Good morning. Don’t worry, the stock market will eventually boom again, according to President Trump and several acolytes. We try to decipher the Greek formula that his tariffs are based on. And after a chaotic week, how about a chilled Chablis. Listen to the day’s top stories.
Market data may be delayed depending on provider agreements.
Move on. Nothing to see here. Yesterday’s rout in global stocks was little more than a blip on the path to a glorious future, Vice President JD Vance told Newsmax. “We’re going to have a booming stock market for a long time because we’re reinvesting in the United States of America,” he said, as GOP politicians were wheeled out to preach the message.
President Trump defended his tariff program, saying it gives the US "great power to negotiate" and that he’d be open to reducing levies if other nations offer something “phenomenal." Canada’s response is unlikely to curry favor with the White House. Foreign Minister Melanie Joly said Canada, currently the biggest buyer of US vehicles, intends to pivot to Europe and Asia to find new markets.
As for the markets today, stocks are heading for another big drop after China announced tariff measures of its own. Give it time, said Trump. Some traders are even wondering whether they should just throw in the towel on trying to predict Trump’s market jolts. As one hedge fund manager, sleeping three hours a night, put it: There’s so much chaos and risk that any trade placed one day can blow up the next.
Trade wars, tariff threats and logistics shocks are upending businesses and spreading volatility. Understand the new order of global commerce with the Supply Lines newsletter.
The next focus for investors, assuming the White House doesn’t make up more trade formulas (see John Authers in Opinion below), comes in the form of jobs data and a speech by Federal Reserve Chair Jerome Powell. Weaker-than-expected payroll numbers will sharpen the debate over when, and by how much, borrowing costs will fall to avoid a potential recession.
In what looks like a departure from normal GOP thinking, Republicans are weighing the creation of a new tax bracket for those earning $1 million or more. For anyone who doesn’t quite make that, maybe it’s time to have another look at where to invest $10,000.
Deep Dive: The Amazon and Wall Street
The village of Metuktire, in the Amazon rainforest of Mato Grosso state, has long been at the heart of a decades-long fight against deforestation Photographer: Pablo Porciuncula/AFP
The fund aims to raise money from developed countries and institutional investors to invest in high-yielding fixed-income assets, generating returns to pay countries to protect their forests. The target: $4 per hectare per year.
But there are concerns. Should we tie forest protection to the performance of unpredictable financial markets? A reasonable question after yesterday’s meltdown.
And the plan could end up financing the very industries responsible for deforestation.
For a country like Brazil with about 330 million hectares of tropical forest, of which about 1 million are lost each year, the fund could generate an annual payment of roughly $860 million. That’s more than the yearly budget of the country’s environment ministry.
The Big Take
The Iron Dome missile defense system intercepts rockets fired from Gaza, in Netivot, Israel, in October 2023.
An exclusive look at what Israel’s upgraded air defense system can (and can’t) do holds lessons for the US as it pushes for a missile shield.
