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Ben Levisohn, Jack Hough and Carleton English discuss the impact of debt negotiations on the markets, Foot Lockers shares and earnings performance as well as the resignation of Morgan Stanleys CEO James Gorman.

The Treasury Deptartment is expected to run out of the cash necessary to fund the federal government’s obligations by June 8 or 9 unless the debt ceiling is lifted, according to a report by Goldman Sachs.

Since the U.S. ran up against its $31.4 trillion debt limit in January this year, the Treasury has been using "extraordinary measures" which are accounting maneuvers that involve shifting funds between certain accounts to pay the government’s bills. Treasury is only able to use the extraordinary measures so long as balances in those accounts remain above $30 billion, at which point it can no longer fulfill all the federal government’s obligations.

Negotiators representing the Biden administration and congressional Republicans have been operating under the assumption June 1 will be the date on which Treasury exhausts its extraordinary measures, which could give lawmakers extra time to finalize a deal if the June 8 or 9 estimate from the Goldman Sachs note pans out. However, the report noted that there’s still a chance June 1 will be the deadline.

"The estimate is subject to substantial uncertainty so there is certainly a chance that receipts could slow more than expected and leave the Treasury short of cash by June 1 or 2," Goldman economists Alec Phillips and Tim Krupa wrote in the note to clients, which Bloomberg first reported.

YELLEN SAYS ODDS OF US PAYING ALL ITS BILLS BY JUNE 15 IS ‘QUITE LOW’ AS DEBT CEILING DEADLINE LOOMS

A report by a pair of economists from Goldman Sachs indicates the Treasury may have until June 8 or 9 until it’s unable to pay all the government’s obligations. (Fox News)

The Goldman Sachs economists noted that on Thursday last week, Treasury’s cash balance was at a little more than $57 billion after it had about $92 billion the day before. The Treasury's cash balances ebb and flow day-to-day based on incoming tax receipts and spending levels as federal bills come due, but the extraordinary measures will eventually be tapped out.

"We are confident that Congress will avoid going past the deadline without action, but there are many paths this could take," wrote the economists, who assigned a 30% chance of the two sides agreeing to a deal this week, along with a 30% chance of a deal "shortly before" the deadline is reached.

"While we expect a deal to occur ahead of the deadline, we also expect a few more twists along the way, and suspect that markets are likely to price in additional risk before the debt limit is finally raised," they explained.

DEBT CEILING DEADLINE IS CLOSER THAN PREVIOUSLY EXPECTED – HERE’S WHY

Treasury Secretary Janet Yellen has said the debt limit needs to be increased by June 1 or the U.S. will face difficult choices about which bills to pay. (Drew Angerer/Getty Images / Getty Images)

Treasury Secretary Janet Yellen said Sunday during an interview on NBC’s "Meet the Press" the likelihood of the U.S. making it to mid-June without the Treasury exhausting its extraordinary measures is "quite low" and that June 1 remains the hard deadline.

"And my assumption is that if the debt ceiling isn’t raised, there will be hard choices to make about what bills will go unpaid," Yellen added without going into specifics.

Senate Minority Leader Mitch McConnell (R-Ky.), Speaker of the House Kevin McCarthy (R-Calif.) and President Joe Biden, meet with other lawmakers in the Oval Office of the White House to discuss the debt limit on May 9, 2023. (Anna Moneymaker/Getty Images / Getty Images)

Negotiations between President Biden and House Speaker Kevin McCarthy, R-Calif., have picked up over the last week after weeks of little movement as the two sides press to strike a deal that staves off the fast-approaching threat of default. 

House Republicans want to see a deal that contains spending caps, particularly on non-defense discretionary spending, while Democrats have been reluctant to agree to budget cuts.

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Biden and McCarthy are scheduled to meet Monday when the president returns from a trip to Japan for the G-7 that was cut short due to the state of negotiations, while staffers from the two sides will meet Sunday night. 

McCarthy has said that a deal in principle would likely need to be reached this weekend to give Congress enough time to turn the deal into legislative text and pass the bill through the House and Senate ahead of the June 1 deadline.

FOX Business’ Stephen Sorace contributed to this report.

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UK and France have ‘shared responsibility’ to tackle illegal migration, Emmanuel Macron says

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UK and France have 'shared responsibility' to tackle illegal migration, Emmanuel Macron says

Emmanuel Macron has said the UK and France have a “shared responsibility” to tackle the “burden” of illegal migration, as he urged co-operation between London and Paris ahead of a crunch summit later this week.

