This chart explains why Jeb Bush might be right about Americans needing to work longer hours on.mktw.net/1HQv5Nm pic.twitter.com/BlXbqCCusy
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#AceFinanceNews – Featured Report:July.09: The Eurozone will collapse if Greece’s debts are written off unconditionally, since requests for the same treatment would immediately arise, Germany’s Vice-chancellor and Minister of Economy and Energy Sigmar Gabriel said Thursday.
Greece’s overall debt stands at about $350 billion, of which $270 billion is owed to the European Central Bank, the International Monetary Fund and some eurozone countries.
“If the Eurozone starts writing off debts without conditions, I believe we will not help Greece which will make new debts the next day. Also, what would we say to the Spaniards, the Portuguese, Estonians, Finns? The eurozone would be destroyed,” Gabriel said in the speech at the Technical University of Dresden, broadcast by the German TV station n24.
According to Gabriel, “we must find a compromise, but a compromise, probably, could be made in terms of reforms” which should address “to a large extent, the system of public administration.”Gabriel was referring to the social support reduction, including a tax increase on medicines proposed by the International Monetary Fund (IMF), as “totally anti-social measures.”
According to Gabriel, Greek pension system and public services are inefficient, with some ten percent of Greece’s GDP going to pensions, while in Germany pensions amount to three percent.Earlier this week, IMF chief Christine Lagarde and US Treasury Secretary Jacob Lew said they consider it necessary for Greece’s debt to be restructured.
On Sunday, over 61 percent of the Greek public voted “no” in a referendum on whether the country should accept creditor demands for spending cuts and tax increases in exchange for another loan, triggering renewed speculation about Greece’s possible exit from the eurozone.
Greece has until end of Thursday to submit a plan on reforms in the country to receive a new bailout package.
#AceMarketsNews – USA:July.09: After a big down day yesterday following a bloodbath in Chinese stock markets and an outage on the New York Stock Exchange, stocks jumped in early trading Thursday as the Dow surged as much as 200 points.
In morning trading, the Dow Jones industrial average was up 0.9% and the Standard & Poor’s 500 index gained 0.8%. The tech-heavy Nasdaq composite index added 1%.
The catalysts for today’s gains are:
1. Chinese stocks rebound.
After cratering nearly 6% Wednesday, the Shanghai composite index in mainland China rallied back 5.8% Thursday. The bounce was helped by the government’s move to ban state-owned enterprises and major stakeholders (those with 5%-plus stakes) from selling shares for six months.
That reduced some of the selling pressure and raised hopes that Chinese authorities could stem the huge downdraft in Chinese shares, which has knocked the index down by a third and wiped out more than $3 trillion in market value since the June 12 peak.
2. Hope springs eternal for Greece deal.
The Athens government has until midnight tonight Greece time to submit its latest set of reforms to its eurozone creditors, with hopes of snaring a deal by the Sunday deadline set by European leaders. Hopes for a deal is again on the rise, witnessed by solid gains in Europe stock exchanges.
After the closing bell last night, aluminum maker Aloca (AA) reported earnings that fell shy of estimates but it topped revenue expectation.
And before the opening bell, snack maker and soft-drink giant Pepsico (PEP) topped both earnings and sales forecasts, and also raised its outlook for the rest of the year.
Add to that the fact that the New York Stock Exchange, which was able to close the market smoothly last night after a 3.5 hour outage Wednesday due to tech problems, opened without any hitches.
#AceNewsReport – July.09: Osborn started with the poorer of the country and now progresses to the middle-classes.
Whose next ?
Thirteen million UK families will lose an average of £260 a year due to Budget changes to working-age benefits, says the Institute for Fiscal Studies (IFS).
Tax credit changes could hit three million families, which are likely to lose an average of £1,000, it said.
Even taking into account higher wages, people receiving tax credits would be “significantly worse off,” said Paul Johnson, director of the IFS.
The chancellor said most workers would be better off under Budget changes.
The biggest impact on families will come from the freeze in working age benefits and the changes to tax credits, said Mr Johnson.
“It will reduce the incentive for the first earner in a family to enter work,” he said.
Tax credit changes
From April 2016, anyone earning more than £3,850 a year will have their Working Tax Credit reduced more steeply. Previously they could earn up to £6,420.
From April 2017, new claimants for Child Tax Credit will not be able to claim for the third, or subsequent children.
George Osborne said anyone working full-time on the National Minimum Wage – taking into account taxation changes – would be better off.
Under the new National Living Wage, all workers over the age of 25 will earn a minimum of £9 an hour by 2020.
Speaking to the BBC, he said the changes amounted to a new contract with the country, which offered fewer benefits, but higher salaries.
