Government Policy

  • 2016-05-12 17:36


    * Traders in U.S. hours Thursday viewed the solid closes being seen for oil and dollar-yen as promising for improved risk sentiment. Nevertheless, with key U.S. data and commentary by Bank of Japan Governor Haruhiko Kuroda, providing event risk Friday, they were wary of pushing a new trend. NYMEX June light sweet crude oil futures settled up $0.47 at $46.70 per barrel, the highest so far this year, actually since early November. In currencies, dollar-yen was trading at Y109.05 late Thursday, on the high side of the day's range. As to what might propel dollar-yen above Y110, it would require a combination of rising U.S. yields and new expectations of BOJ easing, which makes comments by BOJ Governor Kuroda of great interest, traders said.

  • 2016-05-12 16:08


    NEW YORK (MNI) The Federal Reserve Bank of New York Thursday released the following statement on FX intervention:

    "The U.S. monetary authorities did not intervene in the foreign exchange markets during the first quarter of 2016, the Federal Reserve Bank of New York said today in its quarterly report to the U.S. Congress.

    During the first quarter of 2016, the U.S. dollar depreciated roughly 2.9% as measured by the Federal Reserve Board's broad trade-weighted index.

    At the start of the year, the dollar was supported by safe-haven flows owing to global growth uncertainty, commodity price declines, and shifts in the Chinese exchange rate regime that led to a sharp decline in risk asset prices into early February.

  • 2016-05-12 13:06


    --Updating 11:20 ET Story; Treasury Department Reaction, Additional Detail
    --23 Business Organizations Say Retroactivity Not Feasible
    --Business Groups Say New Rule to Limit Amount of US Investment Capital

    WASHINGTON (MNI) - Organizations representing every facet of the U.S. business community Thursday asked the Treasury Department for relief from the latest regulatory attempt to quash tax inversions, saying they are caught in a crossfire of rules that go far beyond tax abuses to hurt "jobs, investment and economic growth."

    A Treasury Department spokesperson told MNI it will "carefully review" the objections "as we move to finalize the regulations" which, although preliminary, are in effect already.

  • 2016-05-12 12:43


    By Jack Duffy

    PARIS (MNI) - The government of Prime Minister Manuel Valls won a confidence vote by a wide margin on Thursday as Socialist MPs who rebelled against a key labor reform law stood with French leader and voted against a censure motion.

    The vote for no confidence in the parliament's lower house totaled 246, well below the 288 needed to bring down the government. The vote meant the labor law was automatically adopted in the lower house and will now go to the Senate.

    The so-called El Khomri law, designed to add flexibility to France's rigid labor market, has provoked sometimes violent street protests and strikes by labor unions.

  • 2016-05-12 12:01


    --In Briefing, Ryan Inundated With Questions About Trump
    --Ryan: Seek Accord On 'Core Principles' With Trump

    WASHINGTON (MNI) - U.S.

  • 2016-05-12 11:22


    --House Minority Leader: 'Hopeful' Will Get PR Accord
    --Pelosi: Discussing Debt Restructuring, Oversight Board
    --Pelosi: Not Sure When Revised PR Bill Will Be Released

    WASHINGTON (MNI) - U.S. House Minority Leader Nancy Pelosi said Thursday the negotiations on legislation to aid financially battered Puerto Rico continue in "good faith" and are dealing with both the "broad" issues of debt restructuring and the power of an oversight board and a host of second tier issues.

    At a briefing, Pelosi said the Puerto Rico talks have been "constructive" and bipartisan.

    "We are making progress," she said.

    Pelosi said she does not know when a revised bill will be released.

    "I'm hopeful we can find common ground," she said.

    "The clock is ticking ... .

  • 2016-05-12 11:20


    --23 Business Organizations Say Retroactivity Not Feasible

    WASHINGTON (MNI) - Organizations representing every facet of the U.S. business community Thursday asked the Treasury Department for relief from the latest regulatory attempt to quash tax inversions, saying they are caught in a crossfire of rules that go far beyond tax abuses to hurt "jobs, investment and economic growth."

    The letter of protest was from every major industry group in the country, signed by the heads of 23 industry groups from the U.S.

  • 2016-05-12 10:58


    By Steven Arons

    FRANKFURT (MNI) - Germany's Finance Minister Wolfgang Schaeuble stressed the independence of the European Central Bank Thursday but renewed his view that athe political consequences of low interest rates could not be ignored.

    Speaking at the Frankfurt Finance Summit, Schaeuble also seemed to expressed understanding for the ECB, saying it was "not responsible for the current situation".

    "I did not criticize monetary policy," Schaeuble said, presumably referring to widely reported comments previously made by him that seemed to link the ECB's monetary policies with the rise of the rightwing party AfD in Germany.

  • 2016-05-11 13:30


    --House Republicans Continue Work on Budget, Puerto Rico
    --Natural Resources Panel Not Done Revising Its PR Bill
    --Washington Press Corps' Trump Obsession Intensifies

    WASHINGTON (MNI) - Under more normal circumstances, the efforts by House Republicans to restructure their fiscal year budget and to revise consequential legislation to aid financially battered Puerto Rico would merit considerable attention.

    But in the current political environment on Capitol Hill, these initiatives have been relegated to the periphery as Washington braces for the Thursday visit of Donald Trump, the presumptive Republican presidential nominee.

    Trump will hold separate meetings with House and Senate Republican leaders Thursday morning.

    Since Senate Majority Leader Mitch McC

  • 2016-05-11 11:13


    --In Briefing, Ryan Inundated With Questions About Trump
    --House Majority Leader: Could Bring Up GOP Budget Next Wk

    WASHINGTON (MNI) - U.S.