/TAXES: LBBW's Karl Haeling said "the.......>

US VIEW: /TAXES: LBBW's Karl Haeling said "the news flow surrounding the outlook

for U.S. taxes increasingly suggest Republicans face much difficulty in cutting

them anytime soon. And the market reaction suggests that while this is clearly

helping to keep long-dated Treasuries stable and is hurting specific market

sectors such as banks and small companies, it is not yet creating any lasting

bearish pressure on broad equity indices."

- He adds that "the Senate Finance Committee reportedly plans to announce its

latest tax proposal at 11:30 New York time Thursday, and it will be

significantly different from the current House Ways and Means Committee proposal

and contain many controversial elements. This points to a lengthy negotiation

process between the Senate and the House that greatly reduces the odds of actual

legislation this year. And it also suggests difficulty in passing anything more

than small cuts at all in the end."