close

July 2019

Real Estate

Weekly mortgage applications fall 2.4% as consumers shrug off low rates

Weekly mortgage applications fall 2.4% as consumers shrug off low rates

For the previous several weeks, mortgage demand has been more than muted even as prices sit near two year lows. According to the Mortgage Bankers Association’s seasonally adjusted index, the mortgage application volume dropped 2.4% for the last week. The volume was higher up to 34% as compared with the similar week one year ago because of the stronger refinance market of this year. The outcomes included an alteration for the July 4th holiday.

Mortgage rates shifted a little bit lesser once more last week. For 30-year the standard contract interest rate, fixed-rate mortgages with conforming loan balances reduced to 4.04% from 4.07%, with points rising to .37 from 0.36 for loans with a down payment of 20%. 

In spite of the rate drop, there is a fell down of 7% of mortgage applications to refinance a home loan, though on the same week one year ago they were 88% higher, when interest rates were 72 basis points higher.

MBA’s associate vice president of economic and industry forecasting, Joel Kan said that, ‘borrowers have been not so much sensitive to low rates since a lot of borrowers have moreover just refinanced or are probably waiting for rates to fall even more’. ‘Further mortgage rates in our survey were unaffected or a little bit higher than in the earlier week’. 

For 30-year, the average contract interest rate, fixed-rate mortgages with jumbo loan balances (better than $484,350) rose to 4.03% from 4.00%. 

This week, the mortgage rates began a little bit higher, subsequent the stronger than it was expected employment report last Friday. Rates can make a stronger move in either direction in the following few days, as Jerome Powell, Federal Reserve Chairman testifies prior to both the houses of Congress.

read more
Law & Order

Judge Rejects Justice Department Request to Change Lawyers on Census Case

Judge Rejects Justice Department Request to Change Lawyers on Census Case

On Tuesday, a federal judge in New York rejected the request of Justice Department to change its legal team midway through a case challenging the efforts of administration of Trump to add a citizenship question to the year of 2020 census. 

The stridently worded order, by District Judge Jesse M. Furman of United States might further shuffle an already struggling battle by the management to save the citizenship question. Efforts to block it have become a critical political issue as the after that census and the redrawing of political boundaries in the year 2021 that will use new census data. 

If the department wants to continue with the switch of the legal teams, the judge wrote that the lawyers should offer sworn affidavits in which they have to explain their departures and remain under the jurisdiction of the court should they be required to come back. 

On Monday, the American Civil Liberties Union and other plaintiffs led by Attorney General of New York Letitia James had asked the judge to block the reassignment of the case of Justice Department without giving a reason for the withdrawal. The group said it still had questions about the move, on Tuesday. 

Dale Ho, the A.C.L.U.’s lead attorney on the case said that, ‘The Justice Department owes the courts and the public a clarification for its unprecedented substitution of the entire legal team that has been working on this case’. ‘The administration of Donald Trump is acting like it has something to bury, and we won’t rest till then we know the truth.’ Mr. Barr said, ‘we decided that not to put them in that position’. 

read more
Business & Trade

Federal appeals court rejects Maryland, D.C. lawsuit over President Donald Trump’s business

Federal appeals court rejects Maryland, D.C. lawsuit over President Donald Trump's business

On Wednesday, a federal appeals court rejected a court case from the District of Columbia and Maryland that alleged Donald Trump violated the Constitution by benefiting from his business as in the office.

The case filed by D.C. Attorney General Karl Racine and Maryland Attorney General Brian Frosh argued that Trump broke the seldom-tested requirements of the Constitution that bar a president from getting recompense from foreign or domestic governments with no congressional support. The provisions are known as emoluments clauses.

A three-judge panel of the United States Fourth Circuit Court of Appeals ruled in opposition to the ‘extraordinary claims straight against a sitting president’ by the Maryland and District. The appeals court mentioned the ‘paramount want protecting the executive branch from the vexatious court case that may divert it from the vigorous performance of its constitutional duties’. 

