Driving the Day: 6/21/12

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Jun 21, 2012

Need to know…

Fewer CEOs Plan Greater Spending, Hiring – A Business Roundtable survey shows fewer CEOs plan to increase hiring or capital spending in the United States in 2012. More than a third of CEOs surveyed say they will increase payrolls in the next six months, down from 42% in the previous quarter. About 20% say they will reduce employment, a 4% increase from last quarter. These sentiments come at a time when U.S. companies face steep and costly regulatory barriers to growth, evidencing a hostile regulatory approach to the American private sector.

US-EU Free Trade on the Horizon - In a sign that the European Union and United States could begin negotiating a comprehensive free trade deal, an EU-U.S. working group is calling for market opening and mutual acceptance of product standards. The report calls on officials and businesses to offer proposals by the end of the year to ease regulatory differences that impede change between the unions. A free trade partnership could eliminate tariffs and other barriers, harmonizing regulations and standards that could boost growth and jobs.

Fed Extends Operation Twist – The Federal Reserve announced it will extend its current policy (nicknamed Operation Twist), buying $267 billion in Treasury securities, swapping short-term for longer-term bonds. The Fed will buy securities between six- and 30-year maturity and then sell or redeem those with a maturity of three years or less. The intent is to lower long-term interest rates and spur borrowing without additional stimulus spending. The central bank's move, however, only shifts its balance sheet, rather than adding to it. 

Worth the read…