Instant View: House approves biggest tax overhaul in 30 years, Senate next(Reuters) - The Republican-controlled U.S. House of Representatives approved sweeping, debt-financed tax legislation on Tuesday, sending the bill to the Senate, where lawmakers were due to take up the package later in the evening. Story:		 The biggest overhaul of the U.S. tax system in more than 30 years could be signed into law by President Donald Trump as soon as Wednesday, if both chambers of Congress approve it. The bill passed the House by a vote of 227-203, overcoming united opposition from Democrats and 12 Republicans who voted against it. “The bond market today is reassessing the whole thing now that it looks like it’s going to pass. We’ve had a pretty significant rise in yields - we’re back up close to the highs for the quarter. “Stocks on the other hand have been in front of this for a long time, I think initially because lower taxes means more earnings are retained and then companies can distribute those to shareholders or not. But either way, it’s likely to be beneficial to stock prices.” JACK ABLIN, CHIEF INVESTMENT OFFICER, BMO PRIVATE BANK, CHICAGO “The tax rate we’ve certainly priced in (in stocks), though I certainly expected smallcaps to do a little bit better coming into this vote. What I think is not priced in yet is the economic impact of the incentives. It still remains to be seen what businesses will actually do. Will they buy equipment, invest in technology, hire more workers?” “The assumption right now is financial engineering, buybacks, dividend increases, is where the incentives will go. Redeploying cash, recapitalizing balance sheets, maybe debt repayment.” “I do think there’s a fair amount of skepticism these benefits will ultimately result in expansions. I’m getting a sense investors are pricing in the one-time tax pop, we’ll see if there’s any follow through next year.” On the rise in Treasury yields: “It’s been a monetary policy-led expansion, now we get a fiscal boost and some may be concerned (that) the boost on the fiscal side (may) be offset by monetary tightening.  “The big question (for the dollar) is how other central banks will respond to this (U.S.) fiscal stimulus package. That’s probably what’s weighing on investors’ minds right now - celebrating the tax package but recognizing that what central banks have given us in the last years they could begin to take away.” JIM PAULSEN, CHIEF INVESTMENT STRATEGIST, THE LEUTHOLD GROUP, MINNEAPOLIS “As we look back on this a little bit, I really think it might be buy the rumor sell the news. Wall Street has had long enough to vet this thing. And it has been known for a long time that something was going to pass here, at least for the last 30, 45 days. Whether it was going to be 21 percent rate or 20 percent rate is not that significant. It’s more the general parts of it were pretty much known and vetted and I think implemented into the market... If you look at the relative performance in the market today, it’s fairly clearly more of a shot towards better economic growth or even inflation... I think the biggest move today of anything is bond yields. That’s the big story.” AARON KOHLI, INTEREST RATE STRATEGIST, BMO CAPITAL MARKETS, NEW YORK “They seem to have locked up all the necessary votes... I think the markets are still trying to figure out how much should we expect, will people react right away, what will be the second order effects?  “There are a lot of questions that still haven’t answered. The first one is, assuming it goes into effect Jan. 1, when is the first time people start seeing any changes in their pay checks? And the answer is it could be a couple of months. Even then for most of middle America you aren’t going to see the savings until tax time, which means you may not see it until April 2019. I’m not sure that’s early enough to help midterms and I think that’s really where the markets’ are going to start to focus next. How do we handicap what it does for Republicans in the midterms? Does it help them? Does it do nothing for them? Or it may even hurt them.” BRIAN PEERY, PORTFOLIO MANAGER, HENNESSY FUNDS IN NOVATO, CALIFORNIA “The market is taking kind of a breather, digesting the news. The market is off a little bit, maybe because the bill is not as popular as the GOP hoped it would be in the public opinion. The overall market looks still really strong and healthy.” “Looking at companies in our portfolio, (the tax bill) will be great for domestic small- and mid-cap companies paying a 30, 35 percent effective tax rate. A lot of them do not have the ability to move profits offshore... I’ll wait and see how much, but I can see another 5 percent rise (in the market) in the next few months as the tax bill kicks in.” ALICIA LEVINE, DIRECTOR OF PORTFOLIO STRATEGY AT BNY MELLON INVESTMENT MANAGEMENT, NEW YORK:  “The effects of the tax cuts will be immediately accretive to corporate earnings which will support equity markets. Also, the tax package will be positive for growth in the real economy. “The tax cuts add $10 to baseline S&P earnings for 2018 putting 2018 expected earnings at $156 or a 19 percent growth rate over 2017 earnings... This is supportive of equity markets; sectors to focus on would be small caps, value and financials.”   