The US-Russia summit up north has finally begun, with being able to announce a Ukraine ceasefire among the key (though recently downplayed) Trump administration objectives. That’s something that has European leaders concerned, given what President Donald Trump may seek to give away to eventually achieve it. 

Still, barring a sudden change of heart by Vladimir Putin, it’s unlikely any agreement would gain the imprimatur of Ukraine, which has refused to give up territory after 11 years of war. Most proposed deals floated by Trump have largely echoed the Kremlin’s terms, such as giving up Crimea and the Donbas.

As for Putin, getting such highly publicized face time with Trump, despite being the aggressor in the largest land war in Europe since World War II, is a reward in itself. 

Vladimir Putin, left, and Donald Trump at Joint Base Elmendorf-Richardson in Anchorage on Aug. 15. Photographer: Andrew Harnik/Getty Images

Whatever the result of their Alaska chat, Wall Street is positioning itself for the endgame. Citigroup is said to be working on a bid to assemble a deal that would help Ukraine fund its reconstruction after Russia’s war ends.

The potential transaction would allow Ukraine’s state-owned grid operator NPC Ukrenergo to refinance a chunk of its debt on more attractive terms. The savings could be used to help rebuild Ukraine’s power grid, which has been a major target of Russian attacks. Citi is said to have started working on the proposal soon after Trump was re-elected last year. —David E. Rovella

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Washington DC is asking a federal court to immediately block the Trump administration’s effort to take over the city’s police force, saying the move is illegal and risks public safety.

The lawsuit filed by Washington’s Attorney General Brian Schwalb on Friday follows an escalation between local officials and the Justice Department over Trump’s bid to take control of the Metropolitan Police Department and deploy hundreds of National Guard troops to the nation’s capital.

Trump has falsely claimed violent crime is rising in Washington when in fact it’s been falling for some time. He has used his allegation as justification for militarizing the nation’s largely Democratic capital as well as sending roving patrols of heavily armed security agents, some masked, into city streets.

Federal security agents at a checkpoint on 14th Street in Washington, where passing civilians were being stopped. Photographer: Kayla Bartkowski/Bloomberg

The complaint, which was filed in Washington federal court, alleged Trump exceeded the authority granted by Congress. As of this writing the judge in the case had ordered the government to modify its orders regarding a police takeover.

“The administration’s unlawful actions are an affront to the dignity and autonomy of the 700,000 Americans who call DC home,” said Schwalb. “We are fighting to stop it.”

How much to hedge in a market that doesn’t seem like anything can stop it? It’s the eternal question (and of course something will stop it). In that gap between optimism and caution, a handful of defensive signals have emerged in recent weeks—a tilt toward more downside protection in equity options, fresh inflows into cash and gold products, and a pullback from leveraged long exchange-traded funds.

Bears are outnumbering bulls among retail investors, according to the latest survey from the American Association of Individual Investors, while a record 91% of respondents in Bank of America’s survey say US stocks are overvalued. Uh oh.

India Prime Minister Narendra Modi announced tax cuts, pledged policy reform and urged citizens to design and produce high quality goods at home, in a sweeping Independence Day speech that advocated for self reliance in a protectionist global economy.

“In the global situation, economic selfishness is increasing day by day,” Modi said in his address to the nation from the historic Red Fort in New Delhi on Friday. “The demand of the time is to move ahead with courage and meet our own goals.”

The remarks come against the backdrop of Trump’s global trade war. In the last few weeks, Trump hit India with a 50% tariff rate—much higher than its regional peers. The levies could hurt exports and put nearly 1% of the nation’s gross domestic product at risk, analysts said. More broadly, they may undo in one fell swoop decades of US diplomacy and push India into the arms of China.

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