Wednesday, July 30, 2014

Thursday July 31 Housing and Economic stories

TOP STORIES:

Portugal's BES steadies nerves, losses still a puzzle - (www.reuters.com) Portugal's government and central bank assured investors on Friday that the southern European country's financial system was sound, aiming to quell worry about the spillover effects of trouble at the Espirito Santo business empire. "It is important that Portuguese and foreign investors... remain calm about the bank and our financial and banking system," Portuguese Prime Minister Pedro Passos Coelho told reporters in Lisbon. Recent disclosures of financial irregularities at a web of family-held holding companies behind Portugal's largest listed bank, Banco Espirito Santo (BES.LS), have raised questions about potentially destabilizing losses at the bank and other companies in the family's orbit. That worry sparked a rout in global markets on Thursday, pushing up

Puerto Rico Electric Agency Used Reserves for July 1 Payment  - (www.bloomberg.com) The Puerto Rico Electric Power Authority, which supplies most of the island’s electricity, used reserve funds to pay investors July 1, according to a Municipal Securities Rulemaking Board filing. The utility, known as Prepa, paid bondholders $417.6 million on maturing bonds and interest, according to a statement from the Government Development Bank, which manages the commonwealth’s finances. The provider used about $41.6 million from reserves for that payment, according to a notice today on MSRB’s Electronic Municipal Market Access website, known as EMMA. Investors were doubting Prepa’s ability to make the July 1 payment after it took $100 million from its capital fund in May to purchase fuel. The utility must repay $671 million of bank lines of credit by mid-August and doesn’t have the cash to pay the full amount, Judith Waite, a Standard & Poor’s analyst, wrote in a report.

Germany Instructs Its Companies To Limit Cooperation, Procurement Orders With The US - (www.zerohedge.com) Congratulations America: after severing ties with Russia, crushing cordial relations with China (leading to this stunning announcement by China's president), alienating France (which is now openly calling for an end to the petrodollar), the Obama administration - following not one, not two, but three spying scandals in just the past year - has managed to sour relations with Germany to a point where one wonders just who is a remaining US ally in Europe these days. According to Bloomberg, the German chancellor’s office has issued instructions to national intelligence services to limit cooperation with U.S. following alleged U.S. spying case, Bild reports without saying where it got information.

Germany Expels U.S. Intelligence Envoy Amid Spying Allegations - (www.bloomberg.com) German Chancellor Angela Merkel’s government expelled the top U.S. intelligence official in Berlin over allegations of espionage, escalating a conflict that one of her aides said has caused “grave” political harm. The U.S. embassy official was asked to leave Germany after the Federal Prosecutor began investigating spying practices, according to the statement from Merkel’s Chancellery today. “The government takes these activities very seriously,” Steffen Seibert, Merkel’s press secretary, said in the statement. A trustful relationship with the U.S. remains “indispensable” to Germany, “but for that, mutual trust and openness are necessary,” he said.

He's the Top U.S. Mortgage Salesman. His Daughter Isn't Buying It - (www.bloomberg.com) David Stevens, chief executive officer of the Mortgage Bankers Association, has spent his career lauding the merits of homeownership. One person still isn’t buying it: his daughter. Sara Stevens, 27, knows interest rates are low, rents are high and owning a home can build wealth. She also had a front-row seat to the worst real-estate slump since the Great Depression. “The world has changed,” she said. Six years since the collapse of Lehman Brothers triggered a financial meltdown, some young adults are more risk averse and view the potential upsides of status and wealth more skeptically than before the crisis, altering the homeownership calculation. It’s more than the weight of student loans, an iffy job market and tight credit -- even those who can buy are hesitant.

Fed's George says rate hike possible this year - Dow Jones - (www.reuters.com) Certain economic formulas are pointing to a Federal Reserve interest rate hike as early as this year, a Fed official said on Thursday, according to Dow Jones. "As I look at some of the policy prescriptions that the Federal Reserve relies on, looking at formulas that help guide you on when it's time to change, many of those are already pointing to lifting off of zero as early as even this year or next year," Kansas City Federal Reserve President Esther George said, according to Dow Jones.





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