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2018年4月3日 星期二

Overnight Finance: Trump keeps up attack on Amazon | Markets rebound after bloody Monday | What to know about next NY Fed chief

 
 
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Happy Tuesday and welcome back to Overnight Finance, the newsletter that will never spy on you. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

 

THE BIG DEAL: President Trump kept up his war against Amazon on Tuesday, tweeting another string of criticisms at the technology titan he claims is ripping off the U.S. Postal Service.

"I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Amazon should pay these costs (plus) and not have them bourne [sic] by the American Taxpayer. Many billions of dollars. P.O. leaders don't have a clue (or do they?)!" Trump tweeted Tuesday.

Trump has insisted for days that Amazon is costing the USPS millions of dollars in lost shipping fees. While USPS does give Amazon a shipping discount because of the volume of packages it ships and has a deal with the company to ship packages on Sundays, the postal service's financial troubles stem from other issues. Plus, Amazon's prominence could be helping the postal service, though the company pays comparatively little in taxes versus other tech firms.

Despite the outpouring of contrary evidence, Trump hasn't backed down from his claims against Amazon. 

"Only fools, or worse, are saying that our money losing Post Office makes money with Amazon," Trump tweeted Monday. "THEY LOSE A FORTUNE, and this will be changed. Also, our fully tax paying retailers are closing stores all over the country...not a level playing field!"

 

Much of Trump's antagonism comes from his displeasure with The Washington Post, the newspaper owned by Amazon CEO Jeff Bezos, but operated independently of the tech giant.

The Post has written countless stories about the Trump administration and the special counsel investigation into Trump's campaign that have enraged the president and his allies.

Trump insists that the Post acts a "lobbyist" for Amazon, a baseless claim disputed by everyone affiliated with both companies and one that would be a breach of journalistic ethics and the public trust.

Trump has reportedly been obsessed with damaging Amazon, and his constant attacks are weighing on the company's stock. While share prices for Amazon jumped 1.4 percent today in a broader stock market rally, its stock has fallen 10 percent since the start of last week, when Trump began his assault on the company.

Even so, it doesn't appear that Trump will do anything to materially harm the way the company does business... for now. Bloomberg News reported today that there are "no active discussions" in the White House "about turning the power of the  [Trump] administration against the company."

 

What comes next: Amazon isn't the first company Trump has attacked on Twitter. The president has criticized Boeing and Carrier for various reasons, though those feuds were short lived in a quickly changing news cycle.

But Trump's ire with Amazon could be different, given Bezos' ownership of The Washington Post. The president routinely bashes media outlets, mainly CNN, for their coverage of him. So long as Trump treats Amazon and the Post as the same entity, he's liable to keep tweeting away.

 

LEADING THE DAY

Williams to take reins of NY Fed: The Federal Reserve Bank of New York announced Tuesday that John C. Williams, president of the San Francisco Fed, will become its next president. Williams, a voting member of the interest rate-setting Federal Open Markets Committee, was long expected to be chosen by the independent Fed board tasked with filling the New York spot.

Williams worked under former Fed Chairwoman Janet Yellen while she led the San Francisco reserve bank, and has received praise for his research on interest rates and other critical monetary policy issues. His experience on the FOMC and academic credentials earned him wide support across ideological lines, but Sen. Elizabeth Warren (D-Mass.) and several progressive non-profits called for a more diverse candidate for a Fed system dominated by white men.

Williams' critics say the Fed suffers from dangerous groupthink that often obscures the needs of vulnerable minority communities. They've also highlighted his previous insistence in 2015 and later that the U.S. economy had reached full employment despite future drops in the U.S. unemployment rate.

Warren has also taken issue with the way Williams handled the various scandals involving Wells Fargo, based in San Francisco, despite the Fed board's jurisdiction over enforcement actions against banks. She's called on Williams to testify before the Senate Banking Committee before his appointment is finalized, which is highly unlikely to happen.

 

Reactions:

  • "John's groundbreaking research helped establish the intellectual foundation for the Federal Reserve's determination to support American households and businesses by pushing short-term interest rates very low and adopting non-traditional strategies to lower longer-term interest rates, such as those on mortgages." -- Janet Yellen, former chair of the Federal Reserve Board and president of the Federal Reserve Bank of San Francisco.
  • "I believe that President Williams can and will do a great job and I will continue to keep the discussion about diversity a top priority." -- Rep. Maxine Waters (D-Calif.), ranking Democrat on the House Financial Services Committee.
  • "We hope that John Williams's tenure as president will not be characterized by the same disregard for the public as his appointment was." -- Fed Up, a coalition of progressive non-profits focused on reshaping the central bank.

 

Treasury makes recommendations for changing community banking law: The Treasury Department on Monday called on federal regulators to update a 1977 law meant to prevent mortgage discrimination and encourage banks to invest in struggling areas in which they operate.

Treasury released close to a dozen recommendations of ways federal regulators could update the Community Reinvestment Act (CRA) to reflect the fundamental changes in banking seen since its passage more than 40 years ago. The department said the law is too rigid and outdated.

"Treasury believes it is important that a bank's CRA activity align with the needs of the communities that it serves, is made in a manner consistent with a bank's safety and soundness, and is subject to efficient and effective supervision that does not create unintended disincentives to serving communities as intended by the statute," the department wrote.

I'll walk you through the suggestions right here.

 

MARKET CHECK: Recharging. After an absolutely brutal Monday of losses, U.S stocks bounced back on Tuesday with notable gains across all sectors. The Dow Jones Industrial Average gained almost 400 points, a 1.65 percent spike, while the Nasdaq and Standard and Poor's 500 index increased 1 percent and 1.2 percent each.

 

GOOD TO KNOW 

  • Speaker Paul Ryan and House Ways and Means Committee Chairman Kevin Brady touted the new GOP tax law at Southwest Airlines' Dallas headquarters -- shining attention on Republicans' signature legislative accomplishment that they hope will help the party in this fall's midterm elections.
  • Construction employment has posted five straight years of steady jobs gains but payrolls remain below peak levels hit during the housing boom, a new analysis released on Tuesday shows.
  • The Securities and Exchange Commission (SEC) on Monday announced fraud charges against two men behind a $32 million cryptocurrency investment scheme hawked by celebrities such as Floyd Mayweather Jr. and DJ Khaled.
  • President Trump announced that he's planning to nominate Justin Muzinich, a Treasury Department aide who was involved in the administration's tax-cut efforts, to be deputy secretary of the department. 
    DJ Gribbin, President Trump's infrastructure policy adviser, is departing the White House as the administration's rebuilding plan appears to have hit a wall in Congress.
    Businesses seeking to lower their 2018 bills are splitting in two, changing their legal status and reclassifying workers, according to The Wall Street Journal.
  • Even with this year's correction, stocks and other assets are still high by historical standards, Fed Governor Lael Brainard said in a speech Tuesday, writes CNBC.

 

ODDS AND ENDS

  • Because every story has a financial regulatory angle, Stormy Daniels' lawyer is requesting that the Treasury Department hand over any information it has about the "suspicious activity report" (SAR) filed about President Trump's lawyer Michael Cohen's $130,000 nondisclosure payment to her in 2016.
    Edelman Financial has released its yearly study of trust in major institutions, and the results aren't pretty for the financial services sector. Here's more on why trust in the US Financial sector dropped 20 points.
 
 

THE HILL EVENTS

Leadership in Action: The Hill's Newsmaker Series

Join The Hill on April 11 for Leadership in Action: The Hill's Newsmaker Series. Sen. Lamar Alexander (R-Tenn.), Rep. Nanette Barragán (D-Calif.) and Rep. Steny Hoyer (D-Md.) will sit down with Editor-in-Chief Bob Cusack to discuss congressional values, diversity and bipartisanship. RSVP today.

Latinos in College: Closing the Graduation Gap

On April 17, The Hill will gather lawmakers, university presidents and education experts for Latinos in College: Closing the Graduation Gap. Conversations will address ways to boost Hispanic college completion rates nationwide. RSVP today.

 
 

Write us with tips, suggestions and news: slane@thehill.comvneedham@thehill.comnjagoda@thehill.com, and nelis@thehill.com. Follow us on Twitter: @SylvanLane,  @VickofTheHill@NJagoda, and @NivElis.

 
 
 
 
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Overnight Energy: Pruitt weathers ethics controversy | Two Republicans call for him to go | Trump offers support | EPA pushes ahead with revising Obama car emissions rule

 
 
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EPA HEAD FACES CALLS TO RESIGN: Environmental Protection Agency Administrator Scott Pruitt is facing a number of calls to step down from his position including, two from Republican members of Congress.

The calls for Pruitt to step aside come amid growing news reports related to his rental of a $50 a night condo owned by the wife of a top energy lobbyist.

Rep. Carlos Curbelo (R-Fla.) became the first member of the GOP to call on Pruitt to resign, tweeting Tuesday afternoon that Pruitt's "corruption scandals are an embarrassment to the Administration, and his conduct is grossly disrespectful to American taxpayers."

"It's time for him to resign or for [Trump] to dismiss him," he added. Curbelo has clashed with Trump numerous times, and is facing a tough reelection battle this year.

Rep. Ileana Ros-Lehtinen (R-Fla.) agreed with Curbelo.

"When scandals and distractions overtake a public servant's ability to function effectively, another person should fill that role," she said in a statement.

Democrats also upped the pressure. On Tuesday, Sen. Sheldon Whitehouse (R.I.), Rep. Don Beyer (Va.) and Rep. Ted Lieu (Calif.) all called for the EPA's inspector general to investigate the circumstances surrounding Pruitt's condo rental.

Beyer and Lieu wrote that Pruitt's rental cost "is far below market value and, as such, would constitute an impermissible gift under federal regulations."

They warned that if the low prices were set by the wife of the lobbyist  "with the intent to curry favor with him on an issue important to" their interests, than it could be illegal.

A spokeswoman for Inspector General Arthur Elkins said the office had received the lawmakers' requests and would consider them.

 

BUT TRUMP OFFERS SUPPORT: In contrast, over at the White House, there is continued support for Pruitt. Referring to Pruitt at a rare press conference Tuesday, President Trump told reporters, "I hope he's going to be great."

The comments follow news that the president and his chief of staff, John Kelly, each phoned Pruitt earlier this week to offer him support and words of advice. Trump rung Pruitt late Monday night, the White House confirmed to The Hill. During the call Trump reportedly told the EPA chief, "Keep your head up, keep fighting" and, "We have your back."

Kelly gave Pruitt a similar call Tuesday, according to reports.

 

Why it matters: For now it appears that Pruitt's role at EPA is safe as long as he continues to uphold the Republican agenda of rolling back Obama-era regulations. But, as any Trump administration official knows, that could always change at the drop of a tweet.

 

PRUITT TOUTS CAR RULE ROLLBACK: Pruitt didn't let the scandals get in the way of an EPA event to celebrate his determination that the upcoming auto emissions rules should be eased.

At an invitation-only event at the EPA headquarters, Pruitt promised automakers and dealers that he would keep listening to their objections to the Obama administration's rules and rewrite them in a way that the industry would see as more palatable.

"We will get this right going forward, this year," Pruitt said. "But it is very right for us to be here to recognize that what was done in 2011-12, as we evaluate it now, was not appropriate going forward, and we're going to get it right as we address it this year."

Pruitt endorsed the industry's view that the previous regulations pushed manufacturers to make cars that consumers wouldn't buy, thus depriving the country of the reduced emissions those newer cars would deliver.

"I think the focus in the past has been on making manufacturers in Detroit, making manufacturers in various parts of the country, make cars that people aren't going to buy. And our focus should be on making cars that people purchase actually more efficient," he said.

"To have arbitrary percentages of our fleet made up of vehicles that aren't going to be purchased," Pruitt said, would be counterproductive.

Pruitt officially ruled Monday that the greenhouse gas rules set to take effect for 2022 through 2025 are not achievable and should be changed. The actual revision involves another regulatory process that Pruitt said would take place this year.

 

Rollback? What rollback?: Mitch Bainwol, head of the Auto Alliance, said at the EPA event that he took issue with the press for saying his group supports a "rollback" of emissions standards.

"There's a lot of talk about rollbacks in the press coverage, and description is wrong," he said.

"Automakers, to be precise, support targets rising year after year. No one -- no one -- is advocating a freeze or rollback from today's numbers."

Bainwol, whose group vocally supports Pruitt's effort argued that the only plan that would be a "rollback" would be reducing future standards below the current standard, and anything other than that would not be a rollback.

