Sunday, March 22, 2015

Monday March 23 Housing and Economic stories


ECB Increases Greek ELA Ceiling by 600 Million Euros - (www.bloomberg.com) The European Central Bank increased the maximum Emergency Liquidity Assistance that Greek banks can get from their national central bank by 600 million euros ($637 million), according to two people familiar with the decision. The amount matches the request by the Greek central bank, said the people, who asked not to be named because the talks are private. The ECB’s Governing Council held a phone conference on Thursday to set the limit, which policy makers had increased by 500 million euros to 68.8 billion euros on March 5. The council is scheduled to review the level again on March 18. Greek banks didn’t absorb all ELA funds available under the previous ceiling and have about 3.5 billion euros in liquidity left, said a Bank of Greece official, who asked not to be named because the matter is private.

Germany Won’t Negotiate With Greece Over Compensation for Nazi Atrocities - (online.wsj.com) Berlin on Wednesday rejected mounting calls from Athens that Germany should pay compensation for Nazi atrocities in Greece, further souring the mood between the eurozone’s main paymaster and Greece’s cash-strapped government. After a Greek government minister suggested Athens could seize German assets, a German government spokesman dismissed the threat as groundless and urged Athens to focus on a more pressing issue: Fulfilling the conditions for the release of much-needed financial aid. “The issue [of reparation] has been closed legally and politically and there won’t be any negotiations about this. It has been settled in a comprehensive and conclusive way,” said Chancellor Angela Merkel’s spokesman Steffen Seibert. “We should focus on today’s issues” and future cooperation of both countries, he said.

The Wall Street bond guru who nailed 2014 says yields have bottomed for 2015 - (www.businessinsider.com)  US interest rates may head higher from here. Steven Major, a London-based strategist with HSBC, says the yield on the benchmark 10-year US Treasury note has bottomed for the year.  In a note Thursday, Major wrote: "The 10-year Treasury’s yield returned to 2.2%, roughly its year-end level, after falling to 1.64% on geopolitical  concerns. This will likely be the low yield for the year. The bond market should shift its focus to the FOMC outlook and ECB bond buying now. The 10-year yield is likely to hold in a range around our forecast, with moves driven by concerns on slow growth and low inflation on the one hand and expected Fed tightening on the other."

Retail Sales Crumble, Suffer Worst Run Since Lehman
- (www.zerohedge.com) Earlier today we warned readers that based on actual credit card spending data, today's retail sales data would continue the worst trend since Lehman, and sure enough that's what happened: moments ago the Commerce department reported that in February, retail sales missed once again and missed big and across the board, the third big miss in a row, with the headline print coming at -0.6%, far below the 0.3% expected, and in line with the -0.8% drop last month. Putting the headline numbers in context: December -0.9%, January -0.8%, February -0.6%. Excluding the volatile autos and gas, sales dropped once again, sliding -0.2%, below the 0.3% expected - in fact below the lowest estimate - and worse even than last month's downward revised -0.1% decline. And with that the worst run in retail sales since Lehman is now in the record books.

Venezuela’s $5.9 Billion Cash Burn Raises Bond Concerns - (www.bloomberg.comVenezuela has already blown through almost of all the $5.9 billion in new financing it managed to scrounge up this year. And while it will probably use $1.3 billion of the money to pay bonds coming due on Monday, the cash-strapped country’s spending underscores why derivatives traders say there’s a better than 50 percent chance it will default within a year. After using up the money it squeezed out of its U.S. oil-refining unit and spending the payment it received from Dominican Republic for crude sales last month, Venezuela’s foreign reserves now stand at $22.1 billion, unchanged from the beginning of 2015. That’s far short of the $33 billion in financing that Barclays Plc estimates the country needs this year with oil prices around $50 a barrel.


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