Less than two weeks have passed since Inauguration Day, and America's new Commander-in-Chief continues to unleash a maelstrom of controversy in the media, across the country, and the world. The most recent notable development of course is President Trump's immigration directive banning refugees and travelers from seven predominantly Muslim countries.
Here's a quick, distilled look at the immigration hullabaloo and related issues investors should keep an eye right now from Hedgeye's JT Taylor and our team of Washington Policy analysts in D.C.
ROLE REPRISal?
#ImmigrationConflagration
The uproar from Trump’s immigration order reached a tipping point last night. That's when acting Attorney General Sally Yates (an Obama appointee) ordered the Justice Department to not enforce the order. She believed it was unconstitutional. Trump swapped his MAGA hat for his old Apprentice hat and fired Yates replacing her with the more sympathetic Dana Boente.
As a result, look for The White House to exert more pressure on the Senate to get his Cabinet nominees confirmed -- but is Trump losing valuable capital with his penchant for keeping lawmakers and his own Cabinet out of the loop?
"WHAT WE got HERE..."
#CapitolHill #NDA
The Trump Administration circumvented lawmakers to draft the executive order on immigration by going directly to senior aides on the House Judiciary Committee. In the never seen before move, these staffers were the only people on the Hill to see the draft order or know what was in it prior to its signing- including House Judiciary Committee Chair Bob Goodlatte, Speaker Paul Ryan, and Majority Leader Mitch McConnell.
To keep this top secret, Trump coerced the staffers to sign non-disclosure agreements which prevented them from even informing their bosses of the work they were doing on the order. Let’s just say Republicans on the Hill are none too pleased with this one...
SUPREME STATEMENT tonight
#SCOTUS
Amidst fallout from President Trump’s immigration order, the Administration may be looking to change the subject. The president originally planned to release the name of his Supreme Court nominee on Thursday. But now the plan is to announce it tonight at 8 PM. There are three leaders headed into the clubhouse with Judge Thomas Hardiman of Pennsylvania on top of the pack.
But we’re wondering if it’s all a smoke screen and if the unpredictable Trump will go a different direction - Judge Diane Sykes ... or perhaps someone else on the longer list.
A PROMISE MADE, A PROMISE KEPT
#RegulationNation
Congress will use the Congressional Review Act to undo three Obama era regulations. The first regulation which will be overturned was designed to limit coal mining pollution in streams. A second one that will be undone originally added Social Security disability recipients considered unable to manage their affairs to the national instant criminal background check system for gun purchases. The third one is a rule that requires oil and gas companies to reveal payments to foreign governments.
Notch another one for Trump and his campaign promise that two regulations need to be overturned for every one that is proposed.
*OTHER ITEMS OF INTEREST
PENTAGON REVIEW OF F35 GOOD FOR BA AND LMT: Our Senior Defense and Aerospace Analyst Emo Gardner writes that Results of SecDef Jim Mattis' review of F35 program costs should be net positive for LMT while extending BA's future in fighter market. You can find the full analysis here.
THE ROUND: REVIEW OF HEALTH POLICY WEEK OF JANUARY 22: Our Senior Health Policy Analyst Emily Evans reviews the key themes from last week’s healthcare news. You can find the full piece here.
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