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Daily Digest 6/22 - Global Oil Investment Gap Widens, Australians In Record Credit Card Debt

Wednesday, June 22, 2016, 9:40 AM

Economy

El-Erian: Cash is a ‘valuable thing’ to be holding right now

The level of cash holdings held by fund managers hit its highest since November 2001, according to a June Bank of America Merrill Lynch survey. Elevated cash holdings are typically associated with recessions.

China's onshore defaults could spill over to offshore bonds-S&P

It said the number of bond defaults in the year to date period has already exceeded the total for all of 2015, with more than 20 bonds in default after more than 10 issuers missed their interest or principal payments.

BOJ April minutes show risks to economy, price growth persist

The BOJ cut its inflation forecasts in a quarterly review of its projections, and once again pushed back by six months the timing for hitting its 2 percent price target, saying it may not happen until March 2018 at the latest.

Global oil investment gap widens by $1 trillion: Wood Mackenzie

Future upstream development spending from 2015 to 2020 has dropped by 22% since oil prices started to fall in late 2014

Soros Warns Brexit May Cause Pound Plunge Worse Than Black Wednesday

George Soros said the pound may slump more than 20 percent against the dollar if Britain votes to leave the European Union, a devaluation bigger and more disruptive than when the billionaire profited by betting against the currency in 1992.

Credit card limits hit record high in Australia, leaving $51.7 billion debt

Latest Reserve Bank of Australia data shows in April this year credit card limits rose to $149.16 billion — up a massive $4.6 billion in just 12 months.

George Osborne's shame as Britain's debt tops £1.6TRILLION amid borrowing spiral

THE Chancellor has been left red-faced after Britain's debt surged to £1.606 TRILLION last month, as the Government continues to borrow billions more than expected, figures revealed today.

Venezuela 2016 Default Likely, PDVSA May Go First, Moody’s Says

Venezuela is “highly unlikely” to have enough hard currency to fully make its debt payments this year, although a default isn’t inevitable, according to a report from Moody’s Investors Service.

Oi Files for Brazil Record $19 Billion Bankruptcy Protection

Oi SA filed for bankruptcy protection on 65 billion reais ($19 billion) in debt -- a Brazilian record -- after failing to reach an agreement with creditors, the last straw following a long saga of mergers and leadership changes.

Soros, Gross, Druckenmiller, Singer, Icahn: Big-name investors turning bearish

Some of the world’s most prominent investors are making increasingly bearish noises regarding the health of global financial markets. Could another financial crisis be looming?

Negative interest rates are a 'seeping poison' for the world's most important financial institutions

Citing the words of Felix Hufeld, the boss of the Federal Financial Supervisory Authority, Germany's equivalent of the UK's Financial Conduct Authority, Citi argues that the "seeping poison" could mean that many institutions, especially money market funds — funds comprised of safe, short-term debts often used by retail investors as a way of making money on a very safe investment — are no longer viable in the long term.

Temer Gives Brazil States Billions of Relief on Debt Payment

Pressure to reach a deal with governors intensified last week when Rio de Janeiro declared a state of emergency just as it gears up to host the Summer Olympics, cautioning of a "total collapse of public security" if it didn’t receive financial assistance soon.

Pound pressured as Brexit poll shows 'remain' lead shrinking

The British pound GBPUSD, -0.1293% pulled back from a five-month high to slip back below $1.47 after news reports said the latest Survation Brexit poll for IG Group showed 45% of voters backed remaining in the European Union versus 44% who favored leaving.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/21/16

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."

5 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
Don't look now! Helicopter money is already being deployed

The $83 Billion Danish Fund Preparing for a European Debt Bubble

Bloomberg-8 hours ago
“European sovereign debt is in a bubble because of the artificially low interest rates caused by quantitative easing,” he said by phone. “I can't say how ...

IMF Cuts 2016 US Economic-Growth Forecast to 2.2%

Wall Street Journal-1 hour ago

The International Monetary Fund cut its outlook for U.S. economic expansion this year, citing a weak energy sector, a strong dollar and turmoil overseas. The IMF ..

Don't look now! Helicopter money is already being deployed

MarketWatch-16 hours ago
But Torsten Slok, Deutsche Bank's chief international economist, argues that the Fed has been employing measures similar to helicopter money via its ...

Debt talks between Puerto Rico, creditors end without deal

Reuters - ‎21 hours ago‎
That group of creditors said its latest proposal would cut Puerto Rico's debt service costs by $2.9 billion over the first five years and demonstrated a willingness to negotiate and avoid a default on July 1. "We believe there is significant bipartisan ...

Alaska Gets No Relief From Oil Rebound as Downgrades Sting Bonds

Bloomberg-5 hours ago
Lawmakers passed a $4.26 billion budget on May 31 that drew from an $8 billion ... percentage point more than AAA debt, data compiled by Bloomberg show.

Hong Kong-Singapore Stars Fade With Boom-to-Gloom in Finance

Bloomberg-17 hours ago
Hong Kong-listed shares saw daily average volume of HK$67 billion ($8.6 ... to tap Hong Kong and Singapore for financial know-how and billions worth of debt ...

The doom loop is back: Europe's banks are still buying more of their ...

Telegraph.co.uk-Jun 21, 2016
Banks have doubled their holdings of their own states' debt since 2008, according to ... “There is more risk in holding sovereign bonds than just a default.

'We're living worse than in a war': Venezuela's deepening economic crisis

CBC.ca - ‎Jun 21, 2016‎
The outlook for Venezuela appears to be dimming every day, and it's not just because of the country's daily four-hour mandatory blackouts. The oil-exporting South American country is caught in a perfect storm of droughts, food and power shortages, and ...

