Report:
Germany rules out 2nd debt cut for Greece - (finance.yahoo.com) Germany's
finance minister has categorically rejected a second writedown of Greek debt. Wolfgang
Schaeuble told weekly Bild am Sonntag in an interview that Greece would
continue to receive support beyond 2014 if needed and provided the country
meets the demands of international creditors. Schaeuble was quoted as saying
"it's certain, however, that there will be no second debt writedown for
Athens." Extracts of the interview, to be published Sunday, were released
by the paper Saturday and confirmed by the Finance Ministry. With Germany's
general election two months away, Chancellor Angela Merkel's conservative
government has been at pains to appear firm on Greece's international bailout,
which is unpopular with many Germans.
Today,
Detroit. Tomorrow, Hometown, USA - (www.marketwatch.com) Back
when I was a rookie reporter at the Detroit Free Press nearly 30 years ago, the
big debate the staff had over lunches was which would go bankrupt first: the
big automakers or the city. And which experience would be worse. You could make
arguments for each possibility, but most of the staffers thought there was no
way either event would ever actually happen. They insisted that the early signs
of trouble were an anomaly or something that could be reversed before it became
a calamity. Having just earned my degree in economics, I thought back then that
both were possible — many years in the future — and that bankruptcies for the
Big Three would be bad for the city, but that a bankruptcy for the city would
be bad for the entire country. Sadly, what was once little more than a theory
is now a reality, but what’s worse is that so many people — like my old
colleagues — don’t recognize what the city’s financial woes mean on a national
level.
Ultra-low
yields suggest London property crash around the corner - (www.reuters.com)
Voracious investor demand for the best London
real estate is approaching record levels that could trigger a price crash in
popular areas such as upmarket Bond Street, property experts said this week. The luxury shopping
strip that is home to Prada, Louis Vuitton and Cartier has ultra-low yields
that mark it out as the most in-demand stretch of real estate in Europe. The
price of commercial property is dictated by the yield, which is the annual rent
expressed as a percentage of a property's value. Yields fall as investor demand
increases and push up real estate prices. The 2.75 percent yield on Bond Street
properties should fall to 2.25 percent by the end of the year and could hit the
world-record low of 1.75 percent in 18 months, says David Hutchings, of
property consultant Cushman & Wakefield, adding that the record was set by
Taipei, Taiwan, in 2011. Such low yields could signal the top of the property
market in central London, says Michael Marx, chief executive of British
developer Development Securities.
Fast-Food
Workers Strike for Higher Wages in Seven U.S. Cities - (www.bloomberg.com)
Thousands of fast-food workers from restaurants
such asMcDonald’s Corp. (MCD:US) and Wendy’s
Co. (WEN:US)walked
off the job beginning today, calling for $15-an-hour pay. Employees of
fast-food eateries are striking in New York City, Chicago, St. Louis, Detroit,
Milwaukee, Kansas City, Missouri, and Flint, Michigan, this week, organizers
said in an e-mailed statement. The workers, who also are demanding the right to
form a union without retaliation, are organized by groups such as New York
Communities for Change, Jobs with Justice and Action Now. The Service Employees
International Union is providing money to the campaigns and helping to organize
the strikes.
Italian
Bonds Decline After Debt Sale in Five-Day Losing Streak - (www.bloomberg.com)
Italy’s 10-year bonds declined
for a fifth day, the longest streak in 10 months, before the nation sells 6.75
billion euros ($8.95 billion) of securities due in 2018 and 2024 tomorrow. German
10-year bunds were little changed before European Central Bank policy makers
meet in Frankfurt on
Aug. 1. Belgium sold
bonds due between 2018 and 2041, Italy auctioned 8.5 billion euros of six-month
securities and investors bought 7.68 billion euros of French bills. Italian
debt also declined amid concern that a tax-fraud hearing faced by Silvio
Berlusconi,
coalition partner of Prime Minister Enrico Letta, will cause political
instability. “Maybe investors are looking at the auction tomorrow and saying I
don’t want to take a risk at the moment and don’t want to be too involved in
BTPs,” said Christian Lenk, a fixed-income analyst at DZ Bank AG in Frankfurt,
referring to Italian bonds. “I could well imagine that we see some pre-auction
concessions in the market.”
Obama
Bonding With Summers Over Tennis No Ace in Decision at Fed - (www.bloomberg.com)
Investors Are Lab Rabbits in Central Bank Experiments - (www.bloomberg.com)
Investors Are Lab Rabbits in Central Bank Experiments - (www.bloomberg.com)
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