Daily Digest

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Daily Digest 6/29 - JP Yields Drop During Global Bond Surge, Venezuela’s Oil Output Decline Accelerates

Wednesday, June 29, 2016, 7:13 AM


CPS will make $676 million teacher pension payment, then what? (Chicago)

The Chicago Public Schools will make a $676 million payment to the Chicago Teachers Pension Fund due Thursday even though that massive payment will leave the nearly bankrupt school system with just $24 million in the bank.

Illinois gets $5.24 million windfall as motorists rack up fees for late vehicle registration

The Illinois secretary of state suspended mailing license-plate-renewal reminders as of October 2015 to save $450,000 a month during the state’s budget crisis; as a result, the state of Illinois has received a $5.24 million windfall in fees for late license-plate renewals during the first five and a half months of 2016.

Venezuela’s Oil Output Decline Accelerates as Drillers Go Unpaid

Venezuela’s oil output, already the lowest since 2009, is set to slide further this year as contractors scale back drilling after the cash-strapped country fell more than $1 billion behind in payments.

Treasury secretary urges Senate to pass Puerto Rico bill before next debt default

“On 1 July – only four days from now – the crisis in Puerto Rico will ratchet up to an even higher level. Puerto Rico has $2bn in debt payments coming due that day, including payments on constitutionally prioritized debt on which Puerto Rico has not previously defaulted,” Lew wrote.

State budget gap could be nearly $1 billion (Massachusetts)

Even though the state’s economy appears to be in good shape, tax revenue for the fiscal year that starts July 1 is expected to be $650 million to $950 million less than anticipated. That’s $200 million less revenue than the administration projected earlier in June, when it downgraded a more exuberant fiscal projection from January.

N.J.’s Evolving Road Plan Ladles Billions of New Debt on Old

The proposed highway borrowing, backed by a higher gasoline tax, is atop the $16.4 billion debt outstanding in 2016 on past Transportation Trust Fund projects, contributing to the state’s overall $154 billion in debt. In the next fiscal year alone, New Jersey must come up with $1.23 billion to retire old highway debt.

Korea plans 20 trillion won stimulus

With Brexit, or the U.K.’s vote to leave the European Union, and Korea’s corporate restructuring expected to severely affect the country’s jobs, exports and consumption, Finance Minister Yoo Il-ho stressed that time cannot be wasted in implementing its fiscal stimulus, calling for rapid approval of its budget proposal.

Indian banks' bad loans may rise to 8.5 pct by March 2017 - RBI

Outgoing RBI Governor Raghuram Rajan had made cleaning up banks a priority during his nearly three-year tenure given the sector is saddled with $120 billion of sour loans, which is constraining new lending and corporate investments.

Japan Yields All Drop Below 0.1% First Time in Global Bond Surge

The rally in Japan pushed yields on the nation’s longest debt, the 40-year bond, to 0.065 percent. Australia’s and South Korea’s 10-year yields dropped to unprecedented levels.

Gold & Silver

Click to read the PM Daily Market Commentary: 6/28/16

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."


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Fitch: Brexit Vote Pushes Negative-Yielding Debt to $11.7 Trn

Fitch: Brexit Vote Pushes Negative-Yielding Debt to $11.7 Trn

Reuters - ‎4 hours ago‎
(The following statement was released by the rating agency) NEW YORK, June 29 (Fitch) Investors' flight to safe assets following the UK's EU referendum on June 23 pushed the global total of sovereign debt with negative yields to $11.7 trillion as of ...

Treasuries Buyers Go Long as Favored Fed Inflation Gauge Misses

Bloomberg - ‎11 minutes ago‎
With interest rates across the globe near record lows, investors are finding yields attractive in the longest-dated corner of the $13.4 trillion Treasuries market. The yield on 30-year Treasuries touched the lowest since February 2015 as data showed a ...

Japan Feedback Loop Seen Turning All Sovereign Yields Negative

Bloomberg - ‎Jun 28, 2016‎
QuickTake Negative Interest Rates. Bank of Japan debt buying and more recently Britain's shock vote to exit the European Union have turned yields negative on tenors as long as 15 years, forcing domestic investors to crowd into the longest bonds or flee ...

Expectations of central bank stimulus drive down euro zone bond ...

Reuters-6 hours ago
"In the weeks ahead investors are likely to shift between stimulus hopes and concerns about the fallout from Brexit," said Martin Van Vliet, senior rates strategist ...

