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have omitted the charts from this report
Senate
Votes To End Government Shutdown: Stocks Surge To New All Time High
22
January, 2018
Update
2 and final: Shortly before 1pm ET, the Senate voted to advance a
funding bill in an 81 to 18 vote, that will reopen the government,
ending a three-day standoff that left federal agencies shuttered and
hundreds of thousands of workers furloughed. Democrats agreed to
advance a stopgap spending measure lasting until Feb. 8 after Senate
Majority Leader Mitch McConnell promised to allow an immigration bill
to reach the floor next month.
"After
several discussions, offers and counteroffers, the Republican leader
and I have come to an arrangement. We will vote today to reopen the
government to continue negotiating a global agreement," Senate
Minority Leader Charles Schumer (D-N.Y.) said ahead of the vote.
The
three-week funding bill still needs to pass on a final up-or-down
vote, but that is a formality now that the Senate has voted to end
dilatory debate.
Schumer
said McConnell has committed that if negotiators fail to reach an
immigration deal before the stopgap spending measure expires on Feb.
8 “the Senate will immediately proceed to consideration of
legislation” to protect Dreamers.
He
said McConnell has promised that immigration debate “will be
neutral and fair to all sides.” “Now there is a real pathway to
get a bill on the floor and through the Senate. It is a good solution
and I will vote for it,” Schumer added.
In
other words, absent Trump caving on DACA - which is unlikely - the
next government shutdown will take place just after midnight on
Friday, February 9, which is that much closer to the debt ceiling
X-Date...
*
* *
Update:
and there it is, the government shutdown is officially over after 2
and a half days.
SENATE
DEAL REACHED TO END U.S. GOVERNMENT SHUTDOWN: SCHUMER
SCHUMER
SAYS HAS COME TO AN ARRANGEMENT WITH REPUBLICAN LEADER MCCONNELL ON
FUNDING BILL
SCHUMER
SAYS THERE'S A `REAL PATHWAY' FOR DACA BILL IN SENATE
SCHUMER
SAYS WILL CONTINUE NEGOTIATING IMMIGRATION LEGISLATION FOR 'DREAMERS'
Schumer's
statement:
Schumer: “In a few hours, the government will reopen. We have a lot to do…The Trump shutdown will soon end, but the work must go on. And it will” #tictocnews
And
so, the government will now reopen for another two and a half weeks,
when we go through the same farce on February 8.
The
reaction is clear - stocks and the dollar up, bonds and bullion
down...
The
Dollar is spiking...
As
The Hill adds, Senate Democrats said they are accepting a deal with
Senate Majority Leader Mitch McConnell (R-Ky.) for an immigration
vote, clearing the way for passage of a bill to reopen the federal
government.
McConnell
early Monday promised to take up an immigration bill that would
protect an estimated 800,000 Dreamers from deportation, under an open
amendment process, if Democrats would agree to end the government
shutdown.
Senate
Minority Leader Charles Schumer (D-N.Y) said that pledge was enough
for his caucus to accept a three-week government funding bill, which
is now set to pass at noon.
"After
several discussions, offers and counteroffers, the Republican leader
and I have come to an arrangement. We will vote today to reopen the
government to continue negotiating a global agreement," Schumer
said.
If
lawmakers aren't able to get an immigration bill as part of that
larger agreement by Feb. 8, the Senate would then take up a separate
bill and "the process will be neutral and fair to all sides,"
Schumer added.
The
agreement likely ends a three-day government shutdown that began at
midnight Saturday after Democrats voted to block a month-long
House-passed stopgap that extended funding for the Children’s
Health Insurance Program but did nothing to protect illegal
immigrants who came to the country at a young age facing deportation.
*
* *
And
while markets rose on the news of the government shutdown, they have
spiked on the news that the shutdown is over.
Risk
assets have caught a bid following a report from Talking Point Memo,
according to which some 10 minutes before the Senate vote is due to
begin about extending short term funding, Senate Democrats are set to
accepting a deal to end the government shutdown in exchange for the
promise of a vote on the DREAM Act in the coming weeks.
Subsequent
headlines from Reuters appears to validate that we may be on the
verge of a deal:
REPUBLICAN
SENATOR FLAKE SAYS HE THINKS SENATE HAS ENOUGH VOTES TO MOVE FORWARD
ON STOPGAP GOVERNMENT
DEMOCRATIC
SEN. MANCHIN PREDICTS SHUTDOWN COULD RESOLVE TODAY
MANCHIN:
TALKS `VERY POSITIVE,' GOVT COULD REOPEN LATER TODAY
As
a reminder, DACA remains the most contentious issue preventing
Democrats from voting to end the shutdown. According to TPM, three
sources have said that the details of the deal aren’t yet clear but
that a deal is "all but certain late Monday morning'.
“There’s
a deal and the vote will likely have room to spare above 60,” one
source told TPM.
CBS
White House reporter Steve Portnoy adds that the votes to end the
shutdown could be as many as 70.
Manchin,
who is certain that a deal is done, tells reporters that there will
be enough votes, while Sen. Bill Nelson said "you’ll see a
resounding yes,” when the vote is called. Other Democratic
lawmakers quoted by Bloomberg said they were making progress; Gary
Peters says "feeling good" ahead of vote; Chris Coons says
"encouraged" by statements Majority Leader Mitch McConnell
has made and encouraged reporters to watch the upcoming vote
“You’ll
hear from us shortly,” Senate Democratic Leader Chuck Schumer said
heading to Senate floor.
Looking
at markets, there has been a modest knee jerk reaction higher in the
dollar, with yields ticking up in response and USDJPY rising above
111.00 in what appears to be a relief rally.
Stocks
are extending the dip-buying ramp...
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