A field day today for the United States, perhaps one of the most important of the Trump era. At 20.00, Italian time, tonight the name of the new Governor of the Federal Reserve will arrive, who today will probably be the moderate Republican Jerome Powell.
In the meantime, however, the eyes of Wall Street are focused on the House where the Republicans are presenting the long-awaited tax reform promised by the American President. The provision provides for a permanent cut in the tax rate for companies to 20% from the current 35%, a reduction in the rates for individuals to four from seven, with the maximum still at 39,6% but associated with an income level much higher, amounting to a million dollars for a married couple. The lowest rate rises by two percentage points, from 10 to 12%. Also under the terms, there will be an increase to $1.600 from $1.000 in tax breaks for those with children, while standard deductions for middle-class families will be doubled. No changes to a popular retirement savings program, the 401(k).
But while the House is busy with tax reform, the US Department of Justice deals with theAT&T-Time Warner affair. The US judges are even thinking of taking action to stop the 83 billion dollar acquisition. To report the news is the Wall Street Journal, according to which the Antitrust division of the US Justice is preparing a legal battle while, at the same time, negotiating with the two companies to reach an eventual agreement that would allow the wedding under certain conditions.
Through the acquisition of Time Warner, AT&T would like to counterbalance the pressure suffered by traditional media businesses and also felt by rivals such as Comcast, Charter, Dish Network and Altice USA. The news published by the US business newspaper weighed on the performance Time Warner title on Wall Street. After a suspension due to excessive downside, the shares are now down 4,5% to 94 dollars, while AT&T shares are down -0,63%.
In this context, the main Wall Street indices are down: -0,04% for the Dow Jones, -0,2% for the S&P, -0,45% for the Nasdaq weighted by the Facebook's robust decline.
