Hillary's Headache, Trump Triumphs; Bernie v. Donald? - JT   Potomac banner 2 

HILLARY’S HEADACHES: The State Department’s IG released an in-depth report regarding Hillary Clinton’s controversial email use when she was Secretary of State. The report comes as Clinton continues to struggle with trust and favorability numbers. Although Clinton did not break any laws, it’s clear that she didn’t follow the rules. Despite her confidence moving forward, the controversy will continue to saddle her throughout her campaign - and if that doesn’t give one a big enough headache - the FBI is conducting a criminal investigation that could result in the DOJ pressing formal charges.  Did you hear that roar coming from Trump Tower?

TRUMP TRIUMPHS: Well, it’s official. Donald J. Trump is the official Republican nominee garnering enough delegates to secure his spot on the ballot come November. Although Trump has surpassed the amount of delegates needed to win the nomination outright, look for Senators Ted Cruz and Marco Rubio, and Governor John Kasich to play roles in this year’s convention agenda as they attempt to leverage their respective delegates.

THE BERN V. THE DONALD: Another primary debate is the last thing this country needs, but what if it’s between two diametrically opposed candidates (with a few exceptions) - one who has his nomination locked up and the other who doesn’t and won’t?  Sure, we’ll tune in. Bernie and the Donald are considering debating each other on the main stage ahead of the CA primary on June 7.  Now for two minutes ponder all of the issues that will come to the fore. In our opinion, Sanders has an opportunity to inflict more damage given that “he’ll do everything to defeat Donald Trump” hence softening him up for Hillary - or will it backfire and end up hurting her?

ZAPPING ZIKA: The House and Senate have now both approved appropriations measures that will allow funding to combat the Zika virus. H.R. 5243, the Zika Response Appropriations Act, passed the House last week, allowing for Majority Leader Kevin McCarthy (CA) to move forward with a conference with the Senate; after differences are ironed out, supplemental appropriations will be provided to HHS and the State Department for Zika virus response.

ENERGY AND WATER BILL DROWNS: House Republicans shot down a normally uncontroversial energy and water appropriations bill after Democrats attached an amendment preventing LGBT discrimination by federal contractors. Conservatives blamed party leadership this morning for accepting Rep. Sean Maloney’s (NY) amendment while moderates lamented the ease with which ‘poison pills’ can be introduced under Speaker Ryan’s “open” amendment process. Although Ryan’s process should benefit the team as a whole, it has taken much criticism – as he’s identified - for allowing the appropriations process to be sabotaged and derailed.

NEUSTAR’S NUMBER PORTABILITY CONTRACT: IT AIN’T OVER TILL IT’S OVER: Our Telecommunications-Media Policy Analyst Paul Glenchur released his thoughts on how Neustar's portability contract is playing out - “Neustar's Number Portability Contract: It Ain't Over Till It's Over (NSR, ERIC)

THE ENERGY ELECTION: TRUMP PROVIDES MORE CLUES ON ENERGY PRIORITIES IN NORTH DAKOTA SPEECH: Our Senior Energy Analyst Joe McMonigle gives us insight on what Republican Presidential nominee Donald Trump’s energy priorities look like - “The Energy Election: Trump Provides More Clues on Energy Priorities in North Dakota Speech

WHY $50 OIL CREATES TENSION AT OPEC MEETING NEXT WEEK: Oil bulls are no doubt pleased that oil passed the $50 threshold on Thursday but the recent rally may create tension at the June 2 OPEC meeting. Our colleague Joe McMonigle departs tonight for Vienna to attend various pre-meeting receptions and the meeting on Thursday. Joe will publish from Vienna and hold a client call on Wednesday, June 1 to provide the latest updates. While the rally is certainly welcome news for many OPEC members, Joe believes the Saudis see the price rebound as premature serving as a lifeline for U.S. shale production. Stay tuned for daily reports on OPEC week in Vienna from Hedgeye in the bullets.

Have a great Memorial Day weekend.  We’re back on Wednesday.

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