Daily Digest

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Daily Digest 4/27 - Retail Layoffs Could Top 2010, Venezuela Power Rationing Hits

Wednesday, April 27, 2016, 9:35 AM

Economy

Fridges Go Off As Venezuela Power-Rationing Hits

Last week, his government said it was shifting its time zone forward by 30 minutes to save power by adding half an hour of daylight. Maduro has even urged Venezuelan women to stop using their hairdryers. Other measures include giving government workers an extra day off each week for the next two months.

Facing Revenue Shortfalls, Kansas May Delay Pension Funding

Kansas has already delayed April pension payments, says Hitchcock. That would mean a nearly $100 million underfunding of payments to the retirement system that would be repaid with interest in 2018. He says of the options Brownback proposes:

Gov’t takes on failing shippers and shipbuilders (Korea)

“There aren’t even any inquiries about new orders, and empty docks are becoming a reality,” HHI CEOs Choi Kil-seon and Kwon Oh-gap, Hyundai Mipo Dockyard CEO Kang Hwan-goo, Hyundai Samho Heavy Industries CEO Yoon Moon-kyun, HIMS CEO Kim Ju-hoan and Hyundai Engineering & Technology CEO Lee Hong-gi said in the statement.

Retail layoffs in 2016 could be highest since 2010

With more than 24,000 retail-sector job cuts already announced in 2016, layoffs are on track to hit their highest since 2010, according to Credit Suisse analysts.

The Collapse of BHS is a Warning for the U.K’s Faltering Pension Schemes

Large pension deficits are increasingly common. The gap between the income British pensions schemes bring in and what they pay out as benefits is at its widest level in over a decade, one of the effects of the current ultra-low yields on government debt.

China May Loosen Bad-Loan Provision Rules, Bank Chairman Says

Against the backdrop of a slowing economy, turmoil in the stock market and government measures to curb overcapacity in manufacturing, bad debt in China’s banking industry jumped 51 percent last year to 1.27 trillion yuan ($195 billion), data from the bank regulator show.

UBS Says Hong Kong Traders Should Be Worried Amid China Defaults

The rising number of payment failures is reverberating across the nation’s $3 trillion credit market, with onshore junk debt heading for its biggest monthly selloff since 2014, issuers canceling bond sales and Standard & Poor’s cutting its assessment of Chinese firms at the fastest pace since 2003. The widening of credit spreads from eight-year lows also threatens an incipient economic recovery, which has been mainly supported by a surge in cheap lending.

The $7 Trillion Market Flood of Negative Yield Debt

David Kotok, chief investment officer and co-founder at Cumberland Advisors, discusses how investors and companies are working with the forced growth of negative yield debt in markets. He speaks on "Bloomberg ‹GO›."

South Korea first-quarter GDP slows on weak capex, exports

South Korea's economic growth halved in the first quarter from the previous three-month period as poor exports and stumbling capital investment cast doubts over policymakers' more optimistic expectations for a near-term recovery.

S.Korea's president says quantitative easing should be considered

outh Korea President Park Geun-hye said a version of quantitative easing that would involve changing the central bank's charter to let it buy more types of securities should be "positively" considered, according to media on Tuesday.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/26/16

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."

12 Comments

saxplayer00o1's picture
saxplayer00o1
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Posts: 4066
Fed signals no rush to raise rates as pace of US recovery modera

Fed signals no rush to raise rates as pace of US recovery moderates

Reuters - ‎6 minutes ago‎
WASHINGTON The Federal Reserve held interest rates unchanged on Wednesday and while it left the door open to a hike in June, its statement implied that it was in no hurry to follow on from its December rate rise. The U.S. central bank's policy-setting ...
Tall's picture
Tall
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Joined: Feb 18 2010
Posts: 564
India's drought migrants head to cities

The drought has affected 330 million people in India this year, according to government figures. About 15% of India’s gross domestic product comes from agriculture and 68% of the 1.3 billion population are farmers. With no water for irrigation, the drought has been devastating for farmers. Like the Kummaris, hundreds of families have had to leave their lands in search of water.

http://www.theguardian.com/global-development/2016/apr/27/india-drought-...

 

KugsCheese's picture
KugsCheese
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Posts: 1429
saxplayer00o1 wrote: Fed
saxplayer00o1 wrote:

Fed signals no rush to raise rates as pace of US recovery moderates

Reuters - ‎6 minutes ago‎
WASHINGTON The Federal Reserve held interest rates unchanged on Wednesday and while it left the door open to a hike in June, its statement implied that it was in no hurry to follow on from its December rate rise. The U.S. central bank's policy-setting ...

And right at 2 pm EST the market shot up!

rjs's picture
rjs
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Posts: 445
The World Needs More U.S. Government Debt

former Fed President says The World Needs More U.S. Government DebtBy Narayana Kocherlakota -   The federal government is causing great harm by failing to issue enough debt.  In the wake of the financial crisis, households and businesses are demanding more safe assets to protect themselves against sudden downturns. Similarly, regulators are requiring banks to hold more safe assets. Market prices tell us that the government needs to produce more safety in order to meet this increased demand. The scarcity of safety creates hardships... Retirees can’t get adequate returns on their nest eggs. Banks can't earn enough on safe, long-term investments to cover the costs of attracting deposits (interest rates on which can’t fall much below zero). ... The inadequate provision of safe assets also has profound implications for financial stability. Without enough Treasury bonds to go around, investors “reach for yield” by buying apparently safe securities from the private sector. If such behavior becomes widespread, it can create systemic risks that tip the financial system into crisis. ...

