Asian markets lower on global concerns; Europe optimistic as oil rebounds
Concerns over the state of the world’s economy has led to a subdued day of trading in Asia with all major markets closing in the red Thursday as investors opted for safe havens. Europe’s shares also started lower but have since rebounded along with some upwards movement from oil prices. The region is also hopeful of positive news from the ECB. Key data expected this morning will show the uptake of the central bank’s recent cheap loans measure for stimulating business investment. If the take-up has been weak there will be high expectation of full scale quantitative easing from the ECB. US stock futures are trending higher this morning, gold is slightly lower but oil is showing slight improvements.
Jobless Claims at 8.30am ET
Retail sales at 8.30am ET
Import and Export Prices at 8.30am ET
Bloomberg Consumer Confidence Index at 9.45am ET
Business Inventories at 10am ET
Adobe and Radio Shack are among those reporting today.
Fresh start for Detroit
Detroit is now officially out of bankruptcy and looking to a fresh start for the city’s finances but while the near-term is looking rosy there is still concern over the more distant future. Kevyn Orr, now-former emergency manager of Detroit, says the city has a good team in place but it is important that residents and the administration learn lessons from the historic Chapter 9 period to avoid a repeat in the future. Read the full story.
Almost 1 in 5 Americans expect to be in debt for life
A new survey reveals that 18 per cent of Americans expect to die in debt. The CreditCards.com poll shows a sharp rise in that sentiment; double the figure in May 2013. Older respondents are most likely to believe that they will carry their debts with them to the grave while younger Americans are more optimistic. Currently the level of mortgage delinquencies is lower for the 11th
consecutive quarter but there has been a slight rise in credit card defaults. Among those believing that they will pay off their debts in their lifetime, the average age to achieve that is 53.
Burger King set for whopper tax savings
Burger King will save hundreds of millions of dollars by buying Canadian coffee and donut chain Tim Hortons according to tax experts. The takeover is expected to be completed tomorrow and the combined company will be Restaurant Brands International and headquartered in Canada. A report by Americans for Tax Fairness has slammed the move saying that Burger King’s tax savings mean that the company will be supported by American troops spending money in its restaurants but it will not be supporting the troops through taxes. Burger King has not commented on the report.
Congress could act to cut pensions
Higher premiums and lower retiree benefits could be the result of changes to pensions that are being considered by Congress. The plans, which are not part of the spending bill, have been widely opposed by unions and retirees advocates who say that while the government is looking to shore up funds in The Pension Benefit Guaranty Corp. it will result in those covered by multiemployer plans being financially penalized.