On Wednesday, the appeals court did not speak out on whether or not Donald Trump has violated the Constitution. As an alternative, it ruled that even if there had been an infringement, neither Maryland nor D.C. had been adequately injured by it to bring a court case in the first place. For Trump, the decision is a win, putting an end to one of a handful of lawful challenges to his conclusion for keeping the rights of his business empire while serving as president.

In July 2018, Peter Messitte, the United District Judge said that the attorneys general ‘persuasively argued’ that the emoluments clauses had been applied. On Wednesday, the appeals court said the suit must never have gone ahead.

read more
Law & Order

Cuomo signs law allowing New York to hand over Trump’s taxes

Cuomo signs law allowing New York to hand over Trump's taxes

On Monday, Gov. Andrew Cuomo signed a law and authorizes the release of state tax returns to a handful of committees of congress, opening a new way for Democrats to get their hands on some of Donald Trump’s strongly guarded finances.

Cuomo said in a release that, ‘Tax secrecy is dominant – the exception being for bonafide investigative as well as law enforcement purposes’. ‘In New York State tax code by modifying the law enforcement exception ax code to include Congressional tax-related committees, this bill gives Congress the capability to accomplish its Constitutional responsibilities and reinforce our democratic system and make certain that no one is above the law.’

On Monday morning, Assemblyman David Buchwald (D-White Plains), a tax attorney who authored the legislation twitted that, ‘This is a significant step in upholding the principle that top elected officials have a liability to be more accountable and transparent’.

The Means Committee and House Ways, the Joint Committee on Taxation and the Senate Finance Committee can make requests for New York state tax returns. Whereas House Judiciary Chairman Jerry Nadler (D-N.Y.), who is a very old Trump critic, has backed the plan, House Ways and Means Chairman Richard Neal (D-Mass.) has therefore far focused on getting the Trump’s tax returns by other ways. It includes suing last week in federal court for enforcing a subpoena ignored by the Trump officials.

A bill passed by the Legislature that would decouple federal and state law in such a manner that would allow state prosecutors for bringing charges against persons who have received presidential pardons. Moreover, that bill, NY A6653 (19R), till now has not been sent to the governor for his signature.

read more
Real Estate

In Dallas’ ‘Outer Ring’, Real Estate Deals Abound

In Dallas’ ‘Outer Ring’, Real Estate Deals Abound

“Outer ring” is called by them. That otherworldy name refers to a compilation of far-flung previous prairie towns surrounding Dallas, which are quickly morphing into exurban boom towns made up of comparatively reasonably priced homes. The ring extends from Tarrant County along the Chisholm Trail Parkway, by Kaufman and Collin all along Highway 380. It reaches south further than north past Prosper and Red Oak.

The communities there have accessible land that is cheap as compared to be found near to ‘Dallas’ ‘inner ring,’ inside I-635. Due to this reason, the developers are constructing over 10,000 houses in the outer ring that will price between $250,000 and $350,000, a cost series that was common not as well long ago all through Dallas.

Various real estate agents tell their first-time buyers that if they want to live south of 635, then they will have to pay $400,000 – $600,000. Anything below that, and they will have to think a townhouse or glance at places like Forney, a Kaufman County suburb that’s quadrupled in size ever since the 2000 Census.

In Denton County, North of Fort Worth, megaprojects are under construction. In Argyle, a small city of 4,000 halfway between Denton and Flower Mound, Hillwood Communities has considered Harvest, a 1,200-acre growth with 3,200 homes construct around a working farm. Not far away, in the still smaller town of Northlake, Hillwood is putting 609 homes into Pecan Square, a 1,157-acre growth where one more 3,000 houses will ultimately be offered from $270,000 to approximately $500,000.

