(07 SEPTEMBER 2017)DAILY MARKET BRIEF 2:Donald and Democrats deal

Finally, Wall Street is celebrating the removal of the immediate threat of the debt ceiling. However, the real news was Trump working with Democrats with a clear success. In rare bipartisan deal Trump, republicans with democrats extended the U.S. debt limit and provide government funding until Dec. 15th. Should the Republican-led Congress pass the bill, the 3-month deal would prevent an extraordinary default on U.S. government debt, preserve the government funded for the fiscal year starting Oct. 1. This was a massive first step. True it was clipped to a money for victims of Hurricane Harvey but still. The path towards meaningful tax reform just got a little less steep (an potentially other stimulus). As a desk we were early to write off the Trump pro-growth, reflation story, however a shift to the center, highlighted by this 3-month extension, could the start of something real. A unified US government could have profound effects on our market outlook.

By Peter Rosenstreich