Thursday, May 4, 2017

Friday May 5 2017 Housing and Economic stories

TOP STORIES:            

Ralph Lauren Closes 5th Ave Flagship Store; Still Paying $70K a Day in Rent  - (www.jewishvoiceny.com) Suffice it to say that industry insiders and other observers of the fashion scene were a bit more than shocked to learn that Mr. Lauren pulled out of his flagship location earlier this month. Speaking to the NY Post, Tom Cusick, the president of the Fifth Avenue Business Improvement District said, "I don't recall any company pulling out of a location with a long-term lease after such a short time on Fifth Avenue. "That gives you a good indication of how poorly they were doing at that location that they are paying rent there on an empty space," one source told the New York Post. The person who brought Mr. Lauren and Coca Cola together in the 2013 lease deal was CBRE's   Richard Hodos. He earned REBNY's Retail Deal of the Year Award for his efforts in doing so.

London’s Deflating House Price Bubble Gets Messier - (www.wolfstreet.com) Over 40% of luxury apartments in a tower on the Southbank, next to the London Eye, were bought by companies registered in the British Virgin Islands, one of myriad nodes in a vast, secretive financial web of UK-affiliated tax havens. Over £4 billion worth of London real estate was bought by people representing a high money laundering risk, estimates the report. The total is probably much higher. London has also become a magnet for “crisis capital,” with huge deposits of wealth fleeing insecurity overseas being invested into the capital’s property market. A sharp drop in electricity usage in areas with a high density of foreign ownership shows that thousands of properties are lying unused for much of the year. Inevitably, public anger is rising. In a poll conducted by YouGov on behalf of Transparency International UK, 54% of Londoners said they believe house prices are being ratcheted up by rich people from overseas cornering the high-end property market. More than 1 in 5 of respondents thought international buyers were purchasing property in order to launder money.

 

45% Of Americans Spend Up To Half Of Income Repaying "Excessive/Frivolous" Credit Card Debts – (www.zerohedge.com) “...More than 4 in 10 Americans with debt (45%) spend up to half of their monthly income on debt repayment..." On several occasions we've pointed out that the baby boomer generation is, to put it mildly, ill-prepared for retirement.  In fact, over 50% of baby boomers have basically no savings set aside for retirement at all.  Now, a new survey from Northwestern Mutual helps to shed some light on why Americans are completely incapable of saving money.  First, roughly 50% of Americans have debt balances, excluding mortgages mind you, of over $25,000, with the average person owing over $37,000, versus a median personal income of just over $30,000.  Therefore, it's not difficult to believe, as Northwestern Mutual points out, that 45% of Americans spend up to half of their monthly take home pay on debt service alone....which, again, excludes mortgage debt.

Trump could target 'carried interest' tax loophole: official - (www.reuters.com) The Trump administration's push to overhaul tax laws might soon target a loophole used by some financial managers to lower their tax rates, White House Chief of Staff Reince Priebus said on Sunday. President Donald Trump campaigned before the Nov. 8 election to eliminate the so-called "carried interest" loophole, which is used by many financial managers to lower tax obligations. But a rough outline for a major tax overhaul released last week failed to mention the loophole. Priebus, however, hinted that carried-interest could be on the chopping block and warned against analysts taking the view that financial managers would keep on benefiting from it. "That balloon is going to get popped pretty quick," Priebus told ABC's "This Week." The carried interest rule allows financial managers at private equity, hedge fund and other firms to pay a capital gains tax rate on their income instead of the higher income tax rate.

As China’s Investors Rush In, Hong Kong Shares Take a Wild Ride - (www.nytimes.com) Meitu had been a snoozer of a stock since listing in Hong Kong in December. Then investors from mainland China had a chance to buy in. Almost immediately, shares of Meitu, a Chinese smartphone app maker, jumped 80 percent in a week — then lost the gains nearly as fast. It briefly ranked as one of the most actively traded stocks in Hong Kong, overtaking blue-chip names like HSBC. The moves were remarkable for a small, unprofitable company that makes a selfie app that lets users morph into fairylike airbrushed versions of themselves.



Stocks Advance, Yen Erases Gain on Congress Deal: Markets Wrap - (www.bloomberg.com)
U.S. Looks at Sanctions, Military Action to Counter North Korea
- (www.bloomberg.com)
David Stockman: Trump’s tax plan is ‘dead on arrival’ and Wall St. is ‘delusional' for believing it
- (www.cnbc.com)

Fed Officials Expected to Keep Rates Steady
- (www.wsj.com)
Trump Pushing for Vote on Health Bill, but Stumbling Blocks Remain
- (www.wsj.com)
On Trade, a Politically Feisty Trump Risks Economic Damage
- (www.nytimes.com)

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