Good morning. Stock futures waver as Donald Trump hints at diplomacy with Iran. SoftBank's founder eyes a $1 trillion AI hub in Arizona—and wants TSMC to chip in. And Lima now boasts the world’s top restaurant. Listen to the day’s top stories.

Investors settled into wait-and-see mode on signs Donald Trump may give diplomacy a chance before deciding whether to strike Iran. Oil prices eased, European equities climbed and the dollar edged lower.

But tensions remain high as Israel targeted missile production sites and Iran’s nuclear research headquarters overnight and Tehran stayed defiant. President Masoud Pezeshkian said the only way to end the war is to “unconditionally” stop Israel. Foreign Minister Abbas Araghchi headed to Geneva for talks with European officials. Meanwhile, Iran is racing to export its oil.

In tech, SoftBank’s founder Masayoshi Son is keen to team up with Taiwan Semiconductor Manufacturing on a trillion-dollar industrial complex in Arizona to build robots and artificial intelligence. TSMC’s involvement is uncertain. The Taiwanese company already plans to invest $165 billion in the US and has started mass production at its own Arizona factory.

Immigration latest: Donald Trump has the courts on his side, for now. A federal appeals court ruled that the president can keep using the National Guard troops to respond to protests in Los Angeles. California Governor Gavin Newsom had blasted their deployment as a “power grab.” Our Big Take below looks at the impact of immigration raids on workers.

Canada has opened the door to increasing its tariffs on US steel and aluminum next month if trade talks with the Trump administration stall. Meanwhile, Temu’s sales decline in the US is deepening as the online marketplace drastically cuts spending on advertising targeting American consumers. But financial markets have seen the worst of Trump’s tariff threats, according to a Fidelity International money manager who’s betting on midcap companies.

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: Luxury Counterfeiters Keep Winning

Fighting counterfeiters is crucial to purveyors of secondhand luxury goods as the resale market continues to grow, outpacing sales of new luxury products. 

• In 2021, less than a third of the items rejected by the French luxury resale website Vestiaire Collective were spurned on suspicion of being counterfeit. Today it’s more than half.  
• The real issue is what the industry calls superfakes—copies that are almost indistinguishable from the originals, making authentication efforts all the more challenging.
• With tariffs already raising prices for luxury goods imported to the US by at least 10%, and the risk they may go much higher, the secondhand market will likely keep growing.

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The Big Take

Farmworkers harvest Brussels sprouts at a farm in Oxnard, California.  Photographer: Ivan Kashinsky/Bloomberg

Immigration agents are drying up the US workforce, scaring off undocumented laborers and leaving employers unsure of how they'll manage without them. Read the story.

Opinion

The new two-legged robot developed by Toyota plays the trumpet. Photographer: Toru Yamanaka/AFP via Getty Images
 

AI cannibals are eating into the music industry, writes Lionel Laurent. AI tools, trained on millions of songs crafted by human artists, are now churning out millions of their own tunes at the click of a button. The $20 billion music market is clearly vulnerable.

Before You Go

Peruvian Nikkei chef Mitsuharu Tsumura runs Maido in Peru. Photographer: Cris Bouroncle/AFP

Top pick: The best restaurant in the world right nowis Maido, in Lima. The 16-year-old eatery, led by chef Mitsuharu Tsumura, specializes in a singular style of Nikkei cuisine, the combination of Peruvian and Japanese flavors and influences. Others in top 5 are located in Spain, Mexico, Spain again, and Denmark.

Check out our new weekly Business of Food newsletter for everything you need to know on how the world feeds itself, from farming to supply chains to consumer trends.

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