Donald Trump said the US will send more weapons to Ukraine.

The president didn’t say what weapons Washington planned to deliver, only that they would be replacements. He also said the US would impose 100% “secondary” tariffs on Russia if there’s no ceasefire deal in 50 days. 

Trump’s administration hailed the move as a major shift in course as he looks to push President Vladimir Putin to end Russia’s war in Ukraine. But it also reflects Trump’s priorities: it won’t cost the US anything and he’s not dedicating new US funding to Ukraine, at least for now.

As he tries to maintain US support, Ukrainian President Volodymyr Zelenskiy said that he’ll replace his prime minister — Yulia Svyrydenko, a deputy premier who took the lead in coordinating a landmark minerals deal with the White House, was nominated to replace Denys Shmyhal. — Caroline Alexander

What You Need to Know Today

Receding fears of a global trade war and recession are powering rallies in everything from the S&P 500 to developing world currencies, but it’s a different story in the distressed debt space. Special situation funds that usually make their money by backing troubled firms through a turnaround are finding so few places to invest, they’re focusing on the debt of healthier firms and are happy to collect the interest.

Italy has been hit by a preliminary European Union warning over its restrictions on UniCredit’s planned takeover of Banco BPM. In a legal move that sets up a clash between Brussels and Rome, EU officials accused Giorgia Meloni’s government of potentially violating the bloc’s law in imposing national conditions on the deal. The Italian government said it “will respond in a collaborative and constructive spirit to the requested clarifications.” 

Bitcoin breached $120,000 for the first time, with investor enthusiasm showing few signs of dimming as the US House of Representatives prepares to consider key industry legislation during its “Crypto Week” starting Monday. With other risk assets such as US stocks back around record highs, Bitcoin has also resumed its push higher. Progress on crucial crypto legislation is adding fresh fuel to the rally. 

Signage for Bitcoin at a cryptocurrency exchange in Hong Kong, China. Photographer: Paul Yeung/Bloomberg

Volvo Car is taking a one-off non-cash impairment charge of 11.4 billion Swedish kronor ($1.2 billion) in the second quarter due to model delays and the escalating cost of US tariffs. The effect on net income will be 9 billion kronor in the same period, the carmaker said today. Its shares fell as much as 5.6% in Stockholm, the steepest intraday drop since April. The stock is down around a quarter this year.

The money behind Elon Musk’s trillion-dollar empire is flowing toward artificial intelligence. The billionaire said that Tesla shareholders will vote on whether to invest in xAI, after SpaceX agreed to pump $2 billion into the artificial intelligence startup. These additional investments from across Musk’s business empire would help stem the $1 billion-a-month that xAI is going through as it tries to build advanced AI models and take on rivals like Sam Altman’s OpenAI. 

Saudi Arabia has asked consulting firms to conduct a strategic review of its ambitious plans for building a futuristic city known as The Line, we’re told. The move underscores the kingdom’s continued push to recalibrate projects under its Vision 2030 plan to reshape the economy — lower oil prices, weaker-than-projected foreign investment and budget shortfalls mean the kingdom must now decide what to focus on first and at what pace. 

The Gripen, made by Sweden’s Saab, would be the country’s first line of domestic defense should hostilities break out with an antagonistic Russia. But as essential as it is to Sweden, the fighter has struggled to gain sales from other countries: Saab hasn’t won a major export order since Brazil signed up for a batch of 36 jets in 2014, while rivals have locked in scores of sales. The drought is set to finally end.

A Gripen D about to take off from Linkoping. Photographer: Erika Gerdemark/Bloomberg

What You’ll Need to Know Tomorrow

For Your Commute

A delegation of Amazonian leaders journeyed from the world’s largest rainforest to the financial center of London last week to deliver a message: capitalism has failed their home and its inhabitants.

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