Daily Digest

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Daily Digest 7/27 - Pensions’ Last Defense Is Eroding, Recession Bites Brazil

Wednesday, July 27, 2016, 6:50 AM

Economy

GRAPHIC-Global QE now a record $180 bln a month thanks to ECB, BOJ

Eight years after the global financial crisis and years after the U.S. and UK central banks stopped their "quantitative easing" bond-buying programmes, the amount of QE stimulus being pumped into the world financial system has never been higher.

Britain's mint is making big money from gold rush

The company, which is owned by the U.K. government, makes billions of coins for 40 countries. It posted the highest revenues in its 1,100-year history on Tuesday, as revenues from gold and silver trading soared 64%.

Singapore Banks Facing Earnings Stumble as Bad Loans, Sibor Bite

Overall classified loan exposure, which includes debts that are unrecoverable as well as those unlikely to be repaid, rose to a seven-year high of 0.92 percent by March, according to Monetary Authority of Singapore data.

Happy Mario Draghi day: four charts after ‘whatever it takes’

Spain’s 10-year yield has fallen from a peak of 7.165 per cent in early August to 1.11 per cent today. In Italy – which still lumbers under a government debt pile equal to 133 per cent of GDP – yields have dropped from 6.3 per cebt to 1.2 per cent in the same time.

As Warnings Flash in Venezuela, Gold Holdings Sink Yet Again

As Venezuela’s crisis swells, its gold reserves are shrinking. The holdings fell again in May, sliding to 6.24 million ounces from 6.63 million ounces in April to post a fourth consecutive drop, according to data from the International Monetary Fund website. Over the past year, the country’s hoard has shrunk 36 percent, and since February 2015 it’s nearly halved.

Will the equity in your home ease the pressure on your pension when you retire? (UK)

Almost half of homeowners aged over 45 – that’s more than six million people – say they will rely on their property to top up their pension income during retirement. But the big question is, will there be enough houses to go around to meet the ever-rising pressure on ­retirement funds?

Corporate Japan's pension obligations hit all-time high

The value of listed Japanese companies' future obligations to retiring workers reached a record 91.21 trillion yen ($860 billion) at the end of fiscal 2015, with the unfunded chunk growing to nearly 26 trillion yen amid depressed interest rates.

Why Pensions’ Last Defense Is Eroding

Long-term returns for U.S. public pensions are expected to drop to the lowest levels ever recorded, portending deeper pain for states and cities as a $1 trillion funding gap widens.

Brexit Bulletin: What You Need to Know on Tuesday

The combined deficits of all U.K. defined-benefit pension schemes, normally employer-sponsored and promising a specified monthly payment or benefit upon retirement, rose £80 billion overnight ($105 billion) following the referendum to £900 billion, according to pensions consultancy Hymans Robertson. Since then the deficit has grown further, to a record £935 billion as of July 1.

China: Strikes, mass unemployment a growing worry for country's leaders

Prominent labour activist Zhang Ziru, who has been involved in much of the labour unrest in China's south, had a dire warning for the Government. "If China's system doesn't improve and the Government fails to make political reforms, the grievances and grudges will grow until society explodes," he said.

China says downward pressure on economy still "relatively big"-state radio

China's Politburo, a top decision-making body of the ruling Communist Party, said on Tuesday that the economy still faces relatively big downward pressure, state radio reported.

Hong Kong June exports fall for 14th month, Brexit to deepen pain

Hong Kong's total exports in June fell for the 14th straight month, dampened by a slowdown in China, with the city's factories bracing for more pain in coming months from the impact of Brexit.

EU may fine Spain, Portugal for deficits, give more time to cut them

The European Commission is likely to propose on Wednesday to fine Spain and Portugal for not effectively cutting their budget deficits and to give them new, longer deadlines to reduce their shortfalls to EU limits.

Chicago still has time to embrace pension reform, Moody's says

Chicago is not on the brink of default, according to Richman. The total of Chicago's pensions and debt is more than nine times the city's operating revenue, she said. That means that more than 35 cents of every dollar of the budget goes to pay debt and pensions. Chicago's pension debt has ballooned to about $33 billion, according to its latest annual financial report, which factors in new accounting rules.

