Tuesday, January 10, 2017

Wednesday January 11 2017 Housing and Economic stories


The Limited is shutting down its 250 stores and cutting 4,000 jobs - (www.fortune.com) And another bites the dust. Women's apparel chain The Limited on Sunday began closing all 250 of its stores across the United States and is slashing 4,000 jobs, the latest casualty of shopping's move online and the growth of fast fashion chains. And just like Chico's, Ann Taylor and other women's apparel stores struggling with big drops in sales, The Limited has been struggling with shifts in consumer behavior and interest, a greater number of rivals and longer store leases.

Commodities Bust Crushes Incomes, House Prices, & Rents in Western Australia - (www.wolfstreet.com) Perth, the capital of the state of Western Australia (WA), “hitched itself to the largest mining investment boom since the mid-19th century gold rushes, and in the excitement, forgot or refused to diversify its economy. Believing the mining boom could end as suddenly as it did was considered outlandish. It delivered immense wealth and income to the government, business, and household sectors,” so a new report published by LF Economics’ co-founders Lindsay David and Philip Soos. But now the reverse is taking place, and more recent property investors “are losing wealth and income by the day.” Real and quality-adjusted housing prices peaked in 2007Q1, having risen rapidly from 2001. While rental price growth tracked consumer price inflation, gross and net yields compressed sharply. Despite the steep rises in rents, incomes, and population since, housing prices have declined moderately, registering small rises and falls along the way.

Out of work for six months or more? Here's why you can't find a job (DESPITE "LOW UNEMPLOYMENT") - (www.usatoday.com) It used to be jobs found me," says Brown, 46, who lives in Wheaton, Ill. "The world has definitely changed." He has learned, for example, that his diverse work history, which includes overseeing marketing, strategy, and mergers and acquisitions, is viewed as a negative by the many firms that seek in-depth experience in specific areas... Many businesses remain locked in a post-recession mindset ingrained by the downturn's severity and that's adding up to long-term frustration for workers on the sidelines for at least six months.

China Reserves Slumped $320 Billion Last Year as Yuan Tumbled - (www.bloomberg.com) China’s foreign currency holdings fell for a sixth month in December, bringing last year’s drop to $320 billion as the yuan posted its steepest annual slide in more than two decades. Reserves decreased $41.1 billion to a fresh five-year low of $3.01 trillion, the People’s Bank of China said Saturday. That was in line with estimates in Bloomberg’s survey of economists. The central bank’s effort to stabilize the yuan was the main reason for the drop last year, the State Administration of Foreign Exchange said in a statement. The world’s largest stockpile has fallen for 10 straight quarters from a record $4 trillion in June 2014, while eroding confidence in the yuan has pushed the currency to the lowest levels in eight years.

Germany's Gabriel says EU break-up no longer unthinkable - (www.reuters.com) Germany's insistence on austerity in the euro zone has left Europe more divided than ever and a break-up of the European Union is no longer inconceivable, German Vice Chancellor Sigmar Gabriel told Der Spiegel magazine. Gabriel, whose Social Democrats (SPD) are junior partner to Chancellor Angela Merkel's conservatives in her ruling grand coalition, said strenuous efforts by countries like France and Italy to reduce their fiscal deficits came with political risks. "I once asked the chancellor, what would be more costly for Germany: for France to be allowed to have half a percentage point more deficit, or for Marine Le Pen to become president?" he said, referring to the leader of the far-right National Front.

Older Americans Are Retiring in Droves – (www.bloomberg.com) More and more baby boomers begin the new year with nothing on their schedule but plans to golf, travel, and spend more time with the grandkids. The number of Americans aged 65 or older without a disability that aren't in the labor force rose by 800,000 in the fourth quarter of 2016, marking the resumption of a long-standing trend: the exodus of their generation from the work force and into retirement. For more than five years, the six-month trend for this figure — a significant demographic source of downward pressure on the headline labor force participation rate — had been heading higher, before plateauing for most of 2016. The labor force participation rate for this cohort tanked by a full percentage point, to 23.6 percent, in the final quarter of the year.


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