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Trump to make major Russia address Monday

Trump to make major Russia address Monday

Yahoo14 hours ago
Friday, President Donald Trump dialed into NBC to say he's cooking up a major statement on Russia for Monday. He didn't hold back on Putin's recent missile and drone strikes on Kyiv and said he's ready to unleash Senator Lindsey Graham's tough new sanctions bill whenever he sees fit.
He also let slip a neat little trick: the U.S. will send weapons to NATO, NATO will pick up the tab, and then funnel those arms straight to Ukraine.
It keeps Washington from footing the entire bill directly but still gets critical gearair-defense systems, artillery shells and the likeinto Ukrainian hands faster.
All of this comes on the heels of Marco Rubio sitting down with Russia's Sergei Lavrov at the ASEAN summit. With tensions rising on the ground, Monday's announcement could reshape how the U.S. and its allies back Kyiv going forward.
That's likely to be a jolt or potentially positive move for the stock market, that's been mostly choppy this year. However, of late, the investor enthusiam has recovered, with S&P 500 racking up record highs.
This article first appeared on GuruFocus.
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Mexico's ‘cool-head' Trump approach tested by new tariff threat
Mexico's ‘cool-head' Trump approach tested by new tariff threat

Yahoo

time28 minutes ago

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Mexico's ‘cool-head' Trump approach tested by new tariff threat

(Bloomberg) — Mexican officials were taken aback by President Donald Trump's latest tariff threat after paying frequent visits to his top aides in Washington to convince him their efforts to fight drug trafficking were paying off. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis Philadelphia Reaches Pact With Workers to End Garbage Strike For months, US officials have been effusive about Mexican cooperation on issues related to the border and security. 'Very responsive,' raved Secretary of State Marco Rubio. 'Positive momentum,' Treasury Secretary Scott Bessent called it. On Saturday, Trump blasted the country's response in a letter threatening 30% tariffs. 'What Mexico has done is not enough,' he wrote. 'Mexico still has not stopped the Cartels.' Mexican President Claudia Sheinbaum called for the country to keep 'a cool head,' but a sense of exasperation swept over people involved in the US negotiations, according to people familiar with the talks. Their cordial approach suddenly seemed to have yielded little — for now. The neighboring nation is looking to persuade Trump that Mexico and the US are complementary economies, and that Mexico is willing to cooperate against cartels in unprecedented ways, added the people, who asked for anonymity to discuss internal deliberations. Trump's threat of a 30% rate, with exceptions for products certified under the trilateral trade agreement between the two countries and Canada, is unlikely to drastically move the needle beyond the 25% rate already in place, according to Bloomberg Economics. Nearly 83% of US imports from Mexico were exempt from tariffs in May, mainly due to exemptions on USMCA-compliant goods. For rolling updates on tariffs, check out our liveblog > But Trump's 30% threat isn't much better than the 35% rate he announced for Canada, which has taken a much more confrontational tone with Trump while Mexico played nice. Some US officials tried to suggest cooperation could continue despite the letter. US Ambassador to Mexico Ronald Johnson said Saturday in Mexico City that Sheinbaum and Trump have a 'wonderful relationship' and no partnership should be easier than between their two countries. 'America First doesn't mean America alone. In fact, I'm here in Mexico with my arms open in friendship with a message of true respect for the sovereignty of Mexico,' he said at a tuxedo-filled gala thrown in his honor and attended by many from Mexico's political, business and media elite. Sector-specific tariffs, including on steel and soon on copper, had given Mexico in recent weeks reasons to appeal to Trump's officials for a fairer deal as it seeks to protect its position as the US's top trade partner in the world. It had shielded part of its export industry by negotiating to have a previously announced auto duty limited to the non-US portion of cars. 'Mexican authorities will likely continue to engage constructively with the US administration, on border control and to some extent also by hardening the stance against the drug cartels and the flow of fentanyl into the US, in order to preserve access to the US market under competitive conditions,' wrote Alberto Ramos, head of Latin American economics at Goldman Sachs Group Inc., in a note. Mexico's peace offerings have included the extradition of dozens of high-profile detainees involved in the drug trade, and an increase in busts along drug routes. Its security minister has been one of the visitors in the Washington talks, and on the domestic front the government has pushed for legislation to increase investigations of unsolved crimes. But ties have also been strained in recent weeks by the US announcement of a move to cut off three Mexican financial firms over potential involvement in money laundering for drug cartels. For now, Mexico is staying the course. The Economy Ministry said in a statement on Saturday that Minister Marcelo Ebrard had been in Washington since Friday for negotiations with the White House, the US Trade Representative and the Commerce Department, and that Mexico would defend its interests. The ministry called Trump's proposed tariff increase, to take effect Aug. 1, 'unfair.' Mexico will work to find 'an alternative that allows us to protect businesses and jobs on both sides of the border,' the ministry said. 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Trump's Cuts Are Making Federal Data Disappear Soccer Players Are Being Seriously Overworked Trade War? No Problem—If You Run a Trade School Will Trade War Make South India the Next Manufacturing Hub? ©2025 Bloomberg L.P. Sign in to access your portfolio

