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The House is poised to OK Trump's $9 billion cut to public broadcasting and foreign aid

The House is poised to OK Trump's $9 billion cut to public broadcasting and foreign aid

The Hilla day ago
WASHINGTON (AP) — The House is expected late Thursday to approve President Donald Trump's request to claw back about $9 billion for public broadcasting and foreign aid as Republicans target institutions and programs they view as bloated or out of step with their agenda.
The White House had described the package as a test case and said that if Congress went along, more would come. The House's approval would mark the first time in decades that a president has successfully submitted such a rescissions request to Congress, and even then the results were more mixed. Unlike other presidents, Trump is getting nearly all the cuts he requested.
Opponents voiced concerns not only about the programs targeted, but about Congress ceding its spending powers to the executive branch as investments approved on a bipartisan basis are being subsequently canceled on party-line votes. No Democrats supported the measure when it passed the Senate, 51-48, in the early morning hours Thursday. Two Republicans also voted no.
'We need to get back to fiscal sanity and this is an important step,' House Speaker Mike Johnson, R-La., told reporters.
The package cancels about $1.1 billion for the Corporation for Public Broadcasting and nearly $8 billion for a variety of foreign aid programs, many designed to help countries where drought, disease and political unrest endure.
The effort to claw back a sliver of federal spending comes just weeks after Republicans also muscled through Trump's tax and spending cut bill without any Democratic support. The Congressional Budget Office has projected that measure will increase the U.S. debt by about $3.3 trillion over the coming decade.
A heavy blow to the Corporation for Public Broadcasting
The cancellation of $1.1 billion for the CPR represents the full amount it is due to receive during the next two budget years.
The White House says the public media system is politically biased and an unnecessary expense.
The corporation distributes more than two-thirds of the money to more than 1,500 locally operated public television and radio stations, with much of the remainder assigned to National Public Radio and the Public Broadcasting Service to support national programming.
Democrats were unsuccessful in restoring in the Senate.
Lawmakers with large rural constituencies have voiced particular concern about what the cuts to public broadcasting could mean for some local public stations in their state.
Sen. Lisa Murkowski, R-Ala., said Tuesday that the stations are 'not just your news — it is your tsunami alert, it is your landslide alert, it is your volcano alert.'
Less than a day later, as the Senate debated the bill, a 7.3 magnitude earthquake struck off the remote Alaska Peninsula, triggering tsunami warnings on local public broadcasting stations that advised people to get to higher ground.
Sen. Mike Rounds, R-S.D., said he secured a deal from the White House that some money administered by the Interior Department would be repurposed to subsidize Native American public radio stations in about a dozen states.
But Kate Riley, president and CEO of America's Public Television Stations, a network of locally owned and operated stations, said that deal was 'at best a short-term, half-measure that will still result in cuts and reduced service at the stations it purports to save.'
Inside the cuts to foreign aid
Among the foreign aid cuts are $800 million for a program that provides emergency shelter, water and family reunification for refugees and $496 million to provide food, water and health care for countries hit by natural disasters and conflicts. There also is a $4.15 billion cut for programs that aim to boost economies and democratic institutions in developing nations.
Democrats argued that the Republican administration's animus toward foreign aid programs would hurt America's standing in the world and create a vacuum for China to fill.
Sen. Brian Schatz, D-Hawaii, said the amount it takes to save a starving child or prevent the transmission of disease is minuscule, even as the investments secure cooperation with the U.S. on other issues. The cuts made to foreign aid programs through Trump's Department of Government Efficiency were having life-and-death consequences around the world, he said.
'People are dying right now, not in spite of us but because of us,' Schatz said. 'We are causing death.'
After objections from several Republicans, GOP leaders took out a $400 million cut to PEPFAR, a politically popular program to combat HIV/AIDS that is credited with saving millions of lives since its creation under Republican President George W. Bush.
Looking ahead to future spending fights
Democrats say the bill upends a legislative process that typically requires lawmakers from both parties to work together to fund the nation's priorities.
Triggered by the official rescissions request from the White House, the legislation only needs a simple majority vote to advance instead of the 60 votes usually required to break a filibuster. That meant Republicans could use their 53-47 majority to pass it along party lines.
In the end, two Republican senators, Murkowski and Sen. Susan Collins of Maine, joined with Democrats in voting against the bill, though a few other Republicans also raised concerns about the process.
'Let's not make a habit of this,' said Senate Armed Services Committee Chairman Roger Wicker of Mississippi, who voted for the bill but said he was wary that the White House wasn't providing enough information on what exactly will be cut.
Russ Vought, the director of the Office of Management and Budget, said the imminent successful passage of the rescissions shows 'enthusiasm' for getting the nation's fiscal situation under control.
'We're happy to go to great lengths to get this thing done,' he said during a breakfast with reporters hosted by the Christian Science Monitor.
In response to questions about the relatively small size of the cuts — $9 billion — Vought said that was because 'I knew it would be hard' to pass in Congress.
Vought said another rescissions package is 'likely to come soon.'
'But we're not there yet,' he said.
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Transaction growth was up 9%, "another indicator of strong customer engagement and ... largely consistent with what we've been seeing over the past few quarters," the CFO said. American Express sees continued growth for the rest of the year and left its revenue and earnings per share guidance unchanged. Read more here. American Express (AXP) stock fell nearly 3% in early trading on Friday after the premium credit card issuer surpassed revenue and profit estimates for the second quarter. On the earnings call, American Express CFO Christophe Le Caillec said consumer spending remained resilient among its affluent customers. 'What you see is remarkable resilience across our customer base,' he said, though he noted consumers are exercising 'a little bit of prudence around the edges.' Overall consumer and business spending rose 7% to $416.3 billion, remaining consistent with trends in the first quarter, Le Caillec stated. Airline and lodging spending was slightly softer, while restaurant spending grew 8%. Transaction growth was up 9%, "another indicator of strong customer engagement and ... largely consistent with what we've been seeing over the past few quarters," the CFO said. American Express sees continued growth for the rest of the year and left its revenue and earnings per share guidance unchanged. Read more here. Stocks tick higher after hitting fresh records Stocks were in the green at the opening bell after hitting fresh records in the previous session amid investor enthusiasm over stronger-than-expected economic data. The S&P 500 (^GSPC) rose 0.2% while the Dow Jones Industrial Average (^DJI) added 0.1%, and Nasdaq Composite (^IXIC) was up 0.3% in early trading. The S&P and Nasdaq rose to fresh records on Thursday. Second quarter earnings continued to roll in with morning reports from 3M (MMM), American Express (AXP), and Charles Schwab (SCHW). Stocks were in the green at the opening bell after hitting fresh records in the previous session amid investor enthusiasm over stronger-than-expected economic data. The S&P 500 (^GSPC) rose 0.2% while the Dow Jones Industrial Average (^DJI) added 0.1%, and Nasdaq Composite (^IXIC) was up 0.3% in early trading. The S&P and Nasdaq rose to fresh records on Thursday. Second quarter earnings continued to roll in with morning reports from 3M (MMM), American Express (AXP), and Charles Schwab (SCHW). Waller makes strongest call yet for rate cut in July, underscoring Fed divide Yahoo Finance's Jennifer Schonberger reports: Read more here. Yahoo Finance's Jennifer Schonberger reports: Read more here. Market volatility provides Charles Schwab a tailwind in Q2 Charles Schwab (SCHW) stock rose 3% ahead of the opening bell as the company's adjusted profits surged more than 50% year over year. Market volatility surrounding President Trump's tariffs fueled higher trading activity for the brokerage. The company reported adjusted earnings per share of $1.14, beating Wall Street estimates for EPS of $1.10. Revenue came in at $5.9 billion, above expectations for $5.7 billion. Charles Schwab also brought in new assets of $80.3 billion, representing 31% growth annually. 'Schwab delivered growth on all fronts during the second quarter,' Charles Schwab CEO Rick Wurster said. 'The firm's diversified revenue model, coupled with our best-in-class scale and efficiency, produced quarterly records for both revenue and earnings per share.' Listen to the earnings call live at 9:30 a.m. ET here. Charles Schwab (SCHW) stock rose 3% ahead of the opening bell as the company's adjusted profits surged more than 50% year over year. Market volatility surrounding President Trump's tariffs fueled higher trading activity for the brokerage. The company reported adjusted earnings per share of $1.14, beating Wall Street estimates for EPS of $1.10. Revenue came in at $5.9 billion, above expectations for $5.7 billion. Charles Schwab also brought in new assets of $80.3 billion, representing 31% growth annually. 'Schwab delivered growth on all fronts during the second quarter,' Charles Schwab CEO Rick Wurster said. 'The firm's diversified revenue model, coupled with our best-in-class scale and efficiency, produced quarterly records for both revenue and earnings per share.' Listen to the earnings call live at 9:30 a.m. ET here. 3M stock gains on earnings beat, smaller tariff hit forecast 3M (MMM) stock rose over 2% in premarket trading on Friday after posting an earnings beat and raising its full-year profit forecast. The Scotch tape maker reported second quarter adjusted earnings per share of $2.16 on revenue of $6.16 billion, both above estimates. It now sees full-year adjusted profits between $7.75 and $8 per share, compared with its previous estimate of $7.60 to $7.90. 3M also projected tariffs would create a smaller hit to earnings this year than previously expected. Its forecast includes a $0.10 per share hit to 2025 earnings, versus the $0.20 to $0.40 impact it guided for previously. Other companies have also scaled back their projected losses from tariffs. Earlier this week, Johnson & Johnson (JNJ) halved its expected tariff impact to $200 million. Read more here from Reuters. 3M (MMM) stock rose over 2% in premarket trading on Friday after posting an earnings beat and raising its full-year profit forecast. The Scotch tape maker reported second quarter adjusted earnings per share of $2.16 on revenue of $6.16 billion, both above estimates. It now sees full-year adjusted profits between $7.75 and $8 per share, compared with its previous estimate of $7.60 to $7.90. 3M also projected tariffs would create a smaller hit to earnings this year than previously expected. Its forecast includes a $0.10 per share hit to 2025 earnings, versus the $0.20 to $0.40 impact it guided for previously. Other companies have also scaled back their projected losses from tariffs. Earlier this week, Johnson & Johnson (JNJ) halved its expected tariff impact to $200 million. Read more here from Reuters. Chevron to proceed with Hess deal after winning legal battle against Exxon Chevron (CVX) and Hess (HES) have won an arbitration battle against Exxon (XOM) over access to an oil project off the coast of Guyana. Chevron stock rose 3% premarket, while shares of Hess climbed 7%. Exxon's stock declined less than 1%. The result clears the way for Chevron to proceed with its $53 billion acquisition of the smaller oil firm, whose value was partially tied up in its 30% stake in the Guyanese oil project shared with Exxon. Chevron had said it could delay or terminate the acquisition altogether if it didn't win the arbitration. But in the end, it prevailed. "We disagree with the International Chamber of Commerce (ICC) panel's interpretation but respect the arbitration and dispute resolution process," Exxon said in a statement. Read more here. Chevron (CVX) and Hess (HES) have won an arbitration battle against Exxon (XOM) over access to an oil project off the coast of Guyana. Chevron stock rose 3% premarket, while shares of Hess climbed 7%. Exxon's stock declined less than 1%. The result clears the way for Chevron to proceed with its $53 billion acquisition of the smaller oil firm, whose value was partially tied up in its 30% stake in the Guyanese oil project shared with Exxon. Chevron had said it could delay or terminate the acquisition altogether if it didn't win the arbitration. But in the end, it prevailed. "We disagree with the International Chamber of Commerce (ICC) panel's interpretation but respect the arbitration and dispute resolution process," Exxon said in a statement. Read more here. UK stocks seem to be reversing years of underperformance Overseas investors are starting to warm up to the UK's unloved stocks as a UK-US trade deal, lighter regulation, and cheap stocks deliver juicy returns versus the rest of Europe. The FTSE 100 (^FTSE) has gained nearly 10% this year to hit record highs this week, beating the STOXX 600 (^STOXX), which is up 7.5%. Reuters reports: Read more here. Overseas investors are starting to warm up to the UK's unloved stocks as a UK-US trade deal, lighter regulation, and cheap stocks deliver juicy returns versus the rest of Europe. The FTSE 100 (^FTSE) has gained nearly 10% this year to hit record highs this week, beating the STOXX 600 (^STOXX), which is up 7.5%. Reuters reports: Read more here. Battery materials stocks jump after US lays out 93.5% graphite duty Bloomberg reports: Stocks of battery material makers climbed after the US announced it would impose preliminary anti-dumping duties of 93.5% on graphite imports from China. Shares of Australian graphite miner Syrah Resources Ltd. (SYAAF) surged as much as 38%, while shares of South Korea's Posco Future M Co. ( climbed 24%. Novonix Ltd. (NVNXF), an Australian-listed company with a graphite production plant in Chattanooga, Tennessee, surged 21%. Gains in these and other Asian stocks tracked earlier jumps in Canadian peers including Nouveau Monde Graphite Inc. (NMG) The Commerce Department issued the preliminary determination Thursday, and a final plan should be announced by Dec. 5. The US determined that China, which dominates the processing capacity of graphite, had been unfairly subsidizing the industry. Graphite is a key raw material in the anodes of electric-vehicle batteries. About two-thirds of the material imported by the US still came from China last year. Read more here. Bloomberg reports: Stocks of battery material makers climbed after the US announced it would impose preliminary anti-dumping duties of 93.5% on graphite imports from China. Shares of Australian graphite miner Syrah Resources Ltd. (SYAAF) surged as much as 38%, while shares of South Korea's Posco Future M Co. ( climbed 24%. Novonix Ltd. (NVNXF), an Australian-listed company with a graphite production plant in Chattanooga, Tennessee, surged 21%. Gains in these and other Asian stocks tracked earlier jumps in Canadian peers including Nouveau Monde Graphite Inc. (NMG) The Commerce Department issued the preliminary determination Thursday, and a final plan should be announced by Dec. 5. The US determined that China, which dominates the processing capacity of graphite, had been unfairly subsidizing the industry. Graphite is a key raw material in the anodes of electric-vehicle batteries. About two-thirds of the material imported by the US still came from China last year. Read more here. Netflix stock slips after a 'solid' report Netflix (NFLX) shares are faltering in premarket trading, despite "solid" second quarter earnings. The streamer delivered beats on both profit and sales, and upped its full-year revenue guidance in its report late Thursday. Some on Wall Street had flagged Netflix's lofty valuation going into the print, Yahoo Finance's Allie Canal reports. Bloomberg Intelligence senior media analyst Geetha Ranganathan told Yahoo Finance that the stock was priced to perfection heading into the report. "It was a really solid print," Ranganathan said in reaction to the earnings. "The big thing that investors were really focused on was commentary for the rest of the year, and they delivered there as well." Ranganathan also noted that while the operating margin was also solid, it was "maybe not spectacular." "I think investors were looking for something a little but more here," she said. "So it was originally forecast at 29% for the full year operating margin — they just took that up a smidge to 29.5%. I think investors were looking somewhere in the range of 30%-31%." Read more on Netflix's earnings here. Netflix (NFLX) shares are faltering in premarket trading, despite "solid" second quarter earnings. The streamer delivered beats