Sunday, January 12, 2014

Monday January 13 Housing and Economic stories

TOP STORIES:

US mortgage applications tumble to a 13-year low - (www.seattletimes.com) The number of Americans applying for mortgages has fallen 63 percent since a May peak, reflecting a cooling housing market and higher borrowing rates. The Mortgage Bankers Association says applications fell a seasonally adjusted 6.3 percent last week from a week earlier. Applications are now at a 13-year low. The drop-off follows a 1 percentage point increase in mortgage rates from historic lows last spring. The average for a 30-year mortgage is 4.47 percent, according to mortgage buyer Freddie Mac. Home sales stalled and began to fall once rates steadily increased after May. That ended a year and a half of rising mortgage applications since the housing bust.

Western Iraq on brink of rebellion against Shia regime - (www.ft.com)   Iraq’s smouldering civil tensions have been in danger of reigniting into full-blown conflict for months, stoked by perceptions that Mr Maliki has a sectarian agenda favouring the Shia majority, as well as by jihadists entering Iraq over the Syrian border. The latest escalation of violence in Anbar province – a centre of resistance during the US-led invasion in 2003 and subsequent occupation – has alarmed international observers. Iraq’s vast energy reserves have piqued the interest of international businesses while its strategic location has made it a battleground for influence between Iran, Turkey and Saudi Arabia.

Latvia joins euro, but controversy rages on - (www.telegraph.co.uk) Baltic nation to join the euro on New Year's Day against the wishes of its own people, five years after its economy crashed in flames. The tiny Baltic nation of Latvia is to join the euro on New Year's Day against the wishes of its own people, becoming the eighteenth and poorest member of monetary union five years after its economy crashed in flames. The country has endured a 1930s-style depression and a drastic experiment in EU shock therapy with stoicism, abiding strictly to the terms of an EU-IMF bail-out. It has exported its way back to balance and defied critics by defending its euro-peg through thick and thin, yet the feat comes at a high social cost. Euro accession has been greeted glumly by most of Latvia's 2m people, worn down by lay-offs and 28pc pay cuts for teachers, nurses, and police. A mass exodus of youth has served as an escape valve, leaving an older society behind. Latvia's population has shrunk by 7pc since 2007.

Boeing tells state leaders 777X wing plant is at risk - (www.chicagotribune.com)   Boeing Co will not build the wing for its new 777X jetliner in Washington state if members of its largest union reject its latest contract offer in a Friday vote, company executives told Seattle-area elected officials on Monday. But the company did not rule out locating final assembly of the plane or construction of its fuselage in the Puget Sound area if members of the 31,000-strong International Association of Machinists and Aerospace Workers District Lodge 751 turn down the proposal, three officials at the meeting said. "They made it very clear that if there is a 'no' vote on the contract, they will not build the composite wing here," said Suzette Cooke, mayor of Kent, Washington. "It left the other parts of the plane in question."  The location of the final assembly and wing fabrication is in question because union members rejected Boeing's contract offer, prompting Boeing to look for other locations around the country, and prompting 22 bids from rival states.

NYC sues FedEx for illegally shipping cigarettes - (www.chicagotribune.com)   New York City has sued FedEx Corp, accusing it of illegally delivering millions of contraband cigarettes to people's homes and seeking $52 million in fines and unpaid taxes. The lawsuit, filed in U.S. District Court in Manhattan, marks one of the last acts by the administration of Mayor Michael Bloomberg, whose more than decade-old campaign to ban smoking in various public and private places has been credited with saving thousands of lives and become a blueprint for other cities. According to the city, package delivery company FedEx created a "public nuisance" through its partnership with Shinnecock Smoke Shop, located on the Shinnecock Indian Nation reservation in Southampton, New York, to ship untaxed cigarettes to residential homes. FedEx allegedly did so despite, and even while negotiating, a February 2006 agreement with New York State's then attorney general, Eliot Spitzer, to stop such deliveries in the state, an agreement later expanded to cover deliveries throughout the country. The city said FedEx delivered about 19.5 tons, or 55,000 cartons, of cigarettes to city residents in 9,900 shipments from 2005 to 2012 and deprived it of a $15 excise tax on each carton. A typical carton has 200 cigarettes.




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