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Archive for the Political News Category

Crude Oil Supplies Rise -

According to the U.S. Energy Information Administration, crude oil supplies rose by 5 million barrels last week.  In addition, gasoline inventories rose 3.6 million barrels and distillates increased by 4 million barrels.  All of the inventory increases were well above analyst expectations.  A significant drop in demand levels was a factor in the supply figures.  Crude oil was trading near the $100 dollar mark on Wednesday.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/01/11/us-markets-oil-idUSTRE7AD06820120111

Jim 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

Eurozone Leaders Reach Agreement -

European leaders reached an agreement on centralized fiscal policy.  The agreement is supported by all 17 euro zone countries as well as the 9 countries seeking to join the union.  England did not approve the fiscal plan.  Stock markets reacted positively with the Dow Jones rising 163.44 points.

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

http://www.foxbusiness.com/markets/2011/12/09/european-leaders-give-markets-what-wanted/

Jim 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

Greek Referendum Sends Stocks Lower -

The Dow Jones started to rebound after falling more than 300 points.  Stocks fell after Greek Prime Minister George Papandreou called for a referendum on the European Union bailout plan.  Currently, the Dow Jones is down slighlty less than 200 points in afternoon trading.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/01/us-markets-stocks-idUSTRE7A01NM20111101

Jim Sutliff

European Stocks Fall -

European stocks fell 3 percent in Monday trading and the Euro dropped against the Dollar.  The risks associated with Euro-Zone investments increased with weak economic data and outcomes from recent elections in Germany.  The Euro fell to $1.4111 against the US Dollar. 

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/09/05/us-markets-global-idUSTRE77L0AE20110905

James Sutliff

Republicans Target Capital Gains Tax -

A few Republican Presidential candidates are supporting the elimination of long term capital gains.  The reduction in the capital gains rate could spark investments and increase job growth.  Currently, there are five Republican Presidential candidates that support the capital gains reduction and that number is likely to grow.  Democrats are supporting measures to increase the current rate on capital gains.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-09-01/republican-investment-tax-cutters-top-bush-while-defying-buffett.html

Jim Sutliff

Dollar Hits Record Lows -

 The U.S. Dollar continued to decline against all major currencies and hit record lows in trading.  The uncertainty surrounding debt negotiations between Republicans and Democrats are leading traders to sell the Dollar.  In afternoon trading the U.S. Dollar/ Euro exchange went above $1.45.  In addition, the stock market lost some ground.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-07-26/asia-stocks-gain-u-s-futures-oil-fall-before-obama-speech-on-debt-limit.html

James 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

European Union Offers New Greek Aid Plan -

European leaders announced $229 billion of additional aid for Greece.  They also gave their $440 billion Euro rescue fund the ability to  purchase debt from Euro nations under pressure in the markets.  The leaders hope that the plan will prevent the debt crisis from spreading to Spain and Italy.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-07-21/euro-area-leaders-may-accept-greek-default.html

James Sutliff

Debt Plan Sends Dow Higher -

A possible agreement to raise the debt ceiling sent the Dow higher in aftenoon trading.  The Dow Jones gained over 200 points after Obama gave his approval for a debt agreement between  Republican and Democratic Senators.  The news also sent Gold prices lower by over $15 an ounce.

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

http://money.cnn.com/2011/07/19/markets/markets_newyork/index.htm?iid=Popular

Jim Sutliff

Debt Ceiling Talks Continue -

Debt ceiling talks between Republican and Democratic leaders continued on Saturday.  There has not been an agreement on terms to raise the $14.3 trillion debt ceiling.  The debt ceiling must be raised by August 2nd or the U.S. would fall into default and financial markets may react negatively.  

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/07/16/us-usa-debt-idUSTRE7646S620110716

James 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

Dow Industrials Rise -

The Dow Jones Industrial Average rose almost fifty points and finished slightly above 12,000.  This was the first weekly gain for the Dow after having six losing weeks.  Investors were optimistic that Greece would receive a bailout and that sent the Dow higher in early trading. 

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

http://online.wsj.com/article/SB10001424052702303823104576391140148381756.html?mod=WSJ_hp_LEFTWhatsNewsCollection

James Sutliff

Municipal Bond Tax Exempt Proposals -

Municipal bonds are facing proposals that would eliminate their tax exempt status.  Republican Paul Ryan submitted a budget proposal that was aimed at lowering the deficit but also would end municpal bond tax exemption.  It is not likely that municipal bonds will lose their tax exempt status because of the effect it would have on the issuers. 

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-06-02/municipal-bonds-likely-to-remain-tax-exempt-bny-mellon-says.html

Jim Sutliff