US Postal Service loses $1.9B, pleads for help - (www.cnbc.com) The
Postal Service says it lost $1.9 billion over the first three months of
this year and is pleading again for Congress to pass reforms to its financial system. The
agency said Friday that the loss for the quarter ended March 31 matched
the $1.9 billion in red ink in the same period last year. And it came
despite a 2.3 percent rise in its operating revenue and continued
cost-cutting efforts. Postal officials have been asking for comprehensive
legislation that includes a different delivery schedule, greater control
over its personnel and benefit costs and more flexibility in pricing and products.
Though various legislative proposals have been advanced, Congress has been
unable to pass a bill with the requested changes.
Chinese
developers pull back as property downturn hits economy - (www.reuters.com) China's
efforts to cool its property sector look to have been more effective than
intended, as a sharp drop in construction activity
and falling prices threaten what had been one of few firing engines of the
world's second-largest economy.
Developers know the market is struggling -- their inventory is rising and
prices are falling -- but expect that authorities will relax their tight grip
on the sector in coming months. The government has long made it clear that
economic growth would moderate as it tries to reform the economy.
But by keeping the pressure on property too long, analysts fear the fallout
will be more severe than anyone had expected. "To us, it is no longer a
question of 'if' but rather 'how severe' the property market correction will
be," Nomura analysts said in a report. New housing starts in the first
quarter fell 25.2 percent compared to a year ago, Nomura calculated, as tighter
credit conditions, oversupply and falling prices undermined the market.
Putin
marks Victory in Crimea, more bloodshed in Ukraine - (www.reuters.com) President
Vladimir Putin flew in to Crimea on Friday, marking the Soviet victory in World
War Two and proclaiming the success of the peninsula's seizure from a Ukraine that Russia
says has been taken over by fascists. In east Ukraine,
where pro-Moscow rebels plan a referendum on Sunday to follow Crimea in
breaking from Kiev, between three and 20 people were reported killed in the
port of Mariupol, one of the biggest clashes yet between Ukrainian forces and
separatists. The head of NATO, locked in its gravest confrontation with Russia since
the Cold War, condemned Putin's visit to Crimea, whose annexation in March has
not been recognized by Western powers. He also renewed doubts over an assurance
by the Kremlin leader that he had pulled back troops from the Ukrainian border.
Geithner
in Book Says Obama Aides Weighed Nationalizing Banks - (www.bloomberg.com) Former Treasury Secretary Timothy F.
Geithner said
in his new book that members of the Obama administration “talked openly” about
nationalizing banks such as Citigroup Inc. (C) in the aftermath of the financial crisis,
according to an article in the New York Times Magazine. Geithner disagreed when Lawrence
Summers,
then head of the White House’s National Economic Council, suggested to
President Barack Obama that
the administration “pre-emptively nationalize” banks including Citigroup and
Bank of America Corp., or try to embarrass them into changing their pay
structures, according to the Times. The article includes quotes from the book,
“Stress Test: Reflections on Financial Crises,” and interviews with Geithner.
Barclays
Cuts Mark Europeans’ Retreat as Rules Pinch - (www.bloomberg.com) Barclays Plc (BARC)’s decision to shrink its investment bank shows
how tighter rules and dwindling revenue are forcing Europe’s lenders to scale back operations and efforts
to compete globally. In a break from his predecessor’s strategy to create a
global securities operation, Barclays Chief Executive Officer Antony
Jenkins said
yesterday the lender will eliminate 7,000 jobs, a quarter ofemployees at
the investment bank, shrink its fixed-income business and focus on fewer
clients in the U.K. and U.S. The fixed-income market faces a structural rather
than a cyclical decline and investment-banking revenue will be “weak for some
time,” Jenkins told reporters. “European banks haven’t had sufficient time to
build capital, and investors and managers have become impatient,” said Paul
Vrouwes, who helps oversee about 6 billion euros ($8.3 billion) at ING
Investment Management in The Hague, including Barclays shares. “Banks are having
to think about returns at the group level, and they are seeing a more promising
environment in other areas.”
Thai
protesters give ultimatum, intensify rallies - (finance.yahoo.com)
China blames U.S. for stoking tensions in South China Sea - (www.reuters.com)
China blames U.S. for stoking tensions in South China Sea - (www.reuters.com)
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