Daily Digest

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Daily Digest 10/28 - Healthcare Premiums To Increase In 2016, Venezuela Sues Currency Website

Wednesday, October 28, 2015, 9:16 AM

Economy

U.S. Job Growth Hurt by Slowing Global Economy

In the first three weeks of October, 165 American companies have cited the slowing global economy in their outlooks for earnings and revenue. That is up from 108 in the same period last year, and 97 in the year-earlier quarter, according to an analysis of earnings reports by Thomson Reuters.

BASF cuts full-year goals in face of slowing global economy

BASF said its third-quarter business had felt the pinch from the economic slowdown in China and other emerging markets.

Cummins to cut jobs as weak global economy hurts sales

Chief Executive Officer Tom Linebarger said in a statement that industry orders in Brazil and China were at multiyear lows, with no sign that these markets will rebound soon.

The average student loan debt grew 56% over the past 10 years

The average student debt at college graduation grew from $18,550 in 2004 to $28,950 in 2014, a 56% jump, according to a report released Tuesday by the Institute for College Access and Success, a nonprofit focused on expanding access to higher education.

Pension problems expected to hammer UPS retirees

The problem is that some UPS retirees receive their pensions from the cash-strapped Central States Pension Fund, which covers hundreds of thousands of workers from different companies. That fund says it needs to make cuts in order to keep from running out of money.

United Auto Workers union may be cutting pensions

More than 500,000 retired General Motors workers may have their pensions lowered. This could greatly effect the amount of snowbirds that will come to Yuma County this winter season. Bruce Burt, a United Automotive Worker (UAW) union member has been coming to Yuma the past two years and says if his pension is cut or lowered it will effect the way he spends his money.

Healthcare.gov premiums have bigger increase for 2016

The average rate increase in 30 of the largest insurance markets — which cover about 60% of the consumers in the 38 states — is 6.3% for second lowest-cost silver plan, which is considered the benchmark plan used to determine tax credits. Across all markets in the 37 states using Healthcare.gov for 2015, the cost of the benchmark plan will increase an average of 7.5%.

Hamptons' Home County Turns to False-Alarm Fees After Downgrade

“They’re really going to nickel and dime their people just to try to avoid whatever semantics they have on tax increases,” said Howard Cure, managing director for research in New York for Evercore Wealth Management, which holds some of the county’s debt among its $6 billion of investments. “You have to wonder whenever the next recession is, how prepared a county like Suffolk will be.”

Chief Springfield critic Emanuel seeks $800 million in help from Capitol (Chicago)

What Emanuel doesn't volunteer, however, is that his City Hall, Chicago Public Schools and CTA budgets rely on more than $800 million in funding or financial relief from Springfield that has yet to materialize. And so the very state Capitol Emanuel criticizes as inept is the same place he's relying on to deliver for him.

Next Few Weeks Will Reveal Full Extent Of Oil Industry Suffering

Write-downs occur when the expected future cash flow from an asset falls sufficiently that a company has to report that the asset has lost some of its value. With oil prices half of what they were from mid-2014, oil and gas fields around the world are no longer worth what they used to be. Some oil fields that were previously expected to produce in the future may no longer even make sense to develop given current oil prices. As a result, investors should expect billions of dollars in further write-downs in the coming weeks.

India 10-Year Bond Yield Near One-Month High on Deficit Concern

India’s 10-year sovereign bond yield held near a one-month high on speculation the government will struggle to meet its fiscal deficit goal.

Chicago still spending borrowed money on landscaping, lawsuits

Emanuel's proposed $543 million city property tax increase will not provide any additional funds — that money is aimed at addressing the city's massive pension liability.

Treasury Bill Rates Slide Below Zero After Debt-Ceiling Accord

Rates on Treasury bills maturing Nov. 12, viewed by many as being at most risk of payment issues if political gridlock prevented a deal, traded at negative 0.01 percent Tuesday, down from as high as 0.13 percent Monday and from a seven-month high of 0.17 percent on Oct. 19. The rate on the bill due Nov. 5 fell to negative 0.0025 percent.

Arch Coal shares hammered as company gives up on debt swap

Heavily-indebted Arch Coal has been hit by weak demand and stricter regulation, factors that have already pushed Alpha Natural Resources, Patriot Coal and other coal companies into Chapter 11 bankruptcy protection.

Russia's finance minister sees 1 of 2 rainy day funds depleted by end of 2016

Russia will deplete one of its two rainy day funds by the end of next year as it tries to plug the state deficit amid the economic downturn, the finance minister said Tuesday.

