None of the distressed plans have cut benefits — yet. But experts point out that their ability to do so is one more example that promises made to employees that once seemed inviolable can now be easily broken. This change in the social contract is growing more common as employers, private employers as well as governments, increasingly view the mushrooming cost of pensions as unbearable, even as the broader economy recovers.
S&P said Venezuela’s economy could shrink 7 percent this year, with further contraction possible in 2016. It added inflation could reach 100 percent or more this year, primarily as a result of continuing shortages of basic goods.
So big is the hit to the budget from commodity prices and the measures held up in the Senate it may “never get back to surplus”, Treasurer Joe Hockey has told the Coalition party room.
The embattled minister made the claim as an independent assessment of the damage to the budget since May put it at $46 billion to $56 billion.
“The one thing everyone knows about gold is it is a good thing to hold if your currency is about to devalue,” Matthew Turner, an analyst at Macquarie Bank Ltd., said via phone. “It would be understandable for Greeks to buy gold because they are afraid of losing their money.”
The rout in commodity prices to the lowest in 12 years will spur deeper spending cuts by the world’s biggest mining companies in Africa, hurting a region more reliant on mineral exports than any other on the planet.
Japan is set to miss budget-balancing pledges in coming years, government forecasts showed on Tuesday, underscoring the difficulty in reducing the country’s huge debt burden, despite growth policies that have boosted tax revenues.
The country is in default. Its president is embroiled in a political scandal that’s eroded her public support. And the price of soybeans, a key source of dollars for the cash-starved nation, is tumbling as farmers enter harvest season.
Yields on some commonwealth bonds climbed to records Monday after a judge threw out a debt-restructuring law that lawmakers passed last year. The steepening borrowing costs come at a crucial time for the U.S. territory: Officials want to sell $2 billion of petroleum tax-backed debt to pump cash into the Government Development Bank, which lends to the island and its localities.
The shortfall in Britain’s private sector pension plans rose to a record 367.5 billion pounds ($559.59 billion) at the end of January from 266.3 billion pounds in December, the Pension Protection Fund (PPF) said on Tuesday.
China added funds to the financial system Tuesday, adding to seven straight weeks of injections as Beijing seeks to ease a seasonal cash squeeze and cope with a slowing economy and capital outflows.
The riskiest companies face $791 billion of maturing debt during the next five years, underscoring concern that issuers that have been gorging on junk-rated bonds and loans will struggle to refinance as interest rates rise, according to Moody’s Investors Service.
The squeeze on U.S. farmers is getting worse as low crop prices and rising costs erode incomes that not long ago were the highest ever.
Finance leaders from the world’s largest economies endorsed on Tuesday aggressive stimulus measures taken by many of their central banks recently as vital responses necessary to boost a weak global economy.
“A California stop is what it’s called,” she said. The fine: $500. And we saw a lot of cars doing it. “It’s easy pickings. I imagine for the city it’s like shooting fish in a barrel,” she said.
The recent surge in the dollar and declines in currencies such as the euro and the yen have been attributed largely to the introduction of unorthodox monetary measures by central banks. The US faced its own accusations of feeding a “currency war” in the wake of the 2008 global financial crisis as a result of the Federal Reserve’s massive quantitative easing programme.
Gold & Silver
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