The impasse has racked up more than $6 billion in unpaid bills and week-by-week, state services are struggling to find funding. Among other services, the state has halted free STD testing public, the Illinois State Museum in Springfield closed to the public indefinitely for the first time in its 138-year history, and local 911 call systems are in jeopardy after it was announced that they would stop receiving state revenue from cell phone taxes.
The estimated aggregate funding ratio of pension plans sponsored by S&P 1500 companies declined two percentage points to 79% in September, the same level as of Dec. 31, said a Mercer report.
The company is being battered by a whirlwind of bad news. In the last year, oil prices dropped nearly 50 percent and Brazil’s currency, the real, slipped by a third against the U.S. dollar, causing revenue to fall and debt to soar. Meanwhile, the downgrade of its debt rating to junk status has raised the cost of borrowing, and a giant corruption scandal has tarnished its reputation with investors.
“I did a lot of infrastructure development in my life,” Mr. Thiam said in a dinner speech at Claridge’s hotel in London on Monday evening. “To fund them with foreign currency is madness. OK? Madness.”
The research has revealed that one in seven people (13 percent) struggle to pay for a loved one’s funeral, taking out an average of £1,318 in loans.
Puerto Rico is only eight weeks away from letting investors know whether the commonwealth will live up to its pledge to use all legally available resources to pay off bonds as the Caribbean island’s cash dwindles.
New Zealand business confidence extended its decline in the third quarter, plunging to its lowest level in more than four years, with local firms now expecting conditions to deteriorate in a tougher economic climate.
“The sluggish increase in private sector output mirrored softer demand conditions across the country, while growth of global demand for Indian goods also moderated,” said Pollyanna De Lima, economist at Markit.
For the first time, investors demanded no payment at all to lend to the U.S. government for three months. That’s right, the Treasury sold $21 billion of three-month bills with a zero percent coupon Monday.
Chua Hak Bin of Bank of America Merrill Lynch said he draws “little comfort” from comparisons with 1997. While in many ways Malaysia’s economy is stronger now, for example by having a current account surplus, its external debt is 70 percent of gross domestic product, compared with 44 percent in 1997, and there’s “significant downside risk even after the sharp ringgit correction”.
The program, however, has faltered. Wage growth is lackluster, and inflation remains far below the central bank’s 2% target. Gross domestic product shrank at an annualized pace of 1.2% in the second quarter, and there’s evidence that the economy may have fallen back into recession in the third quarter.
Bank of America Merrill Lynch lowered its year-end target for the S&P 500 for the second time since early September and warned that a lack of companies providing outlooks this earnings season could provide a headwind to the broader market.
While the European Central Bank has pledged to spend an average of 60 billion euros a month on bonds through September 2016 to revive euro-area inflation, some economists have warned it’ll need to increase the size of the program.
Record-low borrowing costs have failed so far to spur consumer prices, and deflation deepened in September, extending the bout of negative prices to 15 months.
The five-member board of the Bank of Mexico voted Sept. 21 to keep interest rates at a record low of 3%, with most members saying the slow economy will likely keep annual inflation below the bank’s target in 2015 and 2016.
Traders now don’t see a rate increase by the BOE until 2017 and while the central bank might not wait as long as that, it is understandable why markets are positioned that way, said Jason Simpson, a London-based fixed-income strategist at Societe Generale SA.
The Bank of Japan should be ready to ease monetary policy further if needed to accelerate inflation toward its 2 percent target, preferably by buying government bonds with longer maturity, the International Monetary Fund said on Tuesday.
Japan led world stock markets higher Tuesday on hopes for new stimulus from its central bank while investors were also buoyed by the prospect that the Federal Reserve will wait until next year to raise interest rates.
Large U.S. manufacturers, energy producers and other internationally oriented firms have borne the brunt of a strong dollar. Barely any manufacturing jobs have been created in 2015, and energy producers have cut 120,000 jobs since December.
The International Monetary Fund has grown more pessimistic over the last three months over global growth, as declining commodity prices and increasing financial market volatility take their toll, particularly on emerging markets.
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