Good morning. Cooking oil becomes the latest pawn in the US and China’s trade battle. Donald Trump threatens to take the World Cup away from Boston. And the cost of natural disasters mounts. Listen to the day’s top stories.

— Lucy Meakin

Tensions between the US and China heated up even more after Donald Trump said he might stop trade in cooking oil. It’s retaliation for China’s refusal to buy US soybeans—which Trump slammed as an “economically hostile act”—but isn’t likely to have much of an impact as cooking oil imports were already shrinking.

Trump and Argentina’s Javier Milei at the White House. Photographer: Stefani Reynolds/Bloomberg

Argentina’s $20 billion lifeline from the US may be contingent on libertarian leader Javier Milei’s success in the midterm elections, Trump suggested. “If he doesn’t win we’re gone,” the president told reporters as he met Milei in Washington. He also made it clear that any Chinese military activity in the South American country wouldn’t go down well with him.

The AI boom isn’t over just yet. Dutch semiconductor equipment maker ASML reported stronger-than-expected demand for its cutting-edge chip-making machines. Meanwhile Nscale, a data center developer focused on AI, announced it’s agreed to build a site for Microsoft in Texas. It’s a brighter picture after recent warnings of a bubble in AI stocks, and it helped push Nasdaq futures higher.

As the US government shutdown enters its third week, critics said Trump’s latest power moves to fire employees and cancel programs mark a stunning escalation in his effort to use the federal budget to centralize power. Here’s why a legal fight is brewing.

Disqualified? Trump threatened to yank the 2026 World Cup games out of Boston and move the 2028 Olympics from Los Angeles if he thinks the cities aren’t ready or safe, amid high profile friction with their Democratic leaders. The World Cup is expected to be the highest attended sporting event ever on US soil and deliver an estimated $1 billion boost to the Boston region’s economy.

Deep Dive: Catastrophe Cost

Destroyed homes in the Pacific Palisades area of Los Angeles in January. Photographer: Roger Kisby/Bloomberg

The cost of natural disasters is mounting, with global insurance losses from such events already eclipsing $100 billion this year so far.

• That tally comes even as subdued hurricane activity has meant third-quarter costs are unusually low. That’ll be a relief for homeowners left without flood insurance due to the US government shutdown.
• Rising global temperatures are contributing to an increase in the frequency and intensity of weather-related events, such as hurricanes and wildfires. Scientists expect 2025 to be the second- or third-warmest year on record.
• So what can we do about it? Check out our guide to how you can protect your home from wildfires.

The Big Take

US Navy officers stand guard aboard Virginia-class fast attack submarine USS Minnesota. Photographer: Colin Murty/Getty Images

The US is racing to deliver a “transformational improvement” in how it builds submarines to preserve its vital undersea advantage over China while it still can. Watch the video here.

Opinion

The Brooklyn Nets plays the Phoenix Suns at The Venetian Macao. Photographer: Zhizhao Wu/Getty Images AsiaPac

The NBA’s triumphant return to China is no slam dunk, Juliana Liu writes. Six years after being effectively banned, the Phoenix Suns and Brooklyn Nets played two sold-out games over the weekend in Macau, but the NBA should be wary re-entering a politically fraught landscape.

Our daily word puzzle with a plot twist.

Today’s clue is: Decreasing level of interest.

Play now!

Before You Go

Trump at the Trump International Golf Links Aberdeen golf course. Photographer: Chris Ratcliffe/Bloomberg

Sub par. Donald Trump’s golf resort at Aberdeen in Scotland posted a 13th consecutive year of losses in 2024 as it developed a second course. The president (and avid golfer, of course) owns two golf sites in Scotland and has been pushing to host the sport’s oldest major championship, the British Open, at his Turnberry course in South Ayrshire.