Latest news with #coastalstates
Bloomberg
14 hours ago
- Climate
- Bloomberg
Florida Could Be Flying Blind This Hurricane Season
As the US heads into the June-to-November Atlantic hurricane season, many of the tools weather forecasters rely on to assess risk and warn the public have been weakened or all but dismantled by the Trump administration's scorched-earth campaign to cut government services. Coastal states are going to feel the brunt of the impact. The deep cuts to the programs that supply data for the forecasts mean that meteorologists will be left 'flying a plane in the clouds with no navigation system,' said Michael Lowry, a hurricane specialist and a storm surge expert for WPLG in Miami. Operating without accurate data can be quite costly: According to an estimate from the Global Commission on Adaptation, a 24-hour warning of an impending storm can reduce damage by 30%.
Free Malaysia Today
21-05-2025
- Business
- Free Malaysia Today
US stock futures dip, bond yields climb as Trump's tax bill faces test
Highly valued technology stocks took a hit in premarket trading as rising rates tend to discount the present value of future profits. (AP pic) NEW YORK : US stock index futures slipped and Treasury yields surged today as investors awaited the outcome of a pivotal debate around US President Donald Trump's tax-cut bill that has fanned concerns about the country's growing debt. The gate-keeping House Rules Committee has scheduled an unusual 1am hearing that is expected to run well into daylight hours, as Republicans try to overcome internal divisions about cuts to the Medicaid health programme and tax breaks in high-cost coastal states. Nonpartisan analysts say the proposed plan could add US$3 trillion to US$5 trillion to the federal government's US$36.2 trillion in debt. 'When tariffs and uncertainty reduce growth, further questions are also raised about how the US federal deficit will be affected by the economy,' Daniel Bergvall, head of economic forecasting at SEB said. At 6.52am, Dow E-minis were down 409 points, or 0.96%, S&P 500 E-minis were down 0.71% to 5,917.5 points and Nasdaq 100 E-minis were down 154 points, or 0.72%. US bonds have been pressured since the start of the week, when Moody's downgraded the country's sovereign credit rating. Today, yields on the 30-year note were back up to 5% and the benchmark 10-year yield climbed 5.4 basis points to 4.53%. Federal Reserve officials said yesterday that they expected tariffs to increase prices, but counselled patience before any interest-rate decisions were made. Highly valued technology stocks took a hit in premarket trading as rising rates tend to discount the present value of future profits. Nvidia led losses among top megacap and growth stocks and was down nearly 1%. Among other movers, UnitedHealth Group tumbled over 7% after a Guardian report said the healthcare conglomerate secretly paid nursing homes thousands in bonuses to help slash hospital transfers for ailing residents. HSBC also downgraded the stock to 'reduce' from 'hold'. On the earnings front, retailer Target fell 1.6% after it slashed its annual forecast, citing a pullback in discretionary spending. Lowe's rose 2.7% after it posted a smaller-than-expected drop in first-quarter comparable sales. Wolfspeed tumbled more than 57% to US$1.3 following a report that the semiconductor supplier was preparing to file for bankruptcy within weeks. US stocks closed lower yesterday, with the S&P 500 snapping a six-day winning streak while the Dow logged its first decline in four sessions. Despite the losses, they have had a solid month so far. The S&P 500 is more than 17% higher than its April lows, when Trump's reciprocal tariffs roiled global markets. A pause in the tariffs, a temporary trade truce between the US and China and tame inflation data have pushed equities higher, although the S&P 500 is still about 3% off its record highs. Brokerage Morgan Stanley upgraded its stance on US equities to 'overweight', citing a slowing, but still expanding, global economy despite policy uncertainty.
