- In today’s CEO Daily: Diane Brady on Xerox’s reinvention.
- The big story: U.S. and China agree to framework deal.
- The markets: Up but not soaring after U.S.-China framework.
- Analyst notes from UBS, Convera, and Deutsche Bank.
- Plus: All the news and watercooler chat from Fortune.
Good morning. Xerox CEO Steve Bandrowczak is a determined man. Disowned by his family at 16, he took 10 years to complete a two-year degree from a community college while working nights on the Long Island Railroad. So he doesn’t mind playing the long game when it comes to what he calls the “Reinvention” of a 118-year-old brand that’s struggling with a shrinking print business, geopolitical headwinds, and short sellers seeking to profit from the company’s distress.
As Bandrowczak told me yesterday at the Fortune COO Summit, the shift from being a manufacturer of copier machines to a services and software company is well underway, “this public reinvention is critical and the hardest part is the second half, which is where we are now.”
Hard is an understatement. Bandrowczak’s recent decision to cut the dividend to reduce debt as he navigates tariffs, a tricky acquisition, and a volatile economy sent a struggling stock even lower.
“When you’re reinventing a company, it’s always a lot easier to do it in private,” said Bandrowczak. “However, we rebuilt an incredible board…and I want to reward the shareholders who have stuck with us for so many years.”
As for the skeptics, Bandrowczak says he doesn’t care because he’s confident that his strategy will yield results. As long as his board and leadership team have his back, he’ll stick with the plan. After all, starting out he “was going from garbage to garbage scraps, trying to get enough money to put gas in my car. I don’t fear anything.”
Click here for the full interview.
More news below.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top news
Introducing Fortune AIQ
This morning, Fortune launched Fortune AIQ, a new hub chronicling how companies at the forefront of the AI revolution are using the technology to push their businesses further. The first playbook, “The ‘people’ aspect of AI,” details how companies are bolstering their workforces with AI while working to prevent company-wide “AI fatigue.”
Meta eyes billion-dollar AI investment
Speaking of AI, Meta is reportedly planning to invest around $15 billion in startup Scale AI in a new effort to achieve superintelligence, or intelligence greater than that of all humanity, reports the New York Times. The move comes as Meta has otherwise lagged behind competitors like OpenAI and Google.
Fortune 500 CEOs are looking to bitcoin
A new Coinbase survey published on Tuesday, in partnership with GLG research, found that 60% of Fortune 500 executives are “working on blockchain initiatives.” That’s up 4% from last year and comes as the Trump Administration puts their support behind the industry.
U.S. and China agree to framework deal
American and Chinese negotiators agreed to a framework deal to restore a truce in their trade war after two days of marathon negotiations in London, Commerce Secretary Howard Lutnick said. The proposal now goes back to Beijing and Washington for approval. Lutnick did not provide any details.
Musk says he might have gone too far
The Tesla CEO now says he “regrets” some of his posts about U.S. President Donald Trump after a rift between the world's richest man and arguably the most powerful exploded last week. “They went too far,” Musk said in a post on X Wednesday.
Trump tariffs can stay—for now
The Trump administration can keep the president’s far-reaching tariffs in effect for now, a federal appeals court ruled. But the U.S. Court of Appeals for the Federal Circuit agreed to fast track its consideration of the case. It said it intends to hear arguments on July 31, which means the tariffs likely will remain in place for at least two more months.
X: Buy an ad or we'll sue
Elon Musk's X has been threatening to sue former advertisers unless they return to the platform, the Wall Street Journal reports. The legal threats are part of a pressure campaign that Musk and X CEO Linda Yaccarino launched to boost revenue, and its tactics have apparently generated a climate of fear on Madison Avenue.
EU trade negotiations could extend
The EU thinks trade negotiations with the U.S. could extend past Trump’s July 9 deadline, even though the tempo of the talks has increased, Bloomberg reports. EU trade chief Maros Sefcovic has held regular talks with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer since the sides agreed to fast-track negotiations two weeks ago.
The markets
- S&P 500 futures moved down 0.2% before the opening bell this morning, but are still priced above the 6,000 mark. The S&P 500 rose 0.6% yesterday. The index is up 2.7% YTD. Globally, investors seem to be largely positive: All the major Asian indexes closed up from Japan to Shanghai and Hong Kong. The Stoxx Europe 600 was up 0.1% in early trading, while other European markets were flat to up slightly. Tesla shares were up 2.4% in pre-market trading, after CEO Elon Musk posted on X that he regretted some of his inflammatory posts about President Donald Trump: “They went too far.”
From the analysts
- UBS on when inflation will hit: “On average, the US holds around three months of inventory of goods in its supply chain, meaning trade taxes hit consumer prices in late June. That is an average; so, some price rises will occur earlier, once pre-tax inventory has been sold. Some companies may have anticipated the effects of tariffs in their regular price setting cycle. Retailers’ profit-led inflation depends on perceptions rather than reality. Against that, disinflation may come in leisure travel, with dwindling visitor numbers,” per Paul Donovan.
- Convera on U.S. dollar weakness: “Could the shift from U.S. assets to international markets accelerate and drive the dollar into another leg down? What’s worrying is that despite U.S. interest rates remaining well above those in other developed economies, the dollar is still hovering near recent lows… If the dollar is to weaken further, the catalyst would likely come from rising trade tensions, weak demand in Treasury auctions, or the long-awaited downturn in the U.S. economy that investors have been expecting for the past three years. But with no clear signs of economic deterioration, bearish sentiment remains the dominant force in USD trading among G10 currencies. And with nothing on the June calendar pointing to a major macro shift, in calm waters, this trend looks set to continue,” per Kevin Ford.
- Deutsche Bank on trade talks: “Overnight, US and Chinese negotiators have said they've agreed on a framework of how to implement the agreement reached at talks in Geneva last month. The main details came from Commerce Secretary Lutnick, who said that ‘We do absolutely expect that the topic of rare earth minerals and magnets’ will be resolved and that export controls implemented by the US should come down as China approves relevant export licenses… At the same time, there was no evidence of progress on topics such as the fentanyl-related 20% tariffs on China that the US has implemented since February. So while the mood music has stayed positive, investors may be wary of the pattern that emerged during the previous US-China trade talks in 2018-19, when apparently constructive in person meetings seemed to take a step back as the negotiating teams returned to their capitals,” per Jim Reid.
Around the watercooler
Snap CEO Evan Spiegel promises new lightweight ‘Specs’ smart glasses next year, in race to beat Meta and Google to market by Alexandra Sternlicht
Why planning for the CEO’s replacement is a crucial part of Blackstone’s portfolio strategy by Paolo Confino
Brooks Running CEO shares the best piece of leadership advice he got from Warren Buffett’s Berkshire Hathaway by Phil Wahba
China’s carmakers are resorting to tricks to inflate their vehicle sales and Beijing has had enough by Christiaan Hetzner
CEO Daily is compiled and edited by Joey Abrams and Ian Mount.
