Sunday, May 25, 2014

Monday May 26 Housing and Economic stories


Ukraine crisis starts to hit European firms - (money.cnn.com) The economic turmoil triggered by the Ukraine crisis is beginning to hurt major European companies. From banks to brewers, the slump in Russia's economy is taking its toll on sales and profits at businesses in the rest of Europe. Weak factory orders in Germany could point to worse to come. The International Monetary Fund says Russia has already been dragged into a recession as investors flee the emerging market for fear of being caught up in the escalating conflict in eastern Ukraine. The United States and Europe accuse Moscow of stoking separatist tension in Ukraine, following its annexation of Crimea. They've frozen the assets of dozens of Russian officials, and the U.S. has gone further by targeting 18 Russian companies. Harsher measures aimed at sectors of the Russian economy will follow, they warn, if Ukraine's presidential election on May 25 is put at risk.

First-Quarter Economic Slump Looking Uglier by the Day - (www.moneynews.com) It now looks like the world's largest economy contracted in January through March instead of eking out a 0.1 percent gain at an annualized rate as reported by the Commerce Department last week. The latest knock came from data issued today. Although the trade deficit shrank in March to $40.4 billion from $41.9 billion as exports grew, the narrowing was less than the government had projected when putting together the advance estimate on gross domestic product.''

Foreign Firms Pressured as Chinese Workers Near Henry Ford Moment - (www.businessweek.com) The Chinese government is gaining an unlikely ally in its effort to overhaul the economy: striking Chinese workers. So far this year, the China operations of International Business Machines Corp.(IBM:US), PepsiCo Inc., Wal-Mart Stores Inc., and Yue Yuen Industrial Holdings Ltd., a major supplier to Nike Inc. and Adidas AG, all have been idled by labor protests. “This is not a blip,” says Dan Harris, a Seattle-based attorney representing companies operating in China. “It’s going to continue and get worse.” While China’s communist party was founded to benefit the country’s “workers and peasants,” Chinese leaders aren’t known for their patience with protest. This latest wave of labor unrest -- at least when confined to pocketbook concerns -- might be different. The government wants to rebalance the slowing economy to rely more on consumption. Higher incomes for workers would be a good start.

Report: Porn-Watching EPA Employee Received Bonuses Despite Wasting Work Days - (www.newsmax.com) An employee at the Environmental Protection Agency downloaded more than 7,000 pornographic files onto a government computer and viewed them for two to six hours a day, according to the agency’s independent watchdog. The worker, who wasn’t identified, was watching pornography when a special agent showed up at his work space, Allan Williams, the EPA’s deputy assistant inspector general for investigations, told lawmakers today. “True deterrence of employee misconduct at the EPA ultimately rests with agency executives and managers to set a tone that ensures such behavior will not be condoned,” Williams told the House Committee on Oversight and Government Reform. The allegations emerged in a broader examination of EPA employees. The EPA’s 16,000 employees are facing greater scrutiny by the Office of Inspector General after the 2013 conviction of senior agency official John Beale for collecting paychecks for more than a decade during which he had not worked. Beale explained absences to his EPA supervisors by telling them he was working on classified projects, including for the Central Intelligence Agency, which wasn’t true.

Frankfurt issues first bond backed by Chinese currency  - (www.dw.de)  Frankfurt is joining London, Singapore and Hong Kong in the fast-moving market for bonds denominated in the Chinese currency, the renminbi. Germany's KfW development bank announced it was issuing a two-year bond with the volume of 1 billion renminbi at the Frankfurt Stock Exchange... [the bonds] have become a huge boost to the popularity of the currency. The Society for Worldwide Interbank Financial Telecommunication says the renminbi is now among the top ten most-used currencies for global trade payments, overtaking the Swiss Franc to occupy position seven in February.




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