Bloomberg Evening Briefing Americas |
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Donald Trump’s $3.3 trillion bill passed the Senate Tuesday thanks to a tie-breaking vote from his vice president and following a furious push by Republican leaders to mollify holdouts like Alaska Senator Lisa Murkowski. In doing so, the GOP handed the president a victory while avoiding his social media ire or that of his followers. But Democrats warned that Republicans have set themselves up for a gruesome midterm election as millions of Americans—in red and blue states alike—lose access to health care or food aid. The unprecedented slashing of Medicaid will help fund more than $3 trillion in new tax cuts, meant to replace expiring cuts passed by Republicans in 2017. The majority of those renewed cuts will go to America’s richest. Passage of the full Republican package, which now goes back to the House, also likely means that over the next decade the US will surpass $40 trillion in national debt. The Senate’s version of the bill will cost the bottom 20% of taxpayers an average of $560 a year while giving an average boost of $6,055 to those at the top end, according to an analysis from Yale University’s Budget Lab. The legislation also provides hundreds of billions of dollars in new funding for defense and for Trump’s crackdown on immigrants both legal and undocumented.
Republican senators altered an earlier version of the bill approved by the House to make deeper cuts to safety-net programs. The Senate bill also would speed up elimination of clean energy tax breaks amid accelerating climate change. See what else is in the bill. —Jordan Parker Erb and David E. Rovella | |
What You Need to Know Today | |
US job openings unexpectedly rose in May to the highest level since November, according to the Trump administration, largely fueled by leisure and hospitality, as firings declined. The data from the Bureau of Labor Statistics, part of the US Department of Labor, exceeded all estimates in a Bloomberg survey of economists. Vacancies in the hospitality sector accounted for three quarters of May openings, while the finance, healthcare, transportation and warehousing industries saw more moderate gains, according to the data. The relatively positive jobs numbers come despite broad-based economic uncertainty tied to Trump’s trade war. The new BLS data are the latest in a series of unexpectedly rosy government reports on the state of the US economy. For the first four full months of Trump’s second term, inflation data released by the BLS came in lower than expected. Separate data out Tuesday from the Institute for Supply Management showed a gauge of factory employment slipped in June to a three-month low. | |
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Iran is said to be cutting off communication with key United Nations watchdog officials, deepening uncertainty over the status of its nuclear program and introducing additional ambiguity to its confrontation with Trump. After formally ending inspections by the International Atomic Energy Agency last week in the aftermath of America’s surprise attack, Iranian nuclear-safety regulators are said to have stopped taking calls from the agency. The IAEA’s Incident and Emergency Centre was activated after Israel’s attack on Iran and had been in continuous contact with counterparts there. But that information sharing has since tailed off—underscoring the degree to which Iran is using silence to obscure international understanding over the status of its nuclear program. The moves come as the IAEA said that, despite Trump’s claims that Iran’s nuclear program was destroyed by his ordered strike, Iran could be enriching uranium again in a matter of months. The statement echoed a leaked intelligence assessment from the Pentagon that said the US attack was unsuccessful in its stated aim to end Iran’s nuclear program. The Washington Post reported that the US has intercepted communications between Iranian officials also downplaying the effectiveness of the US attacks. | |
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After June’s deadly Air India plane crash, investigators and the airline are studying possible dual engine failure as a scenario that prevented the Boeing jet from staying airborne. Pilots from the airline reenacted the doomed aircraft’s parameters in a flight simulator, including with the landing gear deployed and the wing flaps retracted. They found those settings alone didn’t cause a crash, reinforcing the focus on a technical failure as one possible cause of the catastrophe. Members of the Indian Army’s engineering arm prepare to remove the wreckage of an Air India plane in Ahmedabad, India, on June 14. All but one of 242 people on board the Boeing 787 were killed. Photographer: Basit Zargar/AFP | |
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US Secretary of State Marco Rubio attacked USAID on the last day of its existence, defending Trump’s move to deny funding to programs widely reported to have saved millions of lives around the world. His attack on the aid organization first targeted by Elon Musk comes as a new study warned that Trump’s dismantling of the agency could result 14 million deaths by 2030, mostly of children, according to a study released in the medical journal The Lancet. A recent model by researchers at Boston University estimated hundreds of thousands of people, also mostly infants and children, have died in the past few months due to Trump’s shuttering of the agency. Rubio, who called his post attacking USAID “Making Foreign Aid Great Again,” has previously praised the agency, repeatedly touting what he called “critical programs” executed by USAID and other agencies. A worker removes the US Agency for International Development sign at its headquarters in Washington in February. Photographer: Kayla Bartkowski/Getty Images North America | |
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New York City’s immigration arrests jumped 11% from the same period last year, according to figures obtained by the Deportation Data Project and analyzed by Bloomberg. More than 1,900 people have been arrested in New York City by federal immigration agents since Trump took office. And while that number is far less than the increases in Los Angeles (69%), Chicago (57%) and Miami (161%), some of the city’s businesses and advocates are bracing for a bigger crackdown. | |
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What You’ll Need to Know Tomorrow | |
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