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Democrats divided over looming government shutdown fight

Democrats divided over looming government shutdown fight

The Hill6 days ago
Democrats are deeply divided over how hard to press their leverage with President Trump and his Republican allies on getting concessions in a bill to fund the government that needs to pass by Sept. 30 to avoid a shutdown.
Senate Democrats held a tense lunch meeting Tuesday to discuss their plan for how to vote on the first spending bill to reach the floor — the Military Construction-Veterans Affairs appropriations bill — as well as their strategy for how to handle the end-of-September government funding deadline.
Soon after that session, which stretched to nearly 3 p.m. EDT Tuesday, Senate Democratic Leader Chuck Schumer (N.Y.) met with House Democratic Leader Hakeem Jeffries (N.Y.) to piece together a strategy as progressives called for them to take a hard line with Republicans.
'It's hard to negotiate a budget with Republicans right now because they have demonstrated that they will cut a deal and then turn around and change the deal solely to benefit themselves. That's not a deal, that's like cutting a deal to buy a car, and then long after the price has been paid, the Republicans want to come and repossess the tires. It doesn't work that way,' Sen. Elizabeth Warren (D-Mass.) said.
'My views on engaging in pretend negotiations with Republicans who are simply in a power grab and will do whatever Donald Trump tells them to do [is that it] doesn't make a lot of sense,' Warren said.
Some disgruntled progressives are vowing they cannot repeat the mistake they made in March, when 10 Democratic senators including Schumer voted for a partisan government funding package passed by the House, which cut Democratic priorities and failed to put guardrails on Elon Musk or the Department of Government Efficiency.
Democrats are arguing behind closed doors that they need to make every effort to insist that Republicans agree to bipartisan legislation to fund the government. If Republicans refuse, these Democrats say they should then blame Trump and his GOP allies for any ensuing shutdown.
Democratic lawmakers say Schumer is 'afraid' of how a shutdown would play out politically and wants to avoid such a scenario at almost all costs.
At the same time, Democrats warn that if Schumer votes again for a partisan funding package that barely squeaks through Congress with minimal Democratic support, there will likely be a strong backlash from the party base.
Sen. John Fetterman, a Democrat representing swing-state Pennsylvania, argues Congress should do everything it can to avoid a government shutdown that would result in hundreds of thousands of federal employees being furloughed.
'I was the first to say I will never vote to shut the government down, and that hasn't changed and it's not going to change,' Fetterman told The Hill.
'Shutting the government down — how could you do that and plunge our country into chaos?' he added.
Schumer acknowledged his dilemma Tuesday, telling reporters he wants to reach a deal with Republicans but complaining that Trump's allies aren't making it easy.
'We Democrats want a bipartisan deal. We're working together to get one, but the bottom line is Republicans are making it much harder — rescissions, impoundment, pocket rescissions directly undoes this,' he said, referring to the rescissions package Republicans passed last week to defund PBS, NPR and global aid programs.
'You can't say you want a bipartisan process … and at the same time put rescissions on the floor, which is the antithesis of bipartisan,' he said.
Recent polling shows Democrats have a lower approval rating than Republicans. Some Democratic senators think the party's poor rating stems from a perception that they aren't putting up enough of a fight against Trump and the GOP.
Sen. Jeff Merkley (D-Ore.), the ranking member of the Senate Budget Committee, is now pushing an amendment to prevent the White House from advancing another rescissions package. He wants Republicans to agree to it before advancing annual appropriations legislation.
Some progressives argue it would be foolish to agree to bipartisan spending bills to keep the government open only to watch Republicans later advance rescissions packages to cut funding for Democratic priorities, such as women's health care, education and environmental programs.
Democrats are also toying with the idea of insisting Republicans agree to extend enhanced health care insurance subsidies under the Affordable Care Act that are due to expire at the end of the year.
Republicans decided not to do so as part of tax credits extended in Trump's tax and spending megabill, leaving Democrats warning that millions of Americans will lose their health insurance.
'We had a constructive lunch and we've got some very significant issues right in front of us,' said Sen. Chris Coons (D-Del.), the ranking member of the Appropriations Subcommittee on Defense.
Coons said he and his staff is working well with Sen. Mitch McConnell (R-Ky.), the chair of the subcommittee, but cautioned there's a 'real tension' being created by the threat that the White House budget office director, Russell Vought, will send another rescissions package to Congress.
'The next rescission is predicted will go after education,' Coons said. 'It was one of the early targets of DOGE [the Department of Government Efficiency]. When they start trying to rescission things like Veterans Administration, defense, Social Security, you get right into the very heart of what impacts the lives of millions of Americans.
And he warned that the 'so-called 'big, beautiful bill' is going to throw something like 17 million Americans off of health care.'
Coons said he supports Merkley's amendment to stop future rescissions packages.
'Having a process whereby they can reach a bipartisan agreement with us and then undo it with a partisan rescissions process — in the long-term, that is not a sustainable process,' he said.
Asked about Democrats' game plan for a government shutdown fight, Coons said: 'Lots of things about the appropriations process were discussed.'
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Economic data: S&P CoreLogic 20-city home price index (May); Conference Board consumer confidence, July; Job Openings and Labor Turnover Survey (June); Dallas Fed services activity (July) Earnings: Boeing (BA), Booking Holdings (BKNG), Caesars (CZR), Cheesecake Factory (CAKE), Merck (MRK), PayPal (PYPL), Procter & Gamble (PG), Spotify (SPOT), Starbucks (SBUX), SoFi (SOFI), UnitedHealth Group (UNH), UPS (UPS), Visa (V) Here are some of the biggest stories you may have missed overnight and early this morning: The market is finally getting what it wants 35 charts explain markets and the economy right now UnitedHealth stock falls after reporting mixed Q2 earnings Sarepta stock soars as FDA reverses course on gene therapy pause Spotify stock slides after Q2 earnings and revenue miss Trump's DOJ puts companies on notice on tariffs US, EU rush to clinch final details and lock in trade deal Apple to Shutter a Retail Store in China for the First Time Ever Stellantis faces $1.7B hit from US tariffs this year Economic data: S&P CoreLogic 20-city home price index (May); Conference Board consumer confidence, July; Job Openings and Labor Turnover Survey (June); Dallas Fed services activity (July) Earnings: Boeing (BA), Booking Holdings (BKNG), Caesars (CZR), Cheesecake Factory (CAKE), Merck (MRK), PayPal (PYPL), Procter & Gamble (PG), Spotify (SPOT), Starbucks (SBUX), SoFi (SOFI), UnitedHealth Group (UNH), UPS (UPS), Visa (V) Here are some of the biggest stories you may have missed overnight and early this morning: The market is finally getting what it wants 35 charts explain markets and the economy right now UnitedHealth stock falls after reporting mixed Q2 earnings Sarepta stock soars as FDA reverses course on gene therapy pause Spotify stock slides after Q2 earnings and revenue miss Trump's DOJ puts companies on notice on tariffs US, EU rush to clinch final details and lock in trade deal Apple to Shutter a Retail Store in China for the First Time Ever Stellantis faces $1.7B hit from US tariffs this year Trending tickers: UPS, Whilepool and Royal Caribbean Here are some top stocks trending on Yahoo Finance in premarket trading: UPS (UPS) stock fell over 2% before the bell on Tuesday after reporting a drop in second-quarter profit and revenue, as demand took a hit from new "de minimis" tariffs on low-value Chinese shipments and mounting risks from President Donald Trump's trade policies. Whirlpool (WHR) stock fell premarket on Tuesday. after the appliance maker slashed its earnings outlook the day prior. Royal Caribbean (RCL) stock rose 4% before the bell after raising its annual profit forecast on Tuesday, banking on resilient demand for the cruise operator's high-end private island destinations and premium sailings. Here are some top stocks trending on Yahoo Finance in premarket trading: UPS (UPS) stock fell over 2% before the bell on Tuesday after reporting a drop in second-quarter profit and revenue, as demand took a hit from new "de minimis" tariffs on low-value Chinese shipments and mounting risks from President Donald Trump's trade policies. Whirlpool (WHR) stock fell premarket on Tuesday. after the appliance maker slashed its earnings outlook the day prior. Royal Caribbean (RCL) stock rose 4% before the bell after raising its annual profit forecast on Tuesday, banking on resilient demand for the cruise operator's high-end private island destinations and premium sailings. The market is finally getting what it wants Wall Street's busiest week of the summer is turning out to be an inflection point. Yahoo Finance's Hamza Shaban explains why in today's Morning Brief: Read more here. Wall Street's busiest week of the summer is turning out to be an inflection point. Yahoo Finance's Hamza Shaban explains why in today's Morning Brief: Read more here. Spotify stock sinks after Q2 earnings miss Spotify (SPOT) shares fell as much as 10% in early premarket trading Tuesday after the company missed second quarter earnings and revenue expectations. The results follow a remarkable 120% rally over the past year, as the stock rebounded from 2022 lows on the back of price hikes, cost cuts, and investor enthusiasm for AI and advertising. Spotify