Daily Digest

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Daily Digest 1/13 - China Rout Threatens India, Brazil Cans Carnival Amid Recession

Wednesday, January 13, 2016, 11:29 AM

Economy

Prescription drug prices jumped more than 10 percent in 2015, analysis finds

“We’re in our third year of double-digit [increases],” said A.J. Loiacono, the firm’s chief innovation officer, adding that the increases occurred across virtually every drug category. “Double-digit inflation is concerning. I don’t care if it’s for gas or food; it’s rare.”

Puerto Rico on the Brink of Losing Access to Gasoline & Electricity amid Economic Crisis

The government's lack of liquidity has also almost left the island's ambulances, patrol cars, fire trucks, and other public vehicles without gas supply this Monday. The head of the Legal Department at Total Petroleum Puerto Rico Corp., Denise Rodriguez, said that "a friendly accord" was reached to maintain the fuel supply, according to Fox News Latino.

State-backed debt growth lifts default fears

To understand the scale of the sector, consider gargantuan US mortgage finance companies Fannie Mae and Freddie Mac. The government-sponsored enterprises were put into “conservatorship” at the height of the financial crisis but their debt was never absorbed into the US balance sheet because, the government said, the arrangement was temporary.

Pennsylvania pension crisis

A Fall 2015 Pennsylvania House of Representatives publication stated that "Pennsylvania faces a $53 billion public pension debt." In fact, it is an unfunded liability - the amount that would be required if all members of the State Employees' Retirement System (SERS) and the Public School Employees' Retirement System (PSERS) were to retire today.

Saudi riyal forwards crash through key 1000 level to hit record low

The Saudi Arabian riyal hit a record low in the forwards market on Tuesday, breaching the key 1000-point mark as a fresh slip in oil prices raised fears that the kingdom will eventually scrap or loosen its currency peg to the U.S. dollar.

Petrobras cuts spending plan again as oil-price drop bites

Petróleo Brasileiro SA (PETR4.SA), Brazil's state-controlled oil producer, on Tuesday slashed its investment plan for the third time in just over six months as it tries to preserve cash to pay its debt, the industry's largest.

Puerto Rico Electric Says Not Enough Cash to Make July Payments

Puerto Rico’s main electricity provider can’t pay $1.13 billion due to creditors between now and July 1 without approval of a unprecedented debt-restructuring agreement reached at the end of December, according to Lisa Donahue, the agency’s chief restructuring officer.

Saudi Debt Risk on Par With Junk-Rated Portugal as Oil Slides

The cost of insuring the kingdom’s debt more than doubled in the past 12 months to a 190 basis points, or $190,000 annually to insure $10 million of the country’s debt for five years, as of 4:14 p.m. in Riyadh, the highest since April 2009, according to CMA prices compiled by Bloomberg. That’s almost identical to contracts linked to debt from Portugal, whose rating is seven levels below Saudi Arabia’s Aa3 investment grade at Moody’s Investors Service.

$1 trillion in capital flows out of China since summer 2014

China has seen nearly $1 trillion (€915 billion) in capital leave the nation since the second quarter of 2014, and according to analysts at JPMorgan Chase, the sky’s the limit for outflows going forward.

Investors Paying to Park Cash Give Czechs Reason to Load Up Debt

The government will kick off its 2016 bond sales on Wednesday by offering 20 billion koruna ($807 million) of debt, half of which will be new notes due in July 2019. The country plans to raise as much as 100 billion koruna in the first three months, a record quarterly amount. Maturities of up to three years have had negative yields since early September.

Brazil Cans Carnival as Recession Bites

Towns and cities across Brazil are being forced to scrap the annual carnival parade as the country braces for what is expected to be the worst recession since at least the 1930s.

India''s Industrial Output Contracts Unexpectedly

India's industrial output contracted unexpectedly in November while inflation accelerated in December, complicating the picture for policymakers as they try to maintain economic momentum without allowing inflation to slip out of control.

Kuroda Urges Bank of Japan to Change Deflationary Mindset

“Given that Japan’s economy has been mired in deflation for 15 years, eradicating the deflationary mind-set that was entrenched among the public is no easy task,” Mr. Kuroda said in prepared remarks for a conference organized by France’s central bank and the Bank for International Settlements. “However, somebody has to act decisively. As price stability is at stake, it is the central bank that should play this role.”

Nigerian central bank stops dollar sales to FX operators, naira sinks

The currency hit a record low of 282 per dollar on the unofficial market on Monday after the central bank's announcement. Emefiele said foreign reserves stood at around $28 billion compared with $37 billion in June 2014, and that the bureaux were depleting them at a rate of $28.4 million per week.

