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Archive for the Regulatory Category

Greek Bonds Drop -

The economic conditions in Greece are forcing the Greek government to accelerate asset sales.  The asset sales coupled with budget cuts totaling 6 billion euros are hoped to win more aid.  The debt crisis in Europe is also having an effect on domestic markets. 

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-05-23/greece-to-accelerate-asset-sales-as-bonds-drop.html

James Sutliff

Greece Debt Crisis -

Greece has denied reports that they may be leaving the European Union.  Greek Prime Minister George Papandreou has stated that the scenario hasn’t been discussed.  The Greek economy has been a focus of EU officials and it remains in a deep recession.  The restructuring of debt is anticipated by financial markets.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/05/07/us-greece-eurozone-idUSTRE74614Y20110507

Jim Sutliff

Oil Rallies -

Crude oil continued to rally and reached a 30 month high at nearly $113 dollars a barrel.  Crude rose with other commodities like gold and tin which also reached trading highs on Friday.  Investors shifted holdings to commodities as speculation grew that the Federal Reserve would raise rates at a slower pace than other central banks.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-04-08/asia-stocks-gain-yen-weakens-as-oil-trades-above-110-a-barrel-won-rises.html

James Sutliff

Private Equity Transparency -

Transparency in Private Equity firms has always been a concern for investors.  New leadership at three major private equity firms are attempting to address the concerns and change of image of the private equity sector.  The three private equity houses are Blackstone, PAI Partners, and 3i Group.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/04/03/us-mergers-summit-privateequity-leadersh-idUSTRE7322VK20110403

James 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

NYSE Euronext Merging With Deutsche Boerse -

Deutsche Boerse will purchase NYSE Euronext with an all stock offer of $9.43 billion.  Deustche Boerse will have 60% of the resulting entity.  The deal still has to clear regulatory hurdles and gain approval from the U.S. Department of Justice and the Securities and Exchange Commission. 

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-02-15/deutsche-boerse-nyse-directors-said-to-vote-today-on-combining-exchanges.html

Jim Sutliff

CFTC Proposes Trading Regulations -

The Commodity Futures Trading Commission has proposed new position limits to curb speculation.  The goal is to help prevent spikes in fuel and agricultural commodities.  If approved the plan would cover 28 different commodities.  The proposal is expected to face opposition from market participants as well as some commissioners.  The trading limits may not solve price volatility concerns and could have the effect of lowering liquidity. 

To read a related Financial Times article, please click here:

http://www.ft.com/cms/s/0/d13ced4e-1f46-11e0-8c1c-00144feab49a.html?ftcamp=rss#axzz1AxgQwnHR

Jim Sutliff

Private Deals Attract SEC -

Recent deals have caused the Securities and Exchange Commission to examine disclosure rules.  One rule requires companies with 500 or more shareholders of record to publicly disclose financial information.  Special-purpose vehicles like the one constructed in the Facebook deal are likely to be a focus of the SEC.

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

http://online.wsj.com/article/SB10001424052748704723104576062280540485652.html?mod=WSJ_hp_mostpop_read

Jim Sutliff

Buyouts -

Thomson Reuters has a site specifically for leveraged and managed buyouts.  The Buyouts site provides news and analysis on deals, data, and funds.  Upcoming buyout conferences and events are also showcased on the site.   

To visit the Buyouts site, please click here:

http://www.buyoutsnews.com/

James Sutliff

Renewable Energy Credits -

Bloomberg has an article on renewable energy credits that discusses their operation and lack of popularity.  Renewable energy credits have been a marginal public relations success but have failed to be a significant revenue generator. 

To read the Bloomberg Markets article, please click here:

http://www.bloomberg.com/news/2010-12-07/renewable-energy-credits-prove-inflated-with-green-claims-seen-as-hot-air.html

James Sutliff

Fuel Inventories Rise -

The rise of gasoline inventory and distillate stocks  are driving the price of crude lower in trading.  Gasoline inventories increased 3.8 million barrels and distillates rose 2.2 million barrels.  Crude inventories fell 3.8 million barrels last week but that was mainly due to an increase of 4.9% in refinery activity.  Economic concerns also weighed on the short term price of crude which fell to $87.45 for January delivery.  The northeast is expected to have a brief warm spell followed by colder than normal weather until December 21st.

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

http://online.wsj.com/article/BT-CO-20101208-709792.html

Jim Sutliff

China Monetary Policy Shift -

China has announced a long awaited shift in monetary policy to help control inflation.  The shift to a prudent monetary policy may include higher interest rates some time time next year.  The higher rates should help to slow inflation and may also slow foreign direct investment.  Investors should also consider the effects of a properly valued Yuan.

 To read a related Reuters article, please click here:

http://www.reuters.com/article/idUSTRE6B215220101203

James Sutliff

Global Concerns Hurt Stocks -

Stocks fell more than 140 points as global concerns weighed on investors.  The Korean conflict started to heat up again with artillary fire between North and South Korea.  The markets were already concerned with the debt crisis in Europe and the potential for Portugal and Spain to also require a bailout.   

To read a related Forbes article, please click here:

http://www.forbes.com/feeds/ap/2010/11/23/general-specialized-consumer-services-us-wall-street_8160341.html?boxes=Homepagetopnews

James Sutliff

Interest Rate Futures Fall -

U.S. interest rates continued to fall as concerns relating to European debt and quantitative easing weighed on investors.  The second round of quantitative easing by the Fed, known as QE2, is sparking concerns of inflation and a weaker dollar.  Traders may also be booking gains that were made on previous investments based on the Fed move to buy Treasuries.  

To read a related Reuters article, please click here:

http://www.reuters.com/article/idUSN1017807820101110

James Sutliff