18. May 2012 by Jim Sutliff.

Fitch Ratings downgraded Greece one notch from B- to CCC.  A lower grade would place Greece in default.  The Greece downgrade was partially due to the risks associated with a possible exit from the European Union.  Greek elections are expected to be held in mid-June and could produce a government that does not support the austerity plan.

To read a related Businessweek article, please click here:

http://www.businessweek.com/ap/2012-05/D9UQLLJO1.htm

James Sutliff

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7. May 2012 by Jim Sutliff.

Francois Hollande won the French Presidential election on Sunday.  Hollande defeated Nicolas Sarkozy and became the first Socialist candidate to win the Presidency since 1985.  Francois Mitterand was the last Socialist French President from 1981-1995.  Hollande is expected to raise taxes and increase government spending.

To read a related Fox News article, please click here:

http://www.foxnews.com/world/2012/05/06/sarkozy-expected-to-be-defeated-as-polls-open-across-france-in-presidential/

James Sutliff

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2. March 2012 by Jim Sutliff.

Moody’s lowered the credit rating for Greece to C from Ca.  Moody’s indicated that the debt restructuring would provide investors with significantly less than their face value.  Earlier in the week, Standard & Poor’s indicated that the restructuring plan for Greek debt was a selective default.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-03-02/greece-ratings-cut-by-moody-s.html

Jim Sutliff

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14. December 2011 by Jim Sutliff.

The Euro fell below $1.30 in afternoon trading on Wednesday.  The Euro has not traded below $1.30 since mid-January of this year.  Traders are watching Standard & Poor’s for any indications of sovereign debt downgrades.  France is one of the nations that could lose triple-A status.

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

http://online.wsj.com/article/SB10001424052970203893404577097810020345818.html?mod=WSJ_hp_LEFTTopStories

Jim Sutliff

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27. November 2011 by Jim Sutliff.

The integration of fiscal policy is an important step for Euro zone countries in solving their debt crisis.  A recent plan would utilize bilateral agreements instead of changing European Union treaties.  Bilateral agreements could make implemention of fiscal policy changes faster than the time consuming process of changing treaties.

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

http://online.wsj.com/article/SB10001424052970204630904577062592535969680.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsThird

Jim Sutliff

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25. November 2011 by Jim Sutliff.

Standard and Poor’s downgraded Belguim debt to AA.  The downgrade forced the 10 year yield to 5.832% in Friday trading.  Belgium debt started the week trading at 4.817%.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/25/us-belgium-sp-idUSTRE7AO1F220111125

James Sutliff

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21. November 2011 by Jim Sutliff.

Elections in Spain signaled another shift in governments with the People’s Party winning 186 of the 350 seats.  The debt crisis is largely responsible for the results and the new government is expected to be fiscally conservative in their policy making decisions.  Spain bond yields remain high but are still below the 7% level.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-21/rajoy-party-wins-spanish-eletions-after-debt-crisis-overwhelms-socialists.html#

Jim Sutliff

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11. November 2011 by Jim Sutliff.

Italy is set to vote on debt reduction measures to lower their debt level and increase investor confidence.  Currently, Italy has $2.6 trillion in debt and has a bond yield near 7%.  Prime Minister Silvio Berlusconi is expected to step down after the plan is approved.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-09/startup-secondmarket-gets-lobbying-win-in-gridlocked-congress.html

James Sutliff

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5. November 2011 by Jim Sutliff.

The European Central Bank is discussing the possibility of halting Italian bond purchases.  European Central Bank officials are determining if the Italian government is following through with the changes it promised the European Union.  The bond buying program by the ECB has provided much needed stability to the Italian economy.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/05/us-ecb-mersch-italy-idUSTRE7A426720111105

James Sutliff

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1. November 2011 by Jim Sutliff.

The Prime Minister of Greece surprised the financial markets by calling for a referendum on the bailout plan.  Prime Minister George Papandreou has suffered a loss of some support in his party.  The call for a referendum has sent the Euro and the Dow Jones lower in trading.  Bond yields for Italian debt also rose in early trading.

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

http://online.wsj.com/article/SB10001424052970204528204577011452028738504.html?mod=WSJ_hp_LEFTTopStories

Jim Sutliff

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18. October 2011 by Jim Sutliff.

Standard & Poor’s cut the debt rating for Barcelona to AA- with a negative outlook.  The downgrade was expected after Standard & Poor’s cut the sovereign debt rating for Spain.  Debt for Spain and Barcelona can expect another downgrade if economic conditions do not improve in the country.

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

http://online.wsj.com/article/BT-CO-20111017-709422.html

Jim Sutliff

Posted in Budget, International, Economy, General, Administrative, Business, Uncategorized | No Comments »

16. October 2011 by Jim Sutliff.

Global finance chiefs are showing support for a plan to address the European sovereign debt crisis.  A more complete plan may be presented by the October 23rd summit in Brussels. The plan is expected to include writing down as much as 50% of Greek debt.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-10-15/g-20-tells-europe-to-deal-decisively-with-debt-crisis-at-oct-23-summit.html

James Sutliff

Posted in Treasury, International, Economy, Business, Administrative, Uncategorized | No Comments »

11. October 2011 by Jim Sutliff.

The Senate voted 63-35 in support of the currency bill.  The currency bill was supported by Republican and Democratic Senators and is hoped to address the trade imbalance due to undervalued currencies.  Although the Senate supported the measure, the House may not even vote on the bill.  House Speaker Republican John Boehner does not support the legislation and the bill may not advance for a vote.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/10/11/us-usa-china-idUSTRE79A5AO20111011

Jim Sutliff

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4. October 2011 by Jim Sutliff.

Moody’s downgraded Italian government debt from Aa2 to A2 with a negative outlook.  Moody’s cited the increase in long-term funding risks for Euro nations with high levels of debt.  Also, the weak global economic outlook was part of the rationale for the downgrade.  The timing of the downgrade could have an effect on market activity for the remainder of the week..  

To visit the Moody’s site, please click here:

http://www.moodys.com/research/Moodys-downgrades-Italys-government-bond-ratings-to-A2-with-a–PR_227333

James Sutliff

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27. September 2011 by Jim Sutliff.

Democratic Senator Harry Reid has indicated that he will introduce legislation relating to undervalued currencies.  The measure will address the effect that undervalued currencies have on trade.  The Chinese Yuan is one currency that is considered  to be undervalued and acting as a subsidy to China.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/09/27/us-usa-china-currency-idUSTRE78Q4Y720110927

Jim Sutliff

Posted in Trade, Economy, Budget, International, Republican, Regulatory, Business, Democrat, General, Administrative | No Comments »