06/04/18 08:27 AM EDT

WASHINGTON WEEK AHEAD

DRIVING THE WEEK:

The House and Senate are back from a weeklong recess and will be in session this week.

The Trump Administration indicated that the U.S. will move forward with a plan to place $50 billion in tariffs on imports from China in response to complaints that the country has taken actions to disadvantage U.S. technology firms. Details regarding the duties, which come amid the ongoing back-and-forth on trade between Washington and Beijing, are set to be announced by June 15. A U.S. delegation led by Commerce Secretary Wilbur Ross did not reach a deal on trade issues during a meeting with Chinese officials in Beijing over the weekend. The discussions focused on narrowing the U.S. trade deficit with China, and there was little discussion of major trade issues that have soured the economic relationship between the world's two biggest economies.

Primary elections will be held Tuesday in Alabama, California, Iowa, Mississippi, Montana, New Jersey, New Mexico and South Dakota. Some of the more impactful races will take place in California, where an open-primary system means the top two candidates will qualify for a runoff, regardless of party. The system has some Democrats fearing that large fields of Democrats in some congressional races will so splinter the vote that two Republicans could capture the most votes and leave the November ballot without a Democratic candidate in some districts.

The House will vote on a water infrastructure bill and the 2019 appropriations process will begin with its first spending bill combining funding for Energy and Water, Legislative Branch, and Military Construction and Veterans Affairs.

Back in May, House Speaker Paul Ryan promised Republican members that he would hold a conference on the thorniest of issues facing the Republican party —immigration reform. he conference meeting is currently scheduled for this Thursday giving centrist and conservative House Republican members an opportunity to vet their ideas in a two-hour airing of the grievances session. Ryan and his leadership team are in the midst of staving off a rebellion by centrists (and almost all of the House Democrats) who are five votes away from allowing a ‘discharge petition’ on immigration to move forward.

The Senate is scheduled to consider the National Defense Authorization Act (NDAA) before the end of the week with CFIUS modernization and ZTE legislation attached to it.

Federal financial regulatory agencies are set to work on a proposal to alter the Volcker rule, with the issue slated to come up Monday at a public meeting of the Commodity Futures Trading Commission.

Senate Majority Leader Mitch McConnell will announce that August recess in the Senate will be cut short caving to the wishes of President Trump and conservatives.

Trump is scheduled to meet with Japanese Prime Minister Shinzo Abe at the White House on Thursday and Topic A on the agenda is likely to be the president’s on-again June 12 meeting with North Korea’s Kim Jong Un. Though the White House said Japan and the U.S. have a “shared imperative” to rid North Korea of its nuclear, chemical and biological weapons, Trump said Friday, “I never said it goes in one meeting. I think it’s going to be a process.”

Trump is scheduled to attend the G-7 summit in Quebec, Canada on Friday.

HEDGEYE LEGAL CATALYSTS | AMERICAN EXPRESS ANTITRUST DECISION LOOMS (AXP, DFS, AMZN, GOOGL): Paul Glenchur continues to believe the Supreme Court will likely rule against American Express in a major antitrust decision. His latest here.

AT&T/TIME WARNER: APPEAL IN FOCUS (T, TWX) | Assuming AT&T wins, the legal basis and appeals court risk affect the outlook for potential vertical deals, including Comcast-Fox. Read Glenchur's latest here

CMS RE-LAUNCHES HOME HEALTH CLAIMS REVIEW IN SELECT STATES BUT WITH A TWIST | AMED, LHCG, EHC, KND: Our Senior Health care analyst Emily Evans writes that providers will have the option to subject to pre-claim or post-payment review with time off for good behavior. Read her piece here.

OPEC NOTES: RUSSIA PUSHES 1 MBD IN ADDED PRODUCTION BUT SAUDIS WANT MUCH LESS: The Saudis are playing ball with Russia to keep in the fold on market coordination but plan on modest and symbolic amount - far less than 1 mbd. Read the update by Joe McMonigle here.

Tuesday, June 5, 2018

House of Representatives Schedule:

Hearing: H.R. 5895Energy and Water Development and Related Agencies Appropriations Act 2019 Energy and Water Legislative Branch and Military Construction and Veterans Affairs Appropriations Act 2019 Showing the text of H.R. 5895 H.R. 5894 and H.R. 5786 as reported by the Committee on Appropriations as modified. General Debate; H.R. 8Water Resources Development Act of 2018 Rules Committee Print 115-72Showing the text of H.R. 8 as ordered reported by the Committee on Transportation and Inf

Senate:

Hearings to examine the 2018 wildland fire outlook and the wildland fire management programs at the Department of the Interior and the Forest Service.

Wednesday, June 6, 2018

House of Representatives Schedule:

Hearing: Hearing entitled “Legislative Review of H.R. 1511, the “Homeless Children and Youth Act of 2017”

10:00 AM | 2128 Rayburn HOB

Host: Committee on Financial Services | Subcommittee on Housing and Insurance

Hearing: Examining the Reauthorization of the Pandemic and All-Hazards Preparedness Act

10:00 AM | 2123 Rayburn HOB

Host: Committee on Energy and Commerce | Subcommittee on Health

Hearing: “Examining the Policies and Priorities of the U.S. Department of Health and Human Services”

10:00 AM

Host: Committee on Education and the Workforce | Full Committee

Markup: Utah Week Markup on Four Bills, Six Bills Total