Wednesday August 5 Housing and Economic stories

TOP STORIES:

Miners Shed Thousands of Jobs as Commodities Prices Slide - (www.nasdaq.com) The world's biggest miners are hemorrhaging jobs as the price for almost everything they dig up—from gold to aluminum to copper—slides relentlessly downward. Anglo American PLC, the U.K. mining titan, on Friday announced the most dramatic job-reduction figure yet in the ailing industry, saying it would slash 53,000 jobs over the next several years—including 6,000 in the corporate offices amounting to $500 million in savings. That would amount to a reduction of 35% of its current workforce of 151,000. "We're looking at every dollar and pulling everything back," Anglo-American Chief Executive Mark Cutifani said in a presentation of the miner's first-half earnings results to investors Friday. "It's a constant process driving out costs."

China factories falter, commodities take the hit - (www.reuters.com) The global economy started the second half of the year on shaky ground with China's factory sector activity contracting in July at the fastest pace in 15 months and euro zonemanufacturing weaker than expected, although U.S. activity picked up. The purchasing managers indices (PMI)for the manufacturing sector from private data vendor Markit come after Beijing said it would allow its yuan currency to fluctuate more widely within its trading band as a way to support trade and despite the European Central Bank's 60 billion euro ($66 billion)a month bond-buying program. The preliminary Caixin/Markit China PMI for July dropped to 48.2, the lowest reading since April last year. It was the fifth straight month under the 50 level separating expansion from contraction. The fall confounded forecasts for a rise to 49.7 from June's final reading of 49.4 and pushed the Australian dollar to a six-year low AUD=D4. China is Australia's biggest export market.

Copper Extends Slump to Lowest Since ’09 Amid Commodities Rout - (www.bloomberg.com) Copper declined to the lowest since 2009 as manufacturing data added to evidence that demand is slowing in China, the world’s biggest metals consumer. A private gauge of Chinese manufacturing unexpectedly fell to the lowest in 15 months. Investors in the nation who are banned from shorting equities may be selling copperinstead, exacerbating the metal’s collapse. The rout could get worse, as Goldman Sachs Group Inc. predicts lower copper prices. Traders and analysts were the most bearish since May in a Bloomberg survey. Shares of Freeport-McMoRan Inc., the biggest publicly traded producer of the metal, are heading for the biggest weekly drop since 2011. “The culprit behind the recent selloff has to be the fact that China’s voracious appetite for metals seems to be moderating or even declining,” Edward Meir, an analyst at INTL FCStone in New York, wrote in an e-mailed report. “The fact that China’s economy is stalling, especially on the manufacturing side, means that there may not be much in the way of future relief.”

Beppe Grillo calls for nationalisation of Italian banks and exit from euro - (www.theguardian.com) The populist leader of Italy’s second largest political party has called for the nationalisation of Italian banks and exit from the euro, and said the country should prepare to use its “enormous debt” as a weapon against Germany. Former comedian-turned-politician Beppe Grillo, who transformed Italian politicswhen he launched his anti-establishment Five Star Movement in 2009, has long been a bombastic critic of the euro. But his stance hardened significantly in a blogpost on Thursday in which he compared the Greek bailout negotiations to “explicit nazism”. Grillo constructed what he called a “Plan B” for Italy, which he said needed to heed the lessons of Greece so that it was ready “when the debtors come round”.

Greek store closures spike as recession, austerity return - (www.ekathimerini.com) Running a business in Koukaki is becoming a struggle. Shop-owners in the central Athens neighborhood, one of the capital city's most financially diverse, are finding it a lot more difficult to get by. They could be cutting hair or selling extra-large shirts - it makes no difference. Their tales of hardship can be repeated up and down the country of nearly 11 million people. Empty storefronts are again a feature of Greeces towns and cities amid a crisis that put Greece's future in the euro in doubt. The downturn worsened after the late-June decision by the Greek government to impose a series of strict controls on the free flow of money, with a paltry 60-euro a day limit on daily withdrawals from ATMs. Though banks reopened this week for the first time in more than three weeks, the ATM withdrawal limit is unchanged and cash is becoming scarce.

OTHER STORIES:

China to Allow Wider Yuan Trading Range, State Council Says - (www.bloomberg.com)
Former Chinese Regulator Criticizes Government Stock Rescue - (www.bloomberg.com)
The Meaning of China’s Stock Market Intervention - (www.bloomberg.com)
China’s Global Ambitions, With Loans and Strings Attached - (www.nytimes.com)
This Is What Bridgewater Said About China's Stock Market - (www.bloomberg.com)

Brazil Sees Risk to 2016 Inflation After Budget Target Eased - (www.bloomberg.com)
Calling End to Latin American Currency Rout Now a Fool’s Errand - (www.bloomberg.com)
Murder, Poisoning, Raids: It’s Election Season in Russia - (www.bloomberg.com)
China says has every right to drill in East China Sea - (www.reuters.com)
Cheap Money Is Here to Stay - (www.bloomberg.com)