Monday, January 25, 2016

Weekend News – Desperate in Davos: policymakers struggle for answers; Morgan Stanley still sees 20 percent chance of US recession

Kuroda Advises China to Impose Capital Controls to Defend Yuan

Bloomberg5 hours ago
China’s stockpile plunged $513 billion last year to $3.33 trillion, the first … pivot from debt-fueled investment and exports toward consumption and services.

-IMF’s Lagarde says markets need clarity on China currency

Reuters4 hours ago
Bank of Japan Governor Haruhiko Kuroda, speaking on the same panel at the … The Chinese central bank has been generous with liquidity, pumping a net 315 …

Desperate in Davos: policymakers struggle for answers

Reuters – ?2 hours ago?
Last January, in a bold sign of policy activism, the European Central Bank unveiled its hotly anticipated stimulus, or quantitative easing (QE), program in a bid to kick-start growth and inflation in a euro zone still reeling from financial turmoil and

China’s banking stress looms like Banquo’s Ghost in Davos

Telegraph.co.ukJan 22, 2016
The more China burns through reserves to offset capital outflows and hold the line on the yuan, the more it tightens internal monetary policy – a variant of the …

Bank of Japan’s Kuroda says Japan inflation expectations

Reuters7 hours ago
But some indicators on inflation expectations have been somewhat weak,” Kuroda told reporters at the World Economic Forum in Davos, adding that he would …

U.S. Steel lawyers focus on when former Stelco ‘unable to meet its debts

Hamilton Spectator – ?19 hours ago?
The trial is to decide if the $2.2 billion the American parent company claims from U.S. Steel Canada is really debt or injections of equity into a struggling subsidiary. If Superior Court Judge Herman Wilton-Siegel decides the claim is truly adebt

Peabody sells stake in Illinois power plant for fraction of investment

Belleville News-Democrat18 hours ago
Peabody announced Thursday that it would sell its 5 percent stake in the Prairie State Energy campus for $57 million. It originally invested nearly $250 million in the 1,600-megawatt facility, which opened in 2012.

India’s Exports Shrink 15% In Dec, Trade Deficit Widens On Gold

South Asian Link11 hours ago
Imports shrank 3.88% to $33.96 billion in December on yearly basis. Gold imports jumped almost three-fold thereby pushing up the trade deficit to a 4-month …

Hong Kong’s Chan Says City’s Economic Growth to Slow From 2015

Bloomberg9 hours ago
Hong Kong’s GDP is estimated by economists to have grown 2.3 percent in 2015, the most sluggish since 2008 amid rising concerns about China’s slowdown …

Bond Traders Tell Fed Optimism on Growth, Inflation Is Misplaced

Bloomberg13 hours ago
He said a slowdown in the Chinese economy is contributing to global deflation. Futures traders assign about a 24 percent chance that the Fed will boost …

Looming downgrades point to turmoil in 2016 for mining, energy

The Globe and Mail19 hours ago
The slowdown in China’s economy has wreaked havoc on the natural-resources sector. Minerals such as iron ore and metallurgical coal have declined more …

Fearing default by Atlantic City, S&P slashes rating

Philly.com – ?19 hours ago?
“The city is currently vulnerable to nonpayment on its obligations and we believe it is likely to default without an unforeseen positive development,” said Standard & Poor’s credit analyst Timothy Little. The downgrade of Atlantic City’s general

S&P slashes Atlantic City credit rating four notches deeper into junk

Reuters – ?20 hours ago?
Atlantic City, New Jersey’s distressed gambling hub, had its credit rating cut four notches deeper into junk territory on Friday on the likelihood of a debt default in the next six months. Standard & Poor’s Ratings Services issued the super-downgrade

Venezuela opposition rejects Maduro’s ‘economic emergency’ decree

Stabroek News – ?9 hours ago?
CARACAS, (Reuers) – Venezuela’s opposition refused yesterday to approve President Nicolas Maduro’s “economic emergency” decree in Congress, saying it offered no solutions for the OPEC member-nation’s increasingly disastrous recession. Underlining the

Brazil economy shed 1.5 million jobs in 2015

Arab News – ?21 hours ago?
Brazil is set to have both the worst recession and the third-highest inflation rate among G-20 economies in 2016, according to Reuters Polls. The government, whose popularity has sunk to near record lows, has sent erratic signals about economic policy, …

Brazil’s Rousseff signals tapping foreign reserves possible: media

Reuters – ?19 hours ago?
Most in her economic team share that view, but with Brazil in its worst recession in decades and with a growing fiscal deficit to boot, Rousseff is under pressure from her leftist Workers’ Party to ditch austerity and spend more, including some of the

Market tumble puts quake in pension funds

Jacksonville Journal Courier – ?9 hours ago?
“For the most part, we are in it for the long haul,” said Christine Radogno, the Republican state Senate leader in Illinois, which faces the nation’s largest unfunded pension liability, at more than $100 billion, and is in a tough spot because the

Auditor General: Easton pension funds close to becoming ‘severely

Allentown Morning Call21 hours ago
Auditor General: Easton pension funds close to becoming ‘severely … Overall, there is nearly an $8 billion unfunded pensionliability, DePasquale said.

Illinois lawmakers: Stock drops no reason for pension worry

Bloomington Pantagraph20 hours ago
Illinois lawmakers: Stock drops no reason for pension worry. Updated 8 hrs ago; 0 … Illinois has the nation’s largest unfunded pension liability at $111 billion. × …

3000 jobs lost in Illinois in 2015 as state fails to recover from Great

WSIL TV18 hours ago
WSIL — Illinoiseconomy is still struggling. That became clearer Friday as the Department of Employment Security released figures showing the state lost 3,000 …

Morgan Stanley still sees 20 percent chance of US recession

Reuters – ?Jan 22, 2016?
The government will release its first reading on fourth-quarter economic growth on Jan. 29. If GDP growth deteriorates to a range of 1 percent to 1.5 percent in 2016, the Federal Reserve would likely refrain from raising interest rates this year, the

Creighton economist says ag slowdown spreading to rest of economy

Radio Iowa15 hours ago
“With the global economic slowdown, our trading partners are buying less and less of our agricultural products.” The rollercoaster stock market leaves traders …

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