| Happy Monday and welcome to On The Money, where we're now bringing you the same news and insight you know from Overnight Finance with a new name and a sleeker look. I'm Sylvan Lane, and here's your just-updated, always-celebrated 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: The White House on Monday found itself dealing with the fallout from the Group of Seven summit and the war of words with Canada. Senators from both parties have criticized Trump officials for their handling of the matter, in particular remarks from Peter Navarro, President Trump's trade adviser, that Canadian Prime Minister Justin Trudeau belonged in a "special place in hell." How we got here: Trump and his top aides spent the weekend feuding with Canada over the president's imposition of tariffs on imports from our northern neighbor and other key allies. Anger and disbelief marred the G-7 summit in Quebec, where Trump and the leaders of crucial economic allies sparred over U.S. tariffs on steel and aluminum. Trump refused to sign the joint statement of principles from the conference, which highlighted tensions between the president and Trudeau. Trump called Trudeau "very dishonest and weak," and insisted that Canada's high tariffs on U.S. dairy products were unfair. His comments came after Trudeau repeated his pledge to impose retaliatory tariffs on U.S. goods. Top White House advisers spent Sunday morning taking wild shots at Trudeau. National Economic Council Director Larry Kudlow accused Trudeau of "betrayal", while Navarro added that the prime minister belonged in a "special place in hell." Officials accused Trudeau of double-crossing Trump about the G-7 communiqué. Reaction from Capitol Hill: Lawmakers from both parties condemned Kudlow and Navarro's remarks, calling the attacks inappropriate and dishonest. Sen. Jeff Flake (R-Ariz.), a frequent critic of the president, rebuked Navarro's comments as a reflection on the GOP, saying "this is not who we are. This cannot be our party." Sen. Chris Murphy (D-Conn.) blasted the Trump administration and said its attacks on Trudeau were based on a lie. "Trudeau didn't pick a fight. This is a lie just like all the others," Murphy tweeted. "Trump is making the United States a global laughingstock, drying up our credibility/influence so badly that the next President can't get it back." White House legislative director Marc Short said on Monday that Navarro's hell remarks "are words that I would not have chosen." More on the feud: - "Canadians are our brothers and sisters. Whatever our differences, let's work them out as a family--with honesty and candor but also with love, respect, and humility." -- Rep. Justin Amash (R-Mich.)
- "So since Navarro has failed in his longstanding ambition to start a war with China, now he wants to start one with Canada?" -- Susan Rice, national security adviser to former President Obama.
- "There is a special place in heaven for [Justin Trudeau]. Canada, thank you for the perfect organisation of G7!" -- European Council President Donald Tusk
What comes next: Trump said he's now considering imposing tariffs on Canadian automobile imports as two nations, along with Mexico, try to negotiate a new North American Free Trade Agreement. It's hard to think of time when tensions between the U.S. and Canada were higher, let alone with so much on the line.
ON TAP TOMORROW LEADING THE DAY Feds bust massive wire fraud scheme: Federal authorities have arrested dozens of people for allegedly hijacking or intercepting wire transfers through sophisticated email scams, the Department of Justice (DOJ) announced Monday. Law enforcement officials arrested 74 people for allegedly carrying out business email compromise (BEC) schemes, or "cyber-enabled financial fraud" as part of Operation Wire Wire, according to a DOJ press release. Hackers execute BEC scams by impersonating employees or business executives after gaining access to their email accounts. These types of attacks use social engineering tactics to trick unsuspecting employees and business executives into making wire transfers to bank accounts that are controlled by the criminals. The elderly are particularly targeted in BEC schemes. The Hill's Olivia Beavers tells us more about the crackdown here. New Russia sanctions target Kremlin security service: The Trump administration on Monday announced sanctions against five Russian entities and three Russian nationals for aiding the Kremlin's domestic security service. The Treasury Department targeted five companies and technology firms as well as three executives from one of the companies, all of whom are accused of aiding Russia's Federal Security Service (FSB). The Treasury Department targeted the FSB with sanctions in March for its involvement in several Kremlin-led cyberattacks. The FSB was also one of several entities sanctioned by then-President Obama in December 2016 in relation to Russian hacking of Democratic political organizations and operatives during the presidential race that year. My colleague Morgan Chalfant and I have more on the sanctions, and why they were implemented, right here. Cheat sheet: The sanctioned firms and individuals are involved in supporting and bolstering the Russian government's offensive hacking activities against the United States and other countries. - These activities include the NotPetya cyberattack, the June 2017 global malware outbreak for which the Trump administration and the United Kingdom have blamed Russia.