U.K. Industrial Output Plunges Most in Almost Three Years

“It seems likely that manufacturing output will do little better than flatline in the final quarter as a whole,” said Ruth Miller, an economist at Capital Economics Ltd. in London. “Given the strong pound and the continued weakness of demand in the neighboring euro zone, we doubt that the recovery in the export-orientated manufacturing sector will get back on track soon.”

Escalating China woes to stunt Singapore’s growth this year

“Singapore will remain mired in a slow growth environment over the near future as external and domestic factors continue to act as a drag on economic activity,” said BMI Research.

China rout threatens India

A devaluation of the yuan could weaken the rupee, creating "huge problems" for Indian companies that have to pay back dollar loans, Kampani said.

Chinese banks' new bad loans more than doubled in 2015: sources

The people, who declined to be identified as they are not allowed to speak to the media, told Reuters the regulator said at a government work conference that total NPLs reached 1.95 trillion yuan ($296.8 billion) in 2015, while net profit grew at a slower pace of 2.3 percent from the year before.

As capital flees, U.S. asset sales by China a headache: James Saft

China’s resolve to support the yuan implies further selling of U.S. assets, particularly Treasuries but also corporate and other types of debt. As bonds are sold, it will press yields higher than where they would otherwise settle.

China’s slowdown, financial mayhem cast long shadow across world

Throughout South America, China’s declining appetite for commodities has led to deep recessions and talk of a “lost decade.” Venezuela is facing inflation in the double or triple digits, Brazil is experiencing rising unemployment, and both countries are confronting political upheaval as leaders strain to preserve public benefits.

Slowing economy puts brakes on China's car market

Major car makers reported slower growth for last year. General Motors Co. posted a 5.2% rise in its China sales, down from 12% in 2014. Over the same period, Toyota Motor Corp.'s gain in China eased to 8.7% from 12.5%, and Ford Motor Co.'s shrank to only 3% from 19%.

Oil dive deepens to 12-year low; $20 warning on China

A brutal new year selloff in oil markets quickened on Monday, with prices plunging 6 percent to new 12-year lows as further ructions in the Chinese stock market threatened to knock crude as low as $20 a barrel.

RBS cries 'sell everything' as deflationary crisis nears

RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel.

Gold & Silver

Click to read the PM Daily Market Commentary: 1/12/16

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."

13 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Chicago's $500 million bonds fetch hefty yields

Rising national debt looms as Obama prepares for final State of the ...

KRNV My News 4-18 hours ago
At the time, the national debt--the total amount owed to the government's creditors--was $10.8 trillion. Today, as Obama prepares to deliver his final State of the ...
 

Corporate Defaults In Emerging Markets Hit Six-Year High

KOB.com-1 hour ago
As a result, emerging market debt has increased by a factor of five in just the last ten years. Total debt within emerging markets is now $23.7 trillion.
 

Goldman Sachs Sees Governments Coming to ECB Rescue on ...

Bloomberg-8 hours ago
... interest rates and 1.5 trillion-euro ($1.6 trillion) quantitative-easing program. ... “The more of that debt gets onto the central-bank balance sheet, the more of it ...
 

Chicago's $500 million bonds fetch hefty yields

Reuters-20 hours ago
... billion unfunded pension liability remain up in the air. The city's outsized pension burden led Moody's Investors Service to drop Chicago's credit rating to "junk" ...
 

Cash Burn at Petrobras to Oi Looms as $7.9 Billion Bond Tab Due

Bloomberg-2 hours ago
“They will need to burn cash to repay upcoming debt maturities as capital ... Petrobras, as the oil producer is known, has $2.5 billion of bonds maturing this ...

SNP warns about rise in household debt

The Courier-2 hours ago
Britain risks becoming dependent on soaring household debt-fuelled ... Instead, exports fell from £521 billion in 2013 to £513 billion the following year, and the ...

Russia's Reserve Fund shrank by $9.4 billion in December

Reuters-2 hours ago
... Reserve Fund shrank by $9.4 billion in December, finance ministry data showed on Wednesday, as the government tapped the fund to cover its budget deficit.
 

Boston Schools' Budget May Fall Short By $50 Million, Chang Says

WBUR-4 hours ago
BPS expects to receive a $1.027 billion budget for next school year, $13.5 ... say charter school reimbursements are a leading cause of the projected deficit.

Lansing has up to $650M challenge, MSU expert says

Lansing State Journal-3 hours ago
Scorsone estimates the city faces about $400 million in unfunded health care liabilities and at least $250 million in pension obligations over the next 20 to 30 ...

