Daily Digest 7/4 - Greek Unemployment May Hit 30%, Record Food Prices Hit U.S., Boomers Face Smaller Savings
Labour Institute of the Greek General Confederation (INE/GSEE - ADEDY) warned that Greek unemployment rate will hit30% by the end of the year. In other words, this is 1.6 million people, Greek Skai Radio reported.
At the moment there are more than one million unemployed people in Greece. Only 165,000 of these people will receive social benefits next month, as most of the unemployed have been without a job for already a whole year, which is the maximum period for receiving state aids for unemployment.
France's new Socialist government slashed the country's economic growth forecasts on Tuesday, paving the way for a slew of cuts that are bound to anger many voters after President Francois Hollande promised to avoid austerity.After a grim assessment of public finances by the state auditor on Monday, Prime Minister Jean-Marc Ayrault acknowledged France's economy was on track to grow by just 0.3 percent this year, less than half the 0.7 percent budgeted by the previous conservative government.
FMS Wertmanagement, which is in charge of the porftolio of toxic assets from Hypo Real Estate, said in its annual report that its risk provisions for Greek debt amounted to 8.9 billion euros ($11.2 billion) in 2011. The bad bank's losses are underwritten by the German state and are part of the bill being footed by German taxpayers for last year's Greek debt swap.
Chancellor Angela Merkel faces growing resistance to her European policy from within her own coalition. Horst Seehofer, the leader of the powerful CSU party, sharply criticized the outcome of last week's EU summit, and threatened to let the coalition government collapse if Berlin makes any more concessions to ailing euro members.
The police force in England and Wales could be cut by 13,400 officers by 2015 as part of an effort to cut the total budget by 20 percent, officials said Monday. Her Majesty's Inspectorate of Constabulary said in a report it is especially worried about the effect on London's Metropolitan Police, The Independent reported.
Calling the U.S. recovery tepid, the International Monetary Fund warned that failure to halt the tax increases and big budget cuts set to hit next year could stifle the weak growth and damage "an already fragile world economy." Just as the Federal Reserve did last month, the IMF lowered its growth projections for the U.S. in its annual report on the nation's economy and said Washington policymakers needed to be careful not to further choke the recovery by cutting back too much on spending.
The European Union faces potential disaster if its leaders don't cooperate and find a way to keep interest rates on
Italy's national debt down, Italian Premier Mario Monti warned Wednesday. Monti's remarks included a thinly-veiled jab at German Chancellor Angela Merkel on a day that Italy's borrowing costs hit year-highs in reaction to Merkel reportedly saying she wouldn't let European governments share debt obligations _ which would bring relief to Italy _ "as long as I live."
Retail beef jumped to a record in May and the cost of seven foods commonly consumed while grilling gained 1.8% from a year earlier, according to the Bloomberg-compiled index of barbecue staples comprising lean ground beef, white bread, American cheese, iceberg lettuce, tomatoes, ice cream and potato chips. Rising prices may not crimp demand for foods eaten on the American holiday because it falls on a Wednesday this year, boosting sales for parties on the weekends before and after.
All 11 Florida public universities requested increases in differential tuition, which is an increase in base tuition set by the state according to the needs of each university. At 9 percent, UF had the lowest request. Most other universities requested the maximum of 15 percent.
Delaware State University is raising its tuition, housing and meal plan rates for the 2012-2013 academic year. The university said Monday that tuition and fees for in-state students will rise 4 percent to about $7,335 from $7,055 a year ago. Out-of-state tuition and fees will go up 4.25 percent to about $15,690 from $15,050.
In addition, the cost of residence halls will range from about $6,975 to $7,490 and meal plans will cost about $3,310 to $3,730. Both rates will be 4.5 percent higher than they were during the previous academic year.
Floridians could be hit with dramatically higher flood insurance bills in the next few years. Congress passed legislation on Friday that extends the National Flood Insurance Program five years and raises the cap on annual premium hikes to 20 percent, from 10 percent under current law. President Barack Obama is expected to quickly sign the bill into law.
More than 60 per cent of Canadians have no company-based pension plan and with interest rates at rock bottom, the payoff on safe government bonds may not be enough to even keep up with inflation. That means it may take $1-million in investments to generate the same retirement income today as $500,000 would have generated five years ago, analysts say.
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