Daily Digest

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Daily Digest 6/15 - Premiums And Property Taxes On The Rise, Japanese Gov't Bond Yields Fall

Wednesday, June 15, 2016, 7:26 AM

Economy

Idaho health insurers want to raise premiums 27%

Health insurance companies that sell coverage to Idahoans say they’re still losing money on their plans, so they want to raise individuals’ premiums an average of 27 percent next year.

Chicago's Property Taxes Jump Nearly 13 Percent

We've expected the hike since last year, as the massive debt load and unfunded pension crisis prompted the City of Chicago to pass a $588 million property increase, which will take place through 2018. This year’s $363 million bill represents the largest bill.

Venezuela in talks with China for grace period in oil-for-loans deal - source

Venezuela has borrowed over $50 billion from China under the financing arrangement created by late socialist leader Hugo Chavez in 2007, in which a portion of its crude and fuel sales to the world's second-biggest economy are used to pay down loans.

5 things to look for in Chicago annual financial report

In Chicago’s case, the new total debt reported on the city’s balance sheet will likely be well over $10 billion higher than reported in recent years. And in accounting, with a balance sheet showing the balance between assets and liabilities, leading to a “net position” (basically assets less liabilities), we are likely to see a dramatic change in the city’s reported net position for fiscal year 2015.

Junk Debt Mountain Hangs Over Corporate Canada

Canada's corporate sector is being weighed down by a mountain of junk debt worth at least US$70 billion. Bloomberg News' Allison McNeely reports.

New York’s $178 Billion Pension Sees Returns Lag as Stocks Fall

New York state’s $178.1 billion retirement system eked out a 0.19 percent return for the year that ended March 31 as stock prices declined, falling far short of what it expects to earn on its investments each year.

$12 trillion of QE and the lowest rates in 5,000 years ... for this?

The numbers are daunting if not shocking: $12.3 trillion of money printing, nearly $10 trillion in negative-yielding global bonds, 654 interest rate cuts since Lehman Brothers collapsed in 2008.

Charting the lowest interest rates in 5,000 years, worst commodity returns in 80 years

The first chart shows the lowest global interest rates going all the way back to 3,000 B.C. Michael Hartnett, chief investment strategist, and his team at Bank of America Merrill Lynch, say that’s down to a combination of quantitative easing, zero interest-rate policies and negative interest-rate policies. That means borrowing costs are lower than what was on offer at the time of the Pharaohs of the First Dynasty of Egypt (3,000 B.C.) to Napoleon through to Alexander Hamilton and right up to those living through the crash of 1929:

Japanese government bond yields fall to fresh lows

The 10-year JGB yield fell as low as minus 0.185 per cent and the 15-year yield was in negative territory at minus 0.038 per cent. Yields on 30-year JGBs hit a record low of 0.223 per cent.

German 10-Year Government Bond Yields Dip Below Zero for First Time

The European Central Bank has contributed to the fall in bund yields through its massive bond-buying program, aimed at lowering financing costs across the eurozone.

Canada Household Debt Remains Near Record 165% of Income in 1Q

The share of mortgage liabilities to total credit market debt reached 65.6 percent in the first quarter, “continuing an unbroken upward trend that began in the first quarter of 2010,” the agency wrote. The last time the ratio reached that level was in the second quarter of 1997.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/14/16

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."

7 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
Billions in Proven Shale Oil Reserves Suddenly Became Unproven

China Sends Bubbles to North America

Bloomberg-2 hours ago
But this time the People's Bank of China has been selling foreign assets -- it's ... China, it turns out, has been a major net seller of U.S. Treasury bonds -- as its ...

Spain's public debt surpasses 100% in 20-year high

Bangkok Post - ‎4 hours ago‎
It had already surpassed the symbolic 100-percent mark in the first quarter of 2015, when it hit 100.2 percent. Spain's public debt stood at 1.09 trillion euros ($1.23 trillion) at the end of March. The debt, as well as Spain's public deficit, are ...

Nigeria to loan cash-strapped states 90 billion naira, finance ...

Reuters-1 hour ago
The loan is structured as 50 billion naira for three months and then 40 billion for nine ... States are also required to submit an updated debt profile regularly to the ...

