Wednesday, February 4, 2015

Thursday February 5 Housing and Economic stories


Venezuela's currency woes an increasing threat to U.S. corporate profits - (www.reuters.com)  Venezuela's deepening economic troubles, and in particular the weakness of the bolivar and restrictive currency controls, have hurt U.S. corporate profits for the fourth quarter of 2014 and are set to inflict further pain this year. In a likely sign of things to come from a number of companies this results reporting season, Ford Motor Co on Friday said it was taking a pre-tax charge of $800 million for its Venezuela business. It blamed Venezuelan exchange control regulations that have restricted the ability of its operations in the country to pay dividends and obligations in U.S. dollars. Ford also said that it was unable to maintain normal production in Venezuela with the availability of vehicle parts constrained. Also on Friday, diaper and tissue maker Kimberly-Clark Corp said it took a fourth-quarter charge of $462 million for itsVenezuelan business. That was after it concluded that the appropriate rate at which it should be measuring its bolivar-denominated monetary assets should be a Venezuelan government floating exchange rate - currently at around 50 bolivars to the dollar - rather than a fixed official rate of 6.3 to the dollar that it had previously been using. Kimberly-Clark blamed increased uncertainty and lack of liquidity in Venezuela for the move.

Germans in shock as new Greek leader starts with a bang - (www.reuters.com)   In his first act as prime minister on Monday, Alexis Tsipras visited the war memorial in Kaisariani where 200 Greek resistance fighters were slaughtered by the Nazis in 1944. The move did not go unnoticed in Berlin. Nor did Tsipras's decision hours later to receive the Russian ambassador before meeting any other foreign official. Then came the announcement that radical academic Yanis Varoufakis, who once likened German austerity policies to "fiscal waterboarding", would be taking over as Greek finance minister. A short while later, Tsipras delivered another blow, criticising an EU statement that warned Moscow of new sanctions. The assumption in German Chancellor Angela Merkel's entourage before Sunday's Greek election was that Tsipras, the charismatic leader of the far-left Syriza party, would eke out a narrow victory, struggle to form a coalition, and if he managed to do so, shift quickly from confrontation to compromise mode. Instead, after cruising to victory and clinching a fast-track coalition deal with the right-wing Independent Greeks party, he has signalled in his first days in office that he has no intention of backing down, unsettling officials in Berlin, some of whom admit to shock at the 40-year-old's fiery start.

Exclusive: Top White House Adviser Caught In Major Ethics Violation - (www.dailycaller.com) In 2013, John Podesta was paid $87,000 by a shadowy foreign billionaire whose passion is preventing energy exploration on American land. Just two years later, Podesta is a member of President Obama’s inner circle, and the driving force inside the White House to block 12 million acres of land in Alaska’s Arctic National Wildlife Refuge from oil drilling. The circumstances suggest Podesta may have run afoul of Obama’s highly-touted ethics pledge, which requires political appointees to disqualify themselves in matters relating to the interests of a former employer or client. Podesta — who is preparing to leave the White House to take a top position with Hillary Clinton’s presidential campaign — has largely avoided public scrutiny during his time as a White House Counselor.

California school bans 66 students without measles vaccinations - (www.latimes.com) Almost 70 Palm Desert High School students who haven’t been fully immunized for measles are banned from classes for the next two weeks. Meanwhile, the classmate who may have exposed them to the highly contagious virus is being allowed to return. Sixty-six students were released from classes Wednesday afternoon and won’t be allowed to return until Feb. 9 -- or when they are medically cleared or provide proof of immunization or resistance to the virus, said Mary Perry, spokeswoman for the Desert Sands Unified School District. But that clearance will be determined by the Riverside County Public Health Department. District officials are hoping the move will protect staff and other students from exposure to measles, she said. The district’s decision came after it received notice that a student may have been infected with measles. Though the measles case was not confirmed, the student was medically cleared by the Riverside County Public Health Department to return to school.

WTF Chart Of The Day: Baltic Dry Index Crashes To Lowest In 29 Years - (www.zerohedge.com) Quietly behind the scenes - and not at all reflective of a collapsing global economy (because that would break the narrative of over-supply and pent-up demand) - The Baltic Dry Index plunged over 5% today to 632... That is the lowest absolute level for the global shipping rates indicator since August 1986...





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