Sunday, April 6, 2014

Monday April 7 Housing and Economic stories


Bloomberg hints at curb on articles about China NYT  - (www.cnbc.com) The chairman of Bloomberg said in a speech on Thursday that the company should have reconsidered articles that deviated from its core of coverage of business news, because they jeopardized the huge sales potential for its products in the Chinese market. The comments by the chairman, Peter T. Grauer, represented the starkest acknowledgment yet by a senior Bloomberg executive that the ambitions of the news division should be assessed in the context of the business operation, which provides the bulk of the company's revenue. They also signaled which of those considerations might get priority. Acknowledging the vast size of the Chinese economy, the world's second-biggest after that of the United States, Mr. Grauer, said, "We have to be there."

Fresh worries over China prompt slew of downgrades - (www.cnbc.com) The rapid deterioration in China's economic momentum has put focus squarely on the world's number-two economy, with several banks sharply cutting their gross domestic product (GDP) forecasts.  Bank of America Merrill Lynch (BofAML), Barclays and Nomura lowered their growth projections for the mainland economy late Thursday, following a spate of disappointing economic data for the January-February period. BofAML's downgrade was among the most aggressive; it cut its first quarter GDP growth forecast to 7.3 percent from 8.0 percent, and its annual growth forecast to 7.2 percent from 7.6 percent. Nomura revised down its first quarter growth forecast to 7.3 percent from 7.5 percent, noting that it sees downside risks to its full-year forecast of 7.4 percent. "Given weaker-than-expected economic activity in January-February, we need to lower our GDP growth forecast for the first quarter, although we maintain our view on the trajectory growth: slowing in the first-half to a bottom in the second quarter at 7.1 percent and rebounding in the second half to 7.5 percent as we think policy will likely loosen significantly in the second quarter," Zhiwei Zhang, chief economist at Nomura wrote in a note.

Homebuilder Confidence Misses Expectations Again, Plunges To 10-Month Lows - (www.zerohedge.com) Despite last month's epic collapse in the NAHB Confidence index, the 'recovery' bounce this month missed expectations significantly making the 6th miss in the last 7 months (we assume that means its been winter-stormy for the last 7 months). Holding at levels seen in May 2013, future sales expectations dropped once again to 10 month lows as hope fades (or they expect more bad weather). The West (crushed by warm dry pleasant weather) continues to plummet but the NorthEast dropped to levekls not seen since Auguest 2012.

Blood and Stones: "landlords really cant extract much more rent"  - (www.businessweek.com) Federal Reserve efforts to nurture a more robust rate of inflation this year are likely to fall short. The reason: the biggest gains in rents are probably over. The costs to lease residential real estate, the second-biggest component of the price measure tracked by U.S. central bankers, helped put a floor under inflation over the past two years as most other components decelerated. Now, with builders cranking out a record number of multifamily buildings and the job market still far from tight, the outlook for rents is the bleakest it’s been in four years. “Because the economy is still not in the strongest position and certainly the labor market is not in the strongest position, landlords really can’t extract much more in the way of rent growth,” said Ryan Severino, a senior economist at real-estate data provider Reis Inc. in New York. Also, rents are already high, which makes more increases difficult, he said.

Chance to get in on money-destroying housing action again - (www.huffingtonpost.com)  If you missed out on the housing bubble and the chance to gamble away your financial future, fear not: Banks are giving you a chance to get in on that kind of money-destroying action again. Remember adjustable-rate mortgages, which helped pump up the U.S. housing bubble that led to the financial crisis? Well, those things are back, The Wall Street Journal reported on Monday. To help juice their profits, banks have recently been writing many more ARMs and their slightly more-evil cousins, interest-only ARMS -- which allow borrowers to pay only interest for a certain period, leading to more debt and higher payments in the future -- according to the WSJ. "The tactics are reminiscent of the period before the 2008 crisis, when ARMs exploded in popularity as banks and mortgage brokers touted their low initial rates to consumers," wrote AnnaMaria Andriotis and Shayndi Raice.






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