Good morning. Donald Trump turns his tariff focus to drugs. Would you trust private equity with your 401(k)? And basketball is set for a growth spurt. Listen to the day’s top stories.

Donald Trump said he’ll probably impose tariffs on pharmaceuticals as soon as the end of the month, and has plans to place levies on semiconductors too. Both risk driving up costs for ordinary Americans. Meanwhile, mining giant Rio Tinto Group said US tariffs on its Canada-made aluminum cost more than $300 million in the first half. Canadian Prime Minister Mark Carney said trade negotiations with the US will “intensify,” but hinted tariffs will stay.

The race to replace the Federal Reserve chief next year has Kevin Hassett, one of the president’s longest-serving economic aides, as the early frontrunner. Scott Bessent is also an option, but Trump suggested the Treasury secretary isn’t the leading candidate due to his success in his current role. He also ramped up pressure on incumbent Jerome Powell, suggesting that the pricy Fed renovation costs may be a fireable offense.

The Trump administration is said to be finalizing an executive order that would pave the way for 401(k) retirement savings plans to invest in private equity. Top officials have been weighing a directive for months that would ease legal concerns that have kept alternative assets out of most worker defined-contribution plans. With US pensions and cash-starved endowments tapped out, private equity firms have lobbied hard for new rules that open their next frontier of growth.

In Brazil, the US president has thrust conservatives into chaos as they seek to find an answer to the upheaval US tariffs will cause. Trump had tried to settle a political score by dragging the country to the center of his trade war, but Brazilians are backing President Lula, the veteran leftist who had been struggling to reverse declines in popularity. 

Rifts and resolutions. The argument within the Republican Party over the release of documents related to disgraced financier Jeffrey Epstein continued to widen, with top congressional allies of Trump calling for his administration to exercise greater transparency. But on the legislative front, House Republican leaders’ plan to pass three industry-backed crypto measures appeared to be back on course.

Bloomberg Power Players New York: Set against the backdrop of the US Open Tennis Championships, we'll bring together influential voices from the business of sports to identify the next wave of disruption. Join us on Sept. 4. Learn more.

Deep Dive: Oracle on Cloud Nine

Larry Ellison Photographer: Mark Thompson/Getty Images

Larry Ellison is now the world’s second-wealthiest person, according to the Bloomberg Billionaires Index, as a red-hot rally in Oracle’s share price has catapulted his net worth to a sweet $251.2 billion.

• Oracle’s shares jumped yesterday on news that the US government would allow chipmakers to export some semiconductors to China, reversing Biden-era restrictions.
• That pushed Ellison—who holds more than 80% of his wealth in the form of Oracle stock and options—ahead of Mark Zuckerberg in the ranking of the richest.
• Oracle shares have benefited from investor zeal for AI stocks, gaining more than 90% since late April as the computing provider recorded surging revenues and inked new partnerships.
• In the past few months alone, it has tallied tens of billions of dollars in cloud computing contracts and announced it’s developing gigawatts of data center power to serve enterprise clients including OpenAI, which rented a massive amount of additional capacity as part of Trump’s Stargate initiative with SoftBank.

The Big Take

A Starbucks in Seattle. Photographer: Grant Hindsley for Bloomberg Businessweek

Starbuck's new CEO, Brian Niccol, is hustling to bring about a vibe shift, but investors are worried about the price tag and the timeline. Can chocolate cold foam, free nondairy milk and hand-drawn smiley faces on cups really bring the company's sales out of decline?

Opinion

Are tariffs at last beginning to push up inflation? June’s CPI data gave an unsatisfying “probably” as an answer, John Authers writes. The data taken in the large make it impossible for the Fed to cut rates without a clear improvement.

Before You Go

The Charlotte Hornets play the Philadelphia 76ers in Las Vegas on July 12. Photographer: Garrett Ellwood/NBAE

Basketball is about to get even bigger. The NBA has launched