PAUL NOLTE, PORTFOLIO MANAGER AT KINGSVIEW ASSET MANAGEMENT IN CHICAGO: “It’s pretty much along party lines. The takeaway is more buy the rumor, sell the news. The market has been rallying over the last week or so in anticipation of this vote. We’re (now) going to be looking toward the government funding bill.” “It’s going to take time to see how the general population reacts to it (tax). The expectation is companies are going to bring back a lot of dollars back to the United States and put it into plant and equipment. It very well may go into stock buybacks and dividend increases. There’s no certainty we’re going to get the promised economic gain everybody’s been talking about.” CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA “I think the market had been pretty well expecting this. I don’t think there’s any ... surprise here to the market. The momentum had been pretty strong in the last two weeks in terms of getting this done, and I think the market has pretty well anticipated getting it done.” “You may see some reactions going forward in certain sectors and subcategories. Maybe you see smallcaps pick up a little bit more. Maybe you see the transports, which have lagged large caps, start to do a little bit better. But in the main, the market had already been factoring this in.” “It has a lot of potential ramifications. It’s going to certainly play a role in the midterm elections next year, and people are going to have some time to try to evaluate whether their plight in life is better because of it before they go to the voting booth next year. So from a political standpoint it has impact.” OMAIR SHARIF, SENIOR U.S. ECONOMIST, SOCIETE GENERALE, NEW YORK “This seems like it’s a done deal especially if Corker and Collins end up on board on the Senate side. They will get across the finish line by Christmas after moving the goal post a number of times.  “I think for more than a few days now, this was likely going to pass. This has been baked in the cake with the markets. They have been expecting this for a long time. It’s a few days before Christmas, so trading is quite thin. I wouldn’t read too much into any market reaction. The real telling thing for this is the second half of next year, whether this actually lifts growth above 3 percent on any sustained basis on capital spending and consumer spending. It’s more a political achievement than an economic achievement.” Stocks trimmed losses slightly, but then dipped back. The S&P 500 Index was last down 0.3 percent. Treasury yields hovered near session highs and the dollar held its gains against the yen.politicsNews
instant view house approves biggest tax overhaul years senate next reuters the house representatives approved sweeping tax legislation tuesday sending bill senate lawmakers due take package later evening story the biggest overhaul tax system years could signed law president donald trump soon wednesday chambers congress approve the bill passed house vote overcoming united opposition democrats republicans voted the bond market today assessing whole thing looks like going pass we pretty significant rise yields back close highs quarter stocks hand front long time i think initially lower taxes means earnings retained companies distribute shareholders but either way likely beneficial stock jack ablik chief investment officer bio private bank chicago the tax rate certainly priced stocks though i certainly expected smallcaps little bit better coming vote what i think priced yet economic impact incentives it still remains seen businesses actually will buy equipment invest technology hire workers the assumption right financial engineering buybacks dividend increases incentives go deploying cash recapitalizing balance sheets maybe debt i think fair amount skepticism benefits ultimately result expansions i getting sense investors pricing tax pop see follow next on rise treasury yields it monetary expansion get fiscal boost may concerned boost fiscal side may offset monetary tightening the big question dollar central banks respond fiscal stimulus package that probably weighing investors minds right celebrating tax package recognizing central banks given us last years could begin take jim pulse chief investment strategist the leuthold group minneapolis as look back little bit i really think might buy rumor sell news wall street long enough vet thing and known long time something going pass least last days whether going percent rate percent rate significant it general parts pretty much known vetted i think implemented market if look relative performance market today fairly clearly shot towards better economic growth even inflation i think biggest move today anything bond yields that big aaron kovi interest rate strategist bio capital markets new york they seem locked necessary votes i think markets still trying figure much expect people react right away second order effects there lot questions still answered the first one assuming goes effect first time people start seeing changes pay checks and answer could couple months even middle america going see savings tax time means may see april i sure early enough help midterm i think really markets going start focus next how handicap republicans midterm does help does nothing or may even hurt