“This is a fair deal – because you’ve got to have a welfare system that’s fair to the people who pay for it, as well as the people who need it,” Mr Osborne told the BBC.
However the IFS said that higher wages would not compensate for cuts to tax credits.
“There is simply not enough money going in to the new minimum wage to anywhere near compensate – in cash terms – people on tax credits,” said Mr Johnson.
‘£3,450 worse off’
Earlier the Resolution Foundation – a think tank that campaigns for low and middle-income families – also warned that the changes to tax credits could “weaken the incentive both to enter work, and earn more.”
Taking into account the new National Living Wage, the Resolution Foundation said many families will still lose out.
According to its calculations, by 2020:
■ A low-earning single parent with one child, working 20 hours a week at £9.35 an hour, will be £1,000 a year worse off.
■ A low-earning dual-earner couple with two children will be £850 a year worse off
■ A middle-earning dual-earner couple with two children, each earning £15 a hour, will be £350 better off, as a result of increases in the personal tax allowance.
However, it said some families moving on to Universal Credit, or applying for tax credits after April 2017 could face much bigger losses.
For example, a low-earning couple with with three children making a new claim would be £3,450 worse off, following the tax and welfare changes set out in the budget.
“We shouldn’t think that a higher minimum wage will compensate all low income working families for their losses – many working households will be left significantly worse off,” said Gavin Kelly, chief executive of the Resolution Foundation.
Budget 2015: Benefit changes to hit 13m families, claims IFSThirteen million UK families will lose an average of £260 a year due to Budget changes to working-age benefits, the Institute for Fiscal Studies has said.
#AceNewsReport – Budget 2015: cuts to working tax credits amount to work penalty, says Labour
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BEIJING/SHANGHAI (Reuters) – Beijing’s increasingly frantic attempts to stem a stock market rout were finally rewarded as Chinese shares bounced around 6 percent on Thursday, but the costs of heavy-handed state intervention are likely to weigh on the market for a long time.
The rebound came after China’s securities regulator, in its most drastic step yet to arrest the slump, banned shareholders with large stakes in listed firms from selling.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen raced higher to close up 6.4 percent, while the Shanghai Composite Index bounced 5.8 percent for its biggest daily percentage gain in six years.
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#AceFinanceNews – ATHENS (Reuters) – Greek consumer prices fell by 2.2 percent year-on-year in June, with the annual pace of deflation accelerating from the previous month, data from the country’s statistics service showed on Thursday.
Greece’s EU-harmonised deflation rate slowed, showing prices fell by 1.1 percent in June from a 1.4 percent decline in May. Analysts polled by Reuters were projecting a decline of 1.6 percent.
Greek consumer prices fell by an average 1.3 percent in 2014 compared to a year earlier.
For years an inflation outlier in the euro zone, Greece has been in deflation mode for the last 28 months as cuts in wages and pensions and a deep recession exerted downward pressures.
Deflation in Greece hit its highest level in November 2013, when consumer prices registered a 2.9 percent year-on-year decline.
The euro zone returned to inflation in May after five months of falls and stagnation, as more expensive food, tobacco and services outweighed the impact of lower energy prices.
Consumer prices in the 19 countries sharing the euro rose by 0.3 percent year-on-year in May, according to EU statistics office Eurostat.
(Reporting by George Georgiopoulos)
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#AceFinanceNews – ATHENS (Reuters) – Greece’s jobless rate fell to 25.6 percent in April from an upwardly revised 25.8 percent rate in the previous month, statistics agency ELSTAT said on Thursday.
The reading in April, based on seasonally adjusted data, was the lowest since July 2012 when unemployment stood at 25.3 percent. The jobless rate hit a record high of 27.9 percent in September 2013.
Unemployment has come down from record highs as the economy stabilised last year after a severe slump, but remains more than double the euro zone’s average of 11.1 percent in April.
Greece’s economy contracted by 0.2 percent in the first quarter, dipping back into recession after a fragile recovery last year.
It was expected to expand by only 0.5 percent this year based on the latest EU Commission forecasts but the imposition of capital controls and the shuttering of banks is already exerting a marked slowdown in economic activity.
(Reporting by George Georgiopoulos)
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#AceFinanceNews – SYRIA:July.09: Syrian President Bashar al-Assad signed a law ratifying a new $1-billion credit line from Iran, Syria’s state news agency SANA reported on Wednesday.
The credit would be reportedly used for “importing merchandise and carrying out projects.” The deal between two state-owned banks, the Syrian Commercial Bank and Export Development Bank of Iran was signed on May 19.
On Tuesday, it was approved by the Syrian parliament.