THE FIRST (hardest) DAYS FOR OBAMA
After the big and hard campaign he has to run as president against, after the emotion to be president supported by millions of people around the country and after big paraphernalia for the inauguration as president now he has to work really hard.
These days are going to be so important for him the first 100 day, he can be judged for the people, so now he has to work as never in his life. Barack Obama takes part in one of the nation’s oldest rituals Tuesday, changes will come in the First 100 Minutes – in policy, politics and personalities – that will set a course for a presidency already rich in history and expectations.
He has to pay careful attention to the economy, we know he has been doing some meetings and discuses about this topic, but now, he has to make it real. The problem in Iraq is also important. About infrastructure discuss he has to work on, some experts said, he put this in the agenda with big bets on this.
Also forex market can be affected thanks to this, people puts their hopes in this new president, so that confidence can be reflected with some gains in the market, but let be honest, until Obama get a solution, the market is not going to change.
Far from the pageantry, another ritual takes place with equal precision – the transformation of the White House residence from one president to the next, so quickly that in Bush’s case, pictures of his own inauguration were already on the walls within hours of the ceremony in 2001.
He has for now, less days than yesterday, an the time is running against to him, but after too much hope, what do you think he can or he can not?
More fear feelings for banks.
This Thursday banks get scary thanks to the new economic recovery package, an expansive combination of spending and tax cuts that aims to put millions of unemployed Americans back to work and begin fulfilling President-elect Barack Obama’s ambitious agenda. So there`s not room for banks, but it doesn’t mean they don’t need the help of the government.
Bank shares tumbled on both sides of the Atlantic on Thursday amid intensifying fears that Bank of America and Citigroup, two of the world’s biggest financial institutions, will need further US government support and about the authorities’ ability to stabilize the banking system
Some of the largest components include $87 billion for a temporary increase in aid to states for Medicaid costs; $79 billion in aid to local school districts and public colleges to prevent cutbacks; $90 billion in infrastructure spending; and $54 billion to encourage energy production from renewable sources
Obama´s tax cut
Obama´s team is thinking in a new plan to cut taxes with the help of congressional Democrats. This plan offer about $300 billion of tax cuts to individuals and businesses, a move aimed at attracting Republican support for an economic-stimulus package and prodding companies to create jobs. Although some tax cuts were always expected to be included in Mr. Obama’s economic package, his team disclosed the scope and some details of the plans Sunday at a time when Republicans have begun voicing criticism of what they describe as an open-checkbook approach to spending. By focusing more attention on the tax cuts in the plan, Obama aides hope to frame it as a balanced, pragmatic approach.
The size of the proposed tax cuts — which would account for about 40% of a stimulus package that could reach $775 billion over two years — is greater than many on both sides of the aisle in Congress had anticipated. It may make it easier to win over Republicans who have stressed that any initiative should rely more heavily on tax cuts rather than spending. The package will also include more than $100 billion in tax incentives for businesses to create jobs and invest in equipment or factories.
But the delays to the timetable also stem from debate within the Obama team about the composition of legislation designed to achieve multiple goals. The team has yet to circulate a draft bill.
FED CONSIDERING ISSUING ITS OWN DEBT
The Federal Reserve is considering issuing its own debt for the first time, a move that would give the central bank additional flexibility as it tries to stabilize rocky financial markets.
Government debt issuance is largely the province of the Treasury Department, and the Fed already can print as much money as it wants. But as the credit crisis drags on and the economy suffers from recession, Fed officials are looking broadly for new financial tools.
The Fed stepped in with emergency credit for the investment bank, Bear Stearns, in March and the insurer American International Group, in September, and threw open its direct loan window to Wall Street firms this year in a bid to stabilize financial markets amid a credit freeze.
But with the credit crisis showing no signs of abating, and the narrow scope for further interest rate cuts from the present levels of 1 percent, economists expect the Fed to look at new ways to bolster the supply and circulation of money to avoid a deflationary slump
DOWN
The Euro bough $1.2500 in European morning trading this is a little below the $1.2522 in bough in NY late morning, in contrast with big falls in the last days.
“There’s mounting speculation that the massive equity sell-off may be coming to an end,” with Asian stock markets apparently stabilizing somewhat, “and with this, there is a move to start pulling some funds out of dollars,” said James Hughes, a currency analyst at CMC Market
For other currencies, the British pound rose to $1.5585 from Monday’s level of $1.5276. The dollar climbed to 94.72 Japanese yen from 93.93 yen.
