Monday January 9 2016 Housing and Economic stories

TOP STORIES:

Macy's to close 68 stores, lay off more than 10,000 after disappointing sales - (www.nydailynews.com) Macy’s says it is eliminating more than 10,000 jobs and plans to move forward with 68 store closures after a disappointing holiday shopping season. The department store chain also lowered its full-year earnings forecast. The retailer said Wednesday that sales at its established stores fell 2.1% in November and December compared to the same period last year. Macy’ s Inc. pointed to changing consumer behavior and said its performance reflects the challenges that are facing much of the retail industry. As if to underscore that point, Kohl’s Corp. also reported disappointing holiday shopping numbers Wednesday. Macy’s said the 68 store closures, which span the nation, are part of the 100 closings it announced in August.

Power & Profit Fuel War on Cash in Europe - (www.wolfstreet.com) In the wake of the attack on the Christmas market in Berlin in December, the European Commission granted customs and police authorities sweeping new powers to seize cash or precious metals carried by “suspect individuals” entering the EU. People carrying more than €10,000 euros in cash already have to declare this at customs when entering the EU. The new rules would allow authorities to seize money (or precious metals or bitcoin) below that threshold “where there are suspicions of criminal activity.” It was the latest step in the War on Cash. The powers that want to kill off cash include private and central banks, fintech firms, Silicon Valley magnates like Tim Cook and Bill Gates, telecom behemoths, credit card giants, assorted NGOs, a bewildering alphabet soup of UN agencies and many national governments. They all have their own disparate motives for taking out physical money. They already have vital technological and generational trends firmly on their side, as well as the the added bonus of widespread public ignorance, apathy, and disinterest. 

Masses Shocked By Philly Beverage Tax Impact -(www.zerohedge.com) Check out this receipt and you realize why the country just elected Donald Trump. Liberal Democrat scumbag mayor Jim Kenney and his entirely Democrat city council thought it was a brilliant idea to ram a beverage tax down the throats of Philadelphians last year. They were doing it for the chilruns. It’s always for the chilrun. The ignorant masses bought the load of bullshit because they don’t understand maff. They understand it now. The tax went into effect on January 1 and the sticker shock is infuriating the ignorant masses. This receipt for a 10 pack of flavored water shows a 51% beverage tax. It gets even better. PA has a sales tax of 6%. Philly already charges another 2% (for the chilruns) to make the sales tax 8%. These bastards now charge the 8% on the original price plus the beverage tax. Last week this purchase came to $6.47. Today it is $9.75.

Sears seeks to stem bleeding: Closes 150 more stores, sells Craftsman brand - (www.usatoday.com) Department-store chain Sears Holdings is seeking to stem its bleeding by closing another 150 stores, including 108 Kmart locations, and selling its Craftsman brand to raise cash. The ailing retailer said Thursday that it had reached a deal to sell the tools brand to Stanley Black & Decker for a net present value of about $900 million, including future royalty payments. The move came several months after Sears put the Craftsman, Kenmore and DieHard brands up for sale as it seeks an elusive turnaround. The company said late Tuesday that it would close 108 Kmart stores and 42 Sears stores, calling it "a difficult but necessary step as we take actions to strengthen the company’s operations and fund its transformation."

Macy's, Kohl's Crash After Reporting Abysmal Holiday Sales; Cut Guidance; Announce Mass Layoffs, Store Closures - (www.zerohedge.com) Remember when market cheerleaders said that holiday sales were expected to be far stronger than usual, if only as a result of the newly-discovered optimism from the Trump election? Well, at least when it comes to conventional retailers like Kohl's and Macy's... not so much. First, it was Kohl’s, which announced it was slashing its full year forecast, and now sees FY2017 adjusted EPS of $3.60-$3.65, down from $3.80-$4.00 less than two months ago, in the day after the election (ronically). It wasn't just the future: the company revealed that comp sales were also down 2.1% y/y in fiscal months November and December combined. As Kohl's CEO Kevin Mansell said, “sales were volatile throughout the holiday season. Strong sales on Black Friday and during the week before Christmas were offset by softness in early November and December." But an even greater surprise was revealed moments later by retail belwether Macy's, which not only reported a drop in same store sales, not only slashed guidance, but also announced it would close 68 stores and lay off over 10,000 workers.

OTHER STORIES:

GM December U.S. sales up 8 percent, sees record for industry in 2017 - (www.reuters.com)
U.S. 2016 auto sales set new record at 17.465 mln - WardsAuto - (www.reuters.com)
Trump's SEC pick Clayton points to capital formation, not enforcement - (www.reuters.com)
China Sets Sights on Another Skeptic-Defying Year - (www.bloomberg.com)

Fed Sees Faster Economic Growth Under Trump, but Not a Boom - (www.nytimes.com)
Wall Street debt issuance off to a record start in 2017 - (www.ft.com)
Envisioning a Fannie and Freddie Endgame - (www.wsj.com)