ECB bond-buying dwarfs euro zone sales, pins yields near lows

European Central Bank purchases of government bonds are set to significantly outstrip new debt sales until the end of the year, helping pin yields near record lows in a trend strategists say will persist for months.

Italy's $560b bank debt weighs on Europe

The results have been the subject of discussion at a meeting of G20 Finance bosses in China over the weekend. Investors and political leaders fear that nearly $560 billion worth of bad debts held by Italian banks could trigger a new financial crisis in the eurozone already struggling with a Greek bailout and the unknown implications of the second biggest economy leaving after Brexit.

Record bankruptcies pressure Brazil banks as recession bites

Brazil's harshest recession
in eight decades is prompting some of the nation's top banks to
reclassify some 90 billion reais ($27 billion) in problematic
corporate loans, eroding profits as banks struggle with a
doubling in bankruptcy protection filings.

Analyst Warns of a Restaurant Downturn and Sees Harbinger of U.S. Recession

A downturn in dining could be implying a U.S. recession as soon as early 2017, he said, since "restaurants have historically led the market lower during the three to six-month periods prior to the start of the prior three U.S. recessions," Westra adds.

Spanish Deficit Doesn’t Look Any Better as Penalty Looms: Chart

Spain is about to find out if it’s going to be penalized for missing European Union deficit targets, and the future doesn’t bode well: While the nation’s government is projecting a narrower shortfall of 3.6 percent of gross domestic product this year -- down from 5.1 percent in 2015 -- no one is buying it.

‘Penny-Pinching’ Japanese Households Spend Less on Having Fun

Over a quarter of Japan’s population is 65 or older -- that’s a bigger slice than in any other country -- and they’re finding it difficult to make ends meet as the government gradually raises the age at which people become eligible for pensions. This is exacerbating the tendency of older consumers to forgo discretionary spending and limit purchases to necessities like food and medical services.

Illinois Colleges Besieged by Cuts as Budget Fight Trickles Down

While the measure provided $1 billion for higher education, college presidents say they’re using that to pay bills left over from the last school year, when they had to manage for months without any state funds at all. As a result, the stop-gap deal effectively leaves them with little left when students return.

Bitcoin not money, Miami judge rules in dismissing laundering charges

“The court is not an expert in economics; however, it is very clear, even to someone with limited knowledge in the area, the Bitcoin has a long way to go before it the equivalent of money,” Pooler wrote in an eight-page order.

Japan to miss FY2020 GDP target of 600 trillion yen, retreats further from goal

Japan will not meet its goal of reaching nominal gross domestic product of 600 trillion yen ($5.7 trillion) in fiscal 2020, and may not achieve it even by fiscal 2024 if growth stays sluggish, the government's projections showed on Tuesday, adding pressure on policymakers struggling to revive the economy.

Bank of England policymaker backs stimulus measures as report points to slowdown

Bank of England policymaker Martin Weale said he favours stimulus measures to shore up the UK economy after a post-referendum report pointed to a major growth slowdown.

Britain's RBS Warns Customers May Have to Pay to Make a Deposit

The Bank of England is expected to cut interest rates to a record low next week, prompting RBS to write to about 1.3 million business customers this month with the warning that they may have to pay the bank to look after their money if the base rate slips below zero.

Gold & Silver

Click to read the PM Daily Market Commentary: 7/26/16

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."

2 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4237
PM Abe's plan for $265 billion stimulus..pressure on BOJ to ease

 

Japan plans $265bn stimulus to ailing economy

BBC News - ‎5 hours ago‎
Japan's Prime Minister Shinzo Abe has said his government will introduce a 28tn yen ($265bn; £200bn) package to boost the flagging economy. The move had been expected in the wake of the UK's vote to leave the European Union, which Mr Abe had ...

Japan Considers Issuing 50-Year Debt for First Time

Wall Street Journal - ‎10 hours ago‎
The Bank of Japan, which holds a policy meeting this week, has been forced to try more extreme stimulus measures, including the introduction of negative interest rates earlier this year. Some Abe advisers have said the central bank and government ...

