Thursday December 5 Housing and Economic stories

TOP STORIES:

Judge dismisses CalPERS appeal of San Bernardino bankruptcy - (www.sbsun.com) U.S. Bankruptcy Judge Meredith Jury on Friday dismissed CalPERS’ request that she certify the pension giant’s direct appeal to the 9th U.S. Circuit Court of Appeals, a decision that San Bernardino officials have said will save the city time and money in its already sprawling fight with CalPERS. The California Public Employees’ Retirement System was seeking for a second time to appeal Jury’s decision that the city is eligible for bankruptcy protection. In an order that runs just over one page, Jury said CalPERS’ plan would have been a poor use of court resources, too. “The procedure asserted by CalPERS, in the Court’s view, is duplicative and not an efficient use of judicial resources,” she wrote. “... If this court had granted certification, CalPERS has proposed to also file a Motion for Leave in the 9th Circuit. This duplication is inefficient and possibly may lead to inconsistent results.”

French officials warn of social tinderbox as economy contracts again - (www.telegraph.co.uk)   France’s economy has buckled once again amid official warnings of an explosive political mood across the nation that threatens to spin out of control.

French output fell by 0.1pc in the third quarter and Italy remained trapped in recession, dashing hopes of a sustained recovery in Europe. “It is no longer a question of whether the eurozone can achieve ‘escape velocity’, but whether it can grow at all,” said sovereign bond strategist Nicholas Spiro. The latest data show a continued erosion of France’s industrial base and export share. It risks shattering the credibility of President François Hollande, who has been talking up recovery for months. A YouGov poll showed his approval ratings have dropped to 15pc, the lowest recorded for a French leader in modern times. While the risk of a eurozone bond crisis has greatly receded since the European Central Bank agreed to act as a lender of last resort in July 2012, this has been replaced by slow economic attrition. It resembles the mid-1930s slump under the Gold Standard and is fuelling political crises in a string of countries. Le Figaro said loss of confidence in the French government is turning dangerous, citing a confidential report based on surveys by "prefects" in each of the 101 departments. “All across the country, the prefects described the same picture of a society that is angry, exasperated and on edge. A mix of latent discontent and resignation is being expressed through sudden eruptions of fury, almost spontaneously,” said the document. The report warned that people were no longer venting their feelings within normal social structures. Increasing numbers are questioning the “legitimacy” of taxes.

Spain Bank Bad Loan Ratio Climbed to 12.7% in September - (www.bloomberg.com) Defaults as a proportion of total lending at Spanish banks increased to a record in September as more borrowers missed loan payments in an economy with unemployment at 26 percent. Non-performing loans accounted for 12.7 percent of lending in September compared with 12.1 percent in August and 10.7 percent in the same month a year earlier, the Bank of Spain said on its website today. The stock of bad loans rose to 187.8 billion euros ($253.8 billion) during the month as 6.9 billion euros in loans were classified as in default. Rising bad debts show that Spain’s banks, which have come under pressure from regulators this year to ensure that their bad loans are properly classified, still face challenges in controlling their asset quality even as the economy starts to crawl out of a five-year slump. The International Monetary Fund is predicting unemployment in Spain will not fall below 25 percent until 2018.

Caught in unemployment's revolving door  - (www.cnbc.com) On a cold October morning, just after the federal government shutdown came to an end, Jenner Barrington-Ward headed into court in Boston to declare bankruptcy. It took weeks to put the paperwork together, given that her papers and belongings were scattered across the country — there was a broken-down car and boxes of paperwork in Virginia Beach, clothes in Colorado and personal possessions at a friend's house in Somerville, Mass. She managed to estimate her income — maybe $5,000 last year, but maybe half that this year — from odd jobs. Soon, she would officially have nothing. It has been a painful slide. A five-year spell of unemployment has slowly scrubbed away nearly every vestige of Ms. Barrington-Ward's middle-class life. She is a 53-year-old college graduate who worked steadily for three decades. She is now broke and homeless.

Pressure for action grows along with piles of trash on Madrid streets - (www.cnn.com) A Madrid street cleaners strike that has left trash piling up for two weeks appears headed for a pivotal point on Saturday, when city hall aims to enforce minimum trash pickup services by using national -- not municipal -- workers, city and union representatives said. Pressure has been building on Mayor Ana Botella from hotel and shop owners, who have been outspoken in saying the strike is hurting the city's image and their businesses, and from neighborhood associations who complain that trash and broken glass are littering the streets. About the only respite for the Spanish capital has been that workers who pick up garbage from homes and restaurants are not on strike. But the street cleaners are very much on strike, so that trash receptacles on the street are overflowing, especially the large bins for glass and paper recycling. And the autumn leaves aren't being swept up either. Peruvian businessman Jack Falcon was visiting the emblematic Plaza Mayor this week and told CNN, "It's impossible not to notice it. It's very sad. The city looks absolutely dirty."

OTHER STORIES:

Japan's Banks Find It Hard to Lend Easy Money - (online.wsj.com)
China Home Prices Jump as Guangzhou, Shenzhen Lead Advances - (www.bloomberg.com)

Euro zone rebound weaker than hoped: ECB's Nowotny - (www.reuters.com)
Xi’s China Reform Plan Sets Scene for Local Clampdown - (www.bloomberg.com)

Pressure Builds to Finish Volcker Rule on Wall St. Oversight - (online.wsj.com)
JPMorgan Chase to pay $4.5 billion in mortgage security deal - (www.reuters.com)

Senate inches toward Fannie, Freddie reform but deal elusive - (www.reuters.com)
NSA Fallout: Tech Firms Feel a Chill Inside China - (online.wsj.com)

Moody’s Lowers Ratings of Four U.S. Banks After Review - (www.bloomberg.com)