Zawya
21-05-2025
- Business
- Zawya
Wall St set for lower open with focus on Trump's tax bill
Wall Street's main indexes were set for a lower open on Wednesday, as investors awaited the outcome of a pivotal debate around U.S. President Donald Trump's tax-cut bill that has fanned concerns about the country's growing debt. The gate-keeping House Rules Committee has scheduled an unusual 1 a.m. ET hearing that is expected to run well into daylight hours, as Republicans try to overcome internal divisions about cuts to the Medicaid health program and tax breaks in high-cost coastal states. Nonpartisan analysts say the proposed plan could add $3 trillion to $5 trillion to the federal government's $36.2 trillion in debt. "(We're seeing) the American exceptionalism narrative unwind, so you have a natural process of something weakening after years of concentration," said David Russell, global head of market strategy at TradeStation. "We're kind of pouring gasoline on the fire with tariffs and all of this budgetary uncertainty." At 08:26 a.m. ET, Dow E-minis were down 301 points, or 0.7%, S&P 500 E-minis were down 30.25 points, or 0.52%, and Nasdaq 100 E-minis were down 117.5 points, or 0.55%. U.S. bonds have been under pressure since the start of the week, when Moody's downgraded the country's sovereign credit rating. On Wednesday, yields on the 30-year note were back up to 5.02% and the benchmark 10-year yield climbed 5.8 basis points to 4.53%. Federal Reserve officials said on Tuesday they expected tariffs to push up prices, but counseled patience before any interest-rate decisions were made. Highly valued technology stocks took a hit in premarket trading as rising rates tend to discount the present value of future profits. Amazon, down nearly 1%, led losses among top megacap and growth stocks. UnitedHealth Group dropped 3.9% after a Guardian report said the healthcare conglomerate secretly paid nursing homes thousands in bonuses to help slash hospital transfers for ailing residents. HSBC also downgraded the stock to "reduce" from "hold". On the earnings front, retailer Target fell 5.6% after slashing its annual forecast due to a pullback in discretionary spending. Lowe's gained 1.6% after it posted a smaller-than-expected drop in first-quarter comparable sales. Wolfspeed tumbled 63.3% to $1.16 following a report that the semiconductor supplier was preparing to file for bankruptcy within weeks. U.S. stocks closed lower on Tuesday, with the S&P 500 snapping a six-day winning streak while the Dow logged its first decline in four sessions. Despite the losses, they have had a solid month so far. The S&P 500 has climbed more than 17% higher from its April lows, when Trump's reciprocal tariffs roiled global markets. A pause in the tariffs, a temporary U.S.-China trade truce and tame inflation data have pushed equities higher, although the S&P 500 is still about 3% off its record highs. Brokerage Morgan Stanley upgraded its stance on U.S. equities to "overweight", saying the global economy was still expanding, albeit slowly, amid policy uncertainty. (Reporting by Shashwat Chauhan and Kanchana Chakravarty in Bengaluru; Editing by Pooja Desai and Devika Syamnath)
Reuters
21-05-2025
- Business
- Reuters
Trump tax-cut bill faces rare overnight stress test with US House Republicans
WASHINGTON, May 21 (Reuters) - President Donald Trump's tax cut and spending bill faces a critical stress test on Wednesday as Republicans in the U.S. House of Representatives try to overcome internal divisions about cuts to the Medicaid health program and tax breaks in high-cost coastal states. The gate-keeping House Rules Committee has scheduled an unusual 1 a.m. ET (0500 GMT) hearing that is expected to run well into daylight hours where members will debate details of the measure. If passed by Congress, it would reduce some health and food benefits for low-income Americans, cancel green-energy programs and provide tens of billions of dollars for immigration enforcement. Trump huddled with lawmakers on Tuesday to try to persuade holdouts within his party to get in line on what he calls a "big, beautiful bill," but the visit failed to sway the wide array of lawmakers who object to specific features. House Speaker Mike Johnson has little room for error, as his party holds a narrow 220-213 majority and a handful of "no" votes from his side could scuttle the bill, which Democrats say favors the wealthy and cuts needed social programs. Fiscal hawks blocked the package in another committee on Friday, before relenting late on Sunday night. That scenario could play out again in the Rules Committee, which includes several Republicans who are calling for deeper cuts to the Medicaid health program, which serves 71 million Americans. The bill would extend the 2017 tax cuts that were Trump's signature first-term legislative achievement, and also add tax breaks on income from tips and overtime pay that were part of his populist push on the campaign trail. Nonpartisan analysts say it could add $3 trillion to $5 trillion to the federal government's $36.2 trillion in debt. If it clears the committee, Johnson could push for a vote on the House floor as soon as Wednesday. Medicaid has proven to be a major sticking point, with fiscal hawks pushing for cuts to partly offset the cost of the bill's tax components, which moderate Republicans say would hurt voters whose support they will need in the 2026 midterm elections. The bill also faces objections from a handful of centrist Republican lawmakers from high-tax states including New York and California, who are pushing to loosen a $30,000 cap on deductions for state and local taxes. Trump is pushing for unanimous support from Republicans, and said on Tuesday that holdouts could be drummed out of the party. Credit-rating firm Moody's last week stripped the U.S. government of its top-tier credit rating, citing the nation's growing debt. If the package passes the House, it would then head to the Senate, where Republicans hold a 53-47 majority. That would not be expected until next month, as Congress is preparing to leave Washington next week for a week-long break.
