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09Nov2017 Market Update: Wall Street Slumps On Fears Of Delay In The Corporate Tax-cut Plan, Crude Prices Steady, US Dollar Slumps, Gold Shows Strength

Written by Gary

US stocks have recovered fractionally from early morning session lows (SPY -0.9%). However, in early afternoon trading it appears another slide to earlier lows is possible before the closing bell.

Here is the current market situation from CNN Money

Traders Corner - Health of the Market

What Is Moving the Markets

Here are the headlines moving the markets.

Wall Street slumps on fears of delay in tax-cut plan

(Reuters) - U.S. stocks hit session lows in early afternoon trading on Thursday and the Dow shed over 200 points on rising concerns that a Senate Republican tax plan may delay corporate rate cuts by a year.

U.S. worried AT&T buying Time Warner would hike costs for media rivals: source

WASHINGTON (Reuters) - The U.S. Justice Department is concerned that AT&T Inc's proposed $85.4 billion acquisition of Time Warner Inc would raise costs for rival entertainment distributors, a source familiar with the matter told Reuters on Thursday.

Special Report: The decisions behind Monsanto's weed-killer crisis

(Reuters) - In early 2016, agri-business giant Monsanto faced a decision that would prove pivotal in what since has become a sprawling herbicide crisis, with millions of acres of crops damaged.

Boeing signs deal to sell 300 planes worth $37 billion to China

BEIJING/SHANGHAI (Reuters) - Boeing Co said it signed an agreement on Thursday to sell 300 planes to China Aviation Supplies Holding Company worth $37 billion at list prices, one of several deals announced during a state visit by U.S. President Donald Trump to Beijing.

Global growth buoys earnings as third quarter fuels Europe, U.S. equity boom

LONDON (Reuters) - European and U.S. firms are reaping the benefits of a global economic expansion that is finally blooming into meaningful earnings growth and looks set to extend an equity boom through the current quarter.

Trump's $250 billion China 'miracle' adds gloss to 'off-kilter' trade

BEIJING/SHANGHAI (Reuters) - President Donald Trump can return to the United States claiming to have snagged over $250 billion in deals from his maiden trip to Beijing. Whether those deals live up to the lofty price tag is another question altogether.

Saudi Aramco signs $4.5 billion oil, gas deals

DHAHRAN, Saudi Arabia (Reuters) - Saudi Aramco on Thursday signed agreements worth $4.5 billion with firms from Europe, the United States, China and the United Arab Emirates for oil and gas projects in the kingdom.

'We're engaged': Alaska gets China backing for natural gas project

BEIJING (Reuters) - China's biggest state oil company Sinopec, one of the country's top banks and its sovereign wealth fund agreed on Thursday to develop a $43 billion natural gas project in Alaska, as the cash-poor U.S. state seeks to revive its dwindling energy industry.

Airbus CEO has board's confidence: French finance minister

PARIS (Reuters) - Airbus CEO Tom Enders has the board's confidence to handle a crisis over sales practices, French Finance Minister Bruno Le Maire said, without saying whether he himself still had confidence in Enders.

Venezuela Just 24 Hours Away From Formal Declaration Of Default

Less than a week after Venezuela shocked the world by announcing it would proceed to restructure its massive external debt, even as it was within the grace period on hundreds of millions in unpaid interest expense, on Thursday the socialist nation confirmed it has never been closer to an official default after Reuters reported that Venezuela's state oil-firm company, PDVSA, has not made a debt payments to India's top oil producer ONGC for six months, and has previously used a Russian state-owned bank and another Indian energy company as intermediaries to make payments.

Reuters sources noted that PDVSA has made no payment since April on what was a $540 million backlog of dividends owed to ONGC for an investment the Indian firm made in a an energy project in Venezuela. Venezuela's President Nicolas Maduro said last week that the country planned to restructure some $60 billion of bonds, much of it held by PDVSA, as the country struggles to meet debt repayments.

While ONGC Videsh - the overseas investment arm of ONGC confirmed to Reuters that PDVSA had fallen behind on the payments, but declined to give details on the delays.

Curiously, the Indian company appears not to be overly concerned about non-payment for half a year, and instead was willing to keep giving Maduro the benefit of the doubt: "They have got certain challenges at this stage," ONGC Videsh said in an emailed response to Reuters' questions. "They have assured that they are working on it (payment of dues). In due course it will be settled and follow up steps will be undertaken." And just to underscore that it has no intention of pushing Venezuela into involuntary bankruptcy, ONGC added that "we have a good working relationship with PDVSA."

And while we commend India's camaraderie, < ...

Wisconsin National Guard Plan Power-Grid Collapse Drill

According to the Wisconsin National Guard Public Affairs Office, a two-day military drill will take place in Columbia County and at Wisconsin's Emergency Operation Center in Madison simulating a total power grid collapse on November 15-16.

