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Archive for the Regulatory Category

Germany Votes For Greek Bailout -

Germany voted to support a second Greek bailout of approximately $174 billion.  The Finland parliament is expected to vote on the Greek bailout this week.  Also, European leaders will discuss the Euro zone bailout fund at their next meeting in Brussels on March 1st and 2nd.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-02-27/merkel-rebuffs-bigger-euro-firewall-as-she-backs-financial-aid-for-greece.html

Jim Sutliff

Energy Department Lowers Marcellus Shale Estimate -

The U.S. Department of Energy lowered their estimate of natural gas reserves in the Marcellus Shale.  The previous estimate of 410 trillion cubic feet has been adjusted to 141 trillion cubic feet.  Energy Department estimates are based on reserves that can be recovered with the current technology.  The Marcellus Shale extends through several states which include New York, Pennsylvania, and Ohio.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-23/u-s-reduces-marcellus-shale-gas-reserve-estimate-by-66-on-revised-data.html

Jim Sutliff

Federal Reserve To Release Forecasts -

The Federal Reserve has announced that they will release their forecasts for the Federal funds rate.  The move will increase transparency at the Federal Reserve at may help with financial planning for businesses and investors.  Monetary policy expectations should be released at the next meeting on January 24th and 25th.  The Fed funds rate is expected to remain low for the remainder of 2012.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-03/fed-officials-will-make-public-own-forecasts-for-key-rate-at-next-meeting.html

James Sutliff

Bernanke Meets With Republican Senators -

On Wednesday, Federal Reserve Chairman Ben Bernanke met with Republican Senators to discuss the European Union sovereign debt crisis.  According to GOP Senators, Bernanke indicated that the European debt crisis could significantly impact the American economy.  The Euro fell below $1.30 in afternoon trading.

To read a related CNN Money article, please click here:

http://money.cnn.com/2011/12/14/news/economy/bernanke_europe_senate_gop/index.htm

Jim Sutliff

Euro Trades Lower -

 The Euro fell on news that Moody’s is considering a downgrade of European Union sovereign debt.  The inability to end the debt crisis is one factor in the Moody’s decision.  In currency trading, the Euro fell to $1.3184 which is the lowest mark since October 4th.  Also, Italian bonds declined in trading.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-11/euro-weakens-before-german-investor-confidence-data-italy-s-bill-auction.html

James Sutliff

Smaller Euro Zone -

The Euro zone debt crisis continues to spread and yields on Italian debt broke the 7% mark today.  As a result, the Dow Jones Industrial Average fell almost 400 points in trading on Wednesday.  Speculation of a smaller Euro zone with deeper integration has increased over the last week.  In a recent speech, French President Nicholas Sarkozy mentioned a two-speed Euro zone which would be smaller than the current European Union.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/09/us-eurozone-future-sarkozy-idUSTRE7A85VV20111109

James Sutliff

Economic News Sends Gold Higher -

Gold broke the $1,760 an ounce mark in trading this week.  The precious metal rose on the possibility of slower domestic economic growth and another round of monetary stimulus.  Recently, Federal Reserve Chairman Ben Bernanke indicated that additional monetary stimulus may be in the works to lower unemployment.  The lingering European debt crisis is also increasing demand for gold.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-04/gold-traders-more-bullish-as-debt-crisis-u-s-economy-spur-bets-on-gains.html

James Sutliff

Money Market Fund Regulations -

In a recent speech, former Federal Reserve Chairman Paul Volcker discussed regulatory control of money market funds  and the role of the government in the mortgage market.  Capital requirements and deposit insurance protection are two of the measures mentioned in the speech.

To read a related reuters article, please click here:

http://www.reuters.com/article/2011/10/23/volcker-regulations-idUSN1E79M03Q20111023

Jim Sutliff

Dollar Falls Against Yen -

The Dollar fell in trading to a low of 75.76 Japanese Yen.  The Dollar also lost ground to the British Pound and the Euro.  Light trading volumes and the weekend meeting of European Union leaders contributed to the shift in currency allocations.

To read a related MarketWatch article, please click here:

http://www.marketwatch.com/story/euro-drifts-amid-eu-summit-worries-2011-10-21

James Sutliff

European Rescue Fund May Increase -

The European Financial Stability Facility may be increased to $2 trillion Euros.  The potential increase sent the Euro higher in morning trading.  Currencies that fell slightly in trading are the yen, Dollar, and Swiss Franc.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-10-18/euro-drops-versus-most-peers-on-spain-rating-downgrade-confidence-data.html

Jim Sutliff

IMF Plan Opposed -

The United States opposed a plan to almost double the size of the International Monetary Fund.  Currently, the fund has $380 billion in resources.  Shareholders opposed to the plan included Japan, China, Germany, Canada, and Australia.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/10/14/us-g-idUSTRE79C74G20111014

Jim Sutliff

Stocks & Oil Tumble -

The Dow Jones Industrial Average fell over 600 points in trading on Monday.  The downgrade of U.S. debt and concerns for the global economy continued to drive the market lower throughout the day.  Crude oil also fell in trading and finished the day near $80 a barrel.  Gold finished higher on the day and increased to over $1,700 an ounce. 

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-08-07/u-s-stock-futures-fall-amid-concern-s-p-cut-may-worsen-economic-slowdown.html

James Sutliff

U.S. Debt Downgraded -

Standard and Poor’s lowered the U.S. credit rating to AA+ and also attached a negative outlook.  The U.S. has held a triple A credit rating for 70 years and the downgrade is likely to have a negative effect on the financial markets.  Moody’s and Fitch ratings still have U.S. debt at the highest credit rating.  

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

http://online.wsj.com/article/SB10001424053111903366504576491421339802788.html?mod=WSJ_hp_LEFTTopStories

Jim Sutliff

Still No Debt Deal -

The weekend is coming to a close and there is no agreement on raising the debt ceiling.  Republican and Democratic negotiators have discussed short and long term debt ceiling increases.  Republicans prefer a short term increase that would require Obama to request more funding in early 2012.  Financial markets have started to react with the Dollar falling against the Euro, gold rising, and stock futures falling more than one percent.    

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/07/24/us-usa-debt-idUSTRE7646S620110724

Jim Sutliff

Republicans May Agree To Raise Debt Ceiling -

Republicans may agree to a short term deal to raise the debt ceiling.  According to the U.S. Treasury Department, the debt ceiling has to be raised by August 2nd to meet current obligations.  The current debt ceiling is $14.3 Trillion and negotiations will continue through the July 4th weekend.  Democrats have called for tax increases to close the budget deficit and Republicans are attempting to cut spending.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-07-03/republicans-may-accept-mini-debt-ceiling-deal-cornyn-says.html

James Sutliff