Water shortages and electricity cuts have added to the hardships of Venezuela’s 30 million people, already enduring a brutal economic slowdown, shortages of basics from milk to medicines, soaring prices and long lines at shops.
The water level “remains very critical” at the El Guri reservoir, Venezuela’s main source of hydroelectric power, due to the severe drought caused by El Niño that has already forced the government to ration electricity and drinking water, Electric Energy Minister Luis Motta said.
Nearly 70 companies in the United States and Canada have filed for bankruptcy during an oil bust in which prices plummeted from more than $100 a barrel to less than $30 in less than two years. Despite gutting drilling operations, and laying off thousands of workers to conserve cash, these companies could not longer meet the interest payments to creditors who have become less sympathetic as the bust drags on.
Fitch Ratings has downgraded the states of Sao Paulo, Santa Catarina and Parana’s Issuer Default Rating (IDR) to ‘BB’ from ‘BB+’. Fitch has also downgraded the ratings for the cities of Sao Paulo and Rio de Janeiro to ‘BB’ from ‘BB+’. In addition, Fitch has downgraded the IDRs for the state of Rio de Janeiro to ‘B+’ from ‘BB’. The Rating Outlooks remain Negative.
The government initially booked about ¥9.9 trillion for interest payments in the initial fiscal 2016 budget but now expects those costs to drop because the yield on the 10-year government bond has declined to around minus 0.1 percent.
And it’s debt is building up as the railway company, which operates China’s trains and is responsible for its much lauded 19,000 kilometre high-speed rail network, loses money. In the first quarter, CRC reported a net loss of 8.73 billion yuan, up 35 per cent from a year ago.
The total debt was more than double the country’s nominal gross domestic product in 2015 of ¥499.1 trillion. Japan’s fiscal health is the worst among major developed economies.
Negative interest rates could create a housing bubble in Denmark, leaving households exposed to the risk of unsustainable debts once borrowing costs rise again, the OECD said on Tuesday while cutting its growth forecast for the country.
Switzerland’s biggest bank UBS could pass on negative interest rates to wealthy private customers or add new service fees to ensure profitability and capital returns in the current environment, its chief executive said on Tuesday.
Long-term care grew more expensive again this year, with the cost of the priciest option, a private nursing home room, edging closer to $100,000 annually, according to a survey from Genworth Financial.
A further $100 billion of developing-nation debt faces downgrade to junk this year as Moody’s Investors Service and S&P Global Ratings tally up the effects of the oil shock, according to analysts at Barclays Plc.
Across all sectors, debt in China has increased to around 280% of GDP. Meanwhile, liabilities equal to about 115% of GDP are owed by SOEs. In the event that some entities faced difficulties in honoring their obligations, the government could become responsible for some of the related contingent liabilities.
Thomas Nyhan, the executive director of the Central States pension fund, told reporters on a conference call that he wasn’t sure that Central States could make the numbers work after Special Master Kenneth Feinberg refused a request to slash benefits by 22% on average for 270,000 Teamsters members.
Gold & Silver
Provided daily by the Peak Prosperity Gold & Silver Group
Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."