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Archive for the Political News Category

Municipal Bond Tax Exempt Proposals -

Municipal bonds are facing proposals that would eliminate their tax exempt status.  Republican Paul Ryan submitted a budget proposal that was aimed at lowering the deficit but also would end municpal bond tax exemption.  It is not likely that municipal bonds will lose their tax exempt status because of the effect it would have on the issuers. 

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-06-02/municipal-bonds-likely-to-remain-tax-exempt-bny-mellon-says.html

Jim Sutliff

Exxon Mobil (XOM) Lands Drilling Permit -

Exxon Mobil landed a deep-water drilling permit in the Gulf of Mexico.  The permit  will allow Exxon to drill in the Keathley Canyon Block 240 miles off the coast of Louisiana.  The Bureau  of Ocean Energy Management, Regulation and Enforcement started to issue permits again for deep water drilling.  Currently, crude oil is over $100 a barrel and more drilling could help to ease market concerns.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-03-22/exxon-mobil-wins-u-s-permit-to-drill-in-deep-waters-of-gulf.html

Jim Sutliff

Nasdaq Bid For NYSE -

Reports indicate that Nasdaq is close to making a bid for the New York Stock Exchange.  Nasdaq may require financing of $5 billion in new debt for the transaction.  The deal would make Nasdaq the leader in trading of U.S. stocks and could face antitrust review. 

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052748704893604576200832791522972.html

Jim Sutliff

Crude Oil To $200?

The Bloomberg Chart Of The Day looks at oil prices and outstanding $200 call options.  The article discusses the recent events in the middle east that are spiking interest in crude oil call options.  The number of $200 contracts are at the highest level since they first traded in July 2009.

To read the Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-03-07/saudi-arabia-s-day-of-rage-lures-record-bets-on-200-oil-chart-of-day.html

James Sutliff

Turmoil Sends Oil Soaring -

Reuters reports that Libya has declared a Force Majeure on some oil shipments.  A force majeure would clear companies of some contractual obligations due to events beyond their control.  Specific details relating to the force majeure declaration are unclear and all ports are not effected by the turmoil.

To read the Reuters article, please click here:

http://www.reuters.com/article/2011/02/22/us-libya-fuels-exports-idUSTRE71L5ZO20110222

James Sutliff

Congress Passes Tax Cuts -

Congress passed the bill to extend the Bush era tax cuts for another two years.  The bill also includes estate tax provisions that increase exemptions and address gift tax and generation skipping tax issues.  Today, the House voted 277-148 in support of the bill and on December 15th the Senate voted 81-19.

To read a related Bloomberg article, please click here

http://www.bloomberg.com/news/2010-12-17/house-votes-to-debate-obama-s-858-billion-tax-cut-deal-with-republicans.html

Jim Sutliff

Republican Stock Market?

The sweeping victories by the Republicans may serve to keep the bulls running in the market.  The House is now solidly controlled by the Republicans and Democratic control of the Senate has been watered down a great deal.  Democrats in the Senate are likely to show caution regarding issues such as higher income and estate taxes.  The tax rate on carried interest also may be off limits to changes by the Democrats.  There are several Senate seats held by Democrats that are vulnerable in 2012 so this Congress should be much more conservative.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-11-03/republican-victory-in-u-s-midterm-elections-may-keep-bull-market-alive.html

James Sutliff

Stock Market Rises -

The Dow Jones Industrial Average is up 74 points on the day with investors focused on the election and the Federal Reserve.  The expectation that Republicans will make gains in both the House and Senate are part of the reason for the market rise.  Another factor is the expected second round of quantitaive easing by the Federal Reserve.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052748704462704575589892276293622.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Jim Sutliff

Market Waits For Election -

The stock market slowed down at the end of the week as many investors wait for the election results.  Tuesday could bring a split Congress or Republican control of both houses.  Currently, Republicans are expected to win more than the 39 seats that are required for control of the House.  The Senate is expected to be very close with Democrats holding 48 to 52 seats.  A 50-50 Senate would have Vice President Joseph Biden being the tie breaker.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-10-30/most-u-s-stocks-retreat-as-investors-await-fed-gongressional-elections.html

James Sutliff

Estate Tax Prepayment -

Senator Maria Cantwell has proposed a plan that would allow taxpayers to prepay estate taxes.  The Democratic Senator is expected to have some level of support for the plan from Republicans and fellow Democrats.  The prepayment proposal would create an increase in near term federal tax revenue as well as estate planning activity.

To read a related Nasdaq article, please click here:

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201002041712dowjonesdjonline000620&title=estate-tax-prepayment-option-eyed-to-break-logjam-in-senate

Jim Sutliff

The Obama Stock Market -

The Obama stock market is showing little signs of resembling the Reagan market.  The current stock market is being compared to the market under President Carter.  Recent commentary point to a stock market and an economy that is in a much worse position than in 1979.  

To read a related Forbes article, please click here:

http://www.forbes.com/2010/09/03/gdp-recession-obama-markets-streettalk-lenzner-obama-reagan.html?boxes=Homepagelighttop

Jim Sutliff

China Shifts From Dollar -

China is starting to make moves away from the U.S. Dollar and towards the Euro and the Yen.   Concerns relating to the U.S. economy were cited as one of the reasons.  China has the largest foreign exchange reserves amounting to $2.45 trillion.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-08-15/china-favors-euros-over-dollars-as-bernanke-shifts-course-on-fed-stimulus.html

Jim Sutliff

Treasury Notes -

Treasury notes continued their gain for a fourth straight month.  Two year yields fell for a 9th straight week to the lowest rate ever recorded.  Slow economic growth and the possibility of a moderate economic recovery have led investors to Treasury notes.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-07-31/treasury-notes-climb-for-fourth-straight-month-as-economic-growth-slows.html

Jim Sutliff

Forbes Markets Brief -

To get a quick overview of the markets take a look at the Markets Brief on Forbes.  It provides news and insights on domestic and global markets.  The report also provides valuable information on earnings reports and views from analysts regarding economic events.

To visit the Forbes Markets Brief, please click here:

http://www.forbes.com/markets/marketsbrief/

Jim Sutliff

Venezuela Seizes Rigs -

Venezuela has seized 11 rigs owned by the American drilling company of Helmerich & Payne.  The drills have been shut for a year due to lack of payments from the Venezuelan state-run oil company PDVSA.  This is an aggressive move on the part of the government and it may decrease the amount of foreign investment in the country.

To read a related Associated Press article on Yahoo! News, please click here:

http://news.yahoo.com/s/ap/20100624/ap_on_bi_ge/lt_venezuela_oil_rigs

Jim Sutliff