Monday, April 21, 2014

Tuesday April 22 Housing and Economic stories


Anti-austerity leftist promoted in French cabinet reshuffle - (www.reuters.com) A fierce critic of budget austerity was named French economy minister on Wednesday in a reshuffled government packed with strident personalities, including President Francois Hollande's former live-in partner Segolene Royal. Hollande has charged the new cabinet with halting France's economic decline after 22 months in power during which his poll ratings have collapsed to record lows, leading to the trouncing of his Socialists in weekend local elections. While his first government was accused of blandness, this cabinet includes a powerful role for leftist Arnaud Montebourg, known for attacks on big business and the European Commission, who rises from industry minister to take charge of an enlarged economy ministry.

China’s Overnight Rate in Longest Rising Streak Since October - (www.bloomberg.com) China’s overnight money-market rate climbed for a seventh day, the longest stretch in five months, after the central bank drained cash from the financial system. The overnight repurchase rate, a gauge of funding availability among banks, climbed nine basis points, or 0.09 percentage point, to 2.95 percent as of 4:46 p.m. in Shanghai, according to a weighted average from the National Interbank Funding Center. It touched 2.96 percent earlier, the highest since March 20. The seven-day repo rate fell one basis point to 4.20 percent. The People’s Bank of China absorbed 72 billion yuan ($11.6 billion) issuing repurchase agreements yesterday, having pulled a net 974 billion yuan since the Lunar New Year break at the beginning of February. Xuzhou Zhongsen Tonghao New Board Co., a closely held Chinese building materials company in Jiangsu province, failed to pay interest on bonds due March 28, the 21st Century Business Herald reported yesterday. China had its first default in the domestic bond market last month when Shanghai Chaori Solar Energy Science & Technology Co. failed to pay interest due March 7.

Disturbing Trends in Small Business Hiring - (www.washingtonpost.com) Small businesses suffered a rough winter on the hiring front, which many analysts blamed on a series of particularly brutal snowstorms. However, even with the weather heating up last month, small employers were still slow to add new openings. Which begs the question — is there something else going on here? Small businesses added a modest 72,000 jobs in March, down slightly from 76,000 the month before and well off a peak of 113,000 back in November, according to report published by payroll company ADP on Wednesday. Of those, companies that produce tangible goods (as opposed to services firms) added only 9,000 jobs. Meanwhile, Intuit, a business software company, reported that small-business hiring ticked up a minuscule 0.01 percent in March, following zero job growth in February. But it gets worse. Small firms’ share of the nation’s net new jobs (191,000 in March) dipped below 40 percent for only the second time in the past year, according to ADP. Since the start of 2013, the only time small businesses have accounted for a smaller portion of job gains was last October, whenthe government shutdown brought small-business hiring to a screeching halt across the country.

Following more than 100 aftershocks, Californians fear The quake from Hell - (www.rt.com) Experts now fear that the 5.1 magnitude earthquake that rocked Southern California on Friday evening could be a mere sampling of what’s to come if more seismic activity occurs along the Puente Hills thrust fault. That break in the Earth’s crust is far less renowned that the more famous San Andreas fault that has been a major cause of concern for residents of the Los Angeles area for ages. Activity along the Puente Hills thrust is now being blamed for last week’s quake, however, and in turn has rekindled discussion about the potential catastrophes that could occur if a larger tremor takes LA by surprise once again. Although the Puente Hills thrust is far less famous than the San Andreas fault, experts say another serious tremor there could cause grave consequences for Southern California. Friday evening’s incident was reportedly centered near the city of La Habra, around 20 miles southeast of downtown LA, and spawned upwards of 100 aftershocks throughout the region. The Puente Hills fault extends through a critical part of Southern California, though, and could have caused exponentially more damage if it was stronger and its epicenter was elsewhere.

A 57-cent part at the center of GM's crisis - (money.cnn.com) A problem with a tiny, 57-cent part inside the ignition switch has led to a massive recall of 2.6 million General Motors vehicles, numerous federal probes and at least 13 deaths. The faulty part was redesigned in 2006, but the part number was never changed. Typically, any time a car part is redesigned, the manufacturer changes the part number. The fact that the part number wasn't changed prevented federal safety investigators, and even some GM employees, from figuring out what caused the accidents. Accidents declined in newer vehicle models, but investigators could not figure out why, since there didn't appear to be any change in how they were manufactured. Critics of the company allege that the lack of a new part number is the sign of a deliberate cover up.




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