Mexico Joins Chile Selling Bonds as Oil Slump Cuts Revenue

Bloomberg-17 minutes ago
Mexican sovereign bonds lost 2.3 percent last year, compared with an emerging-market average of 0.2 percent. Mexico last sold dollar bonds in January 2015 ...

Atlantic City leaders grapple with state takeover threat

The Sun Herald-19 minutes ago
... the right to dissolve any municipal board or commission, and the right to sell ... Sweeney said the city should file for bankruptcy if the legislature does not ...

 

Sterling Cornaby's picture
Sterling Cornaby
Status: Silver Member (Offline)
Joined: Sep 5 2012
Posts: 152
Plague's De-mystified a bit.

Hey all.  

I found this video today and it really put some pieces together for me on understanding both plagues and the direction of civilization.  I understood some of this but it really completed some ideas in my head.

it is well worth 12 minutes of time in my option!

 

 

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Flavor your morning coffee with BS

Federal budget deficit was $14 billion in December, Treasury says

"For the fiscal year to date, the deficit is up 22% to $216 billion. Incorporating timing shifts, however, it’s up 5%. Receipts are running 4% higher than in the first three months of fiscal 2015, and spending is 7% higher."

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 731
Zika

one more concern re: Carnival, unfortunately making its way around slowly in mosquito infested areas. CDC making more public statements...sad thing.

http://www.statnews.com/2016/01/13/zika-brazil-cdc-testing/

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Disruptive Behavior in Sweden

There's more happening in Sweden than hooligans. 

Today, I’m announcing that the New Energy World Symposium will hold its first session in Stockholm, Sweden, on June 21, 2016.
 
The Symposium will focus on the disruptive consequences of a new energy source that may literally change the world, promising Planet Earth clean water, zero-emission vehicles with unlimited mileage, a solution to the climate crisis and much more*.
 
 

http://new-symposium.org/2016/01/10/announcing-the-new-energy-world-symp...

blackeagle's picture
blackeagle
Status: Silver Member (Offline)
Joined: May 16 2013
Posts: 217
LENR

Why a journalist is offering pre-registration to the symposium? Does he has interests in this?

Looking around, these claims seems fishy...

Well, just wait and see

And keep in mind that with the actual world difficulties (and increasing) all sort of claims and false promises will flourish... 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
LENR Blackeagle

Thank you for your interest Blackeagle.

There are 4752 papers addressing the issue of cold fusion.  Here is a summery of their findings. You will find it easily digestible. 

 

https://t.co/sw1S2PTtoY

Rest assured the US navy is very interested.
RUMOUR has it that Industrial giant Philips attended a demonstration by Rossi and sold all their interests in solar cell manufacture and bought obscure Italian companies.

You can amuse yourself by watching Rossi strut his stuff here.
http://www.e-catworld.com/2016/01/14/1-mw-e-cat-plant-watch-thread-updat...

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
How to trade oil with the advent of LENR

And other information rich content on Alain's website. 

 

http://www.scoop.it/t/lenr-revolution-in-process-cold-fusion

Uncletommy's picture
Uncletommy
Status: Gold Member (Offline)
Joined: May 3 2014
Posts: 476
LENR?. . . Cold fusion?

My only experience with cold fusion, up here in the great White North, is when I put a wet glove on a piece of drill stem at -32 C. Things fuse very well. Keep at it , Arthur. Some day you might convince me.

In the meantime, my portfolio seems to be headed to absolute zero. I made a whopping $100 in dividends on one of my oil holdings. Things can only get better; yes?

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Swans Uncle Tommy.

Not all swans are black Uncle Tommy.

My mission is not to convince anybody of anything.  My mission is to find some way out of the Limits to Growth curves death trap. 

Here is a little exercise that you can do at home. Find some beautiful young child. Look her in the eye and say to her,

I'm sorry little child but you are going to die of starvation at a young age after you have sold your dignity for just one more day of survival. Why?  Because I was self centered Egotist."

Honesty is not an optional extra. Willful blindness is lethal. 

Your morality is in question. 

blackeagle's picture
blackeagle
Status: Silver Member (Offline)
Joined: May 16 2013
Posts: 217
Arthur

The style of this journalist is clearly barker. Also the impossibility of getting infos from this simili inventor makes him not credible at all. This is why I put these two persons in the scammers bag.

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Blackeagle

It is to your credit that you have not hit the ignore button Blackeagle. Those who have are wallowing in willful ignorance. 

Would your ego be compromised by looking at the evidence that I offered? 

If you don't like those I have other evidence. 

This is not about you or I. 

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