| Happy Thursday and welcome back to On The Money, where we're envious of the House lawmakers that just left for six weeks of vacation. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line. See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N. Write us with tips, suggestions and news: slane@thehill.com, vneedham@thehill.com, njagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill, @NJagoda and @NivElis. THE BIG DEAL: President Trump and top administration officials took a victory lap Thursday, touting yesterday's agreement with the European Union to work toward a free-trade deal. Trump declared that "basically, we opened up Europe" to U.S. exports, even though no formal deal is in place. "We just opened up Europe for you farmers. You're not going to be too angry with Trump, I can tell you," Trump said at a jobs event in Peosta, Iowa. Referring to the agreement struck Wednesday with European Commission President Jean-Claude Juncker, Trump said, "you have just gotten yourself one big market." As he spoke, Trump held up a green and yellow baseball cap with the phrase "Make Our Farmers Great Again!" emblazoned on the front. The Hill Jordan Fabian has a full recap of Trump's rally here. Trump and Juncker announced Wednesday that the U.S and EU had agreed to begin talks geared toward removing all tariffs and trade barriers imposed on each other. The EU has agreed to increase U.S. soybean and liquified natural gas (LNG) imports, lower industrial tariffs and work more closely together on regulations and energy. The U.S also agreed to not impose further tariffs on the EU while negotiations continue, including planned levies on foreign automobiles. Even so, the deal was otherwise vague, no tariffs have yet been lifted, and the upcoming negotiations between the U.S. and Europe are not guaranteed to produce an agreement that significantly reduces trade barriers. Trump's tariffs of 25 percent and 10 percent on imported steel and aluminum are still in effect, as are the EU's levies on U.S. agricultural exports. That didn't stop top Trump economic officials from touting the deal Thursday. National Economic Council Director Larry Kudlow told Fox Business Network today that the agreement "changes everything" for trade relations between the U.S. and E.U. Kudlow said the U.S. and E.U. "will be allied" against China, which he said had "broken the world trading system," and that Juncker "made it clear" Wednesday that the EU would back the Trump administration's efforts to curb trade abuse from Beijing. "They're not the only ones but the world trading system is broken with high tariffs and barriers and technological stealing and IP theft," Kudlow said of China. Commerce Secretary Wilbur Ross credited hefty steel and aluminum tariffs for an agreement between Trump and Juncker, telling reporters on Air Force One "if we hadn't had steel and aluminum tariffs, we never would have gotten to the point we are now." "This is a real vindication of the president's trade policy," Ross said, according to a press pool report. What comes next: The agreement comes as top Republicans have started to sound an alarm about President Trump's escalating trade war with allies fearful that rising retaliatory tariffs may slow the booming economy and imperil their chances in the midterm elections. In interviews this week, with almost 100 days before November's elections, Republicans have been notably critical of Trump's high-stakes trade games, much more so than they were over family separations at the U.S.-Mexico border, Trump's press conference with Russian President Vladimir Putin, or anything related to the Mueller investigation. The Hill's Scott Wong and Reid Wilson tell us why here. ON TAP TOMORROW - The Bureau of Economic Analysis releases the first estimate of second quarter GDP growth, 8:30 a.m.
