Trump’s tax bill could only have short -term advantages

Thursday, the “big and beautiful” “tax bill of American president Donald Trump was adopted by the House of Representatives and went to the Senate for approval.

If the bill erases that the obstacle and becomes law, it “reduces taxes for many people, it increases spending, in particular for defense,” said Jed Ellerbroek, portfolio director at Capital Management, in an interview with CNBC. In simple terms, this will stimulate the short -term economy, added Ellerbroek.

Further in the future, however, the bill probably in America with a higher budget deficit. Tax reductions mean lower income,, Although the increase in defense spending means that more money flows from government chests. It is a matter of simple arithmetic: less income and more expenses.

Even if the yields on the American Treasurys, which are essentially public debt, are slightly moderate from their Wednesday peak, they are still at high levels compared to the year. This suggests that investors are not also some to lend money to the White House and request more security in the form of higher yields.

On the stock market, investors adopt a waiting approach, the S&P 500 and the industrial average of Dow Jones remaining mainly unchanged after the adoption of Trump’s invoice.

There is at least good news on Thursday. The United States Supreme Court has strongly suggested that members of the Federal Reserve may have protections against being dismissed by a president, reducing the risk of another collapse of the market induced by the Trump administration.

American actions are mainly unchanged
Thursday, the S&P 500 And Industrial average Dow Jones closed mainly flat, while the Nasdaq Composite Addition of 0.28%because the House of Representatives of the United States adopted the Trump tax bill. Regional Europe Stoxx 600 INdex slipped 0.64%. The long -term borrowing costs of the British government have increased, with the closure of the golden yield to 30 years to 5.563%, its highest level since 1998.

Treasury yields have slightly released
At the level of the United States, the 30 -year -old American treasury yield Immersed 5.044% after affecting 5.161% – the highest since October 2023 – and the Yield at 10 years fell to 4.535%, lowering almost 10 base points earlier during the day. The sale in Treasurys encourages certain observers to the market to rethink the status of American government obligations as a refuge and to rotate their money to other world assets.

Fed members may have protection against dismissal
On Thursday, the United States Supreme Court suggested that members of the Federal Reserve Board of Directors would have special protection against being dismissed by a president. “The federal reserve is an almost unique structured-proof entity which follows in the distinct historical tradition of the first and second banks of the United States,” said the majority decision in a judicial case on the dismissal by Trump of the members of the Federal Agency.

Anthropic launches new AI models
Anthropic, the Amazon-Ably of Openai Rival, launched Claude 4 on Thursday, his latest models of artificial intelligence. The company said in a press release that the two models, called Claude Opus 4 and Claude Sonnet 4, define a “new standard” with regard to AI agents. Claude Opus 4 is the “best coding model in the world” and can work independently for almost a complete business work day of seven hours, according to Anthropic.

[PRO] A stock market warning panel
The markets stabilized Thursday after the double sale in stocks and bonds, but a key corner of the equity market flashes lighting on the economy, wrote Jesse Pound of CNBC Pro. Although this does not show that a recession is imminent, it is a reminder that the forward path is always difficult.

Why make up in India is not a guaranteed success despite the American prices on China

While India has certainly become an important, although emerging assembly, Hub for Electronics, the path to him becoming a clear alternative to China is not a guaranteed result, despite the American prices on Chinese products.

“The supply chain and manufacturing, these things take a long time to establish,” said Nick McConway, chief of ex-Japan equity in Asia at Amundi Asset Management. “We have seen this with Vietnam, which had to invest huge investments in infrastructure.”

“I think India is only the first step in the development of these types of world -based manufacturing capacities,” added McConway.

The fund manager has also stressed that if the labor costs can be low in India, this does not mean savings for companies that move their manufacturing base in India.