Markets tense after Portugal bank bailout - (www.theguardian.com) European
investors have woken up to another bank rescue this morning, after troubled
Portuguese lender Banco Espírito Santo received an emergency bailout over the
weekend. Portugal is putting almost €5bn into Banco Espírito Santo as part of a
bailout plan that will see the bank divided into a good bank for its healthy
business and a bad bank for its toxic assets. So far, so familiar, but Carlos
Costa, the governor of Portugal’s central bank (pictured), has said that
taxpayers’ money is not at risk. The plan carries no risk to public finances or
taxpayers. The rescue is mostly funded using leftover funds from Portugal’s EU-
IMF bailout. The bailout plan was agreed in rapid negotiations over the
weekend, triggered by the bank’s report of a bigger than expected loss of
€3.5bn (£2.8bn) that wiped out its capital buffers and sent its shares falling
by more than 75% before the stock was suspended on Friday.
Ghana
Turns to IMF for Emergency Help as Currency Crisis Deepens - (www.bloomberg.com) Ghana will seek immediate talks with the
International Monetary Fund to help stem the world’s worst currency slide,
ending four months of contradictory statements from the government about
whether it needs emergency aid. Yields on the nation’s Eurobonds due August
2023 fell the most in more than two weeks after President John Dramani Mahama
instructed his economic advisers to “open discussions” with the
Washington-based lender. Ghana’s programs with the IMF are typically two to
three years and the government must still decide how much funding it needs,
Finance Minister Seth Terkper said by phone from Washington today.
Tap Water
Ban for Toledo Residents - (www.nytimes.com) Residents
of Toledo, Ohio’s fourth-largest city, spent the weekend under a water advisory
after tests revealed toxins in the city’s water supply, likely caused by algae growing in Lake Erie. Tens of thousands of people kept faucets
turned off and left their homes in search of clean water. They waited in lines
at fire stations for bottled water, crossed state lines in search of stores
with supplies after local outlets ran dry, and drove to friends’ homes miles
away to fill containers. Early on Saturday, municipal officials asked the
500,000 residents served by the city’s water system to stop using tap water
after the toxins were found at a city water treatment plant. The orders were
clear: Do not drink the water, do not brush your teeth or prepare food with it,
and do not give it to your pets. Health officials also advised that children
and people with weak immune systems refrain from using the water to bathe.
Half-Trillion-Dollar
Exodus Magnifies Treasury Bill Shortage - (www.bloomberg.com) One
of the biggest winners in the push to make money-market
funds safer
for investors is turning out to be none other than the U.S. government. Rules
adopted by regulators last month will require money funds that invest in
riskier assets to abandon their traditional $1 share-price floor and disclose
daily changes in value. For companies that use the funds like bank accounts,
the prospect of prices falling below $1 may prompt them to shift their cash
into the shortest-term Treasuries, creating as much as $500 billion of demand
in two years, according to Bank of America Corp.
Millennials
End Up in Stocks for Head Start on Retirement
- (www.bloomberg.com) Are
they getting in at the wrong time?? Concern that the future of the federal
safety net for seniors is precarious and the ubiquity of 401(k)s are prompting
those born from 1979 to 1996 to get an earlier start on saving than prior
generations, according to a report from the Transamerica Center for Retirement
Studies. Millennial workers began building nest eggs at a median age of 22,
younger than both Generation X, which started at 27, and the baby boomers, who
started at 35. Though many millennial workers say they’re risk-averse and
stock-shy as a result of the most severe recession in the post-World War II
era, their deeds are telling a different story. That bodes well in the long run
for a generation that may have to bear a greater share of retirement costs on
its own, even if it means the economy will get a little less consumer spending in
the short term.
Turkey's
Erdogan lashes out at Israel at election rally - (www.bloomberg.com)
Pentagon sends more equipment and aid to Ukraine - (www.usatoday.com)
Ebola moving faster than control efforts - (www.ap.org)
Pentagon sends more equipment and aid to Ukraine - (www.usatoday.com)
Ebola moving faster than control efforts - (www.ap.org)
PBOC’s
$162 Billion Loan Spurs Speculation on Easing - (www.bloomberg.com)
Iraqi Militants Capture Oilfields in North, Kurdish Towns - (www.bloomberg.com)
China Services Index Drops to Six-Month Low on Property - (www.bloomberg.com)
China Central Bank Signals No Broad Monetary Easing - (www.bloomberg.com)
Espirito Santo Family’s Swift Fall From Grace Jolts Portugal - (www.bloomberg.com)
Iraqi Militants Capture Oilfields in North, Kurdish Towns - (www.bloomberg.com)
China Services Index Drops to Six-Month Low on Property - (www.bloomberg.com)
China Central Bank Signals No Broad Monetary Easing - (www.bloomberg.com)
Espirito Santo Family’s Swift Fall From Grace Jolts Portugal - (www.bloomberg.com)
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