KeNo's Housing and Economic Portal: Monday October 13 Housing and Economic stories

Sunday, October 12, 2014

Monday October 13 Housing and Economic stories

Spain Court suspends Catalonia independence vote: media - (www.reuters.com) Spain's Constitutional Court suspended on Monday an independence referendum called by Catalonia for November, although political forces in the wealthy north-east region forged ahead with a political campaign ahead of their planned vote. Spain's central government earlier on Monday asked the court to declare the vote illegal on the grounds that it breaches the country's constitution. While it could take years for the constitutional court to rule on the issue, the vote was effectively suspended by the court's decision to accept the case. A spokeswoman said the court's 12 judges had reached a decision after a one-hour emergency meeting.

Refinery Failures Spur Bets on Higher U.S. Gasoline - (www.bloomberg.com) Speculators increased wagers on higher U.S. gasoline prices by the most since February as refinery closures constricted supply. The net-long position jumped 45 percent from a four-year low as hedge funds pared record short bets and added long wagers for the first time in six weeks, weekly U.S. Commodity Futures Trading Commission data through Sept. 23 show. Refineries in eastern Canada and Texas shut gasoline units for unplanned repairs as others began seasonal maintenance. Futures contracts for October traded at the highest premium to November since 2012, reflecting heightened concern about supply. The closures threaten the retreat at the pump that has drivers paying the lowest late-September prices since 2010.

Gross’s Last Defiance Stuns Allianz, Pimco in Janus Move - (www.bloomberg.com) Even the executives at Allianz SE (ALV) didn’t know. It was 2:28 p.m. in Munich on Sept. 26, and Bill Gross, in charge of $2 trillion as chief investment officer at Pacific Investment Management Co., had just announced that he was joining Janus Capital Group Inc. (JNS), a struggling stock fund manager. With Allianz shares starting to slump, the German insurer called its U.S. asset management arm to confirm that the most influential bond manager had just quit. Pimco, based in Newport Beach, California, hadn’t known either, according to people familiar with both firms. Gross, 70, had left the bond giant he helped found 43 years earlier without telling its executives, a last act of defiance by a great investor whose disregard for management concerns had brought him to the verge of being ousted. As shares of Allianz fell the most in almost three years and Pimco traders worked to contain the fallout of his departure -- the news sparked a selloff in markets for Treasuries, credit derivative indexes and the Mexican peso -- the billionaire was on a plane to Denver, where Janus is based.

New Cars for the Army as Venezuelans Line Up for Food - (www.bloomberg.com) Venezuela’s national parade ground at the Fort Tiuna military base presents a scene that local civilians can only dream of -- stalls laden with goods and no waiting lines. The market with everything from subsidized meat to baby strollers, along with loans, new cars and apartments, are perks provided to the armed forces as the economy contracts, poverty rises and President Nicolas Maduro’s popularity sinks to a record low. The benefits help ensure the loyalty of the military, while siphoning reserves away from the poor who have seen wage growth fall behind inflation, according to analysts, citizen activists and academics. Since Maduro came to power 17 months ago, the armed forces have created their own television channel, housing program and bank, the only military-owned one outside Iran and Vietnam. A third of Venezuela’s 28 ministers and half the state governors are now active or retired officers, mostly companions of former paratroop commander and late President Hugo Chavez.

Putin Ready to Borrow Above 9% Amid Bonds’ Worst Quarter - (www.bloomberg.com) After shunning bond auctions for nine weeks amid the worst quarter for ruble debt since 2011, Russia indicated it’s prepared to borrow at more than 9 percent for the first time in almost five years. In its first auction since July 16, the Finance Ministry sold all 10 billion rubles ($262 million) of August 2023 notes on offer to a single bidder on Sept. 24 at an average yield of 9.37 percent. Current yields are “acceptable” and the finance ministry plans to fulfill this year’s bond sale plan, it said in an e-mailed response to questions on Sept. 26. “The auction results and the ministry’s statement essentially say that it’s now prepared to pay more than 9 percent,” Roman Dzugaev, a fixed-income trader at OAO BFA Bank in St.Petersburg, said by e-mail the same day. “That means there will be more supply coming, though not necessarily with demand like we saw at this sale.”

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