- More recently, U.S. officials also revealed that Kremlin-linked hackers staged a multiyear cyberattack campaign on the American energy sector and other elements of critical infrastructure.
- And in April, U.S. and British officials accused the Russian government of hacking into routers and other network devices across the globe to conduct espionage and intellectual property theft.
SEC's newest Dem targets stock buyback rules in speech: Securities and Exchange Commission (SEC) member Robert Jackson on Monday called on his colleagues to update and reexamine rules relating to stock buybacks following an increase in buybacks after the enactment of President Trump's tax-cut law. Jackson, who was appointed by Trump to one of the SEC's Democratic seats, expressed concerns about the fact that corporate executives are using stock buybacks as an opportunity to cash out the stocks they receive as part of their compensation. "We give stock to corporate managers to convince them to create the kind of long-term value that benefits American companies and the workers and communities they serve," Jackson said in a speech at the left-leaning Center for American Progress. "Instead, what we are seeing is that executives are using buybacks as a chance to cash out their compensation at investor expense." The Hill's Naomi Jagoda explains more here. MARKET CHECK: From CNBC: "Stocks closed slightly higher Monday as investors shrugged off concerns over a tumultuous G-7 meeting over the weekend at which President Donald Trump lashed out at U.S. allies. "The Dow Jones industrial average finished 5.78 points higher at 25,322.31. The S&P 500 rose 0.11 percent to close at 2,782. The Nasdaq composite finished up 0.19 percent at 7,659.93." FINANCE IN FOCUS: - Mulvaney's CFPB: Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, often jokes that the only reason he hasn't burned the agency down is because that would be illegal. I tell you here what he's been doing to it instead.
- States compete for jobs in tight labor market: The nation's shifting demographics are placing a new onus on states to attract workers, especially in the Midwest and Northeast as the labor market tightens. The Hill's Reid Wilson reports on how those states are trying to woo workers from the south and southwest.
GOOD TO KNOW - Economists polled by Bloomberg don't expect the Fed to steepen the path of interest rate hikes.
- Italy's new Economy Minister Giovanni Tria ruled out leaving the euro and said he would focus on structural reforms over deficit spending, according to Politico Europe.
- Rent strikes have grown in popularity among tenants as gentrification drives up rents in cities like D.C., according to The Washington Post.
- A CNBC analysis of 2016 voter turnouts and trade flows with Canada shows that states such as Ohio, Texas and Indiana that supported Trump generally enjoy a surplus in goods trade with Canada and would be hit hardest by tariffs.
- Top investment bank profits have reached pre-crisis levels, according to the Financial Times.
- The Center for Global Development explores which fragile states receive the most U.S. aid, and what kind of help and funding they receive.
- Jerome Powell, the chairman of the Federal Reserve, has to figure out whether inflation is around the corner. The wrong choice could cripple the economy, The Wall Street Journal reports.
- Chris Odinet, an associate law professor at the University of Oklahoma, writes why the CFPB complaint database is important to academics and property law.
- Op-ed: Susan E. Dudley and Daniel R. Pérez of the George Washington University Regulatory Studies Center write for The Hill on how US-Canada regulatory cooperation is going forward despite Trump's G-7 showdown.
ODDS AND ENDS - Department of Health and Human Services (HHS) officials have been meeting with pharmaceutical companies to seek voluntary cuts in drug prices, according to sources familiar with the meetings.
- Government investigators have demanded that several bitcoin exchanges hand over comprehensive trading data to assist a probe into whether manipulation is distorting prices in markets linked to the cryptocurrency, according to The Wall Street Journal.
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