Thursday August 11 Housing and Economic stories

KeNosHousingPortal.blogspot.com

TOP STORIES:

Apple Now Has More Cash Than The U.S. Government - (www.businessinsider.com) Here's something to keep in mind as you follow this evening's congressional debate over the debt ceiling. According to the latest daily statement from the U.S. Treasury, the government had an operating cash balance of $73.8 billion at the end of the day yesterday. Apple's last earnings report (PDF here) showed that the company had $76.2 billion in cash and marketable securities at the end of June. In other words, the world's largest tech company has more cash than the world's largest sovereign government. That's because Apple collects more money than it spends, while the U.S. government does not.

Container-Vessel Rates Plunge, Signaling Slowdown in U.S.: Freight Markets - (www.bloomberg.com) Plunging rates for chartering container vessels that carry sneakers, furniture and flat-screen TVs may signal a U.S. consumer slowdown and losses for shipping lines in what is traditionally their busiest time of the year. Fees for hiring vessels have fallen 9.3 percent since the end of April, according to the Howe Robinson Container Index, which tracks charter rates for a range of vessels. Last year, the index surged 56 percent in the period, as lines added ships on demand from U.S. and European retailers restocking for the back-to-school and holiday shopping periods. “The troubling part is that charter rates are falling in the peak season,” said Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong. “Sentiment among consumers and retailers isn’t very strong.”

Corporate Tax Hikes Are Driving Businesses Out Of Illinois - (www.businessinsider.com) After more than 150 years, CME Group, Inc., the world's biggest futures exchange company, is threatening to leave Chicago as a result of the state's huge corporate tax hike."Our tax situation is untenable," CME CEO Craig Donohue told Reuters, adding that the company is taxed more than any of its competitors. CME is now talking to Texas, Florida, and Tennessee about moving their headquarters there. As the Chicago Tribune points out, CME's financial woes aren't limited to state taxes — the company's shares have gone down 25% since the financial crisis, underperforming the market, as well as its competitors. But CME is not the only major company threatening to leave the state since Illinois raised corporate taxes by 45% this year. Sears, another longtime corporate powerhouse in the Chicago area, is also considering relocation. In May, the state doled out more than $100 million in incentives to keep Motorola in the state.

U.S. Contingency Plan Gives Bondholders Priority - (www.bloomberg.com) The U.S. Treasury will give priority to making interest payments to holders of government bonds when due if lawmakers fail to reach an agreement to raise the debt ceiling, according to an administration official. The official requested anonymity because no announcement has been made. The Treasury has said about $90 billion in debt matures on Aug. 4 and more than $30 billion in interest comes due Aug. 15. Overall, more than $500 billion matures in August. The $90 billion in six-month Treasury bills maturing Aug. 4 pared losses after the comments. Obama administration officials will brief the public no earlier than after financial markets close tomorrow on priorities for paying the nation’s bills if the $14.3 trillion limit isn’t raised, a Democratic Party official said earlier.

Goldman Sachs Traders Quitting The Bank In Droves - (www.businessinsider.com) "More than a dozen traders have quit Goldman Sachs... North American government bonds and derivatives trading desk in New York in recent months as the bank takes fewer risks and big bonuses for ambitious traders dry up," Lauren Tara LaCapra reports at Reuters. Apparently while salespeople have been rewarded with better compensation -- as well as promotions -- traders have largely been ignored as Goldman moves to focus on client trading. "[T]raders who left Goldman's rates desk complained they were hamstrung by aggressive risk managers who limited position sizes and second-guessed trades," Reuters reported. "They also said they were being asked to take on more responsibilities with less pay as Goldman tries to cut costs."

OTHER STORIES:

S&P Sees Greek Default on European Plan Implementation, Cuts Credit Rating - (www.bloomberg.com)

Reid to Move on Defeating House Debt Plan Tonight - (www.bloomberg.com)

Lacker Says More Fed Stimulus Would Increase Inflation Rather Than Growth - (www.bloomberg.com)

Toyota Sees No U.S. Rebound Until September - (www.bloomberg.com)

Sony Cuts Full Year Profit, Sales Forecasts - (www.bloomberg.com)

VW Says Higher Costs to Dampen Profit - (www.bloomberg.com)

The Army Is Buying New Offroad Vehicles That Can Do 110 MPH And Carry A Full Weapons System - (www.businessinsider.com)