Daily Digest

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Daily Digest 6/18 - Italian PM Seeks Austerity Relief, Young Americans ‘Living Paycheck To Paycheck’

Wednesday, June 18, 2014, 1:22 PM

Economy

U.S. Postal Service: ‘The Financial Hole We’re In Is So Deep’

he agency calculates it has $113 billion in total current and future liabilities – including payments to retirees and workers compensation – exceeding assets by $90 billion.

Here’s how the liabilities break down and compare to cash on hand, according to a Postal Service white paper:

Japan continues to count cost of idled reactors

The additional fuel costs that Japan faced in fiscal 2013 to compensate for its nuclear reactors being idled was ¥3.6 trillion ($35.2 billion). Japan reported a trade deficit of ¥11.5 trillion ($112 billion) for the year, largely due to these additional fuel costs. This compares with trade deficits of ¥6.9 trillion ($68 billion) in 2012 and ¥2.6 trillion ($25 billion) in 2011, following a ¥6.6 trillion ($65 billion) surplus in 2010.

Montreal city employees stop work to protest pension bill

Municipal Affairs Minister Pierre Moreau.said last week that municipal pension plan deficits now stand at nearly $4 billion across the province.

The new bill could make city employees pay more, and some retirees may also be on the hook for pension shortfalls.

IMF says Italy's recovery fragile, needs 'bold, quick' reforms

Italy's economic recovery remains fragile and Matteo Renzi's government needs to take rapid steps to increase the country's growth potential and cut debt, the International Monetary Fund said on Tuesday.

Italian PM seeks austerity relief in return for Juncker backing

Italy's reformist prime minister, Matteo Renzi, is to demand a relaxation of European austerity policies, challenging Germany to cut some slack for Rome and Paris, in return for agreement on who should be the next head of the European commission.

France's State Auditor Warns on Deficit Target

"Our country must prepare itself to pay a distinctly higher price to service debt, which, at current levels, already costs the equivalent of spending on school teaching," Mr. Migaud said.
The auditor said that around €30 billion of the €50 billion in planned spending cuts are insufficiently documented or uncertain.

Survey: 56 Percent Of Young Americans ‘Living Paycheck To Paycheck’

Four-in-ten young Americans in the workforce, or millennials, consider themselves “overwhelmed” by growing debts, with more than half (56 percent) reporting that they are “living paycheck to paycheck” amid mounting educational debt their baby boomer parents largely avoided.

Savings cuts may be wild card in Detroit bankruptcy vote

The clawback, plus regular pension cuts under the city’s proposed bankruptcy plan would be capped at 20% of a pension check, if pensioners vote to approve the plan. Active city workers would see lump sums disappear from their savings accounts, which work like annuities after retirement.

Portugal to be monitored until 2045 despite bailout exit

The European Financial Stability Mechanism (EFSF), which was responsible for Portugal‘s bailout in 2011, will continue to monitor the country‘s financial situation until Lisbon has repaid its bailout loans in full, Spanish newspaper Publico reported Tuesday.
This is not expected to happen before 2045.

American Airlines cutting flights to Venezuela

The airline says Venezuela is holding on to at least $750 million in revenue that American wants to bring back to the U.S.

Other airlines are locked in similar disputes. The International Air Transport Association, a trade group for major world airlines, says Venezuela is holding $4 billion in airline money because of problems with the country's currency-control system.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/17/14

Provided daily by the Peak Prosperity Gold & Silver Group

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