Debt Totaling $345 Billion Says ECB to Cut Deposit Rate to -0.3%

Euro-area government debt totaling $345 billion that yields less than minus 0.3 percent shows investors are looking to the European Central Bank to cut its deposit rate by a further 0.1 percentage point.

Japan's economy likely declined again in Q3

As a result, some economists are betting that the Bank of Japan, which has been pumping vast amounts of money into the economy by buying up government debt, will pull the trigger on more stimulus at its next board meeting on Friday. The central bank's aggressive intervention has been central to Mr Abe's policies, widely known as Abenomics. But events have conspired to blunt its impact.

Brazil companies more leveraged than ever, Credit Suisse says

The report is the latest pointing to the risk that the eroding quality of corporate loan books poses to Brazil's largest listed lenders. Farming, industrial and services companies have ramped up their borrowing substantially since 2009, encouraged by a glut of subsidized government credit, low global interest rates and declining capital markets activity.

Brazilians Expect Crisis to Linger for at Least 3 More Years

Brazil’s economy will contract 3 percent this year and 1.4 percent in 2016, according to analysts surveyed by the central bank. That would be the first back-to-back recession since 1931.

Bernanke: Governments 'too focused on budget cuts'

In an interview with me, he says that the administrations of the US, UK and eurozone over-did austerity, with the consequence that the Fed, Bank of England and European Central Bank were forced to engage in extreme monetary stimulus - cuts in interest rates to almost zero and massive money creation through quantitative easing - that many regard as dangerous.

Chance of recession highest in two years: Survey

The chance of recession in the next 12 months jumped to a two-year high in the latest CNBC Fed Survey as Wall Street continues to downgrade the outlook for U.S. growth and push out the date for the first Fed rate hike.

Brazil loan defaults stay at near two-year high in September

Bank loans delinquent for at least 90 days in Brazil remained in September at their highest in almost two years, the central bank said on Tuesday, as the deepest recession in a quarter century and rising interest rates strained borrowers' capacity to stay current on their debts.

Venezuela sues US currency website

Venezuela’s currency, the bolívar, is now trading at 820 per dollar — or 130 times the main official rate of 6.3 bolívares. Amid the country’s deepening malaise, the currency has lost value at breakneck speed: thirteen months ago a greenback fetched 100 bolívares.

4 central bank interventions in 4 days—who's next?

ECB President Mario Draghi spoke of a negative deposit rate and left investors contemplating a ramping up of its 1 trillion euro quantitative easing program when it meets again in December. Within 24 hours, the Chinese central bank had cut its main benchmark rate for the sixth time since last November.

Orders for U.S. durable goods fizzle again

American-based manufacturers have been hit hard by a soaring dollar that’s made U.S. goods more expensive overseas, especially at a time when the global economy is struggling. Cheap oil has also curbed demand for heavy-duty goods used by U.S. drillers and other domestic energy firms.

Gold & Silver

Click to read the PM Daily Market Commentary: 10/27/15

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."

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4062
Another day of stimulus and hopes of more stimulus

Sweden's Central Bank Expands Stimulus Program

New York Times-4 hours ago
STOCKHOLM — Sweden's central bank says it will expand its bond purchase stimulus program by 65 billion kronor ($7.6 billion) to help the economy and ...

Competitive easing: Sweden ramps up QE and hints rates could go further into ...

Telegraph.co.uk - ‎5 hours ago‎
Sweden's negative interest rates have turned economics on its head. Despite a robust domestic economy, with falling unemployment and rising house prices, the central bank said "considerable uncertainty regarding the strength of the global economy" had ...

ECB Officials Haggle Over Fresh Stimulus in Draghi's Aftermath

Bloomberg - ‎3 hours ago‎
Less than a week after President Mario Draghi primed investors for an expansion of quantitative easing and the possibility of another cut in the deposit rate, Governing Council members are publicly revealing the arguments that will define their Dec.

Stocks Rise, Aussie Drops With Markets in Central Banks' Thrall

Bloomberg - ‎5 hours ago‎
U.S. stocks rose with European equities and bonds as central banks around the world show no signs of pulling back on stimulus designed to boost persistently sluggish growth. The Standard & Poor's 500 Index climbed for the first time in three days ...

Rouble falls further on central bank rate cut bets, weak oil

Economic Times - ‎6 hours ago‎
Konstantin Chernyshev, a Moscow-based analyst at Uralsib bank, wrote in a morning note that expectations of a rate cut had added pressure to the rouble on Tuesday, when the currency fell by more than 2 percent against both the dollar and euro.
 

