Happy Monday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
THE BIG DEAL- Manhattan prosecutor agrees to shelve subpoena for Trump tax returns: Manhattan’s top prosecutor on Monday agreed to delay enforcement of a subpoena for eight years of President Trump’s tax returns.
Cyrus Vance Jr., the Democratic district attorney for Manhattan, had the legal right as of this Friday to enforce a New York grand jury subpoena to obtain a lengthy financial paper trail that includes Trump’s corporate and personal tax records.
But Vance has agreed to temporarily shelve the subpoena against Trump’s accounting firm, Mazars USA.
What it means:
- The delay allows for another round of litigation, extending the nearly yearlong court battle over the subpoena in which Trump has lost every bout, including a landmark decision last month at the Supreme Court.
- As a result of the deal, Trump has at least one more opportunity to argue in court that the subpoena for his tax records is unlawful. The 2nd Circuit will hear arguments Sept. 1.
The Hill’s John Kruzel walks us through the deal here.
VIRTUAL EVENT ANNOUNCEMENT: ON THE AGENDA: AFFORDABLE HOUSING–TUESDAY, AUGUST 25TH AT 1 PM EDT A place to call home has always been a basic need and yet the lack of safe, affordable housing remains an issue today. On the sidelines of the 2020 Republican Convention, The Hill will host discussions on what can be done to ensure all Americans have access to a safe and affordable home. Miami Mayor Francis Suarez, Mesa, AZ Mayor John Giles. and a panel of housing experts join The Hill’s Steve Clemons. RSVP for event reminders.
LEADING THE DAY
Trump faces race against clock on economy: The worst economic crisis since the Great Depression is depriving President Trump of what was once his strongest argument for a second term.
There are still 10 weeks before the election, and any signs of a strong recovery could bolster Trump’s case that he’s the best steward on the economy. But missteps in containing the coronavirus have dampened the chances of that happening.
- The president also faces a much earlier deadline in his race against time since many voters make up their minds on economic issues several months before Election Day.
- That means even a blockbuster jobs report or GDP number shortly before Nov. 3 would likely do little to sway the electorate.
- Election forecasters have long held that economic performance is a key determinant of reelection prospects for Oval Office occupants. For example, no president in the post-World War II era has ever been granted a second term with the unemployment rate in double digits.
The Hill’s Niv Elis breaks down Trump’s daunting challenge here.
S&P sets third new record high in less than two weeks: The S&P 500 index hit a new record high on Monday as the stock market stretched its tech-fueled rally into another week.
The S&P closed with a gain of 34 points, or 1 percent, to set a new closing record at 3,431 on Monday after setting two new records last week. The Dow Jones Industrial Average also gained more than 378 points, rising roughly 1.4 percent, and the Nasdaq composite rose 0.6 percent.
After treading water earlier in August, the stock market has continued its steady rebound from the depths of the coronavirus crash in March to recover nearly all of its pandemic-driven losses.
“Momentum is mostly in the ‘growth’ stocks, meaning Tech, and until the trade stops working, portfolio managers might be tempted to keep putting money there,” wrote JJ Kinahan, chief market strategist at TD Ameritrade, in a Friday analysis.
I have more here.
TikTok sues Trump administration over executive order: TikTok announced Monday that it is suing the Trump administration over its executive order aimed at banning the short-form video app from the country.
“The administration ignored our extensive efforts to address its concerns, which we conducted fully and in good faith,” the company said in a press release announcing the suit. “We do not take suing the government lightly, however we feel we have no choice but to take action to protect our rights, and the rights of our community and employees.”
Trump signed two executive orders earlier this month compelling ByteDance, the China-based company that owns TikTok, to sell off its American assets, arguing that its ties to China pose a security threat.
- The first order, signed Aug. 6, would ban transactions with the app within 45 days.
- The second order, signed a week later, gave ByteDance 90 days to divest.
- Monday’s lawsuit argues that the Trump administration failed to provide evidence for TikTok being a national security threat in the first of the two orders.
The Hill’s Chris Mills Rodrigo breaks it down here.
GOOD TO KNOW
- The director of the U.S. Mint on Monday asked Americans to help fight widespread coin shortages by using exact change for purchases and exchanging coins for cash at banks and kiosks.
- One in every five small businesses say they will not be able to stay open if economic conditions don’t improve in the next six months, and a similar number say they can only last a year, according to a survey released Monday.
- New York Times: “Why Trump’s Approval Ratings on the Economy Remain Durable”
- The 19th: “Double-digit unemployment. Increased hours of child care. Lost hours and benefits. In three months, women lost a decade’s worth of economic advancement. How long will it take to catch back up?”
- The Washington Post: “Debt, eviction and hunger: Millions fall back into crisis as stimulus and safety nets vanish”
Video: Trump-appointed Postal Service chief to testify amid fears about U.S. election (Reuters)