US: Conservative Rep Massie Warns Senate Against Tinkering w/Big Beautiful Bill

Jun-06 13:16

Rep Thomas Massie (R-KY), a hardline conservative who voted down the 'Big Beautiful' GOP tax bill in the House, has warned the package will probably fail in the House if the Senate “starts tinkering with it”.

  • Massie told CNN: “And if they start tinkering with it in the Senate, it probably fails in the House. Because people over here are now looking for more reasons to be against it. And if they give them even punctuation changes, that could be a reason to be against it”
  • On Musk’s opposition to the bill, Massie said: “I trust the math from the guy that lands rockets backwards over the politicians’ math.”
  • He added: “I think the patient is on life support – and if the Senate thinks they are going to rehabilitate it and rewrite it, I think they’re endangering this patient”
  • Axios reports that GOP senators are "eyeing Medicare" as a potential route for savings that could get deficit hawks in both chambers onside.
  • Axios: “… some GOP senators think they can find billions in savings by targeting "waste, fraud and abuse" and get away with it politically, as long as they don't cut benefits for the program's core beneficiaries.”
  • Senator Steve Daines (R-MT), a close Trump ally in the Senate, said: "Find me an American who thinks we should have waste, fraud and abuse in Medicare."
  • Axios notes separately that Trump gave GOP senators a green light to "explore ways to save money on Medicare."

Historical bullets

EQUITIES: Stoxx600 call buyer

May-07 13:13

SXXP (20th June) 557.5c, bought for 1.6 and 1.7 in ~15k.

ITALY DATA: Weak Retail Sales Momentum Suggests Consumption Drag In Q1

May-07 13:13

Weak Italian retail sales momentum suggests sequential quarterly household consumption growth was tepid - possibly negative – in Q1. 

  • March nominal retail sales fell 0.5% in March. The three analysts submitting forecasts for the print were between +0.1 and +0.3%. Real sales were also -0.5% M/M, the fifth negative sequential print in the last six months. That dragged 3m/3m growth down to -0.59% (vs -0.42% prior).
  • ISTAT retailer confidence has been expansionary throughout the last 3 years, but momentum has been waning in 2025.
  • Although the Q1 flash GDP report indicated that domestic demand made a positive contribution to growth, a detailed split across expenditure component was not available.   
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CROSS ASSET: Estoxx Futures closes the Gap, Bund test a new high

May-07 13:09
  • Estoxx futures has now closed the Opening gap down to 5209.00, not a Tech level.
  • This latest push lower helps Bund print a new intraday high, but no real trigger for the move, mostly some order related flow, and a continuation since Bond went bid post the French Auctions this Morning.
  • Support in VGM5 is at 5178.00, this is only Yesterday's low.