Fitch Places United States’ ‘aaa’ On Rating Watch Negative

United States Steel Corp. Now Covered by Analysts at Credit Suisse (X)

sovereign’s cost of funding and cost of capital for the economy as a whole, and the implications for long-term growth. – Our assessment of the prospects for further deficit-reduction measures in future years necessary to contain government deficits in the face of long-term spending pressures and place public debt on a downward path over the medium to long term. KEY ASSUMPTIONS Fitch continues to believe that an agreement will be reached to end the current political impasse and raise the U.S. debt ceiling. Even if the debt limit is not raised before or shortly after 17 October, we assume there is sufficient political will and capacity to ensure that Treasury securities will continue to be honoured in full and on time. Fitch’s federal debt projections reflect its economic and fiscal policy assumptions and were detailed in the Special Report, ‘U.S. Medium-Term Fiscal Projections – An Update’ (dated 28 June 2013; see link below). Subsequent to that analysis, the Bureau of Economic Analysis revised the level of GDP up by around 3.4% due to revisions in the way GDP is calculated, including reclassifying spending on R&D and intellectual property as investment. This has had the statistical effect of lowering debt/GDP ratios, but has not significantly affected the trajectory of debt dynamics or its sensitivity to shocks. Since the June review, Fitch has revised down its forecasts for GDP growth for 2013 to 1.6% from 1.9% and for 2014 to 2.6% from 2.8%. Fitch’s medium-term fiscal projections incorporate assumptions regarding the medium-term growth potential of the US economy and do not incorporate potential upside benefits from shale gas or downside risks emanating from the eurozone and elsewhere. They draw heavily upon Congressional Budget Office (CBO) projections, including CBO assumptions and judgements regarding the take up of various benefits as well as the rate of growth of health care spending.

Egypt: Relations With United States in ‘Turmoil’

The suspension, announced last week, came in response to the unrest in the wake of the July 3 military coup that ousted Mohammed Morsi, Egypt’s first freely elected president, and that led to the deaths of hundreds in police crackdowns. In an interview with state-owned Al-Ahram newspaper, Egypt’s Foreign Minister Nabil Fahmy said that there is “unrest in relations” between the two countries, warning that the strain could affect the whole Middle East region. The interview was published Wednesday. However, Fahmy said he was “not worried about this turmoil in relations,” because it’s also a chance for the two to “better evaluate their relationship in the future.” The Obama administration’s decision to cut off military aid was meant as a warning that it no longer can be “business as usual” with Cairo, as President Barack Obama put it last week. In announcing the decision, the State Department did not say how much of the $1.5 billion in annual military and economic aid to Egypt was affected. It held up the delivery of Apache helicopters, F-16 fighter jets, M1A1 Abrams tank kits, which are put together in Egyptian factories, and Harpoon anti-ship missiles. But the U.S. decision is more of a symbolic slap than a punishing wound to Egypt’s new military-backed government for its slog toward a return to democratic rule. The military-backed government enjoys the support of wealthy Gulf Arab states such as Saudi Arabia and the United Arab Emirates. These oil-rich states have poured billions of dollars into Egypt’s anemic coffers and to continue the common fight against Islamists. The U.S. also is withholding $260 million in cash assistance to the government in Cairo until “credible progress” is made toward an inclusive government set up through free and fair elections. The U.S. said it will keep providing support for health and education and counterterrorism, spare military parts, military training and border security and security assistance in the volatile Sinai Peninsula. Near-daily attacks against Egyptian security forces and soldiers in Sinai have increasingly resembled a full-fledged insurgency.

On average, analysts predict that United States Steel Corp. will post $-1.38 earnings per share for the current fiscal year. X has been the subject of a number of other recent research reports. Analysts at BMO Capital Markets initiated coverage on shares of United States Steel Corp. in a research note to investors on Tuesday, September 17th. They set a market perform rating and a $19.00 price target on the stock. Separately, analysts at Wellington Shields initiated coverage on shares of United States Steel Corp. in a research note to investors on Wednesday, September 4th. They set a hold rating on the stock. Finally, analysts at Zacks upgraded shares of United States Steel Corp. from an underperform rating to a neutral rating in a research note to investors on Wednesday, August 7th. They now have a $18.00 price target on the stock. Three analysts have rated the stock with a sell rating, eleven have given a hold rating and two have issued a buy rating to the stock.

The United States is still getting rid of its chemical weapons

“This applies especially to the USA and Russia.” The United States estimates it will be at least another decade before it completes destruction of the remaining 10% of its chemical weapons, estimated at more than 3,100 tons. Russia has more than five times that amount left to destroy, according to the OPCW. While it’s unclear exactly how many chemical weapons Syria has, U.S. intelligence and other estimates put its chemical weapons stockpile at about 1,000 tons stored in dozens of sites. Syria’s chemical arsenal at a glance The storage igloos at the Utah depot where munitions were stored and the destruction facility, in the background. The United Nations has given Syria until mid-2014 to destroy that arsenal and U.N. weapons inspectors have expressed optimism that this deadline can be reached , despite having to dart in and out of battle zones amid Syria’s bloody civil war. Wade Mathews, who once worked on the U.S. project to destroy its chemical stockpile, isn’t so sure that Syria can meet that deadline. He said the U.S. effort took billions of dollars, the cooperation of many levels of government — including the military — and a safe environment to make sure the destruction was done safely. “We had a coordinated effort, we had a government that insisted that it be done safely and that the community was protected,” said Mathews, who now works with the Tooele County emergency management team, which makes sure the Utah community is aware of the project. “I don’t think those things are in place in Syria.” Mathews briefly worked at the Desert Army Chemical Depot in Tooele, a desert town bracketed by mountains outside of Salt Lake City where 43% of the nation’s chemical weapons were once stored.