brian peer portfolio manager hennessy funds in lovato california the market taking kind breathe directing news the market little bit maybe bill popular gop hoped would public opinion the overall market looks still really strong looking companies portfolio tax bill great domestic companies paying percent effective tax rate a lot ability move profits offshore i wait see much i see another percent rise market next months tax bill kicks alicia levine director of portfolio strategy at by melon investment management new york the effects tax cuts immediately secretive corporate earnings support equity markets also tax package positive growth real economy the tax cuts add baseline s p earnings putting expected earnings percent growth rate earnings this supportive equity markets sectors focus would small caps value paul note portfolio manager at kingsview asset management in chicago it pretty much along party lines the takeaway buy rumor sell news the market rallying last week anticipation vote we going looking toward government funding it going take time see general population reacts tax the expectation companies going bring back lot dollars back united states put plant equipment it well may go stock buybacks dividend increases there certainty going get promised economic gain everybody talking chuck carlson chief executive officer horizon investment services hammond indiana i think market pretty well expecting i think surprise market the momentum pretty strong last two weeks terms getting done i think market pretty well anticipated getting you may see reactions going forward certain sectors subcategories maybe see smallcaps pick little bit maybe see transports tagged large caps start little bit better but main market already factories it lot potential ramifications it going certainly play role midterm elections next year people going time try evaluate whether plight life better go voting booth next year so political standpoint omar sharia senior economist societe generale new york this seems like done deal especially corner collins end board senate side they get across finish line christmas moving goal post number times i think days likely going pass this baked cake markets they expecting long time it days christmas trading quite thin i read much market reaction the real telling thing second half next year whether actually lifts growth percent sustained basis capital spending consumer spending it political achievement economic stocks trimmed losses slightly dipped back the s p index last percent treasury yields covered near session highs dollar held gains
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Instant View: House approves biggest tax overhaul in 30 years, Senate next(Reuters) - The Republican-controlled U.S. House of Representatives approved sweeping, debt-financed tax legislation on Tuesday, sending the bill to the Senate, where lawmakers were due to take up the package later in the evening. Story:		 The biggest overhaul of the U.S. tax system in more than 30 years could be signed into law by President Donald Trump as soon as Wednesday, if both chambers of Congress approve it. The bill passed the House by a vote of 227-203, overcoming united opposition from Democrats and 12 Republicans who voted against it. “The bond market today is reassessing the whole thing now that it looks like it’s going to pass. We’ve had a pretty significant rise in yields - we’re back up close to the highs for the quarter. “Stocks on the other hand have been in front of this for a long time, I think initially because lower taxes means more earnings are retained and then companies can distribute those to shareholders or not. But either way, it’s likely to be beneficial to stock prices.” JACK ABLIN, CHIEF INVESTMENT OFFICER, BMO PRIVATE BANK, CHICAGO “The tax rate we’ve certainly priced in (in stocks), though I certainly expected smallcaps to do a little bit better coming into this vote. What I think is not priced in yet is the economic impact of the incentives. It still remains to be seen what businesses will actually do. Will they buy equipment, invest in technology, hire more workers?” “The assumption right now is financial engineering, buybacks, dividend increases, is where the incentives will go. Redeploying cash, recapitalizing balance sheets, maybe debt repayment.” “I do think there’s a fair amount of skepticism these benefits will ultimately result in expansions. I’m getting a sense investors are pricing in the one-time tax pop, we’ll see if there’s any follow through next year.” On the rise in Treasury yields: “It’s been a monetary policy-led expansion, now we get a fiscal boost and some may be concerned (that) the boost on the fiscal side (may) be offset by monetary tightening.  “The big question (for the dollar) is how other central banks will respond to this (U.S.) fiscal stimulus package. That’s probably what’s weighing on investors’ minds right now - celebrating the tax package but recognizing that what central banks have given us in the last years they could begin to take away.” JIM PAULSEN, CHIEF INVESTMENT STRATEGIST, THE LEUTHOLD GROUP, MINNEAPOLIS “As we look back on this a little bit, I really think it might be buy the rumor sell the news. Wall Street has had long enough to vet this thing. And it has been known for a long time that something was going to pass here, at least for the last 30, 45 days. Whether it was going to be 21 percent rate or 20 percent rate is not that significant. It’s more the general parts of it were pretty much known and vetted and I think implemented into the market... If you look at the relative performance in the market today, it’s fairly clearly more of a shot towards better economic growth or even inflation... I think the biggest move today of anything is bond yields. That’s the big story.” AARON KOHLI, INTEREST RATE STRATEGIST, BMO CAPITAL MARKETS, NEW YORK “They seem to have locked up all the necessary votes... I think the markets are still trying to figure out how much should we expect, will people react right away, what will be the second order effects?  “There are a lot of questions that still haven’t answered. The first one is, assuming it goes into effect Jan. 1, when is the first time people start seeing any changes in their pay checks? And the answer is it could be a couple of months. Even then for most of middle America you aren’t going to see the savings until tax time, which means you may not see it until April 2019. I’m not sure that’s early enough to help midterms and I think that’s really where the markets’ are going to start to focus next. How do we handicap what it does for Republicans in the midterms? Does it help them? Does it do nothing for them? Or it may even hurt them.” BRIAN PEERY, PORTFOLIO MANAGER, HENNESSY FUNDS IN NOVATO, CALIFORNIA “The market is taking kind of a breather, digesting the news. The market is off a little bit, maybe because the bill is not as popular as the GOP hoped it would be in the public opinion. The overall market looks still really strong and healthy.” “Looking at companies in our portfolio, (the tax bill) will be great for domestic small- and mid-cap companies paying a 30, 35 percent effective tax rate. A lot of them do not have the ability to move profits offshore... I’ll wait and see how much, but I can see another 5 percent rise (in the market) in the next few months as the tax bill kicks in.” ALICIA LEVINE, DIRECTOR OF PORTFOLIO STRATEGY AT BNY MELLON INVESTMENT MANAGEMENT, NEW YORK:  “The effects of the tax cuts will be immediately accretive to corporate earnings which will support equity markets. Also, the tax package will be positive for growth in the real economy. “The tax cuts add $10 to baseline S&P earnings for 2018 putting 2018 expected earnings at $156 or a 19 percent growth rate over 2017 earnings... This is supportive of equity markets; sectors to focus on would be small caps, value and financials.”   PAUL NOLTE, PORTFOLIO MANAGER AT KINGSVIEW ASSET MANAGEMENT IN CHICAGO: “It’s pretty much along party lines. The takeaway is more buy the rumor, sell the news. The market has been rallying over the last week or so in anticipation of this vote. We’re (now) going to be looking toward the government funding bill.” “It’s going to take time to see how the general population reacts to it (tax). The expectation is companies are going to bring back a lot of dollars back to the United States and put it into plant and equipment. It very well may go into stock buybacks and dividend increases. There’s no certainty we’re going to get the promised economic gain everybody’s been talking about.” CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA “I think the market had been pretty well expecting this. I don’t think there’s any ... surprise here to the market. The momentum had been pretty strong in the last two weeks in terms of getting this done, and I think the market has pretty well anticipated getting it done.” “You may see some reactions going forward in certain sectors and subcategories. Maybe you see smallcaps pick up a little bit more. Maybe you see the transports, which have lagged large caps, start to do a little bit better. But in the main, the market had already been factoring this in.” “It has a lot of potential ramifications. It’s going to certainly play a role in the midterm elections next year, and people are going to have some time to try to evaluate whether their plight in life is better because of it before they go to the voting booth next year. So from a political standpoint it has impact.” OMAIR SHARIF, SENIOR U.S. ECONOMIST, SOCIETE GENERALE, NEW YORK “This seems like it’s a done deal especially if Corker and Collins end up on board on the Senate side. They will get across the finish line by Christmas after moving the goal post a number of times.  “I think for more than a few days now, this was likely going to pass. This has been baked in the cake with the markets. They have been expecting this for a long time. It’s a few days before Christmas, so trading is quite thin. I wouldn’t read too much into any market reaction. The real telling thing for this is the second half of next year, whether this actually lifts growth above 3 percent on any sustained basis on capital spending and consumer spending. It’s more a political achievement than an economic achievement.” Stocks trimmed losses slightly, but then dipped back. The S&P 500 Index was last down 0.3 percent. Treasury yields hovered near session highs and the dollar held its gains against the yen.politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: instant view house approves biggest tax overhaul years senate next reuters the house representatives approved sweeping tax legislation tuesday sending bill senate lawmakers due take package later evening story the biggest overhaul tax system years could signed law president donald trump soon wednesday chambers congress approve the bill passed house vote overcoming united opposition democrats republicans voted the bond market today assessing whole thing looks like going pass we pretty significant rise yields back close highs quarter stocks hand front long time i think initially lower taxes means earnings retained companies distribute shareholders but either way likely beneficial stock jack ablik chief investment officer bio private bank chicago the tax rate certainly priced stocks though i certainly expected smallcaps little bit better coming vote what i think priced yet economic impact incentives it still remains seen businesses actually will buy equipment invest technology hire workers the assumption right financial engineering buybacks dividend increases incentives go deploying cash recapitalizing balance sheets maybe debt i think fair amount skepticism benefits ultimately result expansions i getting sense investors pricing tax pop see follow next on rise treasury yields it monetary expansion get fiscal boost may concerned boost fiscal side may offset monetary tightening the big question dollar central banks respond fiscal stimulus package that probably weighing investors minds right celebrating tax package recognizing central banks given us last years could begin take jim pulse chief investment strategist the leuthold group minneapolis as look back little bit i really think might buy rumor sell news wall street long enough vet thing and known long time something going pass least last days whether going percent rate percent rate significant it general parts pretty much known vetted i think implemented market if look relative performance market today fairly clearly shot towards better economic growth even inflation i think biggest move today anything bond yields that big aaron kovi interest rate strategist bio capital markets new york they seem locked necessary votes i think markets still trying figure much expect people react right away second order effects there lot questions still answered the first one assuming goes effect first time people start seeing changes pay checks and answer could couple months even middle america going see savings tax time means may see april i sure early enough help midterm i think really markets going start focus next how handicap republicans midterm does help does nothing or may even hurt brian peer portfolio manager hennessy funds in lovato california the market taking kind breathe directing news the market little bit maybe bill popular gop hoped would public opinion the overall market looks still really strong looking companies portfolio tax bill great domestic companies paying percent effective tax rate a lot ability move profits offshore i wait see much i see another percent rise market next months tax bill kicks alicia levine director of portfolio strategy at by melon investment management new york the effects tax cuts immediately secretive corporate earnings support equity markets also tax package positive growth real economy the tax cuts add baseline s p earnings putting expected earnings percent growth rate earnings this supportive equity markets sectors focus would small caps value paul note portfolio manager at kingsview asset management in chicago it pretty much along party lines the takeaway buy rumor sell news the market rallying last week anticipation vote we going looking toward government funding it going take time see general population reacts tax the expectation companies going bring back lot dollars back united states put plant equipment it well may go stock buybacks dividend increases there certainty going get promised economic gain everybody talking chuck carlson chief executive officer horizon investment services hammond indiana i think market pretty well expecting i think surprise market the momentum pretty strong last two weeks terms getting done i think market pretty well anticipated getting you may see reactions going forward certain sectors subcategories maybe see smallcaps pick little bit maybe see transports tagged large caps start little bit better but main market already factories it lot potential ramifications it going certainly play role midterm elections next year people going time try evaluate whether plight life better go voting booth next year so political standpoint omar sharia senior economist societe generale new york this seems like done deal especially corner collins end board senate side they get across finish line christmas moving goal post number times i think days likely going pass this baked cake markets they expecting long time it days christmas trading quite thin i read much market reaction the real telling thing second half next year whether actually lifts growth percent sustained basis capital spending consumer spending it political achievement economic stocks trimmed losses slightly dipped back the s p index last percent treasury yields covered near session highs dollar held gains