TOP STORIES:
Could
Detroit Bring Down The Chinese Economy? - (www.mfi-miami.com) For those of you who missed it, Gordon Chang at Forbes wrote a great piece today
about Chinese real estate speculators buying property like crazy in Detroit and
how they are encouraging other rich Chinese to park their money in Detroit. Chinese
shoppers can’t resist a bargain. Where else can you buy a two-story home
in the U.S. for $39? China Central Television, the state broadcaster, in
March reported that two houses in Detroit cost the same as a pair of leather
shoes. No wonder a poster on Sina Weibo, the Twitter-like service, asked,
“Seven-hundred thousand people, quiet, clean air, no pollution, democracy —
what are you waiting for?” Who says the Chinese are waiting? Dongdu
International Group of Shanghai bought, sight unseen, two downtown icons, the
David Stott building for $4.2 million and the Detroit Free Press building for
$9.4 million, both at auction this September. Moreover, Chinese purchasers are
making bulk purchases of “inexpensive properties” — those selling for $25,000
or less — in the rings surrounding the city center. “They’re banking on
the downtown resurgence spiraling out into those rings,” explains Kelly Sweeney
of Coldwell Banker Weir Manuel. Mainland parties often buy at tax and
foreclosure sales, hold their property, and patiently wait for appreciation.
Ukraine
Riot Police Flood Anti-Government Protest Camp - (www.bloomberg.com) Ukrainian riot police flooded into a camp built
by anti-government protesters in the capital, dismantling barricades and
advancing in groups to displace demonstrators. The authorities used tools
including chain saws to break through makeshift wood and metal defenses around
the camp at Kiev’s Independence Square, scene of the 2004 Orange Revolution. The
protesters are seeking snap elections after President Viktor
Yanukovych snubbed a European integration pact last month,
favoring closer ties with Russia instead. The European Union’s
foreign-policy chief visited the square yesterday after a 3 1/2 hour meeting
with the Ukrainian leader, whose government is searching for at least $10
billion to stave off a default.
Homeless
college students seek shelter during breaks - (money.cnn.com) They may have dorm rooms to sleep in during the
school year, but many college students are technically homeless -- with no
place to call home when classes aren't in session. Jessie McCormick, a senior
at Aquinas College in Grand Rapids, Mich., has been homeless since running away
right before her senior year of high school. Financial aid covers about 85% of
her tuition and housing, and odd jobs that pay minimum wage, like helping out
at the bookstore and setting up special events, pay for the rest. McCormick was
shocked to learn, however, that her housing isn't covered during campus breaks.
Instead, she must pay a fee of $12 to $24 a night (depending how far in advance
the request is made), which she can't always afford. Over Christmas, the school
shuts down completely and no one can stay on campus -- not even for a fee.
U.S.
Investment-Grade Bond Sales Reach Record $1.125 Trillion - (www.bloomberg.com) Sales of investment-grade corporate bonds in the
U.S. reached an all-time high for a second straight year as issuers took
advantage of borrowing costs that touched record lows to offer deals of
unprecedented size. Deere & Co. (DE)’s
$1.25 billion offering today sent sales for the year to $1.125 trillion,
exceeding the $1.122 trillion in
2012, according to data compiled by Bloomberg. Last week, dollar-denominated
high-yield offerings also reached an annual record, pushing U.S. corporate bond
sales to the most ever. Borrowers from Apple Inc. (AAPL) to Verizon Communications Inc. (VZ)tapped the bond
market for the largest offerings with this year’s average
yields of 3.11 percent almost 1.8 percentage points below the decade mean, Bank
of America Merrill Lynch index data show. Yields have climbed from a record low
2.65 percent in May as concern mounts that the Federal
Reserve is poised to curtail stimulus that’s bolstered credit
markets since the end of 2008. “The main driver was for issuers to lock in low
absolute yields,” Anthony Valeri, a market strategist in San Diego with LPL
Financial Corp., said in a telephone interview. Borrowers tried “to get ahead
of the Fed and the uncertainty over tapering. The Fed gave them more time and
that probably incentivized more borrowing.” Issuers have been rushing to the
market as speculation grows that interest
rates will rise further as the central bank begins to curtail
$85 billion of monthly purchases of mortgage bonds and Treasuries. The share of
economists in a Bloomberg survey predicting the central bank will reduce its bond
buying in December doubled to 34 percent after the unemployment
rate fell last month to a five-year low.
Wealthy
Go Frugal This Holiday Amid Uneven U.S. Recovery - (www.bloomberg.com) Last holiday season, literary agent Linda
Chester bought herself a sheared sable fur coat and red evening gown, both from
Ralph Rucci, and designer suede leggings. This season, the bicoastal fashion
lover settled for costume jewelry earrings from SoHo designer Iradj Moini. “I
am definitely tightening my belt this year,” said Chester, who cited an uneven
economic rebound and concerns over a possible stock-market bubble, as well as a
desire to spend more on charity. “I really am not looking.” It’s not just
low-income shoppers who are pulling back on spending for loved ones and
themselves this holiday season. Wealthy folks are watching their dollars, too.
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