Standard & Poor’s indicated that 15 Euro nations may face a downgrade of their debt. Germany and France are two of the six Euro nations that could lose their AAA rating. As a result, the Euro fell in afternoon trading.
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Jim Sutliff
Congressman Barney Frank has announced that he will not seek another term. Frank has been in Congress for 16 terms and was expected to retire in 2014. Redistricting played a role in his decision to retire in 2012. Newly drawn congressional maps shifted his district out of his power base in Brookline and Newton.
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James 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.
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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
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.
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Jim Sutliff
The Super Committee remained deadlocked on Saturday as Republicans and Democrats could not agree on a compromise. Budget savings of $1.2 trillion are required by midnight on Wednesday. If an agreement is not reached by the deadline it could send stocks lower in light holiday trading. Traders could sell and take gains or lock in losses before the end of the year. In addition, lack of an agreement could lead to credit agencies downgrading US debt.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/11/19/us-usa-debt-supercommittee-idUSTRE7AC0LS20111119
James Sutliff
The debt super committee has 10 days left before the November 23rd deadline. The 12 member committee comprised of six Democrats and six Republicans must come to an agreement by the deadline or automatic spending cuts will take effect. In addition, inaction could lead to a downgrade of U.S. debt from credit agencies.
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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:
James Sutliff
The GOP needed to pick up two seats in the Virginia State Senate to gain control and they may have succeeded. Republicans picked up one race and are ahead by 86 votes in another contest. Republican control of the State Senate would move the redistricting process forward and allow Republicans to hold on to their 8-3 advantage in Congressional races.
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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
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.
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Jim Sutliff
According to the Commerce Department, consumer spending rose 0.6% in September. The increase came after a slight 0.2% gain in August. Strong fourth quarter numbers would be more indicative of economic growth.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/10/28/us-usa-economy-idUSTRE79O4A620111028
James Sutliff
The Nevada Republican party moved their caucus to February 4th. The Nevada GOP had scheduled a January 14th date for the caucus but that would have forced New Hampshire to hold a primary in December. Nevada will still be the first western state to hold a Presidential contest. Also, Nevada Democrats announced that they will hold their caucuses on January 21st.
To read a related Yahoo! News article, please click here:
http://news.yahoo.com/nevada-moves-caucus-feb-4-backlash-184619126.html
Jim Sutliff
The Nevada GOP debate was the 8th meeting since May 5th for the Republican candidates. The candidates tax plans took center stage with the Cain 9-9-9 plan coming under fire. Texas Governor Rick Perry announced that he will be releasing his tax plan which is expected to be a flat tax plan. The Perry plan is expected to be similar to a plan supported by Steve Forbes.
To read a related Bloomberg article, please click here:
http://www.bloomberg.com/news/2011-10-18/candidates-to-debate-in-epicenter-of-turmoil.html
James 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
