Week of January 15, 2012 thru January 21, 2012

US News Events Calendar

--Meetings & Events of Interest to Subscribers



16-Jan 2300/1800 Federal Reserve Gov. Elizabeth Duke speaks at the University of Richmond to the Robbins Executive Speaker Series and Watts Lecture, on "My Journey from Community Banker to Central Banker."

18-Jan 1430/0930 Federal Reserve Gov. Daniel Tarullo testifies to a House Financial Services Subcommittee on the Volcker Rule.

23-Jan 1500/1000 U.S.

Text: List Of S&P Rating Action On 16 Eurozone Nations

Source: Standard & Poor's


Austria (Republic of) AA+/Negative/A-1+ AAA/Watch Neg/A-1+

Belgium (Kingdom of) (Unsolicited Ratings) AA/Negative/A-1+ AA/Watch Neg/A-1+

Cyprus (Republic of) BB+/Negative/B BBB/Watch Neg/A-3

Estonia (Republic of) AA-/Negative/A-1+ AA-/Watch Neg/A-1+

Finland (Republic of) AAA/Negative/A-1+ AAA/Watch Neg/A-1+

France (Republic of) (Unsolicited Ratings) AA+/Negative/A-1+ AAA/Watch Neg/A-1+

Germany (Federal Republic of) (Unsolicited Ratings) AAA/Stable/A-1+ AAA/Watch Neg/A-1+

Ireland (Republic of) BBB+/Negative/A-2 BBB

S&P Text: Downgrades France, Italy, Spain; Outlooks Negative

WASHINGTON (MNI) - Standard & Poor's Friday took rating actions on 16 Eurozone governments, including downgrading France, Italy and Spain while affirming Germany's 'AAA'. "Today's rating actions are primarily driven by our assessment that the policy initiatives that have been taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone," S&P said.

TheFXSpot: Long-Awaited EMU Downgrades See Ltd Neg Risk Effect

NEW YORK, Jan 13 (MNI) - Long-awaited ratings downgrades of select eurozone debt by U.S. ratings agency Standard & Poor's came as no surprise to financial market players who had been waiting for the announcement since early December,

Mexico Fin Min: FX Mkt Functioning Well,Adequate Liquidity

--Expects Peso to Begin to Align With Fundamentals

MEXICO CITY (MNI) - Mexico Finance Minister Jose Antonio Meade Kuribrena said Friday currency markets have been functioning well and have sufficient liquidity, and recent movements have not been out of the ordinary.

"Today we feel the market has adequate liquidity and depth, and that the movements tend to be what would be expected, when there is bad news the exchange rate depreciates, when there is good news it appreciates," Meade said, according to a Finance Ministry summary of comments he made at a forum on the importance of the Group of 20.

US Debt Offering, Auction Calendar for Tsy and Agency Issues

January 13

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

Fed's Evans:Add'l MBS Purchases Wld Have Direct Impact On Econ

--$600B In Additional Asset Purchases A Good Starting Point
--Fed Could Buy Assets Based On A Meeting-By-Meeting Approach
--Key To Monitor Labor Market After Asset Purchases
--Unemployment Could Go Up By 'A Couple Of Tenths' Next Few Months
--Worried That Recent Hiring Is Transitory

CARMEL, Indiana (MNI) - Chicago Federal Reserve Bank President Charles Evans said Friday additional purchases of mortgage-backed securities would have a more direct impact on the U.S. economy.

Evans, who is at the end of his turn as a voter on the policy-setting Federal Open Market Committee, and was the lone dissenter at the December meeting, reiterated his desire for more monetary policy stimulus through asset purchases.

Talk From The Trenches: Tsys Higher But Outlook Uncertain

NEW YORK, Jan 13 - It may have been Friday the 13th but Treasury prices continued to inch higher on concerns over Europe, weaker stocks and North Korea's recent missile tests.


Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 1/13 3000 *J.P.

Fed's Bullard: Improved Data Good Case To Stand Pat On QE

ST. LOUIS (MNI) - Recent U.S. economic data, particularly the December jobs report, show the economy is on the mend and another round of asset purchases is not warranted as long as the economy stays the course, St. Louis Federal Reserve President James Bullard said Friday.

"In my view the data has been stronger in recent weeks and months and so I think there is probably a good case to stand pat for now," Bullard told reporters on the sidelines of the Edward Jones Annual meeting in St. Louis Friday.