House Republicans Challenging Executive Spending Via ACA
August 11, 2015
House Republicans are using the Affordable Care Act to challenge the executive branch on spending authority.
• House Republicans are using the Affordable Care Act to challenge the executive branch on spending authority. A federal judge is expected to rule soon on whether the House can sue the executive branch for usurping Congress’s “power of the purse,” or it authority over spending. If the House prevails, it could be damaging to the health care law. But if the administration wins, the plan could backfire with the White House gaining more decision-making power on spending. [NYTimes]
Economic Indicators & News
• Global mergers and acquisitions are on pace this year to hit the highest level on record. Takeover-deal announcements would reach $4.58 trillion this year if the current pace of activity continues, exceeding the $4.29 trillion record set in 2007. After years of cost-cutting during the recession, companies are buying competitors in a hunt for growth. Berkshire Hathaway’s $32 billion deal to buy industrial company Precision Castparts announced yesterday was the latest example of this pursuit of growth through acquisition. But there is no assurance the pace will continue, with deals risking shareholder and regulatory resistance. [WSJ]
• China’s devaluation of its currency jolted global markets, hitting stocks and boosting government bonds. The People’s Bank of China pushed its daily fixing rate against the U.S. dollar down 1.9%. After the International Monetary Fund noted the rate wasn’t representative of the market, it also vowed to allow market forces to play a greater role in setting the value of the yuan in the future. Investors reacted by pushing the yuan down almost 2% from the new fixing, as the market bet that Chinese authorities want a weaker currency to boost exports that were extremely weak in July. The S&P 500 fell 0.7% and the Europe 600 index was down 1.3%, as investors worried that the move signaled growth concerns over the world’s second-largest economy. [WSJ]