Wednesday, July 3, 2013

Thursday July 4 Housing and Economic stories


Unrest spreads across Istanbul - (www.ft.com) The crackdown on the protests that have rocked Turkey intensified on Sunday, as police battled with demonstrators in central Istanbul and beyond, and prime minister Recep Tayyip Erdogan vowed at a vast rally of his own supporters to settle accounts with those responsible. During the day, Turkish police chased protesters into a shopping mall, stormed one five-star hotel and tear-gassed another as Mr Erdogan’s government sought to stop a protest in Istanbul’s main square while staging its own show of force in the city. For 24 hours after police used tear gas and water cannon to flush protesters from Gezi Park, the symbolic heart of the demonstrations against the Turkish prime minister, police were still confronting protesters in multiple locations around the city late on Sunday afternoon.

Spain's Rajoy calls on ECB to create bank lending scheme for smaller  - (www.reuters.com) Spanish Prime Minister Mariano Rajoy on Saturday called on the European Central Bank to create a cheap funding scheme for small businesses, mirroring those used by authorities outside the euro zone to try and get credit flowing via banks. Rajoy, who has previously urged the ECB to change its collateral rules to help smaller companies access financing at better conditions, said the ECB could emulate plans such as a Bank of England scheme. The British central bank launched a 'Funding for Lending' scheme in mid-2012 aimed at encouraging banks to give credit by providing them with cheap financing. "I would like the ECB to act like other central banks, to do as the Bank of England has done - giving cheap loans to financial entities so that these financial entities can lend at cheaper rates to small and medium-sized companies," Rajoy said at an event in Tarragona, northern Spain.

Chrysler to freeze salaried employees’ pensions in effort to limit liability - (www.washingtonpost.com) Chrysler plans to freeze pensions for 8,000 salaried employees at the end of the year, the automaker announced Friday, joining a growing group of companies seeking to limit the amount of money they have to set aside now for future retirees. The move means that salaried workers in the company’s pension plan, which pays retirees a fixed benefit for life, will stop accruing new benefits at the end of 2013. They remain entitled to the pension benefits they have earned so far, but instead of adding to the guaranteed payments they will receive at retirement, the workers will be offered 401(k) accounts, which shift the risk of saving for retirement from employers to employees. Chrysler's decision comes after a similar one by General Motors, which last year froze pensions for 26,000 salaried workers in the United States, moving them to 401(k) plans.

All-cash buyers cut swath through Napa housing market - (www.napavalleyregister.com) The number of Napa homes purchased with all cash reached almost 40 percent in 2012, the result of high investor interest, a difficult mortgage environment and perceived higher returns on investment, a real estate information service reported. In 2011, 354 Napa County properties were bought with all cash. In 2012 that number reached 490, San Diego-based DataQuick reported earlier this year. That’s a 38.4 percent increase. Halfway through 2013, those involved with the local real estate industry report that all-cash offers are still common but aren’t always required to make a successful offer. Many buyers think “cash is king,” but according to Randy Gularte of Heritage Sotheby’s International Realty, that’s not always the case. He’s seen a slight decrease in all-cash buyers over the past six months, from an estimated 35 percent to about 25 percent. When dealing with homes priced at around $800,000 and below, “I’m seeing less cash buyers,” Gularte said.

Hedge Funds Cut Gold Bets as Paulson’s Loss Widens: Commodities - (www.bloomberg.com) Hedge funds cut wagers on a gold rally for the first time in three weeks on mounting speculation central banks will curb record stimulus and as this year’s slump in bullion spurred losses for billionaire John Paulson. The funds and other large speculators lowered their net-long position by 4.1 percent to 54,779futures and options by June 11, U.S. Commodity Futures Trading Commission data show. Net-bullish wagers across 18 U.S.-traded commodities rose 0.1 percent. Bearish copper bets more than doubled as the metal had its longest slump since November. Cocoa holdings advanced to the highest since 2008 before the biggest weekly slide since January. The Bank of Japan left a lending program unchanged on June 11 and refrained from expanding its toolkit for tackling volatility in bonds. Federal Reserve policy makers meeting this week may discuss slowing $85 billion of monthly debt purchases amid signs of a sustained economic recovery. Gold surged 70 percent as the Fed bought $2.3 trillion of debt from December 2008 through June 2011. Paulson’s Gold Fund tumbled 13 percent in May, extending this year’s loss to 54 percent.






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