Hillary Clinton on TPP then Presented by U.S. Bank

HILLARY CLINTON ON TPP THEN — While at State, Hillary Clinton called TPP the “gold standard in trade agreements.” In “Hard Choices,” which Clinton sent to all the GOP candidates, she said TPP “would link markets throughout Asia and the Americas, lowering trade barriers while raising standards on labor, the environment, and intellectual property.” She said it was "important for American workers, who would benefit from competing on a more level playing field." And she lauded it as “a strategic initiative that would strengthen the position of the United States in Asia.”

HILLARY CLINTON ON TPP NOW — Statement from Wednesday: “I’m continuing to learn about the details of [TPP], including looking hard at what’s in there to crack down on currency manipulation, which kills American jobs, and to make sure we’re not putting the interests of drug companies ahead of patients and consumers. But based on what I know so far, I can’t support this agreement.


“I don’t believe we can afford to keep giving new agreements the benefit of the doubt. he risks are too high that, despite our best efforts, they will end up doing more harm than good for hard-working American families whose paychecks have barely budged in years. … Republicans have blocked the investments that we need. … They’ve refused to raise the minimum wage or defend workers’ rights or adequately fund job training.”

WHERE TO EVEN BEGIN? — Of course the entire statement is a purely political flip-flop to pacify a liberal base that has rejected Clinton in favor of Bernie Sanders. Going through it on the merits seems almost pointless. But still … On currency, the final agreement, which Clinton can’t possibly have seen yet, will likely include slightly stronger provisions than existed when she viewed it as the “gold standard” and promoted while at State. Same holds true for the drug company provisions that will be less favorable to industry than they were before.

And she’s opposed to it because Republicans won’t lift the minimum wage? OK … The left embraced Clinton’s change of heart, which was the point. But coming after Keystone XL, it also furthers the argument that Clinton actually has no core beliefs or positions on anything.

NOT SO EASY IN THE SENATE? — One labor union opponent of TPP took issue with MM’s contention that it will be a relatively easy lift in the Senate: “When you have the committee of jurisdiction's chair mad about Pharma, the Majority Leader mad about tobacco, and several presidential candidates in the caucus trying desperately to chase Trump (who's already out against), I would not take anything for granted over there.”

LEFT LIKES HRC FLIP — CREDO: “Secretary Hillary Clinton deserves praise for splitting with the Obama administration and opposing the TPP … If Hillary Clinton — who worked on the Trans-Pacific Partnership as Secretary of State — can change her mind … so can the small number of Democrats in Congress who have previously voiced their support.”

Progressive Change Campaign Committee: "We're living in an economic populist era. The president will be asking Democrats in Congress to walk the plank by voting for a deal written by big corporations for big corporations with the explicit goal of undermining American laws, workers, communities, and the environment. Hillary Clinton rightly indicated she does not desire to walk that plank.”

CLINTON'S BREAK WITH THE WHITE HOUSE — POLITICO's Gabriel Debenedetti: “Clinton went further than ever before to distance herself from … Obama, coming out against a Trans-Pacific Partnership trade agreement that she worked to support as a member of his administration. … By coming out against the deal, Clinton sides with labor unions as well as her liberal rivals, Bernie Sanders and Martin O’Malley … And her stance puts her once again in stark opposition to the White House - and Vice President Joe Biden.” http://politi.co/1JTbtES

O'MALLEY PRE-BUTS CLINTON WALL STREET PLAN — Details of the Clinton Wall Street reform plan started leaking out overnight (more below). Deputy O'Malley campaign manager Lis Smith: "Secretary Clinton’s plan falls short on what should be our ultimate goal: preventing reckless Wall Street speculators from backing up their bad bets with taxpayer money. We need a defined firewall between Wall Street and taxpayers so that we are never again forced to bail out a bank’s reckless behavior."

OTHER WEIRD THINGS THAT HAPPENED WEDNESDAY — Per @ ZekeJMiller tweet: “Jeb: ‘The gold standard? I don't know. I don't think so.’" I don’t think so either, Jeb. And Ben Carson apparently doesn’t know what the debt limit is.

Kai Ryssdal: Should we default on our debt?

Carson: Let me put it this way: If I were the president, I would not sign an increased budget. Absolutely would not do it. They would have to find a place to cut.