Bank of Japan Faces Pressure to Act on Economy

Wall Street Journal - ‎3 hours ago‎
Many economists predict the central bank will expand its already enormous government bond-buying program, a key part of its two-year long fight to spark inflation and “reflate” the world's third-largest economy. BOJ Gov. Haruhiko Kuroda has given no ...

Kuroda's Stimulus Toolkit: Here Are Options for Bank of Japan

Bloomberg-14 hours ago
... a reserve rate cut for the time being. Some economists say the BOJ could even implement a negative-interest rate policy, as has been seen in Europe.

Sub-zero interest rates have floor nearby, albeit a shaky one

Reuters-9 hours ago
Four central banks in Europe have broken the taboo and are experimenting with the slightly puzzling concept of negative interest rates. The European Central ...

-Brazil sees deficit of at least $13 bln this year

Reuters - ‎16 hours ago‎
BRASILIA Oct 27 (Reuters) - The Brazilian government expects a primary budget deficit of 51.8 billion reais ($13.3 billion) for this year but the shortfall could be bigger, the planning and finance ministries said in a joint statement on Tuesday. The ...

Brazil's CSN Cut by S&P as Weak Steel Demand Clouds Debt Outlook

Bloomberg-19 hours ago
The depreciation of the Brazilian currency toward 4 reais per U.S. dollar will probably boost the company's total debt by about 5.8 billion reais ($1.5 billion) in ...

Chicago Tax Increase Spurs Bond Rally as Pension Debts Lingers

Bloomberg-2 hours ago
Eliminating the $20 billion debt to retirees that's pushed its bond rating to junk will still have to wait. Aldermen who represent the city's 50 wards will vote ...

Emanuel's tax hike tab: $755 million

Chicago Tribune-5 hours ago
During the past month, Emanuel has pitched his $7.8 billion spending plan as the ... the city's repeated failure to eliminate its deficit and end risky and expensive ...

Ceci delivers Alberta budget, reveals largest ever deficit at $6.1 billion

BOE Report (press release) - ‎17 hours ago‎
Finance Minister Joe Ceci Delivers the Alberta Budget from the Legislature in Edmonton Tuesday afternoon, Alberta Finance Minister Joe Ceci, announced the 2015/2016 Provincial budget. Ceci announced a deficit for 2015/16 of $6.1 billion after a ...
 
 

Big deficit, bigger debt: Alberta goes on spending spree to spur stalled economy

Edmonton Journal - ‎15 hours ago‎
Alberta will try to spend its way out of an economic downturn with a provincial budget that projects a $6.1-billion deficit, hikes sin taxes and calls for billions in new debt. Plunging oil prices and declining corporate income tax revenues will take a ...

MBTA pension liability growing, despite added contributions

The Boston Globe-15 hours ago

The deficit is growing even as the MBTA has upped its annual contribution ... The $1.6 billion pension fund's financial position was probably not helped by an

Six Illinois universities receive downgraded credit ratings due to budget impasse

Rapid News Network - ‎10 hours ago‎
The same holds true, Moody's said, should the state continue to let its unfunded pension liabilities grow. Plus, Moody's says, it's highly likely that the Rauner administration and the Illinois legislature will impose more significant cuts to higher ...

 

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2766
New bumper sticker

I heart Central Banksters

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1428
Podcast Idea - Thomas Seyfried

Podcast Idea - Thomas Seyfried

Have you been touched by cancer?   Why do the new drugs not work?   What is cancer?

demian0311's picture
demian0311
Status: Member (Offline)
Joined: Jan 30 2009
Posts: 6
Software Is The New Oil

http://avc.com/2015/10/software-is-the-new-oil/

The article is more nuanced than the title suggests but still alarming.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2766
Redacted

I'm tired.  Good nite all.

 

reflector's picture
reflector
Status: Gold Member (Offline)
Joined: Aug 20 2011
Posts: 267
RE: Venezuela sues US currency website

looks like this links to FT, which is subscription-based, i believe.

a general question: is linking to subscription-based sites like FT sensible?

i know i don't want to buy their subscription just to read an article that's linked on PP.

if someone has a subscription and is willing to copy and paste the article that'd be great:

Venezuela sues US currency website

 

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4062
Venezuela.....another link

Venezuela Sues Miami-based Currency Website Dollar Today over Alleged ...

Venezuelanalysis.com - ‎Oct 26, 2015‎
Caracas, October 25nd, 2015 (venezuelanalysis.com) – The Venezuelan Central Bank (BCV) opened a lawsuit in a US federal court in Delaware on Friday against the Miami-based currency website Dollar Today, which it accuses of destabilizing the ...

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