Thursday April 14 2016 Housing and Economic stories

TOP STORIES:

Financial turmoil at SunEdison imperils solar projects worldwide - (www.reuters.com) In November, solar energy giant SunEdison Inc. reported that its project pipeline had grown by 75 percent in just a year, the result of an aggressive growth strategy. Now, five months later, many of those projects are imperiled as SunEdison reportedly prepares to declare bankruptcy. SunEdison’s rapid growth in planned capacity - from 4.5 gigawatts to 7.9 GW in 12 months, according to a company press release - was propelled by an acquisition spree and aggressive underbidding of rivals on projects. Put in perspective, a typical nuclear power plant has a capacity of 1 GW. Among the deals now in question is a solar plant under construction for the central Texas community of Georgetown. SunEdison initially told officials there it would self-finance the project, but now wants to make alternative funding arrangements. At SunEdison’s request, the city last month authorized financing through Morgan Stanley, but the financial services firm has yet to agree to the arrangement.

BP CEO Gets Huge Raise, after Record Loss, 5,000+ Layoffs - (www.wolfstreet.com)  BP is facing a revolt from its shareholders over the salary of its CEO Bob Dudley. Dudley’s salary jumped 20 percent in 2015 to $19.6 million, the same year in which BP reported a record loss of $6.4 billion and laid off more than 5,000 workers. His rising salary has been met with opposition from shareholders because it is not only unseemly, but also because the raise is not connected to the company’s negative performance. “We consider the pay of the CEO to be simply too high, and particularly so in a year when the company suffered a record loss of $6.4 billion in 2015. Even so his pay went up by 20 percent,” wrote shareholder advisory group ShareSoc, pressings its members to vote against the company’s proposed salaries.

Manhattan's Real Estate Woes Get Worse: No Demand In Building Where Ackman Splurged $90 Million - (www.zerohedge.com) Luxury real estate developer Extell Development Co can’t sell luxury condos at what may be New York's premier ultra-luxury destination, theOne57 tower, which it is attributing it to the fact that there is an abundant supply of condos already on the market. As a reminder, One57 is where Bill Ackman paid $91.5 million in April 2015 for a condo (which he hoped to flip), just a few months before Valeant, and his fund, suffered staggering losses. Perhaps that should have been the tell.

French bank chief 'more worried about sector now than in 2009' - (www.reuters.com) The chairman of France's second-biggest retail bank is more worried about Europe's banking sector now, in some ways, than when he took the reins at BPCE bank during the depths of the global financial crisis in 2009. Francois Perol said on the sidelines of an economic conference in Italy on Saturday that negative interest rates in the euro zone were a major problem, squeezing interest margins in a way that was unsustainable over the longer term. "I am much more worried than I was in 2009 in certain respects," Perol said outside the closed-door conference, held on the shores of Lake Como. "It was 100 percent clear what had to be done (in 2009)," he added. "I think it's more of a difficult situation for banks (now) because fundamental changes are underway in an environment that's incredibly challenging due to negative interest rates."

Puerto Rico governor declares emergency at Government Development Bank  - (www.reuters.com) Puerto Rico's Governor Alejandro Garcia Padilla declared an emergency at the island's Government Development Bank (GDB) on Saturday, suspending its lending power and freezing most withdrawals as the bank struggles to avoid default on a crucial May 1 debt payment. The announcement followed Garcia Padilla signing a law this week authorizing him to take steps to avoid receivership at the GDB, the U.S. territory's primary fiscal agent, and prevent a run on the bank. Puerto Rico faces $70 billion in total debt, a 45 percent poverty rate and a shrinking population. Garcia Padilla has said the GDB cannot afford the looming payment. While the island has defaulted on small debt payments in the past, a default at GDB would be the most serious yet.

OTHER STORIES:

ECB's Mersch Warns of Diminishing Returns in Central Bank Action - (www.bloomberg.com)
Mario Bothers: Germany Takes Aim at the European Central Bank - (www.spiegel.de)
Germany’s Schäuble: Time is Near to End Central Banks’ Easy-Money Policies - (online.wsj.com)
Germany denies would mull legal action if ECB opts for 'helicopter money' - (www.reuters.com)
China State Researcher Sees Downside Risks in Property Sales - (www.bloomberg.com)

Britain's Cameron says he mishandled Panama Papers tax scrutiny - (www.reuters.com)
Italian banks' situation 'difficult but manageable': minister - (www.reuters.com)
ECB's policy must be 'proportionate' and respect rules: Mersch - (www.reuters.com)
Germany's Schaeuble says offshore companies must be transparent - (www.reuters.com)