market we have seen those -- come down a little bit lowering borrowing costs but. As we now the situation in Europe but still very clearly yesterday -- great example we continue to get. Conflicting headlines from European leaders they had -- -- conference call yesterday supposedly that didn't go well they need perhaps need more money from the giant -- so. Again a lot of conflicting signals but -- in your data -- like this bond -- coming from -- it's certainly a positive -- helping support stocks as well and today Germany came out with some strong economic -- is -- another sign taken with the other news that we might be at a turning point in the Euro crisis -- absolutely -- -- survey from Germany they ask about 7000 -- -- business executives how they feel about the economy -- -- -- -- better than expected. This surprised a lot of folks because considering what's happening -- -- Germany is Europe's largest economy there was a sense -- this survey would be negative. So the fact keeping better than expected is certainly good news for the US and European markets and what economists are are saying about the survey is it could mean. That Europe in particular Germany being able to skirt a recession next year that would be very key because we still don't know it they're gonna have. Economy that's going to grow -- contract. That means on the table and as we now we are very closely connected to -- -- If -- enter recession that's certainly harm the last nobody here wants that anything else you'll be watching today. Yeah a couple of things that we're keeping NI oil wells and about three dollars today we've had a sharp sell -- over the past TDs on concerns about a global growth slowed down. We're seeing a reversal today there's a meeting in the gulf. They're expected to talk about Iran and its nuclear programs -- certainly going to be watching commodities and any developments -- and that and then later today earnings from Nike after the bell this is an important story as well because they do a lot of business in China China's huge growth market for them. We've been getting signs of the Chinese economy is slowing down a bit tonight he's one of those companies. To keep an eye on as it did economic barometer for global sales and I'm also. One final thing can be watching shares of CVS as well that stock is rallying today they're boosted their dividend about 30%. Sixteen and a quarter this is important news as well because investors who own. The drugstore -- getting a little extra pay outs in the stock and you want your winners to -- silver linings today it won't let the markets right now house is and the Dow up a hundred -- 84 point about one and a half percent. So looking I cannot -- based on these housing numbers. That's a Christmas rally here -- -- economic data again and how much better than expected and we know housing has been such a weak spot in the economy if in fact -- is stabilizing. This is going to be a really -- sign heading into 2012 because we really need housing market to come back. Worked through some of that inventory and again get consumers. Who have their homes for sale. Able to sell those homes and perhaps into another home that's better suited for them to certainly really gave -- -- -- Again he is. Permits and starts are forward looking they're not backward looking and that's why I think they're really get economic indicator at the markets are right well take it -- out how to ramp Bloomberg TV have a great -- thanks Suzanne -- --

This transcript has been automatically generated and may not be 100% accurate.

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