According to the Commerce Department, the U.S. trade deficit increased by 10.4% to 47.8 billion in November. The increase was larger than economists had expected and was the widest trade deficit since June. Petroleum products accounted for a significant amount of the increase in imports.
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Jim Sutliff
Mitt Romney won the New Hampshire primary with 39% of the vote. Ron Paul finished in second place with 23% and Huntsman was third with 17%. Newt Gingrich and Rick Santorum each had 9% of the vote. Romney leads the field with 18 delegates and Santorum is second with 11 delegates.
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James Sutliff
The Institute of Supply Management’s factory index rose to 53.9 for the month of December. The increase marked the fastest that U.S. manufacturing has expanded in the last 6 months. The jobs report also showed gains for the month of December. Positive factory and jobs data helped send Treasuries lower in trading last week. The Ten year note yield rose to 1.96%.
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Jim Sutliff
Rick Santorum and Mitt Romney tied in the Iowa Caucus. Santorum finished just 8 votes behind Romney and each candidate will receive 11 delegates. Ron Paul came in third place and garnered 21% and 3 delegates. Newt Gingrich finished fourth with 13% and will focus on South Carolina. Rick Perry came in fifth with 10% of the vote and will also concentrate on South Carolina. Michele Bachmann pulled out of the Presidential race after receiving 5% in the Iowa Caucus.
To read a related MSNBC article, please click here:
http://www.msnbc.msn.com/id/45867228
James Sutliff
Republicans in Iowa head to caucuses around the state today to cast their votes in the 2012 Presidential race. Recent polling data indicates that Mitt Romney has a slight lead over Ron Paul. Rick Santorum has placed third in numerous polls with Rick Perry and Newt Gingrich finishing fourth and fifth. Michele Bachmann needs a strong showing to remain in the race. Iowa Caucus results have not always followed polling data in previous elections.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2012/01/03/us-usa-campaign-idUSTRE7BT14220120103
Jim Sutliff
Nebraska Senator Ben Nelson announced that he would not run for another term. Democrats are trying to recruit former Senator Bob Kerrey as a candidate. The retirement is likely to move another seat to the Republicans. Republicans are also likely to pick up seats in North Dakota, Montana, Virginia, and Florida.
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Jim Sutliff
Obama is set to nominate Jeremy Stein and Jerome Powell to the Federal Reserve Board of Governors. Jeremy Stein has worked as an advisor to the Treasury secretary during the Obama administration. Jerome Powell worked at the Treasury during the term of George H.W. Bush.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/12/27/us-usa-fed-whitehouse-idUSTRE7BQ0RA20111227
James Sutliff
House Republicans are set to approve a two month extension of the payroll tax cut. House Republican John Boehner has come to an agreement with Democratic Senator Harry Reid. The agreement would extend the tax cut for two months and begin negotiations to work out a deal for a full year extension. The payroll tax cut lowers the rate from 6.2% to 4.2%.
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Jim Sutliff
Italian third quarter Gross Domestic Product has fallen 0.2% from the second quarter. This may mark the fifth recession for the Italian economy since 2001. Although exports grew 1.6%, consumer spending declined 0.2% and investment contracted 0.6%. In addition, Italy has taken steps to lower spending that could slow economic growth in the near term.
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James Sutliff
Former NFL running back and ESPN analyst Craig James declared that he will run for Senate in Texas. James will join a crowded field running to fill the seat held by Republican Senator Kay Bailey Hutchison. Craig James was also a football star at Southern Methodist University.
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http://www.rollcall.com/news/Craig_James_Texas_Senate_Race-211180-1.html?pos=hln
Jim Sutliff
The Senate passed a two month extension of the payroll tax cut. On Saturday, the measure passed the Senate with a vote of 89-10. The payroll tax cut amounts to a two percent drop from 6.2% to 4.2%. An increase in fees for new mortgages backed by Fannie Mae and Freddie Mac will cover the cost of the tax cut.
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http://www.msnbc.msn.com/id/45707185/ns/politics/
James 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.
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Jim Sutliff
Republican and Democratic officials have agreed on a spending bill through October 1st 2012. Specific details of the agreement are expected to be released on Tuesday. The measure still requires approval of the Senate and the House of Representatives. The current spending bill is set to expire this Friday.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/12/13/us-usa-budget-idUSTRE7B72MK20111213
James Sutliff
The Iowa Republican Presidential debate gave the candidates a chance to debate the issues. The six Republican candidates only have four weeks to campaign before the January 3rd Iowa Caucus. Currently, Gingrich is the front-runner and he drew fire from the other candidates.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/12/11/us-usa-campaign-debate-idUSTRE7B90AB20111211
Jim Sutliff
A measure supported by the Democrats that would cut the payroll tax was blocked in the Senate. The bill only received 50 votes and needed 60 votes to move forward. The payroll tax on the first $110,100 would have fallen to 3.1% from 4.2% in 2012. An agreement on some form of a payroll tax cut or extension is likely in the next few weeks.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/news/2011-12-08/senate-blocks-dem-bill-to-expand-payroll-tax-cut.html
James Sutliff
