The Week Ahead: June 2-10, 2012

June 4, 2012 03:19 AM

via a special arrangement with Informa Economics, Inc.

Bernanke | FY 2013 Ag appropriations | Senate farm bill

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.

The Senate returns from its latest recess; the House is not in session today, but returns Tuesday. The focus of the week for Congress includes a Thursday appearance by Fed Chairman Ben Bernanke before the Joint Economic Committee, House subcommittee work on the Fiscal Year 2013 agriculture appropriations, and a possible beginning to the Senate debate on the farm bill, but action on the farm measure could be bumped to a later date.

Fed Chairman Ben Bernanke could signal his views on QE3 when he testifies before a congressional committee on the economic outlook. Bernanke testifies Thursday about the economic outlook before the Joint Economic Committee.

House appropriators will unveil their Agriculture draft bill on Tuesday ahead of Wednesday subcommittee markup. The development follows Senate appropriators’ approval of their version of the measure in April. One area of focus will be funding for food assistance programs, including the Women, Infants and Children nutrition program. Another area is the Commodity Futures Trading Commission, funded through the Agriculture measure in the House and the Financial Services measure in the Senate. The CFTC, along with the Securities and Exchange Commission, is charged with regulating the over-the-counter derivatives market under the Dodd-Frank financial services overhaul (PL 111-203).

Senate debate on the farm bill is possible, following Senate floor action (or inaction) on the Paycheck Fairness Act (S 3220), but even if debate begins this week, the debate will continue into the following week. Key will be the number and scope of amendments, and whether or not a deal is worked out between Democratic and Republican leaders.

The House will complete work on the FY 2013 energy and water development appropriations bill (HR 5325) and plans to take up a Republican-sponsored tax reform legislation meant to cut health care costs.

Senate Majority Leader Harry Reid (D-Nev.) will also try to bring to the floor legislation (S 2237) that Democrats unveiled in the spring to provide a 10 percent income tax credit on new payrolls through either hiring or increased wages added in 2012. A House-passed version of that bill (HR 9) would provide a 20 percent tax break for companies with fewer than 500 employees.

Labor Secretary Hilda Solis is slated to appear Wednesday before the House Oversight and Government Reform Committee for a hearing to examine concerns about the integrity of the Department of Labor's jobs reporting.

EPA oversight. Cass Sunstein, administrator of the Office of Information and Regulatory Affairs at the Office of Management and Budget, will testify before a House Science, Space and Technology panel for a hearing on Wednesday on the Environmental Protection Agency's impact on jobs and energy affordability. The Subcommittee on Energy and Environment will focus on the costs and benefits of environmental regulations. Meanwhile, the EPA's priorities and practices are on the agenda of a Wednesday House Energy and Commerce panel hearing.

This week's Washington-related agenda: The agenda for congressional committees features hearings on the economic outlook, the Labor Department's jobs report, JPMorganChase's recent losses, Environmental Protection Agency regulations, and FY 2013 appropriations bills.

Monday, June 4
Senate returns:
The Senate returns from its latest recess; House members are out today, but return Tuesday. There is a chance the Senate could begin its farm bill debate later in the week.
Markets closed in U.K.
due to bank holiday.
EU-Russia summit:
A two-day EU-Russia summit in Saint Petersburg concludes. Russia is the EU’s third-biggest trade partner.
Economic reports
: Selected Interest Rates (Federal Reserve) | Factory Orders.
USDA reports: Export inspections (AMS) | Crop Progress (NASS).

Tuesday, June 5
Republican primaries are held in California, New Jersey and several other states. Wisconsin's recall vote on Gov. Scott Walker is seen as a test of voter sentiment.
Markets: U.K. markets are closed for Queen Elizabeth's Diamond Jubilee.
Energy reports: Weekly National Petroleum Report (API).
Economic reports: ICSC-Goldman Store Sales | ISM Non-Mfg Index.

