Good morning. Torrential downpours create flooding across New York. Nvidia plans to resume AI chip sales in China. And we explain what Donald Trump’s new bill means for your taxes. Listen to the day’s top stories.

Torrential downpours unleashed flash flooding around New York, New Jersey and Connecticut last night. Multiple subway stations were inundated, forcing the MTA to suspend or severely delay service across several lines. Meanwhile, Texas is braced for another round of heavy rain. Read our explainer on why the state is so vulnerable to climate disasters.

Nvidia plans to resume sales of its H20 AI chip in China after securing Washington’s assurances that the shipments would be approved. Stocks advanced on the move, which follows weeks of thawing relations between the US and China. Elsewhere in tech, Donald Trump will announce $70 billion in AI and energy investments in Pennsylvania today.

Tariffs latest. The European Union has finalized a list of countermeasures targeting US goods worth €72 billion, including Boeing aircraft, cars and bourbon. Brussels called Trump’s plan for higher EU tariffs “effectively prohibitive” to transatlantic trade. The US president said he’s open to talks, including with the EU.

Andrew Cuomo speaks during an election event in New York on June 24. Photographer: Adam Gray/Bloomberg

Andrew Cuomo plans to stay in the race for New York City mayor, brushing off calls to step aside after his stunning loss to upstart Zohran Mamdani in the Democratic primary. Incumbent Eric Adams, who raised more than $1 million for his reelection effort in a single night, has blasted Cuomo for potentially splitting the vote against Mamdani.

Trump's $3.4 trillion bill means the tax rate you'll pay will depend less on how much you make, and more on how you earn it, where you live and even who you are. A reminder (if you needed one) that business investors and wealthy Americans are among the biggest winners, while those hit hardest include elite universities and immigrants. Use Bloomberg's SALT calculator to see how you gain from the increase in the state and local tax deduction.

Deep Dive: Kevin Warsh and the Fed

Kevin Warsh on July 9. Photographer: David Paul Morris/Bloomberg

Kevin Warsh, a top contender to replace Jerome Powell as chair of the Federal Reserve, has undergone a transformation from hawk to dove.

• As a Fed governor from 2006 to 2011, Warsh pushed for higher rates even in the depths of the financial crisis, frequently warning of inflation. But this year, he’s done a 180, becoming an enthusiastic advocate for lower borrowing costs.
• His transformation comes at a time when Trump’s demands that the Fed cut rates are reaching a fever pitch, and Trump has made clear he won’t pick a candidate to succeed Powell unwilling to deliver.
• In recent days, Trump and his allies have found a new way to go after Powell: criticizing his handling of an expensive renovation of the Fed’s headquarters.
• Read John Authers on why all the president’s men are coming after Powell.

The Big Take

Salim Ramji. Source: Vanguard Group Inc.

A quiet revolution is afoot at Vanguard's Pennsylvania campus. CEO Salim Ramji is  pushing into new territory like fixed-income and financial advice. And he also plans to Vanguard-ize fast-growing private markets.

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Opinion

A container ship docked at the Port of Rio de Janeiro on July 10. Photographer: Bloomberg

The Trump administration seems to see tariffs as a weapon to be deployed for any purpose, Bloomberg’s editors write. Using them to advance aims unrelated to trade is unquestionably dangerous, and threatens to undermine America's global standing and the dollar's safe-haven status.

Before You Go

Jane Fonda at Bloomberg Green in Seattle on Monday. Photographer: David Ryder/Bloomberg

Jane Fonda, one of Hollywood’s most outspoken actors and campaigners, is calling for fresh action to tackle failures in politics and emissions reduction.  “We’re losing the democratic infrastructure and norms to deal with climate, and we’re losing the climate stability that is essential for democracy,” she told the Bloomberg Green Seattle conference. “We have to solve them together.”