Attorney Ron King said 4.5 percent cuts for 12,000 retirees would likely kick in by March 1 as a key part of Detroit’s bankruptcy. Detroit police and fire retirees are exempt from the cut.
According to the suit, the changes mean that a retiree with a $34,000 pension in 2014 would lose more than $2,223 in cost-of-living adjustments over the next two years, compared with the old plan.
Brazil's currency fell sharply on Tuesday as diving oil prices, a plunge in the Russian ruble, and uncertainty over the central bank's currency-intervention program drove investors toward safe-haven assets. The Brazilian real fell as low as 2.76 per dollar, near its weakest in 10 years.
Activity in China's factory sector contracted in December for the first time in seven months, the latest in a string of weak economic indicators that will intensify calls for more stimulus measures to head off a hard landing.
Apple Inc. has halted online sales in Russia due to “extreme” ruble fluctuations, the company said.
Petroleo Brasileiro SA (PETR4), the biggest oil producer in ultra-deep waters, is curbing refining and exploration spending in response to the collapse in prices and difficulties tapping debt markets during a corruption probe, said two people with direct knowledge of the matter.
Spain technically exited recession in mid-2013, but the unemployment rate remains extremely high at close to 24 percent.
"In many ways the crisis is history, but its consequences are not," Rajoy said on Monday after signing an accord with unions to extend long-term unemployment benefits.
Governor Stefan Ingves today vowed to keep the main rate at zero further into 2016 and said the bank was planning for all eventualities. The first option would be to further postpone rate increases, Ingves said today at a press conference. After that the bank is looking other measures including asset purchases, lending and negative rates with currency interventions as a last resort, he said.
For example, the bonds of SandRidge Energy, Midstates Petroleum and Resolute Energy are trading at distressed levels of just 50 cents or 60 cents on the dollar, according to FactSet.
"It's hard to go from cash flow negative to cash flow positive on the turn of a dime when the commodity you're selling falls by 45%," said Cutter.
The country's Global 27 bond was down 5.765 points in price to yield 27.197 percent, the highest since its 1997 issuance, yielding close to 25 percentage points more than comparable U.S. Treasury bills.
The head of Russia’s central bank warned Russians on Tuesday morning that they should get used to a new way of life, as the country’s embattled currency continued to plummet. After a brief rally, the rouble hit new historic lows on Tuesday, just hours after an overnight rise in interest rates designed to halt its fall.
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