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May 31, 2025

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Leadership Rotation Could Confirm Corrective Phase

There’s no denying that the equity markets have taken on a decisively different look and feel in recent weeks.  We’ve compared the charts of the S&P 500 and Nasdaq 100, as well as leading growth stocks like Nvidia, to an airplane experiencing a “power-on stall”.  Basically, the primary uptrend has been paused, but it’s unclear whether we’ll resume the uptrend after a brief corrective period.

I stand by my previous comments that the 200-day moving average, as well as the price gap formed in early May, remains the most important “line in the sand” for this market.  And as long as the S&P 500 and other leading names remain above their 200-day moving averages, then equities are still in decent shape.

One of the key features of this market off the early April has been the dominance of traditionally “offensive” sectors such as technology and consumer discretionary.  But are these leading sectors maintaining their leadership role as we progress through the spring months into the summer?

Leading Sectors Off the April Low Starting to Falter

My Market Misbehavior LIVE ChartList includes a series of relative strength charts showing the performance of key sectors versus the S&P 500.  When these lines are trending higher, the sector is outperforming the benchmark.  Generally speaking, I’d prefer to own stocks where the relative strength line is trending higher, as that confirms I’m doing better than a passive investment strategy!

Only three sectors have outperformed the S&P 500 index over the last month: technology, industrials, and consumer discretionary.  Notice how two of those sectors, technology and consumer discretionary, are seeing a downturn in relative strength over the last week?  It still may be early to declare a full leadership rotation, but this initial downturn in the relative performance could be a sign of further weakness to come.

Defensive Sectors Showing Early Signs of Strength

So if these leadership sectors are starting to slow down, which sectors are showing an improving relative strength?  Our next chart shows the relative performance of the four traditionally defensive sectors, most of which have turned higher over the last two weeks. 

Again, I’d hesitate to declare this a full and confirmed rotation, but the fact that defensive sectors are improving here suggests investors are beginning to reallocate a bit to more risk-off positions.  Over the next few weeks, improvement in these defensive sectors could provide a clear validation to a “market in correction” thesis.

Relative Rotation Graphs Confirm Defensive Rotation

Of course, when we’re talking about sector rotation, I always want to bring up the Relative Rotation Graphs (RRG) and benefit from Julius de Kempenaer’s innovative data visualization approach.  First, let’s see how the daily RRG showed the 11 S&P 500 sectors back in early May.

We can see that the Leading quadrant includes those leading sectors such as technology.  In the Lagging quadrant we’ll find pretty much everything else, including all four of the defensive sectors discussed above.  Now let’s fast forward to the current RRG and see how things have rotated.

Now you’ll find health care, consumer staples, and other defensive sectors in the Improving quadrant.  Technology, industrials, and consumer discretionary have now rotated down into the Weakening quadrant.  So the RRG is showing at least an initial rotation away from the sectors that have been leading off the April market low.

One of the most important arguments from the bulls has been the dominance of offensive sectors over the last six weeks.  But as we’ve shown here today, the sector may be changing from a clearly bullish reading to a much more defensive warning sign for investors.

RR#6,

Dave

PS- Don’t miss our daily market recap show on YouTube every trading day at 5:00pm ET!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

marketmisbehavior.com

https://www.youtube.com/c/MarketMisbehavior

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

Top 5 Canadian Mining Stocks This Week: Adyton Sparkles with 97 Percent Gain

Statistics Canada reported on Friday (May 30) that real gross domestic product (GDP) gained 0.5 percent during the first quarter of 2025. Even on a per capita basis, real GDP posted a strong 0.4 percent increase.

The agency primarily attributed the rise to a 1.6 percent increase in exports during the quarter. The higher export amounts were led by a 16.7 percent growth in passenger vehicle exports and a 12 percent rise in industrial machinery, equipment and parts exports, both of which were driven higher in response to imposed and threatened tariffs from the United States.

