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News

• Brent crude settled lower at 2012's lowest level by falling 20 pct on EZ worries
• Brent crude fell $2.26 to settle at $107.49 a barrel, the lowest settlement since Dec. 30

News

• Senate banking committee will invite JPM's CEO Jamie Dimon to testify in before congress about recent trading loses - Johnson
• But the committee's Tim Johnson did not specify the date and time when the committee wants Dimon to appear

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• Leaders of G8 will discuss pressures on global oil markets and options they could take in response in weekend's summit - White House
• The official said "There will be a broad discussion, I'm sure that the leaders will discuss the range of options that they might have before them. "

News

• US crude futures settled lower for five successive days on weak US data and EZ worries
• US June crude fell 25 cents to settle at $92.56 a barrel, the lowest settlement since Nov. 2

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• Merkel is in "high level of agreement" with Hollande, Cameron and Monti that both fiscal consolidation and growth are needed - spokesman
• Seibert said the four leaders had taken part in a video conference call ahead of the G8 summit together along with Barroso and Rompuy

Quotes

   "There was a high level of agreement that fiscal consolidation and growth are not contradictions, but rather both are necessary,"

Steffen Seibert , Merkel's spokesman

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• Bullard on Thursday called for breakup of JPM, saying recent trading loss of JPM underscores difficulty in managing g big banks
• He said that he would back Volcker rule, banks shouldn't take insured deposits and take unrestricted risks with them

Quotes

"I would back my colleague (Dallas Fed President) Richard Fisher in saying that we should split up the largest banks."

James Bullard, St. Louis Fed President

News

• Spain would introduce a mechanism backing the financing needs of the country's 17 autonomous regions by July - treasury minister
• Spain's regions are either locked out of capital markets or face punitive levels to finance their debt needs
• Earlier the leaders of autonomous region have urged central govt for help to try and reduce their borrowing costs.

Quotes

 "By early July, there will be a mechanism from the state to provide a financial coverage to the autonomous regions but conditioned to meeting strictly the deficit targets."

Cristobal Montoro, Treasury Minister

News

• Bullard said he is worried that the Fed's extended period of ultra-loose monetary policy could be doing damage by encouraging undue risk-taking.
• He restated that U.S. economy has generally done better than expected in first part of 2012
• He added that labor market is recovering and U.S. in "pretty good shape," on recovery track
• Bullard said lower rates would punish savers, are known to be associated with asset price

Quotes

 "I'm worried about these low rates distorting other types of decision-making in the economy."

 "We're implicitly punishing savers ... we're encouraging people to go out and chase yield through other channels." 

James Bullard,  St. Louis Fed President

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• Fitch Ratings on Thursday slashed Greece credit rating to 'CCC' for 'B -', citing higher risk of country might have to exit from EZ
• The agency said that Greek politicians' failure to form a govt underscores a lack of public and political support for an austerity program
• Fitch added ,if new elections fail to result in a mandate for a new govet to continue austerity measures, a Greek exit from EZ would be "probable."

Quotes

 "A Greek exit would likely result in widespread default on private sector as well as sovereign euro-denominated obligations, despite a moderate sovereign debt service burden following the restructuring of Greek government bonds in March"

Fitch Ratings Agency statement

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• US senate Republicans blocked Iranian sanctions bill and said they needed more time to examine a revised packaged of new economic sanctions
• Senate Republican Leader Mitch McConnell said his staff did not receive a draft of the bill until late on Wednesday night, and needed more time to review it.

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• A top Republican lawmaker on Thursday stepped up pressure to force action next year on a rewrite of the U.S. tax code
• Dave Camp said he saw strong Republican support for using year-end expiration of individual rates "as leverage to force action in 2013 on comprehensive tax reform."
• Little action is expected before Nov. 6 elections on a series of important congressional fiscal decisions
• Camp also said that Republicans are serious about gathering a group of mostly corporate tax breaks known as "tax extenders."

Quotes

   "We should enact fast-track procedures to compel comprehensive tax reform next year."

Dave Camp, chairman of the House Ways and Means committee