He showed a chart of the current trajectory of efficiency under the Obama rules and a flat line at the current standard, saying anything under the flat line would be a rollback.

Bainwol also wrote a piece in Real Clear Politics declaring that a revision "is not a rollback.'

Pruitt, hours later, tweeted that he announced "plans to roll back Obama Admin fuel standards."

 

REFINER GETS ETHANOL WAIVER: Andeavor, the major fuel refining company, has obtained an EPA waiver allowing some of its facilities to avoid complying with the federal ethanol mandate, Reuters reports.

The waiver was granted under a provision that is usually reserved for small refining companies who would face a "disproportionate economic hardship."

The development raises the possibility that the EPA is granting waivers to other major refiners and not announcing it, the news service said.

 

OUTSIDE THE BELTWAY:

The Metropolitan Water District of Southern California is refusing to finance Gov. Jerry Brown's planned $16.7 billion Delta tunnels project, the Sacramento Bee reports.

California's northern coast may see the first floating wind farm in the United States, Bloomberg reports.

Early action on climate change could bring up to NZ$30 billion in economic benefits to New Zealand, Stuff reports.

 

IN CASE YOU MISSED IT:

Check out Tuesday's stories ...

-EPA staffer helped Pruitt search for housing on weekends: report

-Two Republican lawmakers call for Pruitt to step down or be fired

-House Dems urge EPA IG to probe Pruitt condo arrangement

-Pruitt rallies auto industry on emissions plan

-Trump backs Pruitt amid ethics controversies

-Pruitt raised pay of two aides after White House declined to approve application: report

 
 

THE HILL EVENTS

Leadership in Action: The Hill's Newsmaker Series

Join The Hill on April 11 for Leadership in Action: The Hill's Newsmaker Series. Sen. Lamar Alexander (R-Tenn.), Rep. Nanette Barragán (D-Calif.) and Rep. Steny Hoyer (D-Md.) will sit down with Editor-in-Chief Bob Cusack to discuss congressional values, diversity and bipartisanship. RSVP today.

Latinos in College: Closing the Graduation Gap

On April 17, The Hill will gather lawmakers, university presidents and education experts for Latinos in College: Closing the Graduation Gap. Conversations will address ways to boost Hispanic college completion rates nationwide. RSVP today.

 
 

Please send tips and comments to Timothy Cama, tcama@thehill.com, and MirandaGreen, mgreen@thehill.com. Follow us on Twitter: @Timothy_Cama@mirandacgreen@thehill

 
 
 
 
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Overnight Health Care: ObamaCare enrollment dips slightly after Trump cuts to promotion | 'Nightmare bacteria' spreading | NIH worries sports leagues promoting obesity | CMS tweaks opioid proposal after backlash

 
 
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Welcome to Tuesday's Overnight Health Care. Congress is in their second recess week, but the administration is keeping us on our toes.

 

We have the final ObamaCare enrollment numbers. Months after the end of the Trump administration's first ObamaCare open enrollment period, the Centers for Medicare and Medicaid Services said that 11.8 million people nationwide signed up for coverage in 2018.

That's only a slight dip from last year. Supporters of the law, given that context, were heartened by the numbers.

The administration cut advertising and outreach spending by 90 percent, in addition to cutting funds for outside groups that help people enroll.

In addition, the administration's report showed that for many enrollees, premiums fell this year. After taking into account ObamaCare subsidies, premiums fell from an average of $106 per month last year to $89 this year.

CMS Administrator Seema Verma offered some mixed messages. She praised agency staff for running a "cost-effective and successful" open enrollment, but was quick to criticize ObamaCare's rising premiums for people who aren't eligible for subsidies.

But the administration also ended cost-sharing reduction (CSR) payments to insurers, which largely contributed to the increased premiums.

 

CDC is battling superbugs, and they're spreading. The agency last year found more than 200 cases of "nightmare bacteria" that can resist most antibiotics. It's a scary thought, but the CDC said they are working with state health officials on aggressive testing at hospitals and labs to rapidly identify patients infected, and stop the spread. Aggressive strategies work well, the agency said.

Still, a top CDC official said she was surprised by how quickly the cases have spread.

