Monday, May 6, 2013

Tuesday May 7 Housing and Economic stories


TOP STORIES:

Stockton Retirees Worry Pension Cuts Follow Health Losses - (www.bloomberg.com) Retired public employees in bankrupt Stockton, California, who saw health-care coverage shrink last year may see their pensions decrease next as the city wrangles with creditors. The biggest U.S. city in bankruptcy, Stockton is preparing a plan for paying debt that may propose compensating some creditors less than the principal owed, setting up a likely court challenge from the creditors that the city’s pension contributions be subject to cuts as well.  “As retirees, we are hoping the city is not forced, required, induced to affect pensions,” said Dwane Milnes, a former Stockton city manager and president of the Association of Retired Employees of the City of Stockton, which represents more than 800 retirees. The city of 296,000, an agricultural center about 80 miles (130 kilometers) east of San Francisco, adopted a budget for operating under bankruptcy that included reducing health-care premium payments for its retirees last July and eliminating them entirely a year later to deal with a $540 million unfunded liability. About 1,100 of the city’s 2,400 retirees received medical benefits last year.

France misses 2012 deficit target and Spain's shortfall widens - (www.reuters.com)  France and Spain fell short of their budget deficit goals last year, data showed on Monday, although the overall fiscal picture for the euro zone improved. France's 2012 budget deficit was 4.8 percent of economic output, statistics office Eurostat said in the final reading of all 27 countries' public accounts. It compared with a target of 4.5 percent. Spain's budget shortfall was 7.1 percent, excluding bank recapitalization, higher than the government's 6.98 percent official year-end reading and well above Madrid's original target of 6.3 percent.

Slovenia insists it's not the next Cyprus - (finance.yahoo.com) Slovenian officials have a message for the world: Don't panic — we won't be the next to fall. The tiny European Union member is trying to convince its people and foreign investors that it won't be the next in line for a banking system collapse and a messy international bailout. "We are absolutely no Cyprus," says new Slovenian Prime Minister Alenka Bratusek. "We don't need help. All we need is time." But time is running out for the Balkan state, once considered an East European success story and a model for the rest of the region on how to build a post-communist economy. With few specifics from leaders on a rescue plan, some economists are skeptical they can live up to their promises.

Apple's dimming luster roils suppliers, investors - (www.reuters.com) Apple Inc marketing chief Phil Schiller let slip during last August's courtroom battle with Samsung that when setting forecasts for new iPhones, the inside joke was that people should assume sales would equal all previous versions combined. That quip, uttered in front of Samsung Electronics Co Ltd's trial lawyers and the media, no longer rings true as Apple appears to be losing a once vice-like grip on its supply chain and Wall Street. Suppliers and investors are struggling to gauge demand for the iconic smartphone as Samsung and up-and-coming rivals grab market share. Indications of reduced shipments now send shares in Apple and its component-makers into a tailspin. And criticism that innovation has stalled after the death of its legendary co-founder Steve Jobs 18 months ago is hurting sentiment in a stock that closed the week below $400 for the first time since December 2011.

More bad news for student loan borrowers - (money.cnn.com) Graduation season is upon us. It used to be that in the years after hopeful 20-somethings bid farewell to campus life, they'd start borrowing to buy many things typically associated with adulthood – namely, a car and a home. Many had college loans to repay, but that's partly what made brainy go-getters so attractive to banks and lenders. They typically earn more over a lifetime, so they seemed like a safe bet. They may still be, but times have changed. College debt may have once been the good kind ofdebt, but the scale has grown so big that in many cases it has become more burdensome than helpful. For the first time in at least a decade, 30-year-olds – the median age of first-time home buyers – with no history of student loans are more likely to have a mortgage than those with debts from school, according to a new report by the Federal Reserve Bank of New York. Studies have shown young people aren't borrowing as much as they used to, and the Fed says the burden of student debt may be the culprit.




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