Markets can't be bullied, and the US could face a financial crisis ahead of next year's midterm elections, former IMF official says
Markets can't be bullied, and the US could face a financial crisis ahead of next year's midterm elections, former IMF official says

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Markets can't be bullied, and the US could face a financial crisis ahead of next year's midterm elections, former IMF official says

The dollar's plunge and gold's surge this year are signs that financial markets are not pleased with the Trump administration's policies, according to a former IMF official. Unless there is a major course correction, the U.S. should brace for a financial crisis leading up to congressional midterm elections next year, he warned. The world is losing faith in the dollar, and the U.S. could suffer a financial crisis next year, according to Desmond Lachman, a former deputy director of the International Monetary Fund's Policy Development and Review Department. In a Project Syndicate column on Monday, he noted that the U.S. fiscal situation was already shaky before President Donald Trump began his second term. But his tax cuts in the megabill that was just signed into law will add trillions to the deficit. Meanwhile, his tariffs and pressure on the Federal Reserve to lower rates have further weakened confidence in the dollar by stoking inflation concerns, Lachman, a senior fellow at the American Enterprise Institute, explained. 'Add to that Trump's apparent disregard for the rule of law, and markets see little reason to trust the US,' he added. In his view, that's why the dollar sank 10% against other top global currencies in the first half of the year, marking the greenback's worst such performance since 1953. The plunge came despite the tariffs and the wider premium between U.S. rates and those of other top economies, which would normally boost the dollar. Gold's surge of more than 25% this year is another sign of collapsing market confidence in the U.S., as is Treasury yields remaining elevated despite market turbulence, Lachman said. That all adds up to a very clear vote of no confidence from financial markets in the Trump administration's economic policies. 'The problem for Trump is that, unlike politicians, markets cannot be pressured or primaried,' he said, referring to the threat of ousting disobedient lawmakers via primary elections. 'If he refuses to heed investors' warnings, as seems likely, the US should brace for a dollar and bond-market crisis in the run-up to next year's midterm elections. The days of the world letting America live beyond its means are rapidly coming to an end.' To be sure, many on Wall Street have been sounding alarms about tariffs, inflation, widening deficits, unsustainable debt, the dollar and demand for U.S. Treasuries. But so far, tariffs have failed to trigger a spike in inflation, while the revenue collected from the duties is on pace to reach $300 billion this year. And despite warnings that 'bond vigilantes' will express displeasure with fiscal policies by demanding higher yields on bonds, that has yet to materialize. In fact, recent Treasury auctions have shown there remains healthy demand for U.S. debt, for now. In addition, many analysts see the dollar retaining its status as the world's primary reserve currency despite attempts to push alternatives. John Queen, fixed income portfolio manager at Capital Group, said in a recent note that bond markets are adapting to higher debt levels, adding that the interest rate market is 'incredibly efficient' at pricing in risks. While he is concerned about the size of the debt and its impact on borrowing costs, it's unknown when those worries will become reality. 'Many people have predicted that catastrophe is right around the corner and, someday, one of them is going to be right,' Queen wrote. 'Unfortunately, they are just guessing, so I am not going to predict that. I am instead going to say that I think the market is good at pricing in those concerns.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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