On a monthly basis, the GDP registered a 0.1 percent gain in March, following a 0.2 percent contraction in February. The most significant contributor to the rise came from the resource sector, which posted a 2.2 percent increase, with oil and gas gaining 2 percent.

When it came to mining, metal ore mining rose 1.7 percent overall. Copper, nickel, lead and zinc recorded a 2.4 percent gain, while the other metal mining category increased by 16.9 percent. However, a 3.1 percent decline in gold and silver mining hindered overall growth across the subsector.

South of the border, the US Bureau of Economic Analysis (BEA) released its second estimate for first quarter GDP on Thursday (May 29). Its figures indicated that GDP contracted 0.2 percent in the first three months of the year, down significantly from a 2.4 percent gain in the fourth quarter of 2024.

The Bureau attributed the decline to an increase in imports and a decrease in government spending. However, the agency also noted that upturns in investment and exports partially offset the fall during the quarter.

On Friday, the BEA released April’s personal consumption expenditures (PCE) index. The data shows that on an annual basis, all items PCE growth had further slowed to 2.1 percent compared to the 2.3 percent recorded in March. PCE less the volatile food and energy categories also slowed on an annual basis, up 2.5 percent in April compared to 2.7 percent in March.

The PCE is the preferred inflationary measure used by the US Federal Reserve to set its benchmark interest rate, the Federal Funds Rate. The slowing pace is currently in line with the central bank’s 2 percent target goal. Still, with uncertainty surrounding tariffs and US economic policy, most analysts expect the Fed to maintain the rate at the current 4.25 to 4.5 percent range when it next meets on June 18 and 19.

Markets and commodities react

In Canada, major indexes were mixed at the end of the week.

The S&P/TSX Composite Index (INDEXTSI:OSPTX) gained 0.9 percent during the week to close at 26,175.05 on Friday. However, the S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 0.02 percent to 694.40 and the CSE Composite Index (CSE:CSECOMP) shed 3.78 percent to 115.01.

US equities were in positive territory this week, with the S&P 500 (INDEXSP:INX) gaining 2.24 percent to close at 5,911.68, the Nasdaq-100 (INDEXNASDAQ:NDX) rising 2.57 percent to 21,340.99 and the Dow Jones Industrial Average (INDEXDJX:.DJI) adding 1.79 percent to 42,270.08.

The gold price was flat this week, posting a loss of just 0.04 percent, to close Friday at US$3,293.21. The silver price was also marginally down, shedding 0.54 percent during the period to US$32.87.

In base metals, the COMEX copper price fell 3.47 percent over the week to US$4.72 per pound, pulling back from its gains seen late last week. Meanwhile, the S&P GSCI (INDEXSP:SPGSCI) posted a decline of 1.57 percent to close at 524.66.

Top Canadian mining stocks this week

How did mining stocks perform against this backdrop?

Take a look at this week’s five best-performing Canadian mining stocks below.

Stock data for this article was retrieved at 4 p.m. EDT on Friday using TradingView’s stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.

1. Adyton Resources (TSXV:ADY)

Weekly gain: 96.55 percent
Market cap: C$59.79 million
Share price: C$0.285

Adyton Resources is working to advance the Feni Island and Fergusson Island gold projects in Papua New Guinea.

The Feni Island site has seen historic exploration, with 212 holes drilled over 18,813 meters. While limited work has been conducted by Adyton, a 2021 resource estimate shows an inferred resource of 1.46 million ounces of gold. The company has been working to expand its gold resource and explore for copper at greater depths than previous exploration.

While Feni Island has been its primary focus, Adyton has also been working to advance its Fergusson Island project.

The project consists of two advanced exploration licenses for the Wapolu and Gameta targets, which host a combined indicated resource of 173,000 ounces of gold and an inferred resource of 540,000 ounces of gold. The site also hosts a past-producing mine, which was abandoned in the 1990s.

On March 12, Adyton reported that a team from the Papua New Guinea Mineral Resource Authority had visited the Fergusson Island site to familiarize themselves with the project and to provide an approval process for the restart of the mine.

