Monday, April 28, 2014

Tuesday April 29 Housing and Economic stories


Report: 85% of pensions could fail in 30 years - (www.usatoday.com) You might have thought your public pension was on shaky ground, but you’re likely still being too kind. Influential and well-regarded hedge fund Bridgewater Associates Wednesday warns public pensions are likely to achieve 4% returns on their assets, or worse. If Bridgewater is right, that means 85% of public pension funds will be going bankrupt in three decades. Bridgewater came to these conclusions by stress testing the nation’s public pension plans, much the way banks need to be evaluated on what could happen given a wide range out outcomes. Public pensions have just $3 trillion in assets to invest to cover future retirement payments of $10 trillion over the next many decades, Bridgewater says. An investment return of roughly 9% a year is needed to meet those onerous obligations. Many pension observers make the claim pensions will achieve 7% to 8% returns. But even if that assumption is correct, which is unlikely, public pensions are looking at a 20% shortfall, Bridgewater says. A 4% return is much more likely, the firm says.

France Wants To Ban Work Emails After 6 - (www.businessinsider.com) French workers have long enjoyed shorter workweeks and plenty more vacation time than Americans. Now, 1 million workers in France may be free from any work-related emails or phone calls after 6 p.m., The Guardian reports. Unions and employers there have agreed in principle that no work communications are sent after work hours. The deal would affect a portion of the technology and consultancy sectors and includes the French branches of Google, Deloitte, and PwC, according to The Guardian. It will not take effect until it is ruled on by a judge.

Down 300 in 3 days: Here's what's killing the Dow - (www.usatoday.com) It’s another bad day for the Dow Monday and investors are already trying pointing blame at the stocks causing the most trouble. Stocks at large are rolling over a bit as investors take off some of their speculative bets from last year. The Dow has fallen more than 300 points over the past three trading days, as investors turn from being bullish to nervous. It’s the biggest three-day fall for the Dow on a point and percentage (2.0%) basis since Feb. 4, 2014. But there’s a group of Dow stocks that are the biggest contributors to the downfall. Visa, Goldman Sachs and Boeing are among the biggest drags on the Dow Monday, falling 2.1%, 2.9% and 1.4% respectively. Weakness in these stocks is especially problematic since the Dow gives greatest weight to the stocks with the highest per-share prices. And at $203.41, $158.56 and $125.59 respectively, Visa, Goldman and Boeing are the stocks that really matter to the measure. And the trouble in these stocks isn’t just today. So far this year, Visa is down 8.7%, Goldman is off 10.5% and Boeing is down 8.0%.

Russia can't support Ukrainian economy forever - Putin - (www.rt.com) Russia can’t continue to prop up Ukraine’s faltering economy, and this responsibility should fall on the US and EU, which have recognized the authorities in Kiev but not yet given one dollar to support the economy, President Putin has said. “The situation is - to put it kindly, strange. It’s known our partners in Europe have recognized the legitimacy of the government in Kiev, yet have done nothing to support Ukraine – not even one dollar or one euro,” Putin said at  a meeting with government officials at his residence outside of Moscow. “The Russian Federation doesn’t recognize the legitimacy of the authorities in Kiev, but it keeps providing economic support and subsidizing the economy of Ukraine with hundreds of millions and billions of dollars. This situation can’t last indefinitely,” Putin said. In December, Russia provided Ukraine with a $3 billion loan, which was a part of a bigger $15 billion aid package agreed the same month. Russia also offered a 33 percent gas price discount that would have saved more than $7.5 billion.

Russia warns Europe of gas supply cuts over Ukraine debt - (www.reuters.com) President Vladimir Putin warned European leaders on Thursday Russia would cut natural gas supplies to Ukraine if it did not pay its bills and said this could lead to a reduction of onward deliveries to Europe. In a letter to the leaders of 18 countries, he demanded urgent talks with Europe on pulling Ukraine's economy out of crisis but made clear his patience was running out over Kiev's $2.2 billion gas debt to its former Soviet master. His comments were Russia's most explicit threat to cut off gas to Ukraine, a move that could worsen a dispute over Moscow's annexation of Crimea that has resulted in the worst East-West crisis since the end of the Cold war in 1991. "...Gazprom is compelled to switch over to advance payment for gas deliveries and, in the event of further violation of the conditions of payment, will completely or partially cease gas deliveries," Putin said in the letter, sent to European leaders including German Chancellor Angela Merkel, whose country is the largest consumer of Russian gas in the 28-nation EU.





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