As the press release states "the public should not be alarmed or concerned if they notice an increased law enforcement presence and military personnel, as well as vehicles and equipment, including non-military unmanned aerial vehicles" in the drilling region.

The drill is in conjunction with a national-level exercise, known as GridEx, which is an exercise to simulate a cyber/physical attack on electric and other critical infrastructures across North America. Wisconsin's drill will involve county and state law enforcements and first responders, including the Wisconsin National Guard.

Maj. Gen. Don Dunbar, Wisconsin's adjutant general said "GridEx is a great opportunity for our emergency management officials, the National Guard, local first responders and our private industry partners to train together so we are ready to respond if a threat impacted our power grid. While we simply can't train for every possible scenario, building relationships now makes us all better prepared if we had to respond to a real-world situation."

The article describes how Wisconsin is preparing for a total grid collapse and warns the preparation has already started. In addition, the report gives timing of the next major 'full-scale' drill expected in spring 2018 coined "Dark Sky".

< ...

Stocks Tumble On News Senate Tax Plan To Delay Corporate Tax Cut Until 2019

Confirming reports from earlier this week that the Senate GOP tax plan would delay the corporate tax cut for (at least) one year, a move that would strip the proposed tax reform of its most potent benefit, moments ago the Wapo reported that in a few hours, Senate Republicans will propose delaying a cut in the corporate tax rate from 35 percent to 20 percent until 2019. Bloomberg confirmed the news, quoting Bill Cassidy who said in an interview that that Senate Finance Committee tax legislation proposal will include a one-year delay before cutting the corporate tax rate to 20%.

The compromise would be a major departure from President Trump's insistence on immediate changes that he says "are necessary to spur the economy." And while some Senate Republicans objected to the one year delay, they were overruled.

As Bloomberg adds, the Senate tax writers will also propose keeping number of individual income-tax brackets at seven in a departure from the House bill that condenses the number to four, Sen. Bill Cassidy tells reporters. Cassidy also says Senate proposal won't keep top rate at 39.6%, though doesn't state what new top individual rate would be

In an attempt to offset the delayed economic boost from excess corporate spending, the WaPo explains that to prevent companies from waiting until 2019 to invest, "Senate Republicans will propose to allow companies to immediately deduct all capital investments in 2018 to incentivize them to spend more money immediately, the people said."

The reason for the delay is simple: there is not enough revenue. "The one-year delay would lower the cost of the tax ...

DOJ To Russia Today: Register As A Foreign Agent Or Face Arrest

Congress is using a decades-old piece of legislation to force Russia Today to register as a foreign agent in the US, adding that if the site doesn't comply with the order by Monday, the DOJ could move to shutter its operations and arrest its top executive, RT editor-in-chief Margarita Simonyan.

Russia Today revealed Thursday that the Department of Justice has given the site until next week to comply with its new interpretation of the Foreign Agents Registration Act (FARA). RT has been operating in the US since 2005.

While undoubtedly disappointing in terms of its implications for first amendment freedoms in the US, the DOJ's declaration is hardly a surprise. Under pressure from lawmakers, Twitter last month said it would prohibit RT from buying paid ads on its platform.

The FARA was adopted in the US in 1938 to counter pro-Nazi agitation . Washington has decided to apply the act towards the company that supplies all services for RT America on its territory, including TV production and operations. Just over 400 entities are currently registered under the legislation, though that group doesn't include a single media outlet.

RT revealed Thursday that the DOJ sent a letter to the company in September saying it is obligated to register under FARA due to the work it does for RT. Most alarmingly, the law demands the disclosure of the channel's confidential data, including the personal data of its staff.

The move "will have serious legal consequences"and "compromise the safety of [RT] employees," the Russian Foreign Ministry pr ...

Salesforce Won't Let Age Slow It Down

The acquisitive cloud software giant expects to double its revenue without relying on M&A deals.

Time to Remove Italian Banks from List of Global Worries

Here's one less thing for global investors to worry about: Italy's once-tottering financial system isn't nearly as scary as it was.

The Missing Ingredient in Burberry's Creative Revival

Burberry's new boss has set a sensible path for the fashion house's creative renewal. But he doesn't yet have a creative director to take it from the boardroom to shops.

Market Snapshot: S&P 500, Nasdaq on track for largest drop since August

U.S. stocks lose ground Thursday, pulling back sharply from all-time highs as investors express disappointment on news that Senate Republican's tax plan would include a delay of cuts to corporate taxes to 20% from 35% until 2019.

Encore: Why you'll probably have a worse retirement than your parents did

Younger baby boomers and subsequent generations are vulnerable.

Deep Dive: Thinking of buying gun-maker stocks? You better be careful

Shares of some weapons manufacturers have soared, but sales numbers don't look very good.

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