 

Tall's picture
Tall
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Posts: 564
Forecast: Smells like revolution in Morocco

When King Mohammed VI led Friday prayer earlier this year from a mosque outside the Moroccan capital of Rabat, he made a special appeal for rain. The king pleaded for relief during the peak of a rainy season in North Africa, in which Morocco received scarce rainfall and faced severe drought. The cry for help has since become a feature of Friday prayer in mosques around Morocco, but many farmers claimed that this past autumn’s harvest was already lost.

Morocco could be the main stage of a coming climate revolution in North Africa, according to activists and scholars. Though predicting exactly when and where this scenario will unfold is difficult, a number of reports, including a 2012 study conducted by the University of Hamburg, have determined that climate change will put Morocco at high risk of conflict. Whether this means a revolution is uncertain, but observers agree that climate change will have an impact on socio-economic and political developments in Morocco for the years to come.

http://www.ozy.com/fast-forward/the-forecast-in-morocco-smells-like-revo...

nigel's picture
nigel
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Posts: 138
Scared

I clicked on the like button for Tall's post, which seems sick. Can we add a button for scared, it makes much more sense.

Time2help's picture
Time2help
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Joined: Jun 9 2011
Posts: 2770
3 times through
rjs wrote:

former Fed President says The World Needs More U.S. Government DebtBy Narayana Kocherlakota -   The federal government is causing great harm by failing to issue enough debt.  In the wake of the financial crisis, households and businesses are demanding more safe assets to protect themselves against sudden downturns. Similarly, regulators are requiring banks to hold more safe assets. Market prices tell us that the government needs to produce more safety in order to meet this increased demand. The scarcity of safety creates hardships... Retirees can’t get adequate returns on their nest eggs. Banks can't earn enough on safe, long-term investments to cover the costs of attracting deposits (interest rates on which can’t fall much below zero). ... The inadequate provision of safe assets also has profound implications for financial stability. Without enough Treasury bonds to go around, investors “reach for yield” by buying apparently safe securities from the private sector. If such behavior becomes widespread, it can create systemic risks that tip the financial system into crisis. ...

 

I've read this jibberish three times through and feel like an idiot for still not understanding it.

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Puerto Rico poised for default, draws tough talk from governor

Puerto Rico poised for default, draws tough talk from governor

Reuters - ‎3 hours ago‎
The looming default is part of a broader economic crisis in the Caribbean haven plagued by $70 billion in total debt, a shrinking population and a 45 percent poverty rate. Restructuring talks are ongoing between GDB and a creditor group holding more ...
 

Puerto Rico to Call Moratorium If May Bond Payment Isn't Delayed

Bloomberg - ‎9 hours ago‎
The commonwealth, which is grappling with a $70 billion debt crisis, remains in talks with creditors, Jesus Manual Ortiz, a spokesman for Governor Alejandro Garcia Padilla, said during a news conference in San Juan. A default on the bonds issued by the ...
 

Puerto Rico will default on bond payments due Monday, governor says

Fox News Latino - ‎3 hours ago‎
Public Affairs Secretary Jesus Manuel Ortiz, for his part, said the government was calling for unity among Puerto Ricans as the island seeks U.S. congressional approval of legislation that would enable it to orderly restructure its roughly $70 billion ...

Brazil banks brace for fresh wave of loan refinancing deals

Reuters-10 hours ago
Banks had about 130 billion reais in refinanced and restructured loans on their ... from honoring their debt and would oblige lenders to step up refinancing deals, ...

China's $1 Trillion Bond Leverage Unwinds as Pimco Senses Panic

Bloomberg-10 hours ago
Net issuance of corporate debt swelled to 1.24 trillion yuan in the first quarter, or 19 percent of total financing. That compares with 284 billion yuan of equity ...

 

phecksel's picture
phecksel
Status: Silver Member (Offline)
Joined: May 24 2010
Posts: 204
Time2help wrote: I've read
Time2help wrote:

I've read this jibberish three times through and feel like an idiot for still not understanding it.

These people are advising our leaders

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2770
FIFY
phecksel wrote:
Time2help wrote:

I've read this jibberish three times through and feel like an idiot for still not understanding it.

These people are advising our leaders

angry

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4066
Gundlach joins chorus calling for a 'helicopter drop' by the Fed

Gundlach joins chorus calling for a 'helicopter drop' by the Fed

MarketWatch-21 hours ago
Helicopter money differs from previous forms of quantitative easing—creating reserves and distributing them to banks to make new loans and boosting the ...

South Korea plans mini-stimulus to shore up economic growth

Reuters-9 hours ago

This would leave less than half of its 386.4 trillion won budget planned for this ... be able to take advantage of the relaxed loan-to-value and debt-to-income limits .

Japan's Abe Sets Sights on Improving Wages, Aims to Redistribute ...

Jakarta Globe-Apr 27, 2016
... are unlikely to spend extra money when they are worried about the future, especially when they know the handouts are being financed by government debt.".

Australian banks face earnings drag as bad debts climb

Daily Mail-15 hours ago
The increase in bad debts of about A$3.4 billion ($2.62 billion), according to an estimate by UBS, could pull interim earnings for at least one of the top four ...
 
Edwardelinski's picture
Edwardelinski
Status: Gold Member (Offline)
Joined: Dec 23 2012
Posts: 309
Kocherlakota

He was the first Fed President advocating for negative rates last year.One only needs to look to Japan to see how that worked out..That would fling America out of there Lazyboys for sure!

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