PM Abe's plan for $265 billion stimulus puts pressure on BOJ to ease

Reuters-5 hours ago

The size of the package, at more than 28 trillion yen ($265.30 billion), exceeds initial ... "The BOJ is likely to ease policy, including increasing government debt
 

China's debt problem may be worse than expected, Moody's warns

CNBC - ‎10 hours ago‎
"We estimate the potential understatement to be significant, amounting to at least RMB16 trillion ($2.4 trillion) or 23 percent of GDP at end-2015, equivalent to around one-third of shadow banking," Taylor added. Moody's said TSF flows were being ...
 
 

China shadow banking assets grew 30 percent in 2015 - Moody's

Reuters UK - ‎9 hours ago‎
Shadow banking assets in China increased by 30 percent last year, reaching almost 54 trillion yuan (6.17 trillion pounds), according to Moody's estimates. That is equivalent to about 78 percent of China's total economic output and 27.6 percent of its ...

HSBC threatens negative interest and Santander plots to slash rate

Daily Mail - ‎5 hours ago‎
Banking giant HSBC is warning that it too could begin charging some customers for holding their money, just a day after Natwest and RBS said they may start charging negative interest rates. And it has emerged Santander is plotting to slash the interest ...

Santander declines to comment on reports of rate cut for 123 current account

AOL Money UK - ‎4 hours ago‎
In a letter setting out changes in terms and conditions to 1.3 million customers across NatWest and Royal Bank of Scotland (RBS) business and commercial banking, the banking group warned it might charge customers in the event of negative interest rates.

Negative Interest Rates Driving Investors to Gold

Bloomberg-Jul 26, 2016
John Ing, president and chief executive officer at Maison Placements Canada, joins Bloomberg TV Canada's Rudyard Griffiths to discuss the rally the gold and ...

Could subprime auto loans lead to same economic catastrophe as ...

MarketWatch-2 hours ago
But that $1 trillion is a fraction of the $8.4 trillion mortgage market, based on New York ... Auto debt has swelled with strong car and truck sales, fueled by the ...

Kiev refuses to pay Russian debt because it was 'forced to take the money'

RT - ‎5 hours ago‎
Ukrainian President Petro Poroshenko in May approved a bill extending the moratorium on paying off the country's external debt, including the $3 billion Eurobond owed to Russia. The law allows Kiev more time to legally find ways to restructure its ...

Spain and Portugal Dodge EU Fine for Breaching Deficit Limits

Bloomberg - ‎2 hours ago‎
Spain has vowed to rein in regional spending and raise an extra 6 billion euros ($6.6 billion) in annual corporate tax revenue by bringing forward the payment schedule while Portugal has pledged to freeze about 346 million euros in spending this year.

Moody's downgrades Alaska's credit rating for second time this year

KTUU.com - ‎19 hours ago‎
The agency says the lowered credit rating reflects the state's extraordinary structural imbalance, noting that Alaska is "running deficits of more than $3 billion per year" and has "outsized pension liabilities and the economic difficulties caused by ...

Kansas credit rating drops again

Kansas State Collegian - ‎7 hours ago‎

The Standard & Poor's Global Ratings dropped Kansas from an “AA” to an “AA-” credit rating Tuesday afternoon, according to the Associated Press. Though Kansas has dealt with budget problems for years, its credit rating had not dropped until after the .

Each Illinois legislator costs us an average of $100000 a year
Chicago Daily Herald-5 hours ago

Clinton Emails Reveal Direct US Sabotage of Venezuela

teleSUR English-13 hours ago

While Hillary Clinton publicly welcomed improved relations with Venezuela as secretary of state, she privately ridiculed the country and continued to support .

Venezuela food shortages leave zoo animals hungry

Reuters-1 hour ago
CARACAS Some 50 animals have starved to death in the last six months at one of Venezuela's main zoos, according to a union leader, due to chronic food ...

Brazil, Venezuela drag Latin America to 2016 recession

MENAFN.COM - ‎9 hours ago‎
Ongoing recessions in Brazil and Venezuela, among others, helped put the brakes on regional growth. Brazil's economy is expected to shrink 35 per cent this year, while Venezuela should prepare for an 8 per cent contraction, according to the report.
Time2help's picture
Time2help
Status: Diamond Member (Online)
Joined: Jun 9 2011
Posts: 2888
Voting in this election is like...

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