Ryssdal: To be clear, it's increasing the debt limit, not the budget, but I want to make sure I understand you. You'd let the United States default rather than raise the debt limit.

Carson: No, I would provide the kind of leadership that says, ‘Get on the stick guys, and stop messing around, and cut where you need to cut, because we're not raising any spending limits, period.” Oy. http://bit.ly/1FYb3Sz

HRC CLOSE ON WALL STREET PLAN — POLITICO’s Zachary Warmbrodt: “Hillary Clinton is putting the Dodd-Frank band back together. The Democratic presidential front-runner is close to outlining her vision for policing the financial system, building on 2010's sweeping post-crisis regulatory overhaul known as Dodd-Frank. One of the bill's namesake authors, former Rep. Barney Frank (D-Mass.), has been giving input to Clinton's campaign about her plan in recent weeks.

“Frank told POLITICO Wednesday that he has been working with campaign staff including Gary Gensler … The input of Frank and Gensler could help Clinton's standing among Democrats aligned with Wall Street critic Elizabeth Warren … Asked about other potential areas that Clinton could address, Frank said more work could be done to address concerns about hedge funds” http://politi.co/1L0LRK6

GOOD THURSDAY MORNING — M.M. is headed to (the) Ohio State University today for an event Friday morning. If you happen to be in Columbus, give us a shout! Email me on [email protected] and follow me on Twitter @ morningmoneyben

DRIVING THE DAY — Treasury Secretary Jack Lew will be in Lima, Peru for the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group. While in Lima, Secretary Lew "will also meet with regional and G-20 Finance Ministers and Central Bank Governors to discuss measures to promote global growth" … Hillary Clinton rolls out some more Wall Street policies … FOMC minutes at 2:00 p.m. should give more color into the decision not to raise rates at the last meeting. It was close but how close? And what would change their minds?

THIS MORNING ON POLITICO PRO FINANCIAL SERVICES — Jon Prior on Fannie and Freddie’s new mortgage-buyback practices [ http://politico.pro/1ZfbSg7]. For Pro's subscriber-only coverage — and to get Morning Money every day before 6 a.m. — please contact Pro Services at (703) 341-4600 or [email protected].

** A message from Grant Thornton LLP: The tax code puts U.S. companies at a disadvantage. Congress can’t address the problem if it excludes pass-throughs from an innovation box or tax reform. Congress should lower the effective business tax rates equitably for all U.S. businesses. http://gt-us.co/1LhfUyM **

JEB BUSH’S IDENTITY CRISIS — POLITICO’s Eli Stokols: “Jeb Bush is desperate to win over Republicans who reward authenticity. But he’s struggling to figure out which voice to use. Stuck behind three candidates who have never before held elected office, the establishment-backed Bush is suddenly selling himself in Iowa as a ‘disruptor’ and promising to ‘disrupt the status quo in Washington,’ never mind his presidential pedigree.

“At a town hall inside a coffee shop here Wednesday, he used a variation of that word eight times in the first eight minutes. And as he fights to break through the noise of a crowded GOP field, Bush is increasingly refining his stump speech by borrowing the slogans and sales pitches of his Republican rivals — Donald Trump included. Before a crowd of 500 Republicans at the Scott County GOP Reagan Dinner this week, Bush closed his speech with a promise that echoes the slogan his chief rival wears on his hat, to ‘restore America’s greatness again.’” http://politi.co/1JTVEOb

LARRY SUMMERS ON THE GLOBAL SLOWDOWN — Larry Summers in the FT: “As the world's financial policymakers convene for their annual meeting on Friday in Peru, the dangers facing the global economy are more severe than at any time since the bankruptcy of Lehman Brothers in 2008. The problem of secular stagnation - the inability of the industrial world to grow at satisfactory rates even with very loose monetary policies - is growing worse in the wake of problems in most big emerging markets, starting with China.