German Bund yields forecast to fall further sub-zero, ratcheting up pain for ECB

Reuters - ‎4 hours ago‎
The idea of investors paying governments to hold their debt - unthinkable a few years ago - has become commonplace in developed country bond markets. Japanese and Swiss bond yields out to 15 and 30 years, respectively, have negative yields.

UPDATE 1-Hopes for more ECB action drive French, Irish yields to record lows

Reuters - ‎3 hours ago‎
Fitch Ratings said on Wednesday the Brexit vote has pushed negative-yielding debt globally to $11.7 trillion, adding the growing amount of long-term bonds with a negative yield underscores the challenges facing investors. Ireland's 10-year bond yield ...
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Puerto Rico Says It Will Default Even With Congressional Help

Puerto Rico Says It Will Default Even With Congressional Help:

* It would be the first payment failure from a state-level borrower on debt backed by the full power to raise taxes since Arkansas’s in 1933. *

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When, exactly were the gloves On?

How dangerous are the corporate socialists aka neo-liberals?


Ask the kids going home to grandma's hungry. 

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Alberta deficit hits $6.4 billion at fiscal year-end

Edmonton Journal-3 hours ago
Nobody expected Wednesday's fiscal year-end report from the province to be sunshine and roses. With a $6.4 billion deficit ($324 million higher than projected), ...

Record May deficit highlights Brazil's budget challenge

Daily Mail - ‎1 hour ago‎
The primary deficit of 18.125 billion reais ($5.57 billion) in May topped market expectations for a gap of 17.3 billion reais. It followed a surplus of 10.182 billion reais in April. The primary balance, which excludes debt payments, is a key gauge of ...

Brazil Posts Wider-Than-Expected Primary Budget Deficit in May

Bloomberg - ‎5 hours ago‎
The so-called primary deficit that includes results of states, municipalities and state-owned companies was 18.1 billion reais ($5.6 billion), the central bank said Wednesday. That compares with a median forecast for a 15.8 billion-real deficit by ...

'Welcome to Hell': One month from Olympics, cash-strapped Rio ...

Telegraph.co.uk-1 hour ago
Mr Dornelles has also asked the interim president, Michel Temer, to deploy the army to Rio as the state's police force did not have sufficient resources.

Spain's Deficit Rises to 23.3 Billion Euros

Latin American Herald Tribune-21 hours ago
MADRID – Spain's Finance Ministry revealed on Tuesday that the country's deficit so far during 2016 increased to reach 23.3 billion euros ($25.8 billion), or 2.08 ...

Alaska could put end to oil checks paid to residents since 1982

Minneapolis Star Tribune-4 hours ago

But declining production and a precipitous drop in oil prices have plagued state government, leaving Alaska with a deficit of more than $3 billion for the next .

Russian budget deficit 4.3 pct of GDP in H1 - finance minister

Reuters - ‎12 hours ago‎
Siluanov also said that the 2016 budget deficit was likely to be 420 billion roubles ($6.5 billion) more than envisaged in the budget, which had assumed an average Urals oil price of $50 per barrel. "We see that the price of oil today is quite ...

UK pension scheme deficit hit record $1.25 trln on Monday ...

Reuters-11 hours ago
Uk Defined Benefit Pension Scheme Deficit Hit Record Level Of 935 Billion Pounds ($1.25 trillion) On Monday June 27 ($1 = 0.7467 pounds). Dianomi (?).

Puerto Rico Nears Next Big Default

Bloomberg-1 hour ago
Two days before a potential historical default, Puerto Rico Governor Alejandro ... Congress votes on a bill allowing the island to restructure its $70 billion in debt.

Emanuel closing in on deal to save city's largest pension fund

Chicago Sun-Times-18 hours ago
Last month, Emanuel cut a new deal to save the Laborers Pension fund to replace ... to shore up a Laborers Pension Fund with $1.3 billion in unfunded liabilities ...

Public employees paying more into US pensions, uptrend seen ...

Reuters-1 hour ago
To combat increasing employer pension costs, U.S. states enacted pension plan reforms that mainly reduced benefits for new hires and increased employee ...

Senators rally for coal miner pension fix

The Hill-22 hours ago
Those plans are funded through a federal program approaching insolvency due to ... we shouldn't be voting on restructuring Puerto Rico's debt without lifting a ...

Meals on Wheels, rides to doctor in doubt for seniors as Illinois ...

STLtoday.com-17 hours ago
Meals on Wheels, rides to doctor in doubt for seniors as Illinois budget crisis rolls ... The future of the program is uncertain with due to the Illinois budget impasse.

Gold spot price in Venezuelan Bolívar (VEF) and historical chart ...


(Scroll down to the chart in the middle of the page)

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