Venezuela is suffering from chronic shortages of goods ranging from diapers to flour that have worsened since an ebb in deliveries over Christmas. The scarcity has forced shoppers across Venezuela to line up in front of stores before dawn.
Germany’s Ifo economic research institute on Monday noted Italy’s position within the so-called Target2 system – which settles cross-border payments in the euro area – was worsening, with Bank of Italy liabilities rising to 209 billion euros in December from a low of 130 billion euros in July.
Greece will face a 7-billion-euro funding gap in March if SYRIZA comes to power and clashes with the country’s international creditors who will stop the 7.2-billion-euro installment of the current bailout program, said a report of Greek newspaper “Proto Thema.”
In March, Greece has to come up with 4.6 billion euros for bond maturities. Total bond maturities for 2015 come up to 31 billion euros.
Attorney General Lisa Madigan is arguing that a landmark Illinois pension overhaul should be upheld because the state has “police powers” that allow it to change a contract in extraordinary circumstances.
Alaska now has a $3.5 billion hole in its $6.1 billion budget, and Gov. Bill Walker has called on state agencies to reduce budgets by 5% to 8% for the coming fiscal year. The state expects to dip heavily into its $14 billion in reserves to bridge the gap, but officials acknowledge that is not a sustainable solution.
Takeshi Minami, an economist at Norinchukin Research Institute, said the central bank is unlikely to expand stimulus when the policy board meets next week. Further out in the year, some analysts predict the BOJ will need to add to its stimulus efforts yet again.
China’s one-year interest-rate swaps fell the most since November on speculation the central bank will roll over special loans to commercial lenders this week.
The UK economy is in danger of falling into deflation, the Bank of England’s Governor warned on Tuesday as data showed that inflation had fallen to a 14-year low.
Price growth fell to 0.5pc in December, a bigger slump than economists had anticipated. A poll of analysts before the numbers were release predicted that inflation would ease from 1pc to 0.7pc.
For the ECB to embark on a policy as controversial as government bond buying, it could not tolerate such a high level of dissent. The issue is all the more charged because of Greece, and the growing fears that its bonds may ultimately be subjected to some form of restructuring, implying losses for whoever ends up holding them.
Gold & Silver
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