Monday, May 27, 2013

Tuesday May 28 Housing and Economic stories


TOP STORIES:

75-Year-Old Soybean Planter Loses Against Monsanto In Supreme Court - (www.businessinsider.comThe US Supreme Court ruled in favor of Monsanto Monday over an Indiana farmer accused of having pirated the genetically-modified crops developed by the agribusiness giant. The high court was unanimous in its decision, ruling that laws limiting patents do "not permit a farmer to reproduce patented seeds through planting and harvesting without the patent holder's permission." The crux of the argument was over "patent exhaustion" which states that, after a patented item has been sold, the purchaser has "'the right to use (or) sell' the thing as he sees fit." But the court's 10-page opinion says patent exhaustion only applies to the actual item sold -- in this case the seed itself -- and still prevents anyone from making, using and selling copies of the item. The ruling gave Monsanto shares a bounce after falling more than one percent in opening trade Monday. At 10:20 (1420 GMT) they were at $107.59, down 0.5 percent.

ECB's Visco: Deposit Rates Could Go Below Zero - (www.cnbc.com) European Central Bank governing council member Ignazio Visco told CNBC that the central bank is "technically prepared" to introduce negative deposit rates which would see banks effectively having to pay the ECB to hold deposits, but was aware of the potential "unintended consequences" of such a move. Visco, an Italian economist and the current governor of the Bank of Italy, said that the bank was "technically prepared to go in that direction" but the decision depended on whether the economy needed further help. "We all agreed in the council that we have to look with care and in that case we may reduce the [deposit] rate. We think that - and I personally think that, this is effective – the economy now is capable of taking it on board. Technically, we are equipped and ready to intervene. There may be unintended consequences - we know we may have to work on that - and we know how to work on that," Visco told CNBC on the sidelines of the Group of Seven (G7) meeting in London this weekend.

Schäuble warns EU bank rescue agency needs treaty changes - (www.ft.com) Germany’s finance minister has warned that a single EU bailout agency and rescue fund for ailing banks is legally untenable until the bloc’s treaties have been overhauled. In today’s Financial Times, Wolfgang Schäuble calls for a “two-step approach” that would leave bank rescues in the hands of “a network of” national authorities until treaty changes can take place. Mr Schäuble’s declaration comes just weeks before the European Commission is due to present its plan for a single bank resolution agency and rescue fund – widely touted as the second pillar in the eurozone’s much-vaunted “banking union” – throwing the proposal into doubt even before it is unveiled.

Another Automaker With A Federal Loan Blames Its Failure On The Fisker Fiasco - (www.businessinsider.com
The ex-CEO of a now-defunct automaker that received a federal loan said his company would still be in business if the government were not afraid of backlash like that following the failure of electric automaker Fisker. The automaker, Vehicle Production Group (aka VPG Autos), produced the MV-1, a six-passenger, wheelchair-accessible van than can run on gasoline or environmentally-friendly compressed natural gas. It raised $400 million in private equity, and received $50 million under the Department of Energy's Advanced Technologies Vehicles Manufacturing Loan Program (ATVM) — the same program that gave loans to Fisker, Tesla, Ford, and Nissan. Under the terms of its loan, VPG was required to keep a certain amount of cash on hand. When it fell below that level, the DOE froze its assets on February 29. VPG was forced to cease operations, and laid off all but three of its 100 employees, including former CEO John Walsh.

Spain Home Expropriation Plans Seen Violating EU Bailout - (www.bloomberg.com) Spanish politicians trying to cushion the blows of austerity plan to seize foreclosed homes to house the needy, discouraging foreign investment and threatening to violate terms of the European bailout of the country’s banks. The regional governments of Andalusia, with the most vacant properties in the country, and the tourist destination of the Canary Islands, are planning to expropriate foreclosed properties for as long as three years to house displaced families. The European Commission has asked Prime Minister Mariano Rajoy’s government for details on the regions’ actions, to ensure they don’t clash with the country’s commitments. “It’s third world, populist and akin to policies more commonly seen in Bolivia and North Korea,” said Mikel Echavarren, chief executive officer of Irea, a Madrid-based restructuring firm that has advised on 22 billion euros ($28.6 billion) of refinancing. “Investors fear it will set a precedent and other regions will follow suit, making Spanish real estate investment an extremely high-risk activity.”





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