Wednesday, September 3, 2014

Thursday September 4 Housing and Economic stories


China’s First Bond Default in Focus as Debtholders Meet - (www.bloomberg.com) Holders of China’s first corporate bond to default onshore met today in Shanghai, as investors look for clues on how the government will balance market liberalization with steps to maintain stability. There was difficulty assessing the overseas assets of Shanghai Chaori Solar Energy Science & Technology Co. and no specific restructuring plan emerged from the gathering, according to Wang Xuejun, an investor in attendance. The solar-panel maker will issue a statement by tomorrow at the latest, Vice President Liu Tielong said when reached on his mobile phone after the meeting. More than 10 police cars were on the street in front of the company headquarters today around 2:30 p.m. as the gathering took place. While Premier Li Keqiang said defaults may be unavoidable in some cases after Chaori failed to make a full coupon payment on March 7, the country has averted similar cases since. Widespread bond nonpayments would cause financial market turbulence, which can’t be allowed when the economy faces “relatively heavy” downward pressure, according to a front-page commentary in a central bank publication today.

UK Home Prices Have Biggest August Plunge On Record As Russian Sanctions Sink In - (www.zerohedge.com) London home prices fell in August by 5.9%, the plunge the biggest since Dec 2007 (and 2nd biggest drop on record). Since western sanctions on Russian oligarchs hit 3 months ago, home prices have fallen in London (especially the highest-end regions, such as Kensington -7%) and now that weakness is accelerating and spreading across the entire UK. As Rightmove reports, the2.9% drop in UK home prices is the worst August on record. How long before the UK pulls back on its 'support' for US sanctions? Costs, indeed?

China Home Prices Fall in Majority of Cities on Weak Demand - (www.bloomberg.com) China’s new-home prices fell in July in almost all cities that the government tracks as tight mortgage lending deterred buyers even as local governments eased property curbs. Prices fell in 64 of the 70 cities last month from June, the National Bureau of Statistics said today, the most since January 2011 when the government changed the way it compiles the data. Beijing prices fell 1 percent from June, posting the first monthly decline since April 2012.

Part-Time Workers a Full-Time Headache on Yellen Radar: Economy - (www.bloomberg.com)  Holders of China’s first corporate bond to default onshore met today in Shanghai, as investors look for clues on how the government will balance market liberalization with steps to maintain stability. There was difficulty assessing the overseas assets of Shanghai Chaori Solar Energy Science & Technology Co. and no specific restructuring plan emerged from the gathering, according to Wang Xuejun, an investor in attendance. The solar-panel maker will issue a statement by tomorrow at the latest, Vice President Liu Tielong said when reached on his mobile phone after the meeting. More than 10 police cars were on the street in front of the company headquarters today around 2:30 p.m. as the gathering took place. While Premier Li Keqiang said defaults may be unavoidable in some cases after Chaori failed to make a full coupon payment on March 7, the country has averted similar cases since. Widespread bond nonpayments would cause financial market turbulence, which can’t be allowed when the economy faces “relatively heavy” downward pressure, according to a front-page commentary in a central bank publication today.

End of Boom Forces Miners to Review $616 Billion of Deals - (www.bloomberg.com) A proposed spinoff by BHP Billiton Ltd. (BHP) of about $15 billion in assets signals the start of a new round of disposals as the biggest mining companies adapt to the end of a boom for commodities. With Anglo American Plc (AAL) fielding offers on a weekly basis for mines and Rio Tinto Group last month dumping Mozambique coal assets for a fraction of what it paid three years ago, producers are streamlining in the wake of China-led minerals demand that drove record profits as metals prices soared. Mining companies have been sharpening portfolios as commodity prices retreat and after poorly timed acquisitions in a decade-long $616 billion investment spree led to asset writedowns and management clear-outs. BHP rose the most in seven months in London trading after saying it favors a plan to separate out some of its operations and may announce details next week.





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