U.S. President Donald Trump on Wednesday retreated from the precipice after Iran attacked U.S. bases in Iraq Tuesday night—retaliation for Trump’s decision to kill Tehran’s top general. The Pentagon contends the Iranian missile barrage wasn’t intended to cause casualties. And while Trump said he would impose new sanctions, he also offered Iran a diplomatic opening. But Nancy Pelosi remained unmoved. As Democrats continued to assail Trump’s claim that the assassination was meant to prevent an imminent attack, the Speaker of the House called for a vote to restrain him from any further military action against Iran. —Josh Petri

Here are today’s top stories

Bobby Ghosh writes in Bloomberg Opinion that Iran’s missile attack may only be the opening salvo of its promised “severe retaliation.”

While Iran has the capacity to undertake a significant online disinformation campaign, experts said it has yet to do so.

The last five years on Earth have been hotter than at any time since the industrial revolution.

Carlos Ghosn offered a point-by-point rebuttal of the accusations against him while trashing the international auto alliance he once ran.

On the surface, the latest numbers show the U.S. poised to reduce its trade deficit with China and the world. Dive into the numbers, though, and there are worrying signs for the U.S. economy.

Tesla shares have been on a tear. After another surge on Wednesday, Elon Musk’s massive pay package doesn’t seem that crazy anymore.

What’s Joe Weisenthal thinking about? The Bloomberg news director said the Fed lost the messaging war about fixing the repo market.

What you’ll need to know tomorrow

U.S. stocks rose and the S&P 500 headed for a fresh record.
A Boeing 737 (not the grounded Max) crashed in Iran, killing 176.
U.S. cancer deaths are dropping at a record pace.
These U.K. royals say they plan to step back from their formal roles.
As many as one billion animals are feared dead in Australia wildfires.
The IRS failure to collect from tax cheats may cost you $3,000.
The Chase Sapphire Reserve card is about to get more expensive.

What you’ll want to read tonight in Businessweek

How the Catholic Church Shielded $2 Billion

For most of the 20th century, the Catholic Church sought to minimize and cover up the wrongdoing of pedophile priests. But beginning in the 1980s, victims started suing U.S. dioceses. Church leaders settled claims in exchange for nondisclosure agreements. But as public awareness grew and the pace of lawsuits escalated, the church turned to bankruptcy.

Ownership of these churches in the Archdiocese of Santa Fe was transferred to the parishes. As a result, the churches are excluded from the bankruptcy estate available to clergy abuse victims.

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