Market Morning: Trump Impeached, Cannabis UnSAFE, E-Cigarettes Cornered, Boeing Starliner Debut

President Trump Impeached, Will Have Field Day In Senate Trial

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In a move reminiscent of lobbing a slow serve over the net to Novak Djokovic in the hopes that he’ll somehow miss it, the Democrat-controlled House of Representatives has voted to impeach President Donald Trump for abuse of power and obstruction of Congress. Specifically, for appearing to ask Ukrainian President Volodymyr Zelensky to investigate the son of former Vice President Joe Biden, Hunter Biden, as to why he was paid $50,000 a month to sit on the board of Ukrainian gas company Burisma. Biden the younger got the job almost immediately after being kicked out of the US navy for abusing cocaine. Biden Jr. is a known alcoholic, drug addict, and suspected frequent visitor of prostitutes and strip clubs by his ex wife, which is only relevant to the impeachment proceedings insofar as the Republican-controlled Senate can potentially call him, and father Joe, as witnesses in the impeachment trial, which should be quite interesting if the GOP decides to take it that way.  Hence the lob serve to Djokovic. Watch for a potential pop in Conagra Brands (NYSE:CAG), owner of Orville Redenbacher popcorn, as Americans stock up to watch the show.

SEE: Fluent Launches CBD Infused Beverage Brand in Canada

Cannabis Banking Act Faces Opposition in Senate

Senate Banking Committee Chairman Mike Crapo isn’t a big fan of banking services for the cannabis industry. “I have significant concerns that the SAFE Banking Act does not address the high-level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system,” he said. The Secure And Fair Enforcement (SAFE) Banking Act would make it legal for cannabis companies to use banks, which is sort of important for businesses these days. The illegality of cannabis on a federal level makes it impossible for federally-chartered banks at this point to do business with cannabis companies, who are forced to transact in cash in order to do business, much like a black market dealer. The bill would lose its relevance if cannabis were removed from DEA scheduling, which could take a while. (NYSEARCA:MJ)

E-Cigarettes May Move to Black Market By May

Speaking of smoking, the e-cigarette industry may cease to exist as a legal entity next year, moving to the black market and becoming even more dangerous than it already is. Companies must submit applications to the FDA by May 2020 proving their products are a net benefit to public health, similar to the masses of dangerous opioids like fentanyl, which is 50x more potent than heroin and is FDA-approved because for some reason it is a net benefit to public health. The question the FDA will be asking is whether e-cigarettes are effective in getting smokers to quit, and if so, does that outweigh the dangers to those who get hooked on nicotine in the first place because of e-cigarettes. Growth in vaping since 2015 has come from users under 25. Altria (NYSE:MO) bought a 35% stake in Juul for $12.8B one year ago tomorrow. So much for that.

Not All Bad News for Boeing As Starliner Flies WWII-Era Mannequin Into Space

Boeing (NYSE:BA), may have suspended production of its best-selling 737 MAX, but it’s still flying inanimate objects into space, trying out for NASA. Rosie the mannequin will be flying to the International Space Station in Boeing’s new Starliner crew capsule. If the mannequin makes it, not necessarily alive, but at least well, Boeing could be flying NASA astronauts into space by next year. Boeing is in competition with Elon Musk’s SpaceX. Astronauts haven’t flown into space for eight and a half years now. The launch of the mannequin will take place on Friday from Cape Canaveral. The Starliner will be filled with Christmas presents and various treats for the six people on the ISS, and 500 seeds to see what they can do in space. Boeing didn’t have to invest much into developing the capsule, because the money was given by taxpayers.

Budget Deficit To Widen Even Further With More Tax Cuts

Speaking with Fox News, White House Economic Council director Larry Kudlow let the cat out of the bag about more tax cuts, but not spending cuts. “If he [Trump] mentions tax cuts 2.0, and I’d love to do it, he will be talking about something that’s under process and wouldn’t be published until we’re well into the campaign later next year,” Kudlow said. He went on to talk about wage increases, throwing out a bunch of numbers that are disputed from every angle, and talked up the economy, which he said was ”terrific” and would continue being so for some time yet. He said 2020 would be more than terrific, “absolutely terrific” to be exact. (The line between terrific and terrible is only three letters.)

 

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