Local city leaders packed a room to hear Illinois Comptroller Leslie Geissler Munger discuss the state’s budget crisis. She told the group the state has nearly eight billion dollars of unpaid bills, and cities may have to face some hefty cuts.
But Emanuel, known for his sometimes abrasive style, has argued that he had to make tough choices to rein in the city’s budget deficit, which is expected to grow to $1.2 billion by next year due to an increase in payments to public pensions.
U.K. North Sea investment will drop by more than half as tumbling oil prices and high taxation force energy producers to cut costs, according to an industry report.
While the country has raised almost $5 billion in the past month and oil has jumped 21 percent from an almost six-year low, Deutsche Bank’s Armando Armenta says that’s still not enough. Venezuela needs $32 billion to finance itself this year, according to his estimates.
Borrowers in Europe are reducing protections as central bank measures to stimulate the economy suppress rates, fueling sales of high-yield debt to a record $22 billion.
“The hryvnia at this level is bad pretty much from every angle, driving up local energy prices and making external debt less sustainable,” Fyodor Bagnenko, a fixed-income trader at Dragon Capital in Kiev, said by phone on Monday. “War-related fears and delays in the IMF program are prompting companies to hoard hard currencies, while the central bank’s ability to break the spiral is limited by critically low foreign reserves.”
The $18 billion retirement system for teachers has only 53 percent of the assets it’s expected to need for future pension payments. Officials of the Kentucky Teachers’ Retirement System, or KTRS, say the state stopped making its full recommended contributions in 2008, leading to annual shortfalls.
To minimize the risk of deflation, central bankers are providing more stimulus, adopting a range of unconventional measures in an effort to boost prices. The ECB announced on Jan. 22 that it will next month embark on a program known as quantitative easing under which it will buy more than one trillion euros of mostly government bonds by September 2016.
An auction of 40-year Japanese government bonds on Tuesday produced a highest accepted yield of 1.55 percent, with 79.4805 percent of the bids accepted at that yield, the Ministry of Finance said.
The Bank of Israel’s move comes amid a so-called global currency war, where central banks are rapidly lowering their key rates to weaken their currencies and thereby ensure the country’s products remain competitive.
In a world where growth is scarce and prospects aren’t improving, an unspoken currency war has broken out. The short term pay-off might be a boost in exports, but, according to Bloomberg View’s Mark Gilbert, there can be no real winners in the end.
“There has been important progress,” she said. “However, despite this improvement, too many Americans remain unemployed or underemployed, wage growth is still sluggish and inflation remains well below our longer-run objective.”
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