Tuesday, June 3, 2014

Wednesday June 4 Housing and Economic stories


Greece’s Bonds Lead Euro-Periphery Debt Lower - (www.bloomberg.com) Greek bonds led a rout in the euro area’s most indebted countries as opinion polls suggesting the nation’s governing coalition is losing support reawakened concern the regional debt crisis is far from resolved. Greece’s 10-year yields surged to the highest in seven weeks while those on similar-maturity Italian bonds jumped by the most since June, having earlier dropped to a record. Irish and Spanish securities also reversed gains that had pushed yields to the least since Bloomberg began collecting the data. German bonds rallied as investors sought the safest assets. European Parliament elections will be held on May 25. “Risks in Greece are still largely underestimated” so the selloff in bonds could continue, said Gianluca Ziglio, executive director of fixed-income research at Sunrise Brokers LLP in London. If the outcome of the European Parliament elections “has an impact on the next steps for debt sustainability then it could also spill over to other markets in the periphery.” Greek 10-year yields rose 51 basis points, or 0.51 percentage point, to 6.81 percent at the 5 p.m.

Judge halts Illinois pension reform law - (www.chicagotribune.com) State workers and retirees can breathe a sigh of relief — at least for a while — after a judge on Wednesday delayed the start of a far-reaching overhaul of their pensions until it can be determined whether the measure passes legal muster. Retiree groups and a union coalition called We Are One Illinois won a temporary restraining order and preliminary injunction in Sangamon County Circuit Court that will put the law on hold and prevent it from taking effect on June 1.  The groups argued the law is unconstitutional because it scales back benefits and raises retirement ages. Under the Illinois Constitution, public employee pensions are a “contractual relationship” with benefits that cannot be “diminished or impaired.” “This is an important first step in our efforts to overturn this unfair, unconstitutional law and to protect retirement security for working and retired Illinois families,” said Michael T. Carrigan, president of the Illinois AFL-CIO, the point man for the union coalition.

In liberal cities, minimum wage puts biz in a bind - (www.cnbc.com) They have backed efforts to address climate change, held countless fundraisers for local causes and been staunch supporters of progressive political candidates including President Barack Obama—but one thing they can't fully get behind is the push for a swift and sharp increase in the minimum wage. Some small-business owners in liberal-leaning cities such as Seattle and San Francisco are finding themselves in a conundrum when it comes to the latest hot-button political issue: Philosophically, they may agree with the concept of boosting the minimum wage significantly, but pragmatically, they worry any drastic mandate could put them out of business. "We do have to do something in this country about the disparity between minimum wage and living wage," said Seattle restaurateur Tom Douglas. Douglas serves on the board of directors of a local food bank, and recently hosted a fundraiser for victims of the nearby Oso landslide.

Australia plan to raise pension age to 70 blasted - (www.cnbc.com) The Australian government's plan to raise the state pension age to 70 has been criticized as unfair for those in physically demanding jobs, the poor and indigenous people. Increasing the pension eligibility age to 70 by 2035 was one of the measures in a budget announced Tuesday to help Australia cope with the costs of an aging population. The opposition Labor Party has vowed to oppose the change in Parliament. The current pension age is 65. "I don't think it's something that passes the sensible test," opposition treasury spokesman Chris Bowen said Wednesday. The pension age in Australia has been 65 since 1908. Labor, while in government, had in 2009 decided the pension age would rise from 65 to 67 in 2023. Bowen said no other wealthy country has suggested making its citizens work until they turn 70.

Home builders losing confidence in recovery  - (www.cnbc.com) After three months of holding out steady hope, sentiment among U.S. home builders weakened slightly in May. A monthly index from the National Association of Home Builders slipped one point from a downwardly revised April figure. The index now stands at 45. Anything above 50 is considered positive sentiment. "It is clear that builder sentiment is becoming more in line with the market reality of a continuing but modest recovery," said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. "However, builders expressed some optimism that sales will pick up in the coming months." Builder confidence had moved well into positive territory throughout much of 2013, as prices soared on investor demand at the low end of the market. Home sales this spring have been decidedly weaker, as investors slow their purchases, leaving the market to mortgage-dependent, owner-occupant buyers.






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