Addressing parliament in the Palace of Westminster on Tuesday, the French president said the UK-France summit would bring “cooperation and tangible results” regarding the small boats crisis in the Channel.

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King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA
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King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA

Mr Macron – who is the first European leader to make a state visit to the UK since Brexit – told the audience that while migrants’ “hope for a better life elsewhere is legitimate”, “we cannot allow our countries’ rules for taking in people to be flouted and criminal networks to cynically exploit the hopes of so many individuals with so little respect for human life”.

“France and the UK have a shared responsibility to address irregular migration with humanity, solidarity and fairness,” he added.

Looking ahead to the UK-France summit on Thursday, he promised the “best ever cooperation” between France and the UK “to fix today what is a burden for our two countries”.

Sir Keir Starmer will hope to reach a deal with his French counterpart on a “one in, one out” migrant returns deal at the key summit on Thursday.

King Charles also addressed the delegations at a state banquet in Windsor Castle on Tuesday evening, saying the summit would “deepen our alliance and broaden our partnerships still further”.

King Charles speaking at state banquet welcoming Macron.
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King Charles speaking at state banquet welcoming Macron.

Sitting next to President Macron, the monarch said: “Our armed forces will cooperate even more closely across the world, including to support Ukraine as we join together in leading a coalition of the willing in defence of liberty and freedom from oppression. In other words, in defence of our shared values.”

In April, British officials confirmed a pilot scheme was being considered to deport migrants who cross the English Channel in exchange for the UK accepting asylum seekers in France with legitimate claims.

The two countries have engaged in talks about a one-for-one swap, enabling undocumented asylum seekers who have reached the UK by small boat to be returned to France.

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Britain would then receive migrants from France who would have a right to be in the UK, like those who already have family settled here.

The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.

France's President Emmanuel Macron speaks at the Palace of Westminster during a state visit to the UK
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President Macron greets Commons Speaker Sir Lindsay Hoyle at his address to parliament in Westminster.

Elsewhere in his speech, the French president addressed Brexit, and said the UK could not “stay on the sidelines” despite its departure from the European Union.

He said European countries had to break away from economic dependence on the US and China.

Read more:
French police forced to watch on as migrants attempt crossing
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“Our two countries are among the oldest sovereign nations in Europe, and sovereignty means a lot to both of us, and everything I referred to was about sovereignty, deciding for ourselves, choosing our technologies, our economy, deciding our diplomacy, and deciding the content we want to share and the ideas we want to share, and the controversies we want to share.

“Even though it is not part of the European Union, the United Kingdom cannot stay on the sidelines because defence and security, competitiveness, democracy – the very core of our identity – are connected across Europe as a continent.”

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IDF presence in Gaza ‘only issue’ still to be resolved in push for Israel-Hamas ceasefire, Sky News understands

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IDF presence in Gaza 'only issue' still to be resolved in push for Israel-Hamas ceasefire, Sky News understands

Only one issue remains unresolved in the push to achieve a ceasefire in Gaza, according to Sky sources.

Intense negotiations are taking place in Qatar in parallel with key talks in Washington between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.

Two sources with direct knowledge of the negotiations have told Sky News that disagreement between Israel and Hamas remains on the status and presence of the Israel Defence Forces (IDF) inside Gaza.

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Gaza ceasefire deal in progress

The two sides have bridged significant differences on several other issues, including the process of delivering humanitarian aid and Hamas’s demand that the US guarantees to ensure Israel doesn’t unilaterally resume the war when the ceasefire expires in 60 days.

On the issue of humanitarian aid, Sky News understands that a third party that neither Hamas nor Israel has control over will be used in areas from which the IDF withdraws.

Israeli Prime Minister Benjamin Netanyahu speaks to the media, Tuesday, July 8, 2025, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)
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Benjamin Netanyahu briefed reporters on Capitol Hill about the talks on Tuesday. Pic: AP

This means that the controversial Gaza Humanitarian Foundation (GHF) – jointly run by an American organisation and Israel – will not be able to operate anywhere where the IDF is not deployed. It will limit GHF expansion plans.

It is believed the United Nations or other recognised humanitarian organisations will adopt a greater role.

On the issue of a US guarantee to prevent Israel restarting the war, Sky News understands that a message was passed to Hamas by Dr Bishara Bahbah, a Palestinian American who has emerged as a key back channel in the negotiations.

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Read more from Sky News:
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The message appears to have been enough to convince Hamas that President Trump will prevent Israel from restarting the conflict.

