Markets Archives - Page 601 of 782

High Oil Price’s Heavy Burden On Government Debt: Gail Tverberg

Recently, the growth of most types of US debt has stalled. The major exception however is governmental debt, which is still growing rapidly. In our current circumstances, the US is reaching its debt limit mainly because of a specific resource limit — lack of inexpensive oil.

If an economy is growing, it is easy to add debt. The additional growth in future years provides money both to pay back the debt and to cover the additional interest. Promotions are common and layoffs are few, so a debt such as a mortgage can easily be repaid.

China to Investigate Asset-Pooling by Banks

China’s banking regulator has launched a nationwide probe on the pooling of wealth management product-linked assets at several banks. Already, some wealth funds are said to be at risk of defaulting, sparking fears of a crisis similar to the 2008 U.S. subprime lending crash.

Republicans to Seek $4.6tn Budget Cuts

Republicans are set to unveil a conservative budget on Tuesday that would slash government spending by $4.6 trillion over a decade and balance the budget by 2023 without any new taxes.

On Tuesday, Paul Ryan, chairman of the House budget committee and former Republican vice-presidential nominee, will for the third consecutive year present a conservative fiscal package that will require only “modest policy changes” to balance the federal budget in 10 years.

China to Abolish Rail Ministry to Curb Corruption

China on Sunday announced plans to streamline several government ministries, doing away particularly with the powerful but scandal-plagued Ministry of Railways. The move is the seventh bureaucratic restructuring in three decades, according to Xinhua, a state-owned news agency.

The Comedian Cometh: Why Beppe Grillo’s Success Is No Laughing Matter

On Sunday, Beppe Grillo’s anti-establishment 5-Star Movement announced its intentions to lead Italy’s next government, though it reiterated that it would not agree to any alliances. Throughout his campaign, Grillo has successfully articulated the angst of the well-educated, yet under-employed or unemployed; but can his rhetoric now turn into something more substantial for Italy?

Key Economic News to Watch This Week: March 11

The EU Summit opens on Thursday and investors will be watching closely for clarity and details about a region-wide banking regulator as well as a bailout for Cyprus.

Monday, March 11

Taiwan and the United States resume trade talks after a hiatus of more than five years when Taiwan banned US beef containing ractopamine, a drug used in animal feed to promote lean meat. The U.S. is the island’s third largest trade partner and a leading arms supplier.

Tuesday, March 12

Number of Billionaires in Chinese Parliament on the Rise

The ranks of ultra-rich individuals in China’s legislature increased 17 percent from last year, highlighting the cozy relationship between the wealthy and the ruling Communist party.

Among the delegates gathered in Beijing this week to attend the National People’s Congress, 83 of them are U.S. dollar billionaires, said Shanghai-based research firm Hurun.

Most US Banks Able to Weather Deep Recession

U.S. banks have enough capital to withstand a severe economic downturn, the Federal Reserve said on Thursday, announcing that 17 out of 18 major banks had passed its annual stress test.

A stronger economy and banks’ efforts to boost their capital since the 2007-2009 U.S. financial crises helped all but one of the country’s 18 largest banks meet the minimum hurdle of a 5 percent capital buffer in the Fed’s annual “stress test.”

Will Europe’s Unemployment Crisis Spark A Return For Fascism? : George Friedman

Fascism had its roots in Europe, during the 1920s and 1930s, in massive economic failures in which the financial elites failed to recognize the political consequences of unemployment. While history may not repeat itself so neatly, the emergence of new political parties speaking for the unemployed and the newly poor could lead to governments who enclose their economies from the world and manage their performance through directive and manipulation.

ECB Downplays Italy Fears, Keeps Interest Rates On Hold

The European Central Bank on Thursday left its benchmark interest rate at a historic low of 0.75 percent, after President Mario Draghi insisted that the political gridlock in Italy had little bearing to the region’s overall financial stability.