Regional director in Dallas-Fort Worth, Paige Shipp, for real estate research firm Metrostudy, says one more main difference is that present development is not speculative. She says, ‘Last time around’, “we were just pushing out to distant communities to get as many homes constructed as we can’. What builders are doing nowadays is more about offering attainability, about offering an option cost point that buyers cannot get somewhere else.”

read more
Business & Trade

Saudi airline switches to Airbus as Boeing’s Max remains grounded

Saudi airline switches to Airbus as Boeing’s Max remains grounded

Flyadeal, budget airline of Saudi Arabia will budget airline after canceling its provisional order of $5.9 billion with Boeing for its troubled 737 Max jets.

In place of it, the airline has ordered 30 Airbus A320neo planes for worth $5.5 billion marking one of the first carriers to fully change to Boeing’s French opponent because of the continuous problems with the Max. 

On Sunday, Flyadeal announced, ‘This order will effect in flyadeal operating an all-Airbus A320 fleet in coming time’. 

In December the airline cautiously committed to buying Boeing’s 737 Max- a deal it reviewed after two deadly crashes in which 346 people killed and left the jet grounded all across the world. 

In an emailed statement Boeing said, ‘Boeing is proud of its seven-decade extensive partnership with aviation industry of Saudi Arabia and we wish the flyadeal team good as it builds out its operations. Our team continues to focusing on securely returning the 737 Max to service as well as resuming deliveries of MAX airplanes’. 

Boeing has frozen its Max deliveries for some months after the crashes and now hopes to submit a fix to the regulators for review in the month of September. By the end of the year, that timeline would get the planes back in the air.

Apart from this, if the Max will not be fixed soon, then the other Middle Eastern airlines have warned of switching to Airbus. Last month, Oman Air said that it would hold a discussion with Airbus if Boeing did not give support as well as a recovery plan for Max. Flydubai, Emirati carrier in April said it can order A320neos as in place of the Max jets.

Airbus, based in Toulouse, France, is poised to overtake Boeing this year as the largest plane maker in the world as the United States company cuts 737 production volume.

read more
Crypto

Korean Watchdog Warns of Economical Stability Risk From Facebook’s Libra

Korean Watchdog Warns of Economical Stability Risk From Facebook’s Libra

According to a South Korean financial regulator, recently, Facebook’s unveiled project of Libra cryptocurrency threatens the stability of economic systems.

It was reported that the FSC (Financial Services Commission) of the nation looks at what can occur ‘if 4 billion Facebook users all over the world transfer one tenth of their deposits to Libra.’

Should that situation come about, banks’ solvency would reduce, as would their loan reserves, representing a risk to budding markets from the transfer of the capital out of those nations.

More concerns raised by FSC that bank runs can occur during economic or foreign exchange crises, as many people move their national fiat money to Libra. Libra can be extensively used for money laundering without proper bank-like controls. It added that ‘a big economical institution, like JPMorgan or Goldman Sachs, had refused to take part in Libra’.

As per the report, to the traditional banking industry, the project is a main threat. If a company like Facebook buys a bond as a substitute for making a bank deposit with patron funds, the economic condition of the bank may be worsened. And if Libra permits virtually free overseas payments, the banks of South Korea trillion of won in revenues from remittances would be considerably reduced.

The probability of successful flourishing commercialization of Libra is higher than for other cryptocurrencies. Providing financial services through its social media services like WhatsApp, Facebook and Instagram, with their billions of customers, the firm without any difficulty guarantees convenience as well as price competitiveness.

Moreover, the FSC said that the report is to make possible the understanding of the press and other media on abroad trends and not its official judgment on Libra.

read more
Business & Trade

Sen. Richard Blumenthal pushes AT&T and Nexstar to strike a deal, restore channels for DirecTV, U-verse

Sen. Richard Blumenthal pushes AT&T and Nexstar to strike a deal, restore channels for DirecTV, U-verse

Senator Richard Blumenthal of Connecticut has been urging AT&T as well as Nexstar to restore access to over 120 stations which had been blacked out as of last week, through negotiations. The Nexstar stations in 97 markets in various states across the nation, inclusive of CBS, ABC, NBC, and FOX, were removed for users of DirecTV and AT&T U-verse after the two media giants were unable to come to a deal.