The most recent news from Adyton came on Wednesday (May 28), when it released its first quarter management discussion and analysis. In the report, the company provided a summary of its activities during the first quarter and demonstrated an increase in its balance sheet compared to the previous quarter.

2. Sterling Metals (TSXV:SAG)

Weekly gain: 80.77 percent
Market cap: C$15.15 million
Share price: C$0.47

Sterling Metals is an exploration company working to advance a trio of projects in Canada.

Over the past year, its primary focus has been on exploration at its brownfield Soo copper project in Ontario, which it recently renamed from Copper Road. The 25,000 hectare property hosts two past-producing copper mines and has the potential for larger intrusion-related copper mineralization.

On January 15, Sterling announced results from a 3D induced polarization and resistivity survey that covered an area of 5 kilometers by 3 kilometers and revealed multiple high-priority drill-ready targets. The company intends to use the survey results, along with historical exploration, to inform a drill program at the site.

The company’s other two projects are located in Newfoundland and Labrador. Adeline is a 297 square kilometer district-scale property with sediment-hosted copper and silver mineralization along 44 kilometers of the strike, and Sail Pond is a silver, copper, lead and zinc project that hosts a 16 kilometer long linear soil anomaly and has seen 16,000 meters of drilling.

On Thursday, Sterling announced that the first of four diamond drill holes from the initial drill program at Soo ‘demonstrated a continuous, bulk-tonnage copper-molybdenum-silver-gold target, called the GFP Porphyry.’ The company highlighted a broad, near-surface zone grading 0.28 percent copper equivalent over a length of 482.8 meters, which included an intersection of 0.56 percent copper equivalent over the first 75.2 meters.

3. Grid Battery Metals (TSXV:CELL)

Weekly gain: 58.33 percent
Market cap: C$23.19 million
Share price: C$0.095

Grid Battery Metals is a North America battery metals company with a portfolio of lithium projects in Nevada, US, including the Clayton Valley lithium project. The company also recently acquired the Grid copper-gold project in North-central British Columbia, Canada.

The project consists of 17 claims covering a total land package of 27,525 hectares in the Omineca Mining Division near Fort St. James. Grid announced on March 17 that it had completed the acquisition of the property from former Grid subsidiary AC/DC Battery Metals (TSXV:ACDC) in exchange for 5 million shares in Grid at C$0.05 per share as well as a C$48,172.15 payment for staking costs.

The property has seen minimal exploration, but a technical report for the site included a mineral resource estimate for the neighboring Kwanika-Stardust project owned by Northwest Copper (TSXV:NWST,OTC Pink:NWCCF).

The Kwanika Central Zone hosts measured and indicated resources of 385.7 million pounds of copper, 532,500 ounces of gold and 1.97 million ounces of silver from the open pit area, as well as 410.6 million pounds of copper, 738,000 ounces of gold and 1.9 million ounces of silver from the underground portion.

Shares in Grid saw gains this week, but the company’s most recent project-related news came on May 20, when it announced it had engaged with Hardline Exploration to begin to begin work at the property.

4. EMP Metals (CSE:EMPS)

Weekly gain: 54.17 percent
Market cap: C$40.79 million
Share price: C$0.37

EMP Metals is a lithium exploration and development company working to advance its EMP direct lithium extraction project in Saskatchewan, Canada. The project is composed of three prospective lithium brine properties covering an area of 81,000 hectares.

A February 2024 preliminary economic assessment for the lithium brines in the Viewfield area of Southern Saskatchewan suggests a resource of 130,056 metric tons of lithium in place from a total brine volume of 1.06 billion cubic meters.

The economics of the project indicate an after-tax net present value at a discount rate of 8 percent of C$1.44 billion with an internal rate of return of 45.1 percent over a payout period of 2.4 years.

Shares in EMP gained this past week after it announced on Thursday it entered into a deal with Saltwork Technologies to develop, build and operate a lithium refining demonstration plant at the Viewfield property.

Once complete, the plant will process 10 cubic meters per day of lithium brine into concentrated lithium chloride. Additionally, Saltworks will upgrade its lithium conversion plant in Richmond, British Columbia, to continuously process lithium chloride into lithium carbonate.

5. Mogotes Metals (TSXV:MOG)

Weekly gain: 54.05 percent
Market cap: C$48.46 million
Share price: C$0.285

Mogotes Metals is an explorer working to advance its Filo Sur copper-gold-silver project, which straddles the border between Argentina and Chile in the Vicuña copper district.

The Argentinean portion of the site, representing the bulk of the land package at 8,118 hectares, is the subject of an earn-in agreement with Golden Arrow Resources (TSXV:GRG,OTCQB:GARWF), a member of the Grosso Group.

On March 26, Mogotes announced that it had closed an amended deal that would provide the company with 100 percent ownership of the project. Under the terms of the deal, Mogotes paid Golden Arrow C$550,000 in cash, issued 10.71 million common shares and invested C$450,000 in Golden Arrow via a private placement. The terms also include future commitments.

The company’s most recent news came on May 12, when it announced that the first line of a geophysical survey had identified a large, near surface anomaly located 2.8 kilometers south of Lundin Mining’s (TSX:LUN,OTCQX:LUNMF) Filo Del Sol project.

FAQs for Canadian mining stocks

What is the difference between the TSX and TSXV?

The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.

How many mining companies are listed on the TSX and TSXV?

As of February 2025, there were 1,572 companies listed on the TSXV, 905 of which were mining companies. Comparatively, the TSX was home to 1,859 companies, with 181 of those being mining companies.

Together the TSX and TSXV host around 40 percent of the world’s public mining companies.

How much does it cost to list on the TSXV?

There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.

The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.

These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.

How do you trade on the TSXV?

Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.

Article by Dean Belder; FAQs by Lauren Kelly.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

NVIDIA Rallies After Strong Q1, AI Demand Outshines China Export Hit

NVIDIA (NASDAQ:NVDA) shares rose over 5 percent to hit US$142.50 on Thursday (May 29), extending a powerful rally that reflects Wall Street’s optimism in the chipmaker’s long-term trajectory

The company’s positive performance came despite a bruising blow from US export restrictions to China.

The semiconductor giant, seen by many industry experts as the backbone of the global artificial intelligence (AI) boom, reported better-than-expected financial results for its first fiscal quarter of 2026 on Wednesday (May 28), allaying fears that geopolitical tensions and tighter trade controls could derail its momentum.

In the face of a projected US$8 billion revenue hit from the export ban on China and a US$4.5 billion writedown on unsold inventory, investors appeared to focus on NVIDIA’s dominant position in the fast-expanding AI market.

“There is one chip in the world fueling the AI Revolution and it’s Nvidia,” wrote Dan Ives, a tech analyst at Wedbush Securities. “That narrative is clear from these results and the positive commentary from Jensen.”

NVIDIA posted quarterly revenues of US$44.1 billion, beating consensus analyst estimates of US$43.3 billion. That’s also a staggering 69 percent increase from the US$26 billion reported in the same quarter last year.

The company’s flagship data center division, which supplies AI chips to major clients like Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META), reported US$39.1 billion in sales.

Although that’s a slight miss from Wall Street’s US$39.2 billion forecast, it’s still up from US$22.5 billion last year.

“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning — is now in full-scale production across system makers and cloud service providers,” said Jensen Huang, founder and CEO of NVIDIA.

“Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate.”

Earlier this month, Huang traveled with US President Donald Trump to the Middle East, where the company reportedly secured orders for hundreds of thousands of chips from Saudi Arabia.

Yet NVIDIA’s latest results also expose the mounting risks the firm faces as global trade policy tightens.

In recent months, Washington has sharply escalated restrictions on semiconductor exports to China, targeting chips like NVIDIA’s H20 — a China-specific product designed to comply with US rules. The US Department of Commerce has banned shipments of these chips to Chinese firms, citing concerns about potential military applications.

The move forced NVIDIA to write off US$4.5 billion in H20 inventory, and the company estimates a US$2.5 billion revenue loss in the current quarter as a result. Huang placed the broader impact of the China restrictions at US$15 billion.

“The US$50 billion China market is effectively closed to US industry,” he said in an interview. “We are exploring limited ways to compete, but Hopper is no longer an option. China’s AI moves on with or without US chips.”

While NVIDIA has previously indicated that it could redesign chips to meet evolving US export rules, Huang has become increasingly vocal in his criticism of Washington’s policy direction. Speaking to reporters after NVIDIA’s earnings call, he described the restrictions as a “failure” that will ultimately hurt American companies more than Chinese rivals.

The pressure on NVIDIA intensified further this week, as the Financial Times reported that Trump has instructed US suppliers of chip-design software to halt sales to Chinese firms.

Nonetheless, NVIDIA’s strong earnings, coupled with a federal court ruling blocking some of Trump’s proposed tariffs, have reassured investors. AI-driven demand appears robust enough to offset near-term geopolitical volatility.

For now, the markets have spoken — and they’re betting big on NVIDIA’s future.

“Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation,” Huang emphasized post-earnings.

NVIDIA’s share price spike this week put it on track for its highest close since January, and triggered a broader rally across the semiconductor sector.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

Amazon’s devices unit has a new team tasked with inventing “breakthrough” consumer products that’s being led by a former Microsoft executive who helped create the Xbox.

The ZeroOne team is spread across Seattle, San Francisco and Sunnyvale, California, and is focused on both hardware and software projects, according to job postings from the past month. The name is a nod to its mission of developing emerging product ideas from conception to launch, or “zero to one.”

Amazon has a checkered history in hardware, with hits including the Kindle e-reader, Echo smart speaker and Fire streaming sticks, as well as flops like the Fire Phone, Halo fitness tracker and Glow kids teleconferencing device.

Many of the products emerged from Lab126, Amazon’s hardware research and development unit, which is based in Silicon Valley.

The new group is being led by J Allard, who spent 19 years at Microsoft, most recently as technology chief of consumer products, a role he left in 2010, according to his LinkedIn profile. He was a key architect of the Xbox game console, as well as the Zune, a failed iPod competitor.

Allard joined Amazon in September, and the company confirmed at the time that he would be part of the devices and services team under Panos Panay, who left Microsoft for Amazon in 2023 to lead the group.

An Amazon spokesperson confirmed Allard oversees ZeroOne but declined to comment further on the group’s work.

The job postings provide few specific details about what ZeroOne is building, though one listing references working on “conceiving, designing, and bringing to market computer vision techniques for a new smart-home product.”

Another post for a senior customer insights manager in San Francisco says the job entails owning “the methodology and execution of concept testing and early feedback for ZeroOne programs.”

“You’ll be part of a team that embraces design thinking, rapid experimentation, and building to learn,” the description says. “If you’re excited about working in small, nimble teams to create entirely new product categories and thrive in the ambiguity of breakthrough innovation, we want to talk to you.”

Amazon has pulled in staffers from other business units that have experience developing innovative technologies, including its Alexa voice assistant, Luna cloud gaming service and Halo sleep tracker, according to Linkedin profiles of ZeroOne employees. The head of a projection mapping startup called Lightform that Amazon acquired is helping lead the group.

While Amazon is expanding this particular corner of its devices group, the company is scaling back other areas of the sprawling devices and services division.

Earlier this month, Amazon laid off about 100 of the group’s employees. The job cuts included staffers working on Alexa and Amazon Kids, which develops services for children, as well as Lab126, according to public filings and people familiar with the matter who asked not to be named due to confidentiality. More than 50 employees were laid off at Amazon’s Lab126 facilities in Sunnyvale, according to Worker Adjustment and Retraining Notification (WARN) filings in California.

Amazon said the job cuts affected a fraction of a percent of the devices and services organization, which has tens of thousands of employees.

This post appeared first on NBC NEWS

U.S. foreign tax bill sends jitters across Wall Street

While U.S. President Donald Trump’s tariffs play out in U.S. courts, another one of his proposed laws could weaponize the American tax system.

Investment banks and law firms warn this step could prove to be as significant as the impact of duties on investors.

The “One Big Beautiful Bill Act,” which passed through the U.S. House of Representatives last week, includes the most sweeping changes to the tax treatment of foreign capital in the U.S. in decades under a provision known as Section 899. The bill must still gain the Senate’s approval.

“We see this legislation as creating the scope for the US administration to transform a trade war into a capital war if it so wishes,” said George Saravelos, global head of FX research at Deutsche Bank on Thursday.

“Section 899 challenges the open nature of US capital markets by explicitly using taxation on foreign holdings of US assets as leverage to further US economic goals,” Saravelos added in the note to clients, under the subtitle “weaponization of US capital markets in to law.”

Section 899 says it will hit entities from “discriminatory foreign countries” — those that impose levies such as the digital services taxes that disproportionately affect U.S. companies.

France, for instance, has a 3% tax on revenues from online platforms, which primarily targets big technology firms such as Google, Amazon, Facebook, and Apple. Germany is reportedly considering a similar tax of 10%.

Under the new tax bill, the U.S. would hit investors from such countries by increasing taxes on U.S. income by 5 percentage points each year, potentially taking the rate up to 20%.

Emmanuel Cau, head of European Equity Strategy at Barclays, suggested that the mere passage of the tax legislation could make dollar assets less valuable for foreign investors.

“In our view, this is a risk for those companies generating US revenues, and domiciled in countries that have enacted Digital Services Taxes (DST) or are implementing the OECD’s Under Taxed Payment Rule (UTPR),” Cau said in a Friday note to clients.

He highlighted companies such as London-listed Compass Group, which provides catering services to U.S. schools, and InterContinental Hotels, which owns at least 25 luxury hotels in the U.S., are likely to be affected by the proposed law.

“Given US net international investment position is sharply negative, there is indeed scope for capital outflows if indeed S899 passes through the Senate in its current form,” he added.

The impact of the bill won’t be limited to European companies or individuals from those states.

The bill “could significantly increase tax rates applicable to certain non-U.S. individuals and business, governmental, and other entities,” said Max Levine, head of U.S. tax at the law firm Linklaters.

This means it could also ensnare governments and central banks, which are large investors of U.S. Treasuries. France and Germany, for instance, held a combined $475 billion worth of U.S. government bonds as of March.

The proposed tax would lower returns on U.S. Treasuries for those investors as “the de facto yield on US Treasuries would drop by nearly 100bps,” Deutsche Bank’s Saravelos added. “The adverse impact on demand for USTs and funding the US twin deficit at a time when this is most needed is clear”.

“It’s very bad,” said Beat Wittmann, chairman of Switzerland-based Porta Advisors. “This is huge — this is just one piece in the overall plan and it’s completely consistent with what this administration is all about.”

“The ultimate judge for this is not our opinions, it’s the bond market,” Wittmann added. “The U.S. bond market is discounting these developments, and we have seen in the last few weeks, that if there was a safe haven move, investors clearly prefer German bunds.”

Large Australian pension funds with U.S. investments have also been reportedly concerned by the bill, since Australia operates a medicines subsidy scheme that is opposed by large U.S. pharmaceutical companies.

Legal experts at the Mayer Brown law firm suggest that “significant changes” could be made to the bill as it passes through the U.S. Senate before it’s enshrined into law by Trump.

“As such, there may be questions about whether the provisions of the proposal that override tax treaties could be included in the US Senate’s version of the tax bill,” Mayer Brown’s experts said.

This post appeared first on NBC NEWS