hit a record high of $738.45 earlier this month, but shares slid to around $635 immediately following the results. Spotify reported second quarter revenue of €4.19 billion ($4.86 billion), missing analyst expectations of €4.27 billion, though up from €3.81 billion in the same period last year. The company posted an adjusted loss of €0.42 ($0.49) per share, sharply missing forecasts for a profit of €1.97 and down from earnings of €1.33 in Q2 2024. "Outsized currency movements during the quarter impacted reported revenue by €104 million vs. guidance," the company said in the earnings release. Operating income also fell short of expectations in the quarter, though subscriber metrics for both premium and ad-supported tiers came in ahead of estimates. Gross margins of 31.5% came in as expected. Spotify's massive rally heading into the earnings report was fueled by a sweeping business overhaul, including layoffs, leadership changes, and a pullback from costly podcast exclusivity. After spending $1 billion to build out its podcast business, the company has since scaled back and narrowed its focus. Still, it remains committed to the medium, paying over $100 million to creators in Q1 alone, including high-profile names like Joe Rogan and Alex Cooper. Read more here. Spotify (SPOT) shares fell as much as 10% in early premarket trading Tuesday after the company missed second quarter earnings and revenue expectations. The results follow a remarkable 120% rally over the past year, as the stock rebounded from 2022 lows on the back of price hikes, cost cuts, and investor enthusiasm for AI and advertising. Spotify hit a record high of $738.45 earlier this month, but shares slid to around $635 immediately following the results. Spotify reported second quarter revenue of €4.19 billion ($4.86 billion), missing analyst expectations of €4.27 billion, though up from €3.81 billion in the same period last year. The company posted an adjusted loss of €0.42 ($0.49) per share, sharply missing forecasts for a profit of €1.97 and down from earnings of €1.33 in Q2 2024. "Outsized currency movements during the quarter impacted reported revenue by €104 million vs. guidance," the company said in the earnings release. Operating income also fell short of expectations in the quarter, though subscriber metrics for both premium and ad-supported tiers came in ahead of estimates. Gross margins of 31.5% came in as expected. Spotify's massive rally heading into the earnings report was fueled by a sweeping business overhaul, including layoffs, leadership changes, and a pullback from costly podcast exclusivity. After spending $1 billion to build out its podcast business, the company has since scaled back and narrowed its focus. Still, it remains committed to the medium, paying over $100 million to creators in Q1 alone, including high-profile names like Joe Rogan and Alex Cooper. Read more here. UnitedHealth stock slips after mixed Q2 results Shares of UnitedHealth Group (UNH) fell nearly 3% after its quarterly results before the bell painted a mixed picture. Yahoo Finance's Anjalee Khemlani reports: Read more here. Shares of UnitedHealth Group (UNH) fell nearly 3% after its quarterly results before the bell painted a mixed picture. Yahoo Finance's Anjalee Khemlani reports: Read more here. Sarepta stock rockets higher after FDA greenlight Shares in drugmaker Sarepta (SRPT) rocketed up over 30% in premarket after the embattled company got the FDA's go-ahead to resume shipments of its Elevdis gene therapy. The greenlight comes after Sarepta put a voluntary pause on shipments for some patients while the US regulator reviewed its safety following deaths. The FDA on Monday recommended that the compa lift that halt. Sarepta's stock is poised to build on a 16% gain on Monday, continuing a recent volatile spell triggered by changing fortunes for its best-selling product. AP reports: Read more here. Shares in drugmaker Sarepta (SRPT) rocketed up over 30% in premarket after the embattled company got the FDA's go-ahead to resume shipments of its Elevdis gene therapy. The greenlight comes after Sarepta put a voluntary pause on shipments for some patients while the US regulator reviewed its safety following deaths. The FDA on Monday recommended that the compa lift that halt. Sarepta's stock is poised to build on a 16% gain on Monday, continuing a recent volatile spell triggered by changing fortunes for its best-selling product. AP reports: Read more here. Nvidia orders 300,000 H20 chips from TSMC to satiate Chinese demand Reuters reports: Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile. Read more here. Reuters reports: Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile. Read more here. Oil maintains gains with tariffs and OPEC+ supply in sight Oil maintained gains following Trump putting pressure on Russia over the war in Ukraine with economic sanctions against Putin's government on the table. Bloomberg reports: Read more here. Oil maintained gains following Trump putting pressure on Russia over the war in Ukraine with economic sanctions against Putin's government on the table. Bloomberg reports: Read more here. 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