“This raises the spectre of a vicious global cycle in which slow growth in industrial countries hurts emerging markets which export capital, thereby slowing western growth further. Industrialised economies that are barely running above stall speed can ill-afford a negative global shock. Policymakers badly underestimate the risks of both a return to recession in the west and of a global growth recession. If a recession were to occur, monetary policymakers lack the tools to respond” http://on.ft.com/1On88Wf

TPP PATH NOW MORE COMPLICATED — POLITICO’s Doug Palmer and Adam Behsudi: “The Obama administration’s uphill battle to win congressional support for the Trans-Pacific Partnership agreement got tougher Wednesday after Hillary Clinton … came out against it. Clinton’s defection means the White House will have to work even harder to keep a handful of Democrats on board for the pact and could give Republicans more leverage to press concerns about details of the agreement that they oppose.” http://politi.co/1NoK99a

CLINTON EYES HIGH SPEED TRADERS — Bloomberg’s Jennifer Epstein: “Hillary Clinton will propose a tax aimed at penalizing ‘harmful’ high-frequency trading strategies and offer ways to strengthen the Volcker Rule, among other measures, as she unveils another set of proposals Thursday aimed at what she has termed risky Wall Street behavior. The Democratic front-runner plans to call for a tax targeting trading strategies that rely heavily on order cancellations, a Clinton aide said Wednesday, previewing her announcements on the condition of anonymity.

“In what her campaign is billing this as an effort to put the interests of the investing public before those of high-frequency traders and "dark pools," where securities are traded privately, Clinton will suggest that the Securities and Exchange Commission launch an overhaul of stock market rules to allow for equal access to markets, greater transparency and the minimization of conflicts of interest.” http://bloom.bg/1hrBEf4

DELL IN MERGER TALKS WITH EMC — WSJ’s Liz Hoffman, Dana Mattioli and Joann S. Lublin: “Dell Inc. is in talks over a combination with EMC Corp., according to people familiar with the matter, a deal that would remove questions about EMC’s future that have hung over the data-storage giant for more than a year. It is unclear whether the two technology-industry heavyweights are discussing a full or partial takeover of EMC, and it is possible no deal will be reached.

“EMC has been considering several options since The Wall Street Journal reported it was doing a strategic review last year, and other options could still be on the table. Shares of EMC were up 7.8 percent in after-hours trading Wednesday after the Journal reported on the possible deal. EMC has a market capitalization of $50 billion, meaning that any such deal could rank as one of the largest tech-industry mergers” http://on.wsj.com/1FYh1ml

ALSO FOR YOUR RADAR —

BOOSTING TAXES ON THE RICH: POPULAR — Per Roosevelt Institute survey: “75 percent of respondents said that ‘raising the top tax rates to ensure CEOs and the wealthiest Americans pay their fair share, and change the tax system to lift the tax burden for the middle class and working families while still funding middle class priorities’ would be effective at producing a better economy” http://bit.ly/1LmAYPS

ALSO HAPPENING TODAY: VETERANS HIRING SUMMIT — Per release: “Blackstone, KKR, The Carlyle Group and TPG will jointly host the inaugural Veterans Initiative Summit [at the Grand Hyatt] to support the hiring of American veterans across private equity portfolio companies. The two-day summit will focus on how portfolio companies held by investment funds sponsored by these companies can attract, retain, and promote veterans, improve business operations and support communities.”

GOLDMAN SOCIAL IMPACT BOND PAYS OFF — NYT’s Nathaniel Popper: “Financial results at Goldman Sachs are going to look a little bit better this quarter because of the educational success of 100 or so kindergarten pupils in Utah. The students were part of a relatively new financial experiment in which Goldman put up money to pay preschool costs for students who had been expected to need special education services.

“When the students were tested this year — after a year in preschool — and found not to need extra help, the State of Utah paid Goldman most of the money it would have spent on special education for the children. The payment represented the first time a so-called social impact bond paid off for investors in the United States.” http://nyti.ms/1je1IMy

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** A message from Grant Thornton LLP: When Congress fails to act, businesses suffer. More than 50 popular tax provisions expired at the end of 2014, including the R&D credit. Congress’s indecision on these provisions is impeding business planning and stifling growth. According to a Grant Thornton survey of top financial executives, more than half of companies that use the provisions do all their planning under the assumption that the extension will not occur. That’s a huge blow to the effectiveness of the provisions and a barrier to growth. The R&D credit is a major driver of entrepreneurial activity and high-paying jobs. Congress needs to act soon to reinstate these provisions and to make the R&D credit permanent. Find out what else Congress could do to strengthen the R&D credit and view survey findings at http://gt-us.co/1iOXJW5

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