Why Billions in Proven Shale Oil Reserves Suddenly Became ...

Bloomberg-6 hours ago
This year, 59 U.S. oil and gas companies deleted the equivalent of 9.2 billion barrels, more .... The company filed for bankruptcy May 12 with $1.2 billion in debt.

China will need to cut 3.5 million jobs across six core industries as ...

South China Morning Post-4 hours ago

... to laid-off workers by tapping a 100 billion yuan (HK$120 billion) fund, Wang said. ... The ratio of Chinese government debt to GDP is about 40 per cent, lower

Fitch: Alaska credit rating downgraded because of gridlock over ...

KTUU.com-18 hours ago
ANCHORAGE (KTUU) Fitch Ratings on Tuesday downgraded $1.1 billion of ... consecutive operating deficit and a sizable deficit is expected in fiscal 2017.

Third major ratings agency downgrades Alaska credit
KTOO-14 hours ago

Rauner defends Illinois bond sale in the face of state's credit ...

WQAD.com-17 hours ago

The Republican said Tuesday, June 14, 2016, that taking on more debt is ... for almost a year, leading two rating agencies to downgrade Illinois' credit last we

Chinese Coal Company Misses Bond Payment as Debt Woes Spread

Bloomberg-13 hours ago
“This wave of defaults may continue to spread for those coal companies that have a lot of debt due this year,” said Helen Lau, an analyst at Argonaut Securities ...

Consumers could be facing sticker shock with ACA health premiums next year

Washington Post - ‎8 hours ago‎
As in previous years, it shows how differently the health-care law is playing out across the country depending on regions and insurers. Only in Providence, R.I., and Indianapolis would monthly premiums for the second-lowest-cost silver plans drop ...

Study: Popular ObamaCare plans to see double-digit premium hike

The Hill - ‎1 hour ago‎
Experts had already predicted 2016 to bring higher costs to healthcare customers because it's one of the first years in which insurers can use their existing customer data to predict how much they'll be spending on coverage. Under ObamaCare, several ...

 

Tall's picture
Tall
Status: Platinum Member (Offline)
Joined: Feb 18 2010
Posts: 564
It's the economy that needs to be integrated into the environmen

The paradox of environmental economics is that we feel compelled to price nature to make its loss visible on the balance sheet, but in doing so we legitimise its commodification and validate its critical overconsumption in an unbounded market system. No carbon market is yet designed to work within a precautionary limit on global emissions. That means that currently it would be possible to pay to emit the notional extra tonne of carbon that might push us over the edge into irreversible climatic upheaval.

Under a system which ultimately measures our wellbeing by how much we spend on goods and services – in other words the growth of the economy – more is always better. So even if the price mechanism applied to nature makes us more aware of nature’s potential financial worth, it does so in a market system that is geared to, and judges its success by rising consumption. In a world already transgressing planetary boundaries, it means we measure our success by our failure.

https://www.theguardian.com/environment/2016/jun/14/putting-a-price-on-n...

 

 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
Live blog and video of Fed decision and Janet Yellen press confe

Live blog and video of Fed decision and Janet Yellen press conference

2:00p
Fed reduces 2016 GDP forecast to 2% from 2.2%
2:00p
Fed trims longer-run fed funds target to 3% from 3.3%
2:00p
FOMC forecasts three rate increases each in 2017, 2018
2:00p
Six Fed officials predict single rate hike this year, up from one
2:00p
‘Dot plot’ still signals two rate increases in 2016
2:00p
Fed leaves interest rates unchanged in June

U.S. Stocks Hold Gains as Fed Signals Patience on Higher Rates

Bloomberg-1 minute ago
Yellen last week reassured markets over the outlook for the U.S. economy and that policy makers wouldn't rush to raise rates. The chair said in prior remarks ...

 

TechGuy's picture
TechGuy
Status: Gold Member (Offline)
Joined: Oct 13 2008
Posts: 366
Re: ACA Rate hike

I got the rate hike notice last week. Its increasing by 28.7% in January.

KugsCheese's picture
KugsCheese
Status: Diamond Member (Offline)
Joined: Jan 2 2010
Posts: 1428
S&P 500 Cliff Dive at 3:33 PM EDT

What caused this?  Not enough FED candy for petulant casino children?

