In fiscal year 2014-15, the pension fund behemoth earned a negligible 2.4 percent in returns, according to the PARC report. The value of CalPERS’ holdings since the start of the Great Recession in 2008 is down 21.2 percent, despite double-digit returns in four of the last six fiscal years, documents show
Rising deductibles and copayments can mean people don’t get much benefit from paying monthly premiums. A recent study from the Kaiser Family Foundation shows deductibles rose about eight times faster than wages in the past 10 years. That’s taking a toll on people like Powell, even though they have insurance.
Senior loan officers of nearly 100 banks acknowledged that credit quality has “deteriorated” on everything from auto loans and credit cards to commercial real estate mortgages. Translation: More people aren’t paying and delinquencies are rising.
Reserve Bank of Australia Governor Glenn Stevens and his board lowered the cash rate by 25 basis points to 1.75 percent Tuesday, a move predicted by just 12 of 27 economists surveyed by Bloomberg. The rest had seen no change. Data last week showed quarterly deflation in the consumer price index and the weakest annual pace on record for core inflation — which the RBA aims to keep between 2 percent and 3 percent on average.
The cuts have forced Binladin and other construction companies to delay paying some workers’ salaries, in some cases for months. In response, some unpaid staff have stopped turning up for work, slowing work on some Binladin projects such as the King Abdullah Financial District in Riyadh.
After the end of May, it will take a super-majority to approve a spending plan. Without one in place, the queue of unpaid bills is rising even as the state spends about $500 million a month more than it brings in.
Two companies have pushed the default rate on risky bonds in the energy sector to an all-time high.
Still, the city government remains on borrowed time thanks to its severe financial problems, with only enough money on hand to get through the rest of this month.
Detroit has been breaking down, bit by bit, before our eyes. On Monday, most of its students could not go to school and on Tuesday, the taps will go dry for thousands.
Even as the ECB uses a mix of low or negative interest rates in addition to 80 billion euros ($92 billion) per month in asset purchases, inflation is expected to be less than half the 0.5 percent the commission predicted in February when it last issued forecasts, and below the ECB’s goal of just under 2 percent. It will average 1.4 percent in 2017, the commission said.
The increased borrowing for an economy already swimming in debt adds to concerns about growing bubbles in certain major asset classes, such as real estate and commodities, and a bond market seeing a rise in corporate defaults.
Australia’s debt pile could increase at a faster pace next fiscal year as the government struggles to rein in its budget deficit, testing the appetite of global investors for the country’s bonds.
Publicly traded companies in China saw net profit dip in 2015 for the first time since the global financial crisis hit in 2008, as a wide range of businesses from resources to home appliances struggled amid the country’s economic slowdown.
China’s trend toward off-balance-sheet lending mirrors what many Western banks did before the 2008 crisis. Lenders created trusts that bought mortgages, which were then sliced and diced into tradable securities before being sold to investors. Moving the loans off their books enabled the banks to continue lending.
Gov. Alejandro Garcia Padilla warned that Puerto Rico bond investors face a cascade of defaults starting in July unless Congress passes legislation that facilitates a restructuring of the commonwealth’s debt.
A Moody’s team of analysts led by Erick Rodrigues said in a report that the number of companies facing high funding risks rose to 33 percent last year, from 28 percent in 2014. More debt is maturing than companies can generate cash to make payments, while banks are refinancing fewer loans, the analysts said.
Economic growth in sub-Saharan Africa will slow to 3 per cent in 2016 as much of the continent reels from low commodity prices, the International Monetary Fund has warned.
France, Italy and Spain are set to miss European Union budget targets this year and next without urgent government action, European Commission forecasts showed on Tuesday.
Growth in the eurozone and the wider European Union will be slightly weaker this year than previously forecast, the European Commission said Tuesday, warning that the economic slowdown in China and other emerging markets, geopolitical tensions and uncertainty ahead of the U.K. referendum on EU membership could weigh on the economy.
Key U.S. economic information may have been leaked ahead of its release, judging from the price moves in key equity and bond futures contracts, according to a study released Monday.
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