China plays tough

Good morning. China says it's all or nothing when it comes to US tariffs. A big name warns the best is over for America's stock market. And Harvard tries to speed up its fightback. Listen to the day's top stories.

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All or nothing. China demanded the US revoke all unilateral tariffs and said the two sides aren't even talking, taking a hard line after Donald Trump said overnight that a new, reduced, tariff rate may come in the next two to three weeks. Trump's also said to be considering whether to reduce certain levies targeting the auto industry. His softer stance comes after fresh warnings from markets, business leaders and top advisers.

Too little, too late for your 401K? America's stock market is well past its best days and investors should prepare for further declines in equities, Treasuries and the dollar, Jefferies warned. A dozen US states are challenging global tariffs in court, while Citadel founder Ken Griffin called the trade war situation "nonsensical." Trump did downplay the chances of a higher tax rate on millionaires though, arguing it would spur the country's richest to leave the US.

Trump ratcheted up pressure on Volodymyr Zelenskiy to accept a peace deal, accusing the Ukrainian president of prolonging the war. On the ground, Russia hit Ukraine with a barrage of missiles and drones overnight, killing at least nine people in Kyiv.

WeightWatchers is said to be preparing to file for bankruptcy within weeks. It's been struggling with debt amid declining revenue and the popularity of drugs like Ozempic. IBM's shares tumbled before the bell after it suggested that economic uncertainty and US government cost cuts may dent its business. Watch out for Alphabet's results later.

The Dollar's Slide Is Raising Red Flags for Corporate Earnings

Read the Story

Economists at one of Canada's biggest lenders are raising doubts about the economic plans offered by the leading parties in its country's election. But the country's C-suite seems to like Justin Trudeau's successor, Mark Carney. Canadians head to the polls on Monday and, as of yesterday, surveys show his Liberal Party has a slim lead over the Conservatives. Here's what's at stake.

Deep Dive: The Harvard Question

Pedestrians walk through Harvard Yard. Photographer: Sophie Park/Bloomberg

Harvard is looking for a speedy resolution to its legal challenge to more than $2 billion in funding cuts by the Trump administration, telling a federal judge it doesn't plan to ask for a temporary order blocking the government's actions.

Instead, the university wants to "expeditiously" pursue a final judgment on its central claim that the administration violated federal regulations for cutting funding. Read our guide to the dispute or check out the answers to the internet's most asked questions.
Watch for possible fireworks between Trump and the judge overseeing the lawsuit. She has a track record of ruling in favor of the Ivy League school, making her a prime candidate to draw the president's ire.

The Big Take

Illustration by Philip Lindeman

Big banks like Citigroup and Natixis thought they were backing a $1 billion fintech darling. But when Stenn blew up, most of its supposed partners said they'd never even worked with the company. Now people want to know how Wall Street missed so many red flags, including suspicious suppliers and sanctioned entities.

Big Take Podcast

Trump Tariffs Hit Growth Forecast

Opinion

Don't get carried away by talk of a relief rally, John Authers writes. While tariff uncertainty persists, the risk is that it will so inhibit businesses as to drive the economy into an unnecessary recession. Only once that possibility can be ruled out, could a consistent market advance happen.

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