"As fast as we have run to slow [antibiotic] resistance, some germs have outpaced us," Anne Schuchat, the CDC's principal deputy director, told reporters. "We've had some success, but it isn't enough to turn the tide. We need to do more and we need to do it faster and earlier."

 

Most people don't realize the individual mandate was repealed

new poll from the Kaiser Family Foundation finds just 30 percent of the public correctly says that ObamaCare's individual mandate has been repealed.

Other interesting findings:

--90 percent said they will keep getting coverage anyway, even without a mandate

--53 percent say ObamaCare marketplaces are "collapsing," compared to 33 percent who say they are not.

 

The NIH is looking at the link between sports and obesity. On the face of it, the connection seems like a paradox: Sports seem to promote exercise and healthy living.

But the NIH director is calling on major sports leagues to re-examine their sponsorship deals with unhealthy foods, out of fear they are fueling the country's obesity problem.

In a blog post, Dr. Francis Collins cited NIH-funded research showing that more than 75 percent of foods promoted by major sports leagues are unhealthy. Collins gave examples of sports leagues helping promote unhealthy foods, such as the NFL reaching a deal with Tostitos to produce chip bags featuring football team logos and MLB making Nathan's the "official hot dog" of the league.

 

We wrote about the Centers for Medicare and Medicaid Services' sweeping Medicare final rule yesterday. But there was another nugget in those policies that is getting more attention today. 

CMS altered a measure it had proposed in the draft that was aimed at curbing the opioid epidemic after it proved controversial.

The agency had received pushback on a proposal that would have meant a prescription for high doses of opioids (at 90 milligrams of morphine per day or more) automatically wouldn't be filled and the patient would need special permission from their private insurance company in order to receive the medication.

Many doctors and patients expressed opposition during the draft proposal's public comment period, which ended March 5, and the proposal "was strongly opposed by nearly all stakeholder groups for a variety of reasons," CMS wrote in its final letter on new Medicare policies released Monday.

The final policy is different than what was proposed. When a pharmacist receives a prescription for a dosage of 90 milligrams of morphine or more per day, they will be required to talk to the prescriber, document the discussion and if the prescriber approves, then they can fill the prescription.

A CMS official said that in most cases, this should likely make for a faster process than what was originally proposed, saying it would "fit within the current workflow of what the pharmacist is already doing to verify the prescriptions, speaking with the patient and the prescriber."

 

What we're reading

With scarce gun violence research available, clinicians and states look to fill the vacuum (Modern Healthcare)

FDA forces mandatory recall of kratom, says it's a first (NBC News)

DEA's opioid crackdown brings arrests of prescribers, pharmacists (The Washington Post)

 

State by state

With Wisconsin Gov. Scott Walker's signature, almost half of states now ban abortion coverage for public workers. (Governing)

As number of HealthCare.gov brokers dwindles, Georgia passes bill to protect their commissions (Modern Healthcare)

Texas intensifies efforts to boost maternal health care (Houston Chronicle)

 

From The Hill's opinion pages

Obama is gone, but his fiscal waste is still befouling American health care, argues Linda Gorman, the director of the Health Care Policy Center at the Independence Institute, a free market think tank.

 
 

THE HILL EVENTS

Leadership in Action: The Hill's Newsmaker Series

Join The Hill on April 11 for Leadership in Action: The Hill's Newsmaker Series. Sen. Lamar Alexander (R-Tenn.), Rep. Nanette Barragán (D-Calif.) and Rep. Steny Hoyer (D-Md.) will sit down with Editor-in-Chief Bob Cusack to discuss congressional values, diversity and bipartisanship. RSVP today.

Latinos in College: Closing the Graduation Gap

On April 17, The Hill will gather lawmakers, university presidents and education experts for Latinos in College: Closing the Graduation Gap. Conversations will address ways to boost Hispanic college completion rates nationwide. RSVP today.

 
 

Send tips and comments to Jessie Hellmann, jhellmann@thehill.com; Peter Sullivan, psullivan@thehill.com; Rachel Roubein, rroubein@thehill.com; and Nathaniel Weixel, nweixel@thehill.com.

Follow us on Twitter: @thehill@jessiehellmann@PeterSullivan4@rachel_roubein, and @NateWeixel.

 
 
 
 
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