However, there is no sense from any of the developments over the course of the past day about what the future of Gaza looks like longer-term.

Final challenge is huge

The last remaining disagreement is, predictably, the trickiest to bridge.

Israel’s central war aim, beyond the return of the hostages, is the total elimination of Hamas as a military and political organisation. The withdrawal of the IDF, partial or total, could allow Hamas to regroup.

One way to overcome this would be to provide wider guarantees of clear deliverable pathways to a viable future for Palestinians.

But there is no sense from the negotiations of any longer-term commitments on this issue.

Two key blocks have been resolved over the past 24 hours but the final challenge is huge.

The conflict in Gaza erupted when Hamas attacked southern Israel in October 2023, killing around 1,200 people and taking 251 hostages, according to Israeli figures. Some 20 hostages are believed to remain alive in Gaza.

Israel has killed more than 57,000 Palestinians, according to Gaza’s Hamas-run health ministry, which does not distinguish between combatants and civilians.

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Trump applying ‘heavy pressure’ on Netanyahu to end war in Gaza

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Trump applying 'heavy pressure' on Netanyahu to end war in Gaza

US President Donald Trump is putting “heavy” pressure on Israeli Prime Minister Benjamin Netanyahu to end the war in Gaza, two sources close to the ceasefire negotiations have told Sky News.

One US source said: “The US pressure on Israel has begun, and tonight it will be heavy.”

The source, who is not authorised to speak publicly, was referring to the White House dinner on Monday night between Trump and Netanyahu.

A second Middle Eastern diplomatic source agreed that the American pressure on Israel would be intense.

Benjamin Netanyahu gave Donald Trump a letter he said he had sent to a Nobel Peace Prize committee commending his peace efforts
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Benjamin Netanyahu gave Donald Trump a letter saying he had nominated him for a Nobel Peace Prize. Pic: AP

Netanyahu arrived in Washington DC in the early hours of Monday morning and held meetings on Monday with Steve Witkoff, Trump’s Middle East envoy, and Marco Rubio, the secretary of state and national security adviser.

The Israeli prime minister plans to be in Washington until Thursday with meetings on Capitol Hill on Tuesday.

Trump has made clear his desire to bring the Gaza conflict to an end.

However, he has never articulated how a lasting peace, which would satisfy both the Israelis and Palestinians, could be achieved.

His varying comments about ownership of Gaza, moving Palestinians out of the territory and permanent resettlement, have presented a confusing policy.

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‘Israel has shifted towards economy of genocide’

Situation for Palestinians worse than ever

Over the coming days, we will see the extent to which Trump demands that Netanyahu accepts the current Gaza ceasefire deal, even if it falls short of Israel’s war aims – the elimination of Hamas.

The strategic objective to permanently remove Hamas seems always to have been impossible. Hamas as an entity was the extreme consequence of the Israeli occupation.

The Palestinians’ challenge has not gone away, and the situation for Palestinians now is worse than it has ever been in Gaza and also the West Bank. It is not clear how Trump plans to square that circle.

Read more:
Explainer – What is the possible Gaza hostage and ceasefire deal?
Israeli soldier describes arbitrary killing of civilians in Gaza

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‘Some Israeli commanders can decide to do war crimes’

Trump’s oft-repeated desire to “stop the killing” is sincere. Those close to him often emphasise this. He is also looking to cement his legacy as a peacemaker. He genuinely craves the Nobel Peace Prize.

In this context, the complexities of conflicts – in Ukraine or Gaza – are often of secondary importance to the president.

If Netanyahu can be persuaded to end the war, what would he need?

The hostages back – for sure. That would require agreement from Hamas. They would only agree to this if they have guarantees on Gaza’s future and their own future. More circles to square.

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Trump 100: We answer your questions

Was White House dinner a key moment?

The Monday night dinner could have been a key moment for the Middle East. Two powerful men in the Blue Room of the White House, deciding the direction of the region.

Will it be seen as the moment the region was remoulded? But to whose benefit?

Trump is a dealmaker with an eye on the prize. But Netanyahu is a political master; they don’t call him “the magician” for nothing.

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Trump makes decisions instinctively. He can shift position quickly and often listens to the last person in the room. Right now – that person is Netanyahu.

Gaza is one part of a jigsaw of challenges, which could become opportunities.

Diplomatic normalisation between Israel and the Arab world is a prize for Trump and could genuinely secure him the Nobel Peace Prize.

But without the Gaza piece, the jigsaw is incomplete.

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