KeNosHousingPortal.blogspot.com
TOP STORIES:
Illinois Budget Doesn’t Address Pension Payment Backlog, Moody’s Says - (www.bloomberg.com) The Illinois fiscal 2012 budget doesn’t address the state’s “sizeable backlog of unpaid bills and an unsustainable ascent” in spending for pension benefits, Moody’s Investors Service said in a report. The increase in state corporate and individual income tax- rates that took effect in January will contain growth in total liabilities of almost $120 billion, and the budget ends a practice of issuing bonds to pay current-year expenses, Moody’s said in a “special comment” yesterday. Still, the tax increases are a short-term solution because the rates decrease in 2015, leaving the state with a “significant funding burden” to meet its unfunded pension liability of about $80 billion and the likelihood that late payments to vendors will persist, Moody’s said. “The state may be able to use increased tax revenue to chip away at its large balance of past-due budgetary payment obligations, but it has not adopted a comprehensive plan to do so,” the company said. Democratic Governor Pat Quinn’s office declined comment on the report, Kelly Kraft, the governor’s budget spokeswoman, said in an e-mail.
Postal Service proposes cutting 120,000 jobs, pulling out of health-care plan - (www.bloomberg.com) The financially strapped U.S. Postal Service is proposing to cut its workforce by 20 percent and to withdraw from the federal health and retirement plans because it believes it could provide benefits at a lower cost. The layoffs would be achieved in part by breaking labor agreements, a proposal that drew swift fire from postal unions. The plan would require congressional approval but, if successful, could be precedent-setting, with possible ripple effects throughout government. It would also deliver a major blow to the nation’s labor movement. In a notice informing employees of its proposals — with the headline “Financial crisis calls for significant actions” — the Postal Service said, “We will be insolvent next month due to significant declines in mail volume and retiree health benefit pre-funding costs imposed by Congress.”
U.S. mood at 31-year low - (www.marketwatch.com) The August reading of consumer sentiment slumped to its worst level since 1980 — which means, of course, that it was worse than at any time during what’s been dubbed the Great Recession. There’s lots not to like, whether it’s the slumping stock market (shown in red), high unemployment, a putrid housing market, and the squabbling in Washington D.C. The Federal Reserve was clearly swayed: On Tuesday the central bank pledged to keep interest rates low for two years.
EU Regulators Ban Short Selling in Some Countries - (www.cnbc.com) The European Union's financial market regulator ESMA said on Thursday that Belgium, France, Italy and Spain would announce new bans on short-selling or short positions. It said the measures would take effect from Aug. 12 and had been aligned as far as possible. The ESMA also said it will take a firm stance against any short-sellers who are found spreading rumors in the market.
Italy eyes tax hikes as cabinet meets on crisis - (www.reuters.com) The austerity package set to be adopted by the Italian government on Friday contains provisions for a levy on incomes over 90,000 euros and higher retirement ages for women in the private sector, government sources said. It will also increase the tax rate on income earned from financial investments, excluding government bonds, to 20 percent from a previous level of 12.5 percent, a source with knowledge of the draft plans said. One government source said a so-called "solidarity tax" would be set at 5 percent for incomes over 90,000 euros and at 10 percent for incomes over 150,000 euros, confirming a report in business daily Il Sole 24 Ore. A separate source said the package would also bring forward planned staged increases in the retirement age for women in the private sector to start from 2015 from a previously planned 2020.
"The increase in the pension age for women in the private sector will begin from 2015 instead of in 2020 but the rate of increase will remain the same," the source said.
Emerging-Market Equity Funds Post Third-Largest Weekly Outflows on Record - (www.bloomberg.com)
Crop Yield Raises Risk to Food Cost - (www.nytimes.com)
Investors Fret at Costs if Rescues Are Needed - (www.nytimes.com)
Small Investors Recalibrate After Market Gyrations - (www.nytimes.com)
To Stem Its Value, Swiss Central Bank Considers Pegging the Franc to the Euro - (www.nytimes.com)
EU Heads for Eurobond Clash Over Fiscal Union - (www.bloomberg.com)
China’s Lending Slips to Less-Than-Forecast $77 Billion as Economy Cools - (www.bloomberg.com)
French Economy Stalls as Spending Declines - (www.bloomberg.com)
China Regulators Said to Tell Banks to Tighten Curbs on Property Lending - (www.bloomberg.com)
Greek Economy Contracted 6.9% in Second Quarter From Year-Earlier Period - (www.bloomberg.com)
'Supercommittee' members: Experience required - (www.washingtonpost.com)
Wall Street Trading Results a Mystery to Analysts as Global Markets Gyrate - (www.bloomberg.com)
No comments:
Post a Comment