Tuesday March 24 Housing and Economic stories

TOP STORIES:

The surging dollar is a signal that a colossal financial event is just around the corner - (www.businessinsider.com) The dollar is set for its strongest quarterly strengthening since 1992, according to Bank of America, a good sign that a rate hike is around the corner. When markets expect that US interest rates will be hiked, it typically strengthens the dollar. That's because people rush to change other currencies into dollars — they can make more money in dollar-denominated investments. The higher demand for the US currency drives its value up. In the past, significant dollar gains against other currencies have pretty much happened only during periods of extreme financial or geopolitical distress.

US oil settles at six-year lows  - (www.cnbc.com)  U.S. crude settled down at a six-year low of $43.88 a barrel after tumbling to $42.85 earlier in Monday's session. Brent oil fell nearly 3 percent on Monday and U.S. crude hit six-year lows on signs of higher output in the United States and Libya and a possible nuclear deal that could end sanctions for Iran, allowing more of its oil into the market. A market data provider estimated a fresh build of more than 3 million barrels at the Cushing, Oklahoma delivery point for U.S. crude futures last week, traders said, adding to worries that stockpiles in the United States could hit record highs for a tenth straight week. In Libya, output has risen to around 490,000 barrels per day, double from a few weeks ago, an industry source said.

Greece Set for IMF Repayment as Cash Reserves Running Dry - (www.bloomberg.com) Greece repaid a loan due Monday to the International Monetary Fund, further depleting cash reserves that risk running out this month unless a deal is reached with European partners. Greece made the payment as scheduled, government spokesman Gabriel Sakellaridis said by telephone. The country was due to pay back about 584 million euros ($615 million). The nation’s central bank also said Monday that its primary budget surplus narrowed to 503 million euros in the first two months of the year, less than a third of the amount in the year-earlier period. As other repayments come due this week, the Greek government said March 14 that it had a plan to “enhance its liquidity” and won’t have problems paying wages or pensions. Locked out of capital markets, Prime Minister Alexis Tsipras’s government is eating into cash reserves while trying to get the euro region to release more funds from its 240 billion-euro bailout program. He’ll join European leaders in Brussels on Thursday after tensions between Greece and Germany escalated last week.

Germans Tired of Greek Demands Want Country to Exit Euro - (www.bloomberg.com)  Berlin cabdriver Jens Mueller says he’s had it with the Greek government and he doesn’t want Germany to send any more of his tax money to be squandered in Athens. “They’ve got a lot of hubris and arrogance, being in the situation they’re in and making all these demands,” said Mueller, 49, waiting for fares near the Brandenburg Gate. “Maybe it’s better for Greece to just leave the euro.” Mueller’s sentiment is shared by a majority of Germans. A poll published March 13 by public broadcaster ZDF found 52 percent of his countrymen no longer want Greece to remain in Europe’s common currency, up from 41 percent last month. The shift is due to a view held by 80 percent of Germans that Greece’s government “isn’t behaving seriously toward its European partners.”

[Bloomberg] Petrobras Scandal Widening as Braskem Named in Morass  - (www.bloomberg.com)  The staggering reach of Petroleo Brasileiro SA’s corruption scandal is getting even bigger. Braskem SA, Latin America’s biggest petrochemicals maker by sales, became the latest company implicated in testimony alleging it paid bribes to the state-controlled oil producer in return for contracts. While Braskem denied the accusations, its $750 million of bonds due 2024 plummeted 7.9 percent last week, the most among high-grade emerging-market debt. The allegations against Braskem underscore how pervasive the alleged kickbacks were in Brazil, where more than a million people took to the streets over the weekend to protest corruption. The federal investigation has already embroiled the nation’s biggest builders and rig makers while fueling losses in the bonds of banks, the government and even a state pension fund.

OTHER STORIES:

Taper tantrum' Part II hitting the bond market - (www.cnbc.com)

Most Emerging Stocks Fall on Oil Decline; Chinese Shares Rally - (www.bloomberg.com)
Oil Is Getting Slammed Again, and Falling to its Lowest Level in Years - (www.bloomberg.com)
Brazil January Economy Surprises Analysts With Second Drop - (www.bloomberg.com)

Greek PM Tsipras says there is no going back to austerity - (www.reuters.com)
U.S. Officials Not Too Worried By Dollar Surging While Central Banks Split on Policy - (www.bloomberg.com)
China Graft Probe Snares Another Developer After Kaisa - (www.bloomberg.com)
In China, trust firms shift, rather than reduce, shadow banking risk - (www.reuters.com)
Budget Culprit France Splits Analysts as EU Raises Pressure - (www.bloomberg.com)
Top investment groups shock-test bond portfolios - (www.ft.com)