Wednesday, April 5, 2017

Thursday April 6 2017 Housing and Economic stories

TOP STORIES:            

Robin Manthie and her husband have been looking for their first home in Minneapolis since last May. They thought this spring would bring a flood of inventory, making their search easier. But by most measures it is getting tougher.  The inventory of homes for sale in Minneapolis dropped by about 25% in February compared with a year earlier, while the median sale price rose by 7.6% to $223,000, according to the Minneapolis Area Association of Realtors. That's on par with the national median home price of $228,400. The average number of days homes in the area are spending on the market is at a 10-year low of 81 days so far this year. Ms. Manthie, a 33-year-old consultant, is 41 weeks pregnant, but she and her husband are still trudging to open houses most weekends in search of a four-bedroom home in the $700,000 range -- up from $400,000 when they started. 

Housing Bubble in Sydney Soars to New High, Politicians Promote Scheme to Bitter End - (www.wolfstreet.com) How far can a desperate government go to keep the whole overleveraged edifice of a housing bubble from tumbling down and doing God-knows-what to the economy and the banks? Australia is trying to find out. The housing bubble in Sydney and Melbourne, by now among the top in the world, is taking on grotesque proportions, not only in price increases, but also in political pronouncements. So much of the economy depends on this bubble that no politician can imagine bringing it down to earth. Prices for all types of homes in Sydney jumped 19% in March year-over-year, according to CoreLogic, with houses up nearly 20% and “units” (we’d call them condos) up 15%. Sydney’s home prices have nearly doubled since 2008.

Hong Kong Warns on Home Loan Risks, Daily Says, as Prices Soar - (www.bloomberg.com) The Hong Kong Monetary Authority has warned banks in the city over the rising risks of property lending, according to the Oriental Daily, just as home prices notch up another record in the world’s most expensive housing market and Citigroup Inc. sees an imminent round of new cooling measures. The authority sent letters this week raising concern over the increasing number of highly leveraged mortgages provided by developers, which boosts risks for bank’s lending to these companies, according to the Daily and other media reports on Saturday, citing unidentified people. It may tighten risk management and said banks should be prudent when lending to clients who buy multiple units with a single contract, the reports said.

Imagination Tech Plummets Over 60% After Apple Delivers "Black Swan Moment" - (www.zerohedge.com) What a difference a year makes: not that long after Apple was considering the acquisition of Imagination Technologies, overnight the shares of the UK-based chip designer imploded, crashing as much as 69% after the company announced Apple - its largest customer which accounts for half of its revenue - will stop using its intellectual property in new products, setting the stage for a clash with its biggest customer. In a statement released on Monday, Apple informed Imagination Technologies that it will cease using its graphics technology for new products, including phones, tablets, and watches, in 15 months to 2 years. Shares of Imagination Technologies fell as low as 76 pence for its biggest-ever intraday slump, and were down a shade over 60% in London trading.

Venezuela seeks to cool protests as court reverses Congress annulment - (www.reuters.com) Venezuela's pro-government Supreme Court revoked its takeover of the opposition-led Congress on Saturday after it drew international condemnation and protests against socialist President Nicolas Maduro. "This controversy is over," Maduro said just after midnight at a specially convened state security committee. The committee ordered the top court to reconsider Wednesday's court ruling, which effectively nullified the legislature and brought accusations the ruling Socialist Party was creating a dictatorship. The tribunal duly erased two controversial judgments and its president, Maikel Moreno, met with both foreign envoys and journalists to explain the decision, insisting there had never been any intention to strip the National Assembly of its powers.

South Africa's new finance minister swings left, wants radically changed economy - (www.reuters.com) South Africa's new finance minister signaled on Saturday he would oversee a redistribution of wealth to the country's black majority, as a row over the sacking of his predecessor laid bare bitter divisions within the ruling ANC party. Saying the country was poised at a "polarized and contentious" moment, Malusi Gigaba promised to transform the economy while keeping the public accounts balanced. "The ownership of wealth and assets remains concentrated in the hands of a small part of the population. This must change," he told a televised news conference.


PBOC Raises Interest Rates on Standing Lending Facility Loans - (www.bloomberg.com)
Zuma Discontent Builds in South Africa's ANC Amid Calls to Quit
- (www.bloomberg.com)
The EU Engages: What We Learned About Brexit From Donald Tusk  
- (www.bloomberg.com)

Hackers next target could be the US electric grid
- (www.cnbc.com)
Trump Talks Tough on U.S.-China Trade but Delays Real Action
- (www.nytimes.com)
Federal Reserve Readies Plan for Balance Sheet
- (www.wsj.com)

No comments: