Good morning. Wall Street is working out how to play Trump vs Powell. Harvard faculty face a dilemma. And we have the latest on the president’s feud with the Washington Commanders. Listen to the day’s top stories.

Wall Street buzz: Investors are working out how to position themselves just in case Donald Trump does fire Federal Reserve Chair Jerome Powell. The idea is that a new chair could support Trump's push to cut interest rates—lowering short-term yields while raising long-term ones which are more sensitive to inflation. And while the president’s allies attack Powell over the hefty price of renovating the central bank’s HQ, we look at why it’s costing $2.5 billion (building in a former swamp doesn’t help).

Trade latest. European Union envoys are set to meet as early as this week to formulate a plan for measures to respond to a possible no-deal scenario with the US as Trump’s tariff stance appears to have stiffened ahead of an Aug. 1 deadline. Today’s trade victim: Stellantis, the maker of Jeep SUVs, which reported a surprise $2.7 billion first-half loss. Check out this story on how the world’s largest zipper manufacturer is weathering the Trump-tariff era.

Japanese Prime Minister Shigeru Ishiba said he intended to stay on even as his ruling coalition suffered a historic setback in an upper house election on Sunday, an outcome that may further unsettle markets. The yen edged higher partly because he’s not quitting just yet. Meanwhile, US futures climbed as traders loaded up on bets for lower borrowing costs.

Microsoft’s server software was exploited by unidentified hackers, with analysts warning of widespread cybersecurity breaches across the globe. “It’s a dream for ransomware operators,” according to cybersecurity firm Censys. Separately, Alaska Air resumed flights after temporarily grounding its fleet after an IT outage. 

Harvard faces a dilemma as some faculty urge a deal with the Trump administration to end financial penalties, while others resist compromise. The clash may cost the university up to $1 billion annually, with a federal judge set to hear arguments today about the government's freeze of over $2 billion in research funding.

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 that could hit this multitrillion-dollar global industry. Join us on Sept. 4. Learn more.

Deep Dive: Defying Trump

Brazilian President Lula da Silva. Photographer: Ton Molina/Bloomberg

Brazil is weighing potential responses to further sanctions by Donald Trump, including halting the licensing of US drug patents, according to local media reports. The government denied it’s considering limits on dividends.

• President Lula da Silva is intensifying its deliberations on possible measures after US Secretary of State Marco Rubio yanked a Brazilian judge’s visa.
• The US move came after Justice Alexandre de Moraes sent police to raid the home of ex-President Jair Bolsonaro ahead of his trial on charges he attempted a coup to remain in power.
• The reaction of Brazil’s top court is seen as a determination to fight back rather than give in to Trump's demands.
• Despite growing tensions, the two countries are said to intend to continue diplomatic negotiations as Brazilian assets remain at risk from the threat of 50% tariffs.
  

  Former Brazilian President Jair Bolsonaro. Photographer: Arthur Menescal/Bloomberg
  
   

The Big Take

Illustration: Connor Willumsen for Bloomberg Businessweek

Elon Musk's empire is creaking under the strain of his political antics, Trump feud and wild bets as Tesla, SpaceX, and xAI face mounting challenges.

Opinion

Photographer: Michael M. Santiago/Getty Images North America

RFK Jr. is making America sick again, Michael Bloomberg writes. Senate Republicans must oversee him, constrain his actions, or force him out, to prevent more harm.

Before You Go

The Washington Commanders logo on player helmets. Photographer: Brandon Sloter/Getty Images

Trump threatened to block the Washington Commanders’ new stadium plans unless the team changes its name back to the Redskins. The president claimed there’s a “big clamoring” from Native Americans to restore the old name.

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