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
'Rate-hike cycle has left the building'
DoubleLine's Gundlach: 'Rate-hike cycle has left the building'
Reuters - 7 hours ago"The 'rate hike cycle' has left the building," Gundlach said in a telephone interview after ...

 

 

DoubleLine's Gundlach: 'Rate-hike cycle has left the building'

Yahoo Finance - 9 hours ago
saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
Janet Yellen: Helicopter money is an option in extreme situation

Global Bonds Entering New Abnormal as Japan Leads Yield ...

Bloomberg-12 hours ago
QuickTake Negative Interest Rates. Start your day with what's moving markets. Get our markets daily newsletter. Sign Up. Business. Your daily briefing on the ...

Bank of Japan buying spree inflates world's priciest real estate ...

The Japan Times-7 hours ago

As his bond-buying and negative interest rate policies have depressed yields, income-hungry investors have flocked to the securities, which are required to pay

ECB urged to lavish 'helicopter money' on consumers

Financial Times-6 hours ago
The European Central Bank is facing calls from a group of EU lawmakers to reconsider its opposition to raining-down so-called helicopter money on consumers, ...

Janet Yellen: Helicopter money is an option in extreme situations

WPTZ-1 hour ago
That's at least the concept of helicopter money -- an unusual idea aimed at reviving economic growth, espoused by famed economist Milton Friedman. Fed Chair ...

China's debt is 250% of GDP and 'could be fatal', says government ...

The Guardian-5 hours ago
Links between China's state-owned companies and banks present a risk to the economy, according to the official think-tank CASS. Photograph: Andy Wong/AP.
 

Swiss 30-year government bond yield turns negative

MarketWatch - ‎29 minutes ago‎
Investors are now paying for the privilege to park cash for up to three decades in Swiss government debt. The yield on the 30-year Swiss bond became the longest-dated maturity to fall into negative territory on Thursday, as government bond prices ...

US 10-Year Yield Falls Closer to Record Low

Wall Street Journal - ‎1 hour ago‎
Goldman Sachs Group Inc warned in a report earlier in June that a one-percentage-point “upward shock to interest rates would translate into over $1 trillion in capital losses'' to investors holding U.S. Treasury and other fixed-income debt. Some ...

Japan Bond Yields Tumble to New Lows as Yen Soars on Brexit, Fed

Bloomberg - ‎15 hours ago‎
... bond market fell to records Wednesday, extending a rally fueled by global haven flows and the Bank of Japan's January decision to introduce negative interest rates on top of purchases of about 80 trillion yen ($771 billion) a year of government debt.

America's Dying Shopping Malls Have Billions in Debt Coming Due

Bloomberg-6 hours ago
It was part of the Chicago-based company's plan to emerge from the biggest real estate bankruptcy in U.S. history after piling on $27 billion in debt. Fitch Ratings ...

US current account deficit rises to seven-year high in first quarter

Reuters - ‎3 hours ago‎
The Commerce Department said on Thursday the current account deficit, which measures the flow of goods, services and investments into and out of the country, increased 9.9 percent to $124.67 billion, the largest since the fourth quarter of 2008.

Rio de Janeiro State Slammed With Two-Notch Downgrade by Fitch

Bloomberg-18 hours ago

Rio projects a 20 billion reais ($5.7 billion) deficit this year, of which about three-fifths corresponds to the pension system. Oil royalties this year are projected to .

Budgets Erode in EU's East as Thirst for Growth Propels Spending

Bloomberg-8 hours ago
... Polish debt to negative last month, pulling up short of investors' expectations that it would follow S&P Global Ratings and downgrade the EU's largest eastern ...

Health care premiums will rise, so what can you do?

CBS News-6 hours ago
Health care analysts and actuaries have been predicting for weeks now that ... That's on top of rising health care costs in general, especially prescription drug ...

Illinois road projects in jeopardy due to budget crisis

IllinoisHomePage.net-11 hours ago
SPRINGFIELD -- The next budget victims could be hundreds of road projects and ... the Illinois Department of Transportation says it will have to shut down road ...

 

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