Thursday, November 6, 2014

Friday November 7 Housing and Economic stories


Falling Bank Deposits Add to China Economy Warning Sign - (www.bloomberg.com) Chinese bank depositsdropped following a crackdown on lenders manipulating their numbers and “illicit” means of attracting money, threatening to weigh on credit growth and hinder efforts to reignite the economy. Four of the five biggest banks, led by Industrial & Commercial Bank of China Ltd. (601398), posted a drop in deposits as they reported third-quarter earnings this week. Central bank data showed it was the first quarterly decline for the nation’s banking industry since at least 1999.

Shale Boom Redraws Oil Routes as Alaskans Ship to Korea - (www.bloomberg.com) For signs of how the U.S. shale boom is transforming the global flow of oil, look halfway across the world at South Korea. The Asian nation, which relies on the Middle East for about 86 percent of its oil imports, is benefiting as new output from Texas to North Dakota displaces the crudes that fed U.S. refineries for decades. South Korea received this month a shipment of Alaskan oil for the first time in at least eight years and may buy more, the importing company said. The country was one of the first to receive a cargo of the ultralight U.S. oil known as condensate after export rules were eased.

Oil Rout Seen Diluting Price Appeal of U.S. LNG Exports - (www.bloomberg.com) Oil’s collapse is eroding the appeal of potential U.S. LNG exports toAsia as it cuts the cost of competing supplies linked to the price of crude. Brent’s 22 percent drop this year outpaced the 8.9 percent decline in natural gas at Henry Hub, the benchmark for U.S. liquefied natural gas shipments that are scheduled to begin in 2015. When the cost of processing and shipping American supplies to Asia is taken into account, the price advantage over oil-linked cargoes from producers such as Qatar has more than halved, according to data compiled by Bloomberg.

Central Banker Hero Becomes Face of Failure in Swedish Tale - (www.bloomberg.com) Stefan Ingves, the governor of Sweden’s central bank, was held up as an example of how to expand the monetary tool box just three years ago. Back then he was fighting asset bubbles that economists including Nobel LaureateRobert Shillerwarned were coming. Now, Ingves’s name is associated with a failure to preventdeflation through policies dubbed “sadomonetarist” by another Nobel Prize winner, Paul Krugman. Through it all, one man has been warning that this is exactly how things would turn out. Lars E. O. Svensson, an old Princeton University colleague of Krugman’s and former Federal Reserve Chairman Ben Bernanke, says Ingves is personally responsible for the deflationary slope Sweden is now sliding down. Svensson stepped down from the Riksbank’s six-person board last year in protest at its policies.

U.S. Homeownership Rate Falls to Lowest Since Early 1995 - (www.bloomberg.com) The homeownership rate in the U.S. fell to the lowest in more than 19 years as the market shifted toward renting and tight credit blocked some potential buyers. The share of Americans who own their homes was 64.4 percent in the third quarter, down from 64.7 percent in the previous three months, the Census Bureau said in a report today. The rate was at the lowest level since the first quarter of 1995. Entry-level buyers have been held back by stringent mortgage standards and slow wage growth. The share of first-time buyers was 29 percent in September for the third straight month, compared with about 40 percent historically, according to the National Association of Realtors said. “The homeownership rate hasn’t bottomed yet,” Paul Diggle, U.S. property economist for Capital Economics Ltd. in London, said in a telephone interview. “Something like 64 percent seems like a reasonable floor. But that floor is now in sight.”





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