Friday April 1 2016 Housing and Economic stories

TOP STORIES:

Brazil Posts Largest Budget Deficit for February Ever - (www.bloomberg.com) Brazil recorded the largest-ever primary budget gap in 12 months through February as a two-year economic recession sapped tax collection while expenses grew further. The deficit before interest payments, which includes results of states, municipalities and government-owned companies, reached 125.14 billion reais ($35 billion) in the 12-month period, or a record 2.11 percent of gross domestic product, the central bank said Wednesday. The result shows a growing mismatch between government revenue and expense over the past year, said Tulio Maciel, head of the central bank’s economic research department. “While revenues are falling sharply due to the economic situation, at a rate of 12 to 13 percent (a year), expenses continue to grow,” he told reporters in Brasilia.

Illinois' epic budget fail sets a dubious record - (www.cnbc.com) OK, Illinois, it's your turn. Following this week's $30 billion budget deal in Pennsylvania, Illinois became the last state without a tax and spending plan for the fiscal year that began last July. While most states are busy planning next year's budget, Illinois now holds the dubious record for the longest budgetary foot-dragging in recent memory, according the National Conference of State Legislatures. (Until this week, Pennsylvania had tied with Kentucky, which didn't get around to approving its fiscal 2003 budget until late March of that year, according to the organization.) Despite their spectacular fiscal fail, lawmakers in the Land of Lincoln are showing little sign of progress in breaking the deadlock, now dragging on nine months past the deadline. Since then, Republican Gov. Bruce Rauner has been holding out for a package of business incentives and changes in collective bargaining laws that a Democratic-controlled legislature wants no part of.

Families of U.S. personnel ordered to leave parts of Turkey amid security concerns - (www.reuters.com) The Obama administration ordered the families of U.S. military and diplomatic personnel to leave parts of southern Turkey on Tuesday and warned U.S. citizens against travel to the region amid mounting security concerns. The Pentagon said 670 dependents of U.S. military personnel would be affected by the order to depart areas of southern Turkey, including Incirlik air base, which is used heavily in the fight against Islamic State militants. The U.S. State Department said a small number of diplomatic families would be affected but did not give numbers. The Pentagon said 100 military dependents in Ankara and Istanbul were not affected by the departure orders because of security measures in place there.

Another Condo Bust Looms in Miami - (online.wsj.com) Miami is facing a condo bust—again. Developers have started canceling projects, slashing prices and offering incentives such as private-jet access to spur sales, an ominous echo of the housing crash that pounded South Florida especially hard. Easy financing and rising prices prompted developers to build about 21,000 condos in the downtown Miami area from 2004 to 2008. Many of those units sat empty for years. Developers say this time they have insulated themselves by requiring buyers to put down 50% deposits by the time buildings break ground and by canceling projects instead of moving forward as the market slows.

Energy woes crush lending pipeline - (www.cnbc.com) Private equity's lifeline was cut off to start 2016. And it's hurting Wall Street banks, too, which are losing lending business to European competitors. For U.S. private equity firms, it means fewer deals, and at a higher cost. For investors, it cuts the likelihood that they'll be able to reap returns on deals where companies are taken private. And for banks, many of which forecast disappointing earnings reports next month, it's one more factor going against them in what has been a painful 2016. Instead of assigning the blame to busted deals and bankruptcies, several Wall Street sources pointed toward plunging commodity prices as a source of falling high-yield deals. Some noted that pessimistic economic growth expectations have continued to spook investors in riskier debt.

OTHER STORIES:

Dollar Weaker on Cautious Yellen as Asian Index Futures Diverge - (www.bloomberg.com)
Yellen Takes Control of Fed Message to Stress Gradual Approach - (www.bloomberg.com)
Energy woes crush lending pipeline - (www.cnbc.com)
Brazil's biggest party quits coalition, Rousseff isolated - (www.reuters.com)
Zhou, Finance Chiefs to Discuss Crisis Planning in Paris Forum - (www.bloomberg.com)

China's Large Banks Wary on Li Keqiang's Plan for Bad Loans - (www.bloomberg.com)
The Fall of China’s Hedge-Fund King - (www.nytimes.com)
Emerging-Markets 2015 Debt Trading Lowest Since 2009, EMTA Says - (www.bloomberg.com)