Week Jan 27 2012 – Weekly Recap & The Week Ahead
“In my experience, selling a put is much safer than buying a stock” — Kyle Rosen (Boston Capital Mgmt)
1. EU bans Iranian oil, Tehran responds with threats — EU governments agreed to an immediate ban on all new Iranian oil imports and transportation contracts, and sanctions against the country’s central bank, as the bloc looks to up the ante against Iran’s nuclear program. Also, the U.S., U.K. and France sent six warships through the Strait of Hormuz, which Iran has threatened with closure in response to the increased international measures.
2. Obama urges taxing the rich, reining in Wall Street — Obama unleashed a partisan attack over taxes and vowed no return to “the days when Wall Street was allowed to play by its own set of rules.” based on his State of the Union address. He called for a minimum 30% tax rate on those earning at least $1M and promised fresh investigations into the mortgage crisis. Obama’s other proposals included a minimum rate on companies’ overseas profits, a tax credit for firms moving jobs back home, and help for homeowners to get mortgage relief.
3. Rates To Stay Low Longer — the Fed said rates will remain near zero until at least late 2014, extending the timeline from mid-2013.
4. Creditors accept lower rate on Greek debt — according to the latest report from Dow Jones Newswires, Private-sector lenders are ready to accept a coupon rate of less than 4% on new Greek bonds that will be issued in a voluntary debt swap.
The week ahead — Economic data from Econoday.com:
