
Trump Leaves G-7 a Day Early as Israel-Iran Conflict Continues
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Good morning. Donald Trump leaves the G-7 a day early but the exact reason remains a mystery. Meta has found an 'AI whisperer.' And how to take on a party dominated by a loud billionaire (clue: find one of your own). Listen to the day's top stories.
Donald Trump left the G-7 meeting in Canada a day early but denied suggestions it was to work on a ceasefire between Israel and Iran, instead saying his reason was 'much bigger than that.' He said he may send JD Vance or Steven Witkoff to meet with Iranian officials, but denied reports he had reached out to Iran for peace talks. Earlier, Trump briefly spooked markets by calling for the evacuation of Tehran. Israel continued to bombard Iran, which fired missiles and drones in retaliation.

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CNBC
35 minutes ago
- CNBC
In middle of Trump's trade war, importers hold more cash and move inventory off the books
President Trump's trade war is leading importers to hold more cash and less inventory on their books as they seek to manage a series of tariff increases, additional threats from Trump, and temporary pauses. Among both U.S. and global firms, use of supply chain financing programs that allow importers to stretch out payment terms is up, according to Wells Fargo data, anywhere from 5%-10%. "Cash is good to have," said Jeremey Jansen, managing director, head of global supply chain and trade sales at Wells Fargo. "There is a lot of uncertainty, and if you are a distributor or manufacturer, there is a ton of pressure to push out payment terms," he said. Delays in the implementation of tariffs, set to expire by August if trade deals are not reached, have played a significant role in the management of inventory and cash in recent months. From large retailers to auto parts stores and manufacturers, buyers of both finished goods and raw materials, tariff pauses allowed importers to bring in more inventory. But once the inventory arrives, it may be bound for financing rather than straight to market. After an order has been shipped, an invoice is generated. Once that invoice is generated, an importer sends it to the bank where they maintain a supply chain financing program, and the bank pays the supplier. The importer than repays the bank under a timeline negotiated with the bank. "We are putting money right in the middle of that supply chain," Jansen said. While the retail sector has traditionally been a client for this type of financing, Jansen said health care firms are a new source of interest as President Trump threatens targeted tariffs on the sector's overseas supply chains. "We are seeing a significant level of interest in supply chain finance from the health care space," Jansen said. "It can be drug companies, distributors, and pharmacy benefit managers. This industry does a lot of overseas manufacturing, and there is a significant amount of uncertainty regarding tariffs," he added. Supply chain financing for Chinese-made goods was steady rather than rising in June, according to Jansen, due to the fact that companies had front-loaded significant inventory in the first quarter of the year. With the latest round of tariffs on Asian nations announced last week and the recent deal with Vietnam that sent tariffs higher on its goods, Jansen said the bank is monitoring supply chain financing for orders out of countries including Vietnam, South Korea, Malaysia, Thailand, and Indonesia. Companies that are bringing in goods under a higher tariff can move that inventory off their books by having a third party, such as a bank, pay for the inventory, making the third party the beneficial cargo owner, storing the goods on the importer's behalf. The importer then pays the third party for the product and storage on an agreed timeline. "There's an increase in importer interest in financing the inventory on their books," said Jonathan Heuser, head of trade & supply chain finance for Citizens Bank. "With large multinationals potentially holding more inventory, they are interested in ways to unlock working capital associated with that inventory," he added. Josh Allen, COO of ITS Logistics, says the process of pushing inventory off the balance sheet — often referred to as "vendor management inventory" — is also a common practice in the automotive industry and construction industries. "It frees up the importer's cash flow, and the third-party owner makes money through the storage and sale back to the importer. It's a win-win for strategic partners," Allen said. After what had been a dramatic decline in business with Asian countries earlier in the year amid Trump's tariff threats, there has been some recovery in recent months during tariff pauses, according to Heuser. "For China, this recovery has been muted, and volumes are still quite depressed. With India and Vietnam, the recovery has been stronger, and continues to build back," he said. The trade activity has been uneven across sectors, Heuser said, with agricultural product shipments as one example that has performed better than manufactured products or chemicals. That has become an opportunity for companies that have the ability to source outside of the U.S., for example, supplying Chinese buyers with the same commodity but sourcing it from a non-U.S. jurisdiction. But those shifts within the supply chain come with an overall environment which remains cautious, according to Heuser. "Clients are remaining cautious and waiting for some measure of stabilization before taking significant actions or making meaningful changes to supply chains," he said. Lending activity, for example, which can often be an indicator of investment and growth plans, remains muted, he added.


New York Post
40 minutes ago
- New York Post
Trump to make major announcement on Russia — as Ukraine Envoy Keith Kellogg arrives in Kyiv at height of Putin's brutality
KYIV, Ukraine — President Trump is expected to announce decisive action on Russia — which could include arming Ukraine with powerful new weapons — as Special Presidential Envoy Keith Kellogg arrived in Kyiv at arguably the height of Moscow's brutality. Trump is expected to make a major announcement Monday about Russia's war on Ukraine, after he already announced Sunday that the US would sell critically needed Patriot air-defense systems to the country. 7 Trump is expected to make a major announcement Monday about Russia's war on Ukraine. Advertisement Sen. Lindsey Graham (R-SC) on Sunday added that the Monday announcement could include new military aid for Ukraine. 'In the coming days, you'll see weapons flowing at a record level to help Ukraine defend themselves,' Graham said. 'One of the biggest miscalculations Putin has made is to play Trump. And you just watch, in the coming days and weeks, there's going to be a massive effort to get Putin to the table.' Advertisement As part of the administration's efforts to end Putin's war machine, Kellogg is in Ukraine this week for discussions with Ukrainian President Volodymyr Zelensky and other leaders. 'We discussed the path to peace and what we can practically do together to bring it closer,' Zelensky said of a meeting with Kellogg in a post to X early Monday. 7 Head of the Office of the President of Ukraine Andrii Yermak (left) greeting Special Presidential Envoy Keith Kellogg (right). 7 Ukraine's President Volodymyr Zelensky (L) with US Special Envoy for Ukraine and Russia Keith Kellogg (R) prior to their talks in Kyiv. UKRAINIAN PRESIDENTIAL PRESS SERVICE/AFP via Getty Images Advertisement 'This includes strengthening Ukraine's air defense, joint production and procurement of defensive weapons in collaboration with Europe.' 'We hope for US leadership, as it is clear that Moscow will not stop unless its unreasonable ambitions are curbed through strength.' A retired Army general who served as chief of staff to Trump's first-term National Security Council, 81-year-old Kellogg arrived in Kyiv on Monday. A Post reporter was on board with him as he showed no fear when the train pulled away from a station in eastern Poland, bound for the heart of the war — and just Advertisement 'Eh, we'll be in a big city. Don't worry about it,' he told The Post, when asked if he was nervous about entering Ukraine days after Moscow launched its largest drone barrage yet, with more than 700 in a single night. 7 Russian President Vladimir Putin chairs a meeting on social issues, in Moscow, Russia. via REUTERS It's this stalwart leadership and stoicism that binds both the envoy and his boss. Kellogg said that in a phone call a day before the trip, Trump said the US must be 'strong' in the face of Putin's increasing savagery and unwillingness to listen to American sensibility, the envoy said. 'I spoke to the president yesterday morning and I said, 'Hey, sir, I'm not afraid,'' the general said of his trip. On Sunday night, Trump told reporters he would let Ukraine buy Patriot air-defense systems from the US because Putin 'talks nice but then he bombs everybody in the evening.' But even the big cities in Ukraine have been hammered throughout this nearly 3.5-year-old war — and particularly so within the past week and a half. What's more, there remained a good 12 hours before the train would even reach Kyiv. With the skies over Ukraine contested, the only way to the capital is by land. Advertisement 7 A retired Army general who served as chief of staff to Trump's first-term National Security Council, 81-year-old Kellogg arrived in Kyiv on Monday. That means chugging along the train tracks winding through the entirety of western Ukraine — with a brief stop near Lviv, a major city slammed with incessant drone strikes just two days prior in a barrage that included more that 500 drones in one night. Taking an overnight train meant risking travel during Russia's favorite time to attack Ukraine. Still, the retired general was undeterred. 'They live with this every day,' he said of Ukrainians who have remained in the country, continuing their lives as the largest war in Europe since WWII rages through their homeland. Advertisement As the evening progressed, there was a sense that something may be shifting in the US' game plan for handling Putin. While Trump nobly committed the first sixth months of his second term in office to finding a diplomatic end to the war, it has become increasingly clear to the White House that the Russian dictator does not seek peace, officials tell The Post. Putin also made that evident in a phone call with Trump earlier this month, according to sources familiar with the call. While the president largely leaned on his diplomats and Special Presidential Envoy Steve Witkoff early on to push Moscow toward peace, Trump took matters into his own hands recently, hoping his longstanding relationship with Putin could sway the dictator to lay down arms. Advertisement 7 White House special envoy Steve Witkoff (R), Donald Trump Jr. (center) and Bettina Anderson (L). AP But when Trump personally asked Putin to agree to a cease-fire — something to which the president successfully got Ukraine to agree roughly four months ago — the Russian president refused, sources familiar with the call told The Post. Trump has since made his growing frustration with Putin known through multiple recent statements — notably calling him out for 'bulls–tting' the American people. 'A lot of people are dying and it should end,' he said July 8. 'We get a lot of bulls–t thrown at us by Putin, if you want to know the truth.' Advertisement 'He's very nice all the time, but it turns out to be meaningless.' Kellogg acknowledged the president's frustration Sunday night, telling The Post that Trump does not stand for being 'played' or strung along. 'I think he now realizes that Putin is not a business partner,' he said. 7 But when Trump personally asked Putin to agree to a cease-fire — something to which the president successfully got Ukraine to agree roughly four months ago — the Russian president refused. For months, Trump has hinted at Putin being less than genuine in his dealings with Americans — notably revealing in April that it felt as if Russia was 'tapping [him] along.' But recently, his narrative has begun to shift. 'We will send [Ukraine] Patriots, which they desperately need, because Putin really surprised a lot of people,' Trump said of his plans to help Kyiv counter Russia's refusal to obey calls for a cease-fire. 'I don't like it.' 'We basically are going to send them various pieces of very sophisticated military equipment. They are going to pay us 100% for that, and that's the way we want it.' It comes after he described a phone call he had on July 4 with Ukrainian President Volodymyr Zelensky as having been 'strategic' — a call Zelensky described as the 'best' he'd had in recent memory. Then last week, he said he would have an announcement to make on Monday regarding US efforts to end the war. On Friday, he told a reporter who asked about Moscow's recent targeting of a Ukrainian maternity hospital that he would be taking action. 'Oh, I know. You'll be seeing things happen,' he shot back at the reporter. Kellogg said he looked forward to hearing what Trump would say Monday, but did not disclose whether he knew what was to come. 'There's a lot more we can do,' he said. In addition to military aid, the US could also target Russia's main source of income — oil exports — with a bill pending in Congress that would levy 500% tariffs on any country that purchases it from Moscow.


CNBC
40 minutes ago
- CNBC
JPMorgan says market continues to believe Trump will pivot to lower tariff rates before Aug. 1
Investors over the weekend got more tariff announcements from President Donald Trump. Yet, Wall Street still doesn't believe the U.S. will move forward with these steep levies. Stock futures were only slightly lower Monday after Trump on Saturday announced a 30% duty on goods imported from Mexico and European Union countries starting Aug. 1. "Will the market continue to look through elevated tariff levels believing Trump will pivot to lower levels or any near-term downside is bought going into the Aug 1 deadline? We think Yes and thus maintain our Tactical Bullish view as the market focuses on earnings," traders at JPMorgan wrote. Investors have taken the latest tariff headlines in stride. The S & P 500 lost just 0.3% last week even after Trump unveiled new tariffs on several countries, including South Korea and Japan. Those relatively muted moves are in stark contrast to the sell-off that ensued following "liberation day" on April 2. The S & P 500 fell to a closing low of 4,982.77. Since then, it's up a whopping 25.6%. .SPX mountain 2025-04-08 SPX since April 8 "Maybe we should all learn to expect these sorts of head fakes, anyway, because the sub-5,000 Liberation Day lows might just have taught the Administration a lesson," Morgan Stanley's trading desk wrote. Hence, the conundrum facing Wall Street. Do investors believe Trump will back down from these latest tariff threats and instead agree to lower levies? Or does the president actually follow through, potentially knocking equities and dampening the earnings outlook for companies around the world? Right now, Wall Street is betting on the former. "While current location to add risk isn't overly attractive, my instinct is there's some gas left in the tank, and that U.S. large cap is the best horse to ride," Goldman Sachs' Tony Pasquariello wrote. "If you're constructive, yet wary of risk/reward, take advantage of the meltdown in volatility to keep a few lines in the water via upside."