09.09.2011

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Obama package
USD 443 Billions

Obama proposed yesterday a 443 Billion support package to encourage growth. The stimulus is concentrated on infrastructure upgrading of schools, roads and bridges along with pay roll tax cuts favoring both employees and small businesses. Markets have reacted positively, but questions remain whether the President get the measures through Congress.

USD is falling slightly against other currencies: EURO/USD 1.3895. YEN/USD 77.48. Oil prices strengthen. Brent at 114,78. Gold decreases to 1860. New figures indicate Chinese inflation is dampening. US markets ended in red after FED chief Bernanke’s speech avoided given markets any clear directions.

Lack of ability to reduce deficit and start wanted reforms raise new questions on Greece and European sovereign
debt. ECB keep interest rate unchanged on 1,5 %.