Good morning. Catastrophic flooding kills more than 80 people in Texas. Donald Trump dials up trade tensions. And Jurassic World Rebirth roars to the top of the box office. Listen to the day’s top stories.

Texas’s catastrophic flooding killed at least 82 people, with scores still missing after torrential rains and floods devastated an all-girls summer camp in Kerrville. The area remains at risk of further inundation and forecasters extended a flood watch into Monday evening. Some politicians have already raised questions over the accuracy of weather forecasts and the possible role of staffing cuts at the National Weather Service for the disaster.

Search and rescue workers dig through debris following the flash flooding in Hunt, Texas. Photographer: Jim Vondruska/Getty Images

Trade latest. Donald Trump said that any country aligning with the “anti-American” policies of the BRICS group of countries that includes Brazil, Russia, India, China and South Africa will face an additional 10% tariff. The warning comes as the US prepares to send letters to 12-15 countries today setting out their new tariff levels. Treasury Secretary Scott Bessent indicated some nations may be given an extension to finalize agreements.

Stocks retreated and the dollar gained in a risk-averse start to the week. Trade tensions are back in focus as investors await outcomes from tariff negotiations ahead of the July 9 deadline. Read our explainer on what is Trump’s tariff campaign meant to achieve.

The feud between Trump and Elon Musk escalated as the Tesla CEO formed a new “America Party” and hinted it may even back a presidential candidate. Trump was quick to hit back, deriding the effort as “ridiculous.” It was yet more bad news for Tesla shares, with Wedbush analyst Daniel Ives calling Musk’s move “exactly the opposite” of what investors want, at time when Tesla faces plenty of troubles.

In corporate news, Apple appealed a $580 million fine from the European Union, calling the penalty “unprecedented” and the regulator’s required changes to its App Store as “unlawful.” Meanwhile, TikTok is developing a new version of its app for US users ahead of a planned sale, The Information reported. 

Bloomberg Green Seattle: Join us July 14-16 for two days of compelling conversations where we’ll explore the urgent environmental challenges of today and the innovative ideas shaping tomorrow. Featured speakers include Ryan Gellert, CEO of Patagonia, Academy Award-winning actor Jane Fonda and many more. Click here for details.

Deep Dive: Small-Cap Warning

Warning lights are blinking across US equities and there may be trouble ahead for the recent rebound in some of the riskiest stocks.

• As the S&P 500 Index hit record highs, shares of small-cap companies—which often carry a higher debt load and are less profitable—surged even more, fueled by speculative bets.
• Those came after two of Wall Street’s major trading desks made the same bold call: Pile into this year’s biggest losers for quick, short-term profits—particularly smaller companies.
• But the peak may be near. Bloomberg Intelligence says its gauge of investor sentiment has swung from panic mode in April to “approaching manic” in June, a level where markets tend to cool off and smaller stocks start to trail larger ones.

Subscribe to Stock Movers, your 5-minute podcast on the winners and losers of each trading day.

The Big Take

A cluster of trading giants operate out of a large curved tower called Two Horizon Center in Gurugram, India. Photographer: Elke Scholiers/Bloomberg

India’s high-frequency trading bonanza saw global firms make outsized profits for years. Now, a crackdown on Jane Street suggests the windfall may be coming to an end.

Opinion

Source: Bloomberg

It’s far less sexy than a Lamborghini, but the next must-have accessory for crypto and tech bros is a banking license, Paul J. Davies writes. It’s a risky one and experts warn that these new banks could repeat the mistakes of past failures such as Silvergate and Signature.

Before You Go

Source: Universal Pictures

Roaring to the top. Jurassic World Rebirth, the latest installment of the Universal Pictures dinosaur franchise, scored the top spot in theaters over the Fourth of July holiday, grossing $147.3 million in the US and Canada despite not exactly rave reviews from critics.