UK's pension black hole grows by £120bn in the space of six weeks ...

City A.M.-21 hours ago
The analysis by Hymans Robertson revealed that the total deficit of the UK's defined benefit (DB) pension schemes rocketed by £120bn, or roughly the ...

Fort Worth's employee pension problems grow worse

Fort Worth Star Telegram-15 hours ago
The city's pension liability is $3.4 billion, of which $1.3 billion is unfunded. At the end of 2014, the unfunded liability — the difference between promised benefits ...

Cause for concern? PERA's 2015 performance triggers rare dissent among board members

Colorado Springs Gazette - ‎13 hours ago‎
DENVER - Two members of the board overseeing the Public Employees' Retirement Association had objections to the annual financial report, saying Tuesday that parts of it are too optimistic given the fund's growing unfunded liability and increasing years ...

CalPERS returns likely to be flat'

The Nation Newspaper-16 hours ago
California Public Employees' Retirement System (CalPERS) Chief Investment Officer Ted Eliopoulos has said the pension fund's current fiscal year performance ...

Michigan governor signs $617 million Detroit schools bailout

U.S. News & World Report-17 hours ago

(AP) — Michigan's governor signed a $617 million bailout and restructuring plan for Detroit's public schools on Tuesday, two years after the state committed .

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1714
San Jose Effect or Ferguson Effect

http://www.breitbart.com/texas/2016/06/22/cops-gop-convention-goers-sitting-ducks-says-cleveland-police-union/

I'm not sure what to think about the RNC in Cleveland. Will we see the Ferguson Effect where officers hold back on maintaining the peace? Or will we see the San Jose Effect where the liberal Democratic mayor ties the police up in knots so the protesters can trash the event without directly implicating him and the Democratic Party?

I know one thing for sure: I won't be volunteering to go to Cleveland to supplement their manpower.

Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2890
72 Killed Resisting Gun Confiscation (Boston)

72 Killed Resisting Gun Confiscation in Boston (AG)

thc0655's picture
thc0655
Status: Diamond Member (Offline)
Joined: Apr 27 2010
Posts: 1714
MSM advocates gun control 8-1 after Orlando

http://newsbusters.org/blogs/nb/2016/06/22/exploiting-orlando-nets-advance-anti-gun-agenda-8-1

In the wake of the horrific attack on an Orlando nightclub by a man espousing allegiance to ISIS, it didn’t take long for the Big Three networks (ABC, NBC, CBS) to advance the preferred political line of the Democrats, in this election year, to push for more gun control. Beginning on the evening following the shooting, NBC Nightly News anchor Lester Holt on June 12, sounded the clarion call for gun control: “Today’s terror attack brings national security and the debate over gun control to forefront of the presidential campaigns once again.” 

And for the next week, an MRC study shows the broadcast network news programs flooded their shows with statements favoring gun control over gun rights by a ratio of 8 to 1. 

MRC analysts reviewed all 47 gun policy stories (41 full segments, 6 anchor read briefs), plus 10 other stories that mentioned gun policy on the Big Three networks’ evening (ABC’s World News TonightCBS Evening NewsNBC Nightly News) and morning show programs (ABC’s Good Morning AmericaCBS This Morning, NBC’s Today), beginning with the evening (June 12) after the shooting through Friday evening, June 17.

The study found a huge disparity in the airtime devoted to advancing more gun control versus arguments in favor of gun rights. 

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
OPEC Registers First Collective Deficit Since 1998

Stealth China Stimulus Means Fiscal Gap Over 10%, Economists Say

Bloomberg - ‎17 hours ago‎
Beyond the official budget that allocates spending on defense, welfare and other day-to-day expenses, China's Communist leaders are pumping money into the $10 trillion-plus economy. Part of that is through opening the funding tap to China's three ...

Deloitte: Oil and gas industry facing $2 trillion funding gap

The Bakken magazine-17 hours ago
Deloitte: Oil and gas industry facing $2 trillion funding gap ... sheets, service upcoming debt maturities and maintain the already-reduced dividend payouts.

Puerto Rico panel approves power utility fee to repay debt

Chicago Tribune-20 hours ago
... a key step in the utility's plan to restructure its $9 billion of debt. The island's energy commission Tuesday signed off on a 3.10-cent per kilowatt hour charge by ...

OPEC Registers First Collective Deficit Since 1998

Wall Street Journal - ‎22 hours ago‎
OPEC members ran a combined deficit of $99.6 billion in 2015, compared with a surplus of $238.1 billion in 2014. The last time OPEC ran a collective deficit, in 1998, a financial crisis had slammed Asia's economy and competition by Iran and Saudi ...

S&P will boot Britain from AAA-rated club if it votes for Brexit

New York Post - ‎59 minutes ago‎
“If Great Britain decides for a Brexit in the EU referendum on Thursday, then the AAA credit rating would come due and would be downgraded within a short period of time,” S&P's Moritz Kraemer told German daily Bild the same day UK voters head to the polls.

Editorial: Pension tension

Houston Chronicle-16 hours ago
Houston's unfunded pension liability now stands at an estimated $5.6 billion, and it's growing. About 31 cents of each dollar Houston spends on payroll now ...

State pension fund investment returns fall short

The Durango Herald-16 hours ago

By missing the assumed rate of return in 2015 by 6 percent, PERA's unfunded liability increased by $2.2 billion to $26.8 billion, according to Stapleton. The result ..

Comptroller addresses budget issue

IllinoisHomePage.net - ‎15 hours ago‎
We have an unfunded pension liabilities that's right now, in excess of $116 billion." Illinois is required by law to pay 90% of the bills. "We haven't paid them and that's why it's so hard. We can legally pay them, but we can't actually pay them ...

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