Week of January 8, 2012 thru January 14, 2012

Fed's Bullard: Fed In 'Wait And See' Mode; Not Talkng Exit

--'Recently We Haven't Been Talking Exit'

CHICAGO (MNI) - Recent economic data has shown the U.S. economy is improving, but the Federal Reserve is still not talking exit strategy while at the same time not planning to deploy more quantitative easing, St. Louis Federal Reserve Pres. James Bullard said Saturday.

Answering questions at the Allied Social Science associations annual meeting, Bullard said the Fed is rather taking a "wait and see" approach. Earlier he previewed a paper examining how the recovery landscape and recovery tools have changed that he will release next week.

Fed's Raskin: Mtg Forcls Hurt Recov Pace; Hi Unemp a Factor

(MNI) - Rampant home foreclosures -- elevated by high unemployment

-- are slowing the recovery in the housing market and the general

economy, and "shoddy" mortgage servicing practices that aggravate the problem must be confronted with vigorous enforcement action, Federal Reserve Governor Sarah Bloom Raskin said Saturday.

Continuing a Fed full court press against the housing slump, Raskin said falling home prices are hurting vital consumer spending and impeding Americans' ability to take advantage of the low interest rates which the Fed has engineered.

Economic Forecasting Firm Predicts Obama To Come Up Short In '12

CHICAGO (MNI) - Incumbent President Barack Obama is likely to come up short in the 2012 elections according IHS Global Insight, an economics firm that specializes in forecasting.

Sara Johnson, a senior research director at IHS, said the firm runs an econometric election model every four years predicting the outcome of the U.S. presidential elections and has been accurate most times.

"In the past sixteen postwar elections, the model has missed only twice," Johnson said speaking at the Allied Social Science Associations annual meeting in Chicago.

US News Events Calendar

--Meetings & Events of Interest to Subscribers



07-Jan 1740/1240 Federal Reserve Gov. Sarah Bloom Raskin speaks to the Association of American Law Schools on Responding to Mortgage Servicing and Foreclosure Challenges, in Washington.

07-Jan 2300/1800 St. Louis Federal Reserve Bank President James Bullard speaks to the Korean American Economic Assoc.

Orphanides:Europe's Single MonPol Has Been Ineffective

CHICAGO (MNI) - ECB Governing Council member and Governor of the Central Bank of Cyprus Athanasios Orphanides Friday said Europe has "shattered investor trust" and it is clear the single monetary policy for Europe has been ineffective.

"It is very difficult to argue that single monetary policy is working at this moment," Orphanides said at the Allied Social Science Association annual meeting in Chicago.

Orphanides pointed to the divergence in 2-year yields for the six largest European countries as proof that monetary policy is being transmitted differently to member countries.

TheFXSpot: Risk Sentiment Faces ECB/Auction Hurdles Next Week

NEW YORK, Jan 6 (MNI) - An upbeat U.S. non-farm payrolls release failed to light a positive fire under risk sentiment Friday, with global investors flocking to safe-haven instruments instead given the event risk stemming from next week's eurozone happenings.

US Debt Offering, Auction Calendar for Tsy and Agency Issues

January 6

Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S.

FinSys Update: Sarkozy, Merkel, Monti To Meet Jan 20 In Rome

WASHINGTON (MNI) - The following are top events and news reported Friday in the global financial system by Market News International:

* France and Italy Friday underscored their fundamental agreement on the way out of the Eurozone debt crisis. Speaking to reporters after a bilateral meeting here, French President Nicolas Sarkozy and Italian Prime Minister Mario Monti announced that they will meet on January 20 in Rome with German Chancellor Angela Merkel to prepare for a meeting of Eurozone Finance Ministers on January 23 and of EU heads of state on January 30. "Italy and France share the identical view on the future of Europe and the way to solve the crisis of confidence that is at the heart of the Eurozone," Sarkozy said.

FXWRAP: Dollar Lifts, Euro Dips, On Upbeat US Employment Data

NEW YORK, Jan 6 (MNI) - The dollar was able to rack up another day of solid gains vs. the euro while holding about unchanged vs. the yen, the greenback boosted by a better-than-expected report on the U.S. employment situation.

Euro-dollar was changing hands at $1.2720 in afternoon dealings Friday, the euro in the lower reaches of the day's $1.2697/1.2797 range of the U.S. session after beginning the day around the high.

Dollar-yen meantime was changing hands at Y77.03 in afternoon dealings, slightly below the Y77.12 early level of the day and after traversing a Y76.97/33 range during U.S. hours.

Afternoon dealings were at a tepid pace again Friday but morning dealings around the U.S.

SEC Text: Modifying Language For Criminal Conviction Cases

WASHINGTON (MNI) - The following is the text of a statement Friday by the Securities and Exchange Commission's Enforcement Director Robert Khuzami with respect to the recent policy change:

Following a review by senior enforcement staff that began this spring and separate discussions with the Commissioners over the last several months, last week we modified our settlement language for cases involving criminal convictions where a defendant has admitted violations of the criminal law. As explained below, the new policy does not require admissions or adjudications of fact beyond those already made in criminal cases, but eliminates language that may be construed as inconsistent with admissions or findings that have already been made in the criminal cases.