Monday November 26 Housing and Economic stories

TOP STORIES:

Greek unemployment hits 25.4 percent in August, new record - (www.reuters.com) Greece's jobless rate rose for a 39th consecutive month to a new record of 25.4 percent in August, more than double the euro zone average, Greece's statistics service ELSTAT said on Thursday. A crippling, austerity-fuelled recession continued to take its toll on the labour market, putting Greek unemployment at more than double the euro zone average of 11.5 percent. The jobless rate has more than tripled since the country's five-year economic slump began in 2008. It now stands at 58 percent for those aged between 15 and 24 years, compared with 20 percent in August 2008.

Spain Said to Consider Palace Sales to Raise Cash - (www.bloomberg.com) The Spanish government is considering a sale of a small, century-old palace in the heart ofMadrid’s business district as part of a plan to raise cash from 100 prime properties, a person with knowledge of the matter said. Castellana 19, built in 1903 and later used to house Spain’s stock-market regulator, would be sold outright rather than leased, said the person, who asked not to be identified as the plan’s details aren’t public. The property was valued at 28.7 million euros ($37 million) in 2010, the year before the agency moved out. The government said last month it had selected 100 buildings that could be privatized by the end of 2016. The properties, mostly in Madrid, will be sold outright or leased for as long as 30 years, the person said. 

Wall Street reform law won't go away - (money.cnn.com) One thing's for sure on the day after the election: the 2010 law to reform Wall Street isn't going away. Republican presidential candidate Mitt Romney had pledged to repeal the sweeping Dodd-Frank Act, the Democrats' response to big banks' risky behavior that led to the 2008 financial crisis. The law put curbs on banks' ability to make risky investments and introduced new rules safeguarding some complex financial bets that spurred the bailout of insurer American International Group (AIG, Fortune 500). It's unlikely that House Republican attempts to roll back the reforms -- efforts they've made since recapturing the chamber in 2011 -- will get anywhere. Besides a re-elected President Obama and his veto power, Democrats retain the Senate with the help of a major champion of Wall Street reform,Harvard University professor Elizabeth Warren.

Sewage Backups Mean $1 Trillion Bill for Leaking U.S. Pipes - (www.bloomberg.com) Century-old water pipes backed up in a storm in Washington D.C.’s Bloomingdale section, sending water and sewage cascading into basements. When it happened twice more in nine days last summer, a torrent of complaints flowed. “Citizens are rightly frustrated and upset about sewer backups,” said George Hawkins, the District’s Water and Sewer Authority general manager. “The challenge we face is that the engineering fix is monumental. It runs back into the issue that we have a significant bill we have to figure out how to fund.” While the sewage backups aren’t as destructive as Hurricane Sandy, such breakdowns highlight leaky systems in cash-strapped U.S. cities that are boosting rates to fund long-delayed fixes. At least $1 trillion is needed for water infrastructure by 2035, tripling some home bills, according to an American Water Works Association study. That may benefit such companies as pump supplier Xylem Inc. (XYL) and flow-controls maker Pentair Ltd.

Francois Hollande lurches Right in historic U-Turn to save French economy - (www.telegraph.co.uk) French president François Hollande has bowed to massive pressure for business tax cuts to pull France’s economy out of slump and stave off industrial decline, ditching a core element of his socialist platform. Company taxes will fall by €20bn a year equal to 1pc of GDP, to be phased in gradually by 2015 under a convoluted system of rebates. Premier Jean-Marc Ayrault said it amounted to a 6pc cut in unit labour costs, enough to close the gap with eurozone rivals. "France is not condemned to a spiral of decline, but we need a national jolt to regain control of our destiny," he said. The mid-rate of VAT for restaurants and services will jump from 7pc to 10pc. The top rate will rise slightly to 20pc. Spending cuts will plug the revenue gap in order to meet the EU’s 3pc deficit target.

OTHER STORIES:

Recession Besets AAA Finland as Crisis Kills Jobs: Nordic Credit - (www.bloomberg.com)

Weidmann in Defeat Still Influences ECB Bond-Buying Plan - (www.reuters.com)

Swedish Central Bankers Argue on Policy Amid Unemployment - (www.bloomberg.com)

Europe’s Woes and Worries Over U.S. Plans Rattle Markets - (www.nytimes.com)

Greek Aid Payment Call Won’t Be Made Next Week, EU Official Says - (www.bloomberg.com)

Draghi: economic outlook weak, not improving  - (www.reuters.com)

ECB Stands Ready to Buy Bonds as Economy Weakens - (www.bloomberg.com)

BOE Halts Bond Purchases as Officials Focus on Lending: Economy - (www.bloomberg.com)

German exports drop as European demand sags - (finance.yahoo.com)

N.Z. Jobless Rate Surges to 13-Year High, Currency Plunges - (www.bloomberg.com)

Hu says graft threatens state, party must stay in charge - (www.reuters.com)

U.S. Jobless Claims Fall as Storm Starts to Affect Data - (www.bloomberg.com)