Greece’s
Bonds Lead Euro-Periphery Debt Lower - (www.bloomberg.com) Greek bonds led a rout in the euro area’s
most indebted countries as opinion polls suggesting the nation’s governing
coalition is losing support reawakened concern the regional debt crisis is far
from resolved. Greece’s 10-year
yields surged to the highest in seven
weeks while those on similar-maturity Italian bonds jumped by the most since
June, having earlier dropped to a record. Irish and
Spanish securities also reversed gains that had pushed yields to the least
since Bloomberg began collecting the data. German bonds rallied as investors
sought the safest assets. European Parliament elections will be held on May 25.
“Risks in Greece are still largely underestimated” so the selloff in bonds
could continue, said Gianluca Ziglio, executive director of fixed-income
research at Sunrise Brokers LLP in London. If the outcome of the European
Parliament elections “has an impact on the next steps for debt sustainability
then it could also spill over to other markets in the periphery.” Greek 10-year
yields rose 51 basis points, or 0.51 percentage point, to 6.81 percent at the 5
p.m.
Judge
halts Illinois pension reform law - (www.chicagotribune.com) State workers and retirees can breathe a sigh
of relief — at least for a while — after a judge on Wednesday delayed the start
of a far-reaching overhaul of their pensions until it can be determined whether
the measure passes legal muster. Retiree groups and a union coalition called We
Are One Illinois won a temporary restraining order and preliminary injunction
in Sangamon County Circuit Court that will put the law on hold and prevent it from
taking effect on June 1. The groups
argued the law is unconstitutional because it scales back benefits and raises
retirement ages. Under the Illinois Constitution, public employee pensions
are a “contractual relationship” with benefits that cannot be “diminished or
impaired.” “This is an important first step in our efforts to overturn this
unfair, unconstitutional law and to protect retirement security for
working and retired Illinois families,” said Michael T. Carrigan, president of
the Illinois AFL-CIO, the point man for the union coalition.
In liberal cities, minimum wage puts biz in a
bind - (www.cnbc.com) They have backed efforts to address climate
change, held countless fundraisers for local causes and been staunch supporters
of progressive political candidates including President Barack Obama—but one
thing they can't fully get behind is the push for a swift and sharp increase in
the minimum wage. Some small-business owners in liberal-leaning cities such as
Seattle and San Francisco are finding themselves in a conundrum when it comes
to the latest hot-button political issue: Philosophically, they may agree with
the concept of boosting the minimum wage significantly, but pragmatically, they
worry any drastic mandate could put them out of business. "We do have to
do something in this country about the disparity between minimum wage and
living wage," said Seattle restaurateur Tom Douglas. Douglas serves on the
board of directors of a local food bank, and recently hosted a fundraiser for
victims of the nearby Oso landslide.
Australia plan to raise
pension age to 70 blasted - (www.cnbc.com) The Australian government's plan to raise the
state pension age to 70 has been criticized as unfair for those in physically
demanding jobs, the poor and indigenous people. Increasing the pension
eligibility age to 70 by 2035 was one of the measures in a budget announced
Tuesday to help Australia cope with the costs of an aging population. The
opposition Labor Party has vowed to oppose the change in Parliament. The
current pension age is 65. "I don't think it's something that passes the
sensible test," opposition treasury spokesman Chris Bowen said Wednesday. The
pension age in Australia has been 65 since 1908. Labor, while in government,
had in 2009 decided the pension age would rise from 65 to 67 in 2023. Bowen
said no other wealthy country has suggested making its citizens work until they
turn 70.
Home builders losing confidence in recovery - (www.cnbc.com) After three months of holding out steady
hope, sentiment among U.S. home builders weakened slightly in May. A monthly
index from the National Association of Home Builders slipped one point from a
downwardly revised April figure. The index now stands at 45. Anything above 50
is considered positive sentiment. "It is clear that builder sentiment is
becoming more in line with the market reality of a continuing but modest
recovery," said NAHB Chairman Kevin Kelly, a home builder and developer
from Wilmington, Del. "However, builders expressed some optimism that sales
will pick up in the coming months." Builder confidence had moved well into
positive territory throughout much of 2013, as prices soared on investor demand
at the low end of the market. Home sales this spring have been decidedly
weaker, as investors slow their purchases, leaving the market to
mortgage-dependent, owner-occupant buyers.
Euro-Area
Economy Expands Less Than Forecast - (www.bloomberg.com)
More than 20 dead as anti-China riots spread in Vietnam - (www.reuters.com)
More than 20 dead as anti-China riots spread in Vietnam - (www.reuters.com)
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