The channels went dark from 11:59 p.m. on the 3rd of July, and lasted till Monday night. Blumenthal write to the officials of the channels, and the letter was posted on the Nexstar website as well. It says that while no definitive side has been assumed by the senator himself, the denying of service to the citizens of Connecticut is unnecessary and unfair. He also implored the companies to reach an agreement as soon as possible and provide carriage of WTNH and WCTX through till 2nd August, 2019 as has been urged by Nexstar.

An extension according to the Senator would permit the parties some time to come to an agreement without disrupting the services provided to the customers who are unable to watch even local news. The cut off seems like an effort to enhance the DirecTV bargaining leverage which puts customers in Connecticut at risk of having their TV services hampered. Blumenthal added to the statement by saying that DirecTV will have to refund the amount of loss suffered by subscribers who have lost services commensurate to the value of local channels.

What AT&T and Nexstar say

Both the companies have put the blame on each other. AT&T said in its statement, that Nexstar had removed channels even as AT&T offered them money to make the channels available. They apparently have refused this offer and have removed the channels from the line up altogether.

Nexstar says that AT&T have unilaterally dropped the network and local programming. They also refused to extend the distribution agreement till the 2nd of August. In a new statement which was released on Minday, Nexstar also said that they were going to reiterate the offer of an unconditional extension of the agreement for 30 days to restore channels which had been blacked out, so that the companies could reach an agreement.

read more
Crypto

Holiday seasons could be related to BTC price surge, could be more to come

Holiday seasons could be related to BTC price surge, could be more to come

SFOX, a cryptocurrency insight and analysis company has released a report which says that bitcoin prices could be fluctuating with the holiday season.

This report says that the largest bull run encountered by bitcoin was last seen in 2017. This was most likely caused due to people discovering bitcoin at Thanksgiving dinner. The report says that most family members who enquired about Bitcoin were likely to ask about where to acquire it.

The holiday season may not be the only factor pushing sales of bitcoin on the increase, but it is one of the essential factors. Traders are cautioned to pay close attention to the expanding retail interest as that may be the key to raising prices of bitcoin.

This report also refers to Thanksgiving along with the Spring Festival held in China, both of which have nudged bitcoin markets to soar. SFOX says that since bitcoin is now out of the bear market, western holidays which are about to begin could be the catalyst it needs to be dinner table conversation again.

read more
Business & Trade

Deutsche Bank to cut 18,000 jobs, exit equities sales by 2022

Deutsche Bank to cut 18,000 jobs, exit equities sales by 2022
Deutsche Bank has announced on Sunday that it will be exiting the enquiries sales and trading business, along with cutting back 18,000 jobs by 2022. This will be part of a strategic transformation and restructuring plan for the company.
The company has said that implementation of a cost reduction program is on the cards to come down to 17 billion euros by 2022 in order to target a cost income ratio of 70%. The move will cost them 7.4 billion euros.
An estimate has shown that a net loss of 2.8 billion euros should be expected by the second quarter of this year. These results will be released on 24th of June, 2019.
They have also stated that a focus will be maintained on the equity capital market operation and plans to resize fixed income operations of the department will help in shedding risk-weighted assets.
In the last few years, Deutsche Bank has been at the center of controversy, paying billions for financial misconduct. 7.2 billion dollars had to be settled with the US Justice Department on allegations of misleading their investors in sales of mortgage backed securities just before the depression.
Two years ago, they were required to settle $2.5 billion to regulators in both, the US and the UK for having manipulated interest rates.
The incident of 2015 is popularly known as the London Interbank Offered Rate Scandal which included the likes of Barclays, UBS, and the Royal Bank of Scotland.
read more
1 2 3 4 5
Page 2 of 5