Surging US imports and lower tariffs to lift global growth, IMF predicts
Surging US imports and lower tariffs to lift global growth, IMF predicts

Yahoo

time20 minutes ago

  • Yahoo

Surging US imports and lower tariffs to lift global growth, IMF predicts

Global economic growth will be stronger than previously thought, as US imports surged and some of President Donald Trump's tariff rates have been softened since April, new projections show. Global growth is forecast to be 3% in 2025 and 3.1% in 2026, according to the International Monetary Fund's (IMF) latest World Economic Outlook. This is higher than the respective 2.8% and 3% forecast in the previous report in April. UK gross domestic product (GDP) is predicted to be 1.2% this year, and 1.4% in 2026, unchanged from revised forecasts set out in May. The upgrade to the world outlook reflects factors including a strong degree of trade 'front-loading' in recent months – referring to a rush of imports into the US. This has happened as businesses and households tried to get ahead of planned increases to US tariff rates, following Mr Trump's 'liberation day' announcements in April, according to the report. The IMF said front-loading had 'shaped economic activity in the first half of the year', adding that it was 'creating exposures that could amplify the impact of any potential negative shocks'. For example, firms could end up having too much stock, therefore pushing down future imports, or it could lead to additional holding costs or the risk of items becoming obsolete. Meanwhile, the growth upgrade since April was also driven by US tariffs being lowered since higher rates were first announced by Mr Trump, alongside improved conditions in the financial markets. This came after the US struck new trade deals, including with the UK and, most recently, the EU. The introduction of some higher tariff rates have also been paused until August, notably between China and the US, helping diffuse escalating trade tensions and open the door to negotiations. However, the IMF warned that a 'rebound in effective tariff rates could lead to weaker growth' and weigh on wider sentiment. 'Elevated uncertainty could start weighing more heavily on activity, also as deadlines for additional tariffs expire without progress on substantial, permanent agreements,' the report said. Furthermore, the IMF flagged conflict in the Middle East creating potential risks to global shipping and trade, which could further raise commodity prices like oil. On the other hand, the report found that global growth could be lifted if trade negotiations lead to lower tariffs, ease tensions, and create more certainty and predictability. The IMF also highlighted technological advancements, including the use of artificial intelligence (AI), as a way to further boost growth around the world. Chancellor Rachel Reeves said: 'The IMF's forecasts show that the UK remains the fastest growing European economy in the G7 despite the global economic challenges we are facing. 'However, I am determined to unlock Britain's full potential, which is why we are investing billions of pounds through our plan for change – in jobs through better city region transport, record funding for affordable homes, as well as backing major projects like Sizewell C to drive economic growth and put more money into people's pockets.' 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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