on both profit and sales, and upped its full-year revenue guidance in its report late Thursday. Some on Wall Street had flagged Netflix's lofty valuation going into the print, Yahoo Finance's Allie Canal reports. Bloomberg Intelligence senior media analyst Geetha Ranganathan told Yahoo Finance that the stock was priced to perfection heading into the report. "It was a really solid print," Ranganathan said in reaction to the earnings. "The big thing that investors were really focused on was commentary for the rest of the year, and they delivered there as well." Ranganathan also noted that while the operating margin was also solid, it was "maybe not spectacular." "I think investors were looking for something a little but more here," she said. "So it was originally forecast at 29% for the full year operating margin — they just took that up a smidge to 29.5%. I think investors were looking somewhere in the range of 30%-31%." Read more on Netflix's earnings here. Meta continues Apple-targeted AI hiring spree After headhunting a top AI expert at Apple (AAPL) to lead Meta's (META) faltering AI division, the social media giant has followed up by taking two more key players from the artificial intelligence team, both of whom had previously worked under Meta's new head of AI. Bloomberg reports: Read more here. After headhunting a top AI expert at Apple (AAPL) to lead Meta's (META) faltering AI division, the social media giant has followed up by taking two more key players from the artificial intelligence team, both of whom had previously worked under Meta's new head of AI. Bloomberg reports: Read more here. Trending tickers in after-hours trading Netflix (NFLX) Stock in the streamer dipped nearly 2% despite topping analyst expectations for both earnings and revenue in Q2. The streaming leader reported revenue of $11.08 billion, just above the $11.07 billion Wall Street had forecast. Investors may be reacting to the narrower-than-hoped revenue beat and looking ahead to guidance. Norfolk Southern (NSC) Share value in railroad operator Norfolk Southern soared 4.7% in after-hours trading following a report from WSJ that Union Pacific is in preliminary talks to acquire the railroad operator. There's also discussion of a merger in the possible creation of what would be America's largest railroad. Netflix (NFLX) Stock in the streamer dipped nearly 2% despite topping analyst expectations for both earnings and revenue in Q2. The streaming leader reported revenue of $11.08 billion, just above the $11.07 billion Wall Street had forecast. Investors may be reacting to the narrower-than-hoped revenue beat and looking ahead to guidance. Norfolk Southern (NSC) Share value in railroad operator Norfolk Southern soared 4.7% in after-hours trading following a report from WSJ that Union Pacific is in preliminary talks to acquire the railroad operator. There's also discussion of a merger in the possible creation of what would be America's largest railroad.

Today's Market: Dow Falls Sharply After Trump Seeks Massive EU Levies
Today's Market: Dow Falls Sharply After Trump Seeks Massive EU Levies

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Today's Market: Dow Falls Sharply After Trump Seeks Massive EU Levies

July 18 - U.S. equity markets retreated Friday as President Donald Trump pressed for at least a 15% levy on European Union imports, sending the Dow down 242 points, while the S&P and Nasdaq were little changed. Trump is pushing for a minimum tariff of 15% to 20% in talks with Brussels ahead of his Aug. 1 deadline to impose 30% duties, the report said. EU negotiators are racing to clinch a deal and avert sweeping new levies. Investor sentiment got a lift from U.S. consumer confidence data: the University of Michigan's July survey climbed to 61.8, its highest level since February, suggesting inflation worries tied to trade tensions may be easing. Earnings reactions were mixed. Netflix (NASDAQ:NFLX) tumbled about 4% despite beating top?line and bottom?line estimates, while 3M (NYSE:MMM) finished flat after a surprise revenue beat. American Express (NYSE:AXP) slid roughly 3% following a core pre?provision net revenue miss. For the week, major indexes are set to finish higher, buoyed by resilient corporate profits and signs of durable domestic demand. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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