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Stock Market & Financial Investment News

News Breaks
January 2, 2013
14:45 EDTMoody's: 'Cliff' deal not basis for meaningful improvement in U.S. debt ratios
Moody's Investors Service said that the fiscal package passed by both houses of Congress yesterday is a further step in clarifying the medium-term deficit and debt trajectory of the federal government. It does not, however, provide a basis for a meaningful improvement in the government's debt ratios over the medium term. The rating agency expects that further fiscal measures are likely to be taken in coming months that would result in lower future budget deficits, which are necessary if the negative outlook on the government's bond rating is to be returned to stable. On the other hand, lack of further deficit reduction measures could affect the rating negatively. Notably, yesterday's package does not address the federal government's statutory debt limit, which was reached on December 31. The need to raise the debt limit may affect the outcome of future budget negotiations. Moody's said the macroeconomic effects of the package are positive, since it averts the recession that would likely have occurred had personal income taxes gone up for all income levels. However, the increase in the Social Security payroll tax from 4.2% to 6.2% of income that became effective on January 1 will likely be a constraint on growth in coming quarters. Furthermore, expenditure cuts that may be decided in coming months could also affect the rate of GDP growth in the near term. Overall, therefore, the recent package mitigates part of the fiscal drag on the economy associated with the fiscal cliff but does not eliminate it. Moody's added that it believes that the debt limit will eventually be raised and that the risk of default on Treasury bonds is extremely low, this confluence of events adds uncertainty to the outcome of negotiations. However, the spending measures that result from the negotiations will form part of the medium-term outlook for the budget deficit. Moody's will need to consider these measures in assessing the rating outlook. Further revenue measures may also form part of the negotiations. The debt trajectory resulting from this process is likely to determine whether the Aaa rating is returned to a stable outlook or downgraded to Aa1, as Moody's previously stated.
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October 7, 2014
08:25 EDTFedspeak resumes with Minneapolis Fed dove Kocherlakota
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08:20 EDTOil Action: NYMEX crude is down 11 cents
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08:00 EDTU.S. ICSC Goldman Sachs chain store sales index rebounded 0.1%
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07:53 EDTICSC-Goldman Store Sales data reported
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07:53 EDTICSC-Goldman Store Sales data reported
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07:41 EDTFederal Reserve Bank of New York President speaks on local economy
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07:40 EDTFederal Reserve Bank of Minneapolis Bank President speaks on monetary policy
Minneapolis Federal Reserve Bank President Kocherlakota speaks on monetary policy objectives in Rapid City, North Dakota on October 7 at 2:30 pm.
07:40 EDTN.Y. FX Outlook
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07:40 EDTTreasury Market Outlook: Treasuries are holding modest gains
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07:35 EDTGerman economic data sinks futures
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07:33 EDTBofA/Merrill to hold a conference
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07:29 EDTRBC Capital to hold a conference
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07:28 EDTBofA/Merrill to hold a conference
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07:27 EDTCoinAgenda / BitAngels to hold a conference
Bitcoin Investor Conference is being held in Las Vegas on October 7-9.
07:21 EDTWorld Muscle Society to hold a confernce
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07:19 EDTCowen to hold a conference
17th Annual Therapeutics Conference to be held in New York on October 7-8.
06:17 EDTOn The Fly: Morning Wrap-Up for October 7
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06:12 EDTOctober front month equity options last day to trade is October 17, 2014
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05:55 EDTFX Action: USD-JPY has re-established a footing
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02:50 EDTFX Update: The dollar retained a generally soft tone
FX Update: The dollar retained a generally soft tone as the correction from Friday's post-payrolls surge continued. A lot of equity research have been warning of the impact of the strong dollar on multinational corporate earnings, and this seems to be playing a role in the greenback's correction. USD-JPY ebbed to a new low for the week at 108.51, which almost exactly matches the present position of the 20-day moving average. Last Friday's low at 108.35 and last Thursday's low at 108.00 are near-to support levels. The BoJ left policy unchanged by a vote of 8:1, as was widely anticipated, while the statement said that the economy is recovering moderately. Cable popped to a new high for the week, as did AUD-USD following an as-expected RBA decision to leave policy unchanged and despite the statement saying that the recent sharp drop in the AUD is still on sufficient to a stimulate the domestic economy. EUR-USD remained subdued, despite the losses in the dollar elsewhere, with the pair holding around 1.2620-40, comfortably below its Monday high at 1.2675.
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