Core Viewpoint - Fitch Ratings indicates that the U.S. tax and spending legislation poses long-term challenges to state budgets [1] Group 1: Tax Implications - The new tax policies may lead to reduced revenue for states, impacting their financial stability [1] - States that rely heavily on income taxes could face significant budgetary pressures due to potential declines in tax collections [1] Group 2: Spending Challenges - Increased spending requirements from the legislation may strain state budgets, necessitating adjustments in fiscal planning [1] - States may need to prioritize spending cuts or seek alternative revenue sources to manage the financial impact [1] Group 3: Long-term Outlook - The long-term fiscal health of states could be jeopardized if they are unable to adapt to the changes brought by the new legislation [1] - Ongoing monitoring of state budgets will be essential to assess the full impact of the tax and spending changes [1]

Group 1 - Copper prices are under pressure due to concerns over tariffs, with LME copper closing down 0.69% at $9,784 per ton and Shanghai copper futures settling at 79,390 CNY per ton [1] - LME copper inventory increased by 2,125 tons to 97,400 tons, with a cancellation rate rising to 37.9% [1] - Domestic copper social inventory rose by over 10,000 tons week-on-week, while bonded zone inventory saw a slight decrease [1] Group 2 - Zinc prices also declined, with the Shanghai Zinc Index falling 1.41% to 22,049 CNY per ton, and LME zinc dropping $50 to $2,695.5 per ton [1] - Domestic zinc social inventory increased slightly to 89,100 tons, indicating a higher supply of zinc ore and expectations for increased zinc ingot availability [1] - The cash-to-three-month structure for LME zinc is declining, putting additional pressure on zinc prices [1]

Group 1 - The core viewpoint is that the U.S. tax and spending legislation aims to prevent the loss of corporate tax revenue to foreign governments [1] Group 2 - The legislation is designed to ensure that U.S. companies contribute to the domestic tax base rather than shifting profits abroad [1] - This initiative reflects a broader strategy to enhance the competitiveness of U.S. businesses while safeguarding tax revenues [1] - The U.S. Treasury Secretary emphasizes the importance of maintaining tax revenue within the country to support public services and infrastructure [1]