LEADING THE DAY Bad day for Facebook: Facebook stock plummeted 19 percent on Thursday after the company revealed that second-quarter earnings fell short of estimates, the biggest single-day monetary loss for any public company ever. The company lost about $119 billion in market value as its stock value dropped: It had been trading at $217.50 a share on Wednesday before the earnings report was released, but was down to $176.26 on Thursday, according to CNN. Facebook founder and CEO Mark Zuckerberg said during an earnings call Wednesday that the company will focus on privacy issues in the future, and that the new priorities could financially cost the platform. "Looking ahead, we will continue to invest heavily in security and privacy because we have a responsibility to keep people safe," Zuckerberg said. "But as I've said on past calls, we're investing so much in security that it will significantly impact our profitability." Zuckerberg's own net worth took a significant hit as the stock fell, losing about $15.4 billion dollars according to Forbes. He dropped two spots on Forbes' ranking of the world's billionaires as a result, landing at the No. 6 spot. The Hill's Jacqueline Thomsen has the details. Farm groups fear Trump aid won't fix trade damage: Farm groups say President Trump's promised $12 billion aid to farmers is not enough to repair the damage from tariffs and are urging him to produce a long-term solution that will open foreign markets. Farmers are expressing some support for the much-needed help but say it's more important for the administration to reverse course on the tariffs, which Trump argues he's using as leverage to bring trading partners to the negotiating table. Agriculture groups and lawmakers have been calling on the Trump administration to stop imposing the tariffs because their products -- from pork to soybeans -- are being targeted for retaliation by other nations. The American Soybean Association said that "producers cannot weather sustained trade disruptions." "While soybean growers appreciate the administration's recognition that tariffs have caused reduced exports and lower prices, the announced plan provides only short-term assistance," said John Heisdorffer, the group's president and a soybean grower from Keota, Iowa. The Hill's Vicki Needham tells us why here. Lighthizer says NAFTA deal possible by the end of August: U.S. Trade Representative Robert Lighthizer on Thursday expressed optimism that a deal in principle can be reached on an updated North American Free Trade Agreement (NAFTA) by the end of August. Lighthizer shed some light on the hazy future of negotiations on the 24-year-old deal saying that if Mexican President Enrique Pena Nieto wants to sign a deal before he leaves office on Dec. 1 then the countries must complete work by the end of next month. "You're probably looking at having to have some conclusion during the course of August, and my sense is that that's not an unreasonable time frame if everybody wants to get it done," Lighthizer told a Senate Appropriations subcommittee. Lighthizer told the committee that the trading partners are "close to a point where we're going to have that finished." The Hill's Vicki Needham explains how that would work here.
Trump threatens Turkey with sanctions over detained pastor: President Trump on Thursday threatened to impose economic sanctions on Turkey over its refusal to release an American pastor that has been detained in the country for more than year. Trump tweeted Thursday that he'd hit Turkey with "large" penalties for detaining Andrew Brunson, a Christian pastor who has been imprisoned in the country over charges of espionage and terrorism. "The United States will impose large sanctions on Turkey for their long time detainment of Pastor Andrew Brunson, a great Christian, family man and wonderful human being," Trump tweeted Thursday. "He is suffering greatly. This innocent man of faith should be released immediately!" The Treasury Department, which administers financial sanctions, has not announced new penalties for Turkey over Brunson's detainment, and did not respond to a request for comment. GOOD TO KNOW - The $5 billion the House Appropriations Committee allocated to build a wall along the southern border is a "non-starter," the top Dem on the Senate Appropriations Committee, Sen. Patrick Leahy (D-Vt.), said Thursday.
- Coca-Cola Company on Wednesday said they will raise the price of their sodas this year in part because of the financial strain caused by President Trump's tariffs.
- Mexico's grain millers are reportedly shifting their trade priorities to be less dependent on U.S. exports ahead of possible retaliatory tariffs by the Mexican government.
- European Commission President Jean-Claude Juncker reportedly used colorful cards with simple explanations to discuss trade policies during his Wednesday meeting with President Trump, according to The Wall Street Journal.
- A bipartisan pair of lawmakers on the Senate Finance Committee offered legislation on Thursday to overhaul areas of the IRS, with provisions aimed at improving protections for taxpayers and helping low-income Americans.
- President Trump's nominee to be deputy Treasury secretary on Thursday defended recent guidance from the agency that reduces donor reporting requirements for certain tax-exempt groups, saying that the guidance was designed to make tax administration more efficient.
ODDS AND ENDS: - Op-Ed: Mike Litt, consumer campaign director for the U.S. Public Interest Research Group (PIRG), says that "despite a suspect nominee" the CFPB can still protect consumers.
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