Wednesday, June 6
sells government debt.
Markets closed in South Korea.
European Central Bank expected to stand pat on monetary policy.
Fiscal 2013 appropriations - Agriculture, FDA: House Appropriations — Subcommittee on Agriculture, Rural Development, FDA, and Related Agencies will mark up draft legislation that would make fiscal 2013 appropriations for programs under its jurisdiction.
JPMorganChase loss and financial regulation oversight: Committee oversight hearing. Senate Banking, Housing and Urban Affairs Committee oversight hearing on efforts to overhaul the regulation of derivatives, focusing on the steps the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission are taking to implement provisions of the Dodd-Frank Wall Street Reform Act, and their efforts to reduce systemic risk and improve market oversight. The session also will review the $2 billion JPMorganChase trading loss, which is being investigated by the SEC and the FBI.
Political influence on BLS data: Committee hearing. House Oversight and Government Reform Committee hearing to review the possible influence of Department of Labor political appointees on Bureau of Labor Statistics employment data collection and dissemination.
EPA enforcement oversight: Subcommittee hearing. House Energy and Commerce — Subcommittee on Energy and Power hearing on the enforcement philosophy, strategies and procedures of the EPA, focusing on statements made in an online video released by a former EPA regional administrator.
EPA enforcement oversight: Subcommittee hearing. House Science, Space and Technology — Subcommittee on Energy and Environment hearing on the impact of EPA regulations on employment and the affordability of energy.
CARD Act implementation oversight: Subcommittee oversight hearing. House Financial Services — Subcommittee on Financial Institutions and Consumer Credit oversight hearing on the implementation of the CARD [Credit Card Accountability Responsibility and Disclosure] Act (PL 111-24).
Impact of EU greenhouse gas rules on U.S. airlines: Committee hearing. Senate Commerce, Science and Transportation Committee hearing on the European Union (EU) Emissions Trading System (ETS), focusing on issues associated with the inclusion of the airline sector in the ETS, a program that caps greenhouse gas emissions for certain industries in the EU, and its potential impact on US air carrier operations.
US-Korea relations: Subcommittee hearing. House Foreign Affairs — Subcommittee on Asia and the Pacific.
Energy reports: Weekly Petroleum Status Report (EIA) | Weekly ethanol plant production (EIA).
Economic reports: MBA Purchase Applications | Productivity and Costs | Beige Book (Federal Reserve).
USDA reports: Broiler Hatchery (NASS)

Thursday, June 7
Spain auctions bonds in a test of investor sentiment.
Bank of England meets, with expectations of another round of asset purchases.
Markets closed in Brazil.
Federal Reserve votes on a proposal to implement Basel III capital rules.
Fed Chairman economic outlook: Committee hearing. Joint Economic Committee hearing to receive the economic outlook from the chairman of the Federal Reserve Board, Ben Bernanke.
Medicare and Medicaid program integrity: Subcommittee hearing. House Oversight and Government Reform — Subcommittee on Government Organization, Efficiency and Financial Management.
Energy reports: Weekly US underground natural gas stocks (EIA).
Economic reports: Jobless Claims (Labor Dept.) | Weekly Mortgage Rates (Freddie Mac) | ICI weekly money market mutual fund data | Consumer Credit.
Transportation: Grain Transportation Report (AMS).
USDA reports: Export Sales (FAS).

Friday, June 8

Obama and Aquino meet: President Obama holds talks with President Benigno Aquino of the Philippines at the White House. They will discuss economic and strategic issues in the Asia-Pacific region.
'Tax extenders' evaluation: Subcommittee hearing. House Ways and Means — Subcommittee on Select Revenue Measures hearing on how Congress should evaluate certain tax provisions that either expired in 2011 or will expire in 2012, known as "tax extenders." The subcommittee will consider the principles that should be used to evaluate the merits of extenders, and how they compare to what experts consider the principles of sound tax policy.
Economic reports: International Trade | Wholesale Trade.
USDA reports: Peanut Prices (NASS) | Latest US Agricultural Trade Data (ERS).

Sunday, June 10
holds parliamentary elections.


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.






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