Despite risks, public pensions put faith in long-term returns
U.S. public pension funds are cutting their expectations for investment returns over the next 30 years or more, but some do not expect to meet even the new targets over the coming decade. After a long period of low interest rates, forecasts show the next 10 years will probably bring slower market growth, leading to reduced expectations for the $3.7 trillion of public pension assets. But public pensions are wary of lowering their expected return rates too quickly – that would raise costs for state and local governments and their employees, whose contributions form the funds. Reuters’ Robin Respaut explains.
My husband voted for Donald Trump and I left him
Gayle McCormick is 73 years old, and has been married to her husband for 22 years. His casual announcement that he would vote for Donald Trump for president shocked her and led to their separation. Reuters’ John Whitesides spoke to other people about the bitter personal repercussions of the 2016 election.
One fiduciary duty to rule them all
Conflicting signs from the White House have left brokerage firms and lobbyists unsure whether the controversial “fiduciary rule” governing retirement advice will ever be put in place, but they are taking no chances and complying anyway. The new administrated intimated that it would seek deferment of the rule, but it’s not clear that this will happen. Reuters’ Sarah Lynch and Elizabeth Dilts report.
Apple’s new campus: a building of big ambitions and no distractions
The new Apple campus – called the “spaceship” – is a work of extreme precision. Former project managers estimate the cost at $5 billion. Reuters’ Julia Love spoke to current and former workers on the project. They described the company’s extreme expectations, which sometimes clashed with construction realities. For example, Apple wanted doorways to be perfectly flat, with no threshold. The construction team pushed back, but Apple held firm. The rationale? If engineers had to adjust their gait while entering the building, they risked distraction from their work.
Goldman Sachs vs. Indonesian tycoon
Indonesia was set to hold a court hearing on Tuesday into a billion-dollar dispute between Goldman Sachs and local tycoon Benny Tjokrosaputro, who said Goldman unlawfully sold shares that he owned. Reuters’ Eveline Danubrata explains why Goldman took the unusual step of counter-suing for reputational damage. Legal experts say the outcome could indicate whether Indonesia’s civil court proceedings will protect foreigners’ rights.
New inspiration for Islamic State
President Donald Trump has set out to crush Islamic State when it is already at a low ebb, but Islamists and some analysts say his actions could strengthen the ultra-hardline group by creating new recruits and inspiring attacks on U.S. soil. Reuters’ Samia Nakhoul analyzes the situation.
Reuters photo of the day
On the playground
Displaced Iraqi children who fled the Islamic State stronghold of Mosul with their families play at Khazer camp, Iraq. REUTERS/Muhammad Hamed