Good morning. President Trump renewed his campaign against the chair of the Federal Reserve. An investment veteran is all in (almost) on cash. And the latest Marvel offering isn’t terrible. Listen to the day’s top stories.

Donald Trump’s truce with Jerome Powell lasted one week. At a rally outside Detroit, he said he knows “much more” about interest rates than the Federal Reserve chair, who apparently is “not really doing a good job.” The president also championed his economic policies and tariff regime. Today, we get a snapshot of how that’s going, in the form of economic output data for the first quarter. The forecasts aren’t great.

China’s factory activity showed the biggest contraction since December 2023, suggesting Trump’s policies are hurting. “It’s definitely worse than expected,” said Morgan Stanley’s China chief economist. Trump said Beijing deserves the hefty charges he imposed, even going so far as to acknowledge that the 145% levies on many goods amount to a near-embargo. “China probably will eat those tariffs,” the president told ABC News.

An Aston Martin Valkyrie at the 2023 Gold Coast Motor Festival in Hong Kong. Photographer: Paul Yeung/Bloomberg

James Bond update. OK, not 007 but his car. Aston Martin is limiting shipments of its luxury cars because tariffs will hit them otherwise. There was better news for the broader auto industry as Trump yielded to weeks of intense lobbying and signed a couple of directives to ease their impact.

Cash is king. Veteran emerging markets investor Mark Mobius reckons trade-related uncertainty will rumble on for as long as six months—as a result, he’s keeping 95% of his funds in cash. As for today’s markets, we’re in another holding pattern ahead of earnings from Meta and Microsoft.

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Fresh from his election win, Canada’s Mark Carney opened communications with Trump and they agreed to work together as heads of sovereign states. All is calm, so far. Carney knows he’ll need support from minor parties who generally have even more antipathy toward Trump than he does, John Authers writes in Bloomberg Opinion. Don’t expect Canada to give any ground in the trade conflict.

Deep Dive: Heading to the Sunshine State

A rendering of an office development in West Palm Beach. Related Companies

A net 30,000 New Yorkers fled the bustle of the city for the sunshine of Florida’s Palm Beach and Miami-Dade counties in the five years through 2022. But with them, they took a enormous $9.2 billion in income.

• Breaking some of that down, almost 20,000 people with a per capita income of about $190,000 left New York City for Palm Beach during that time.
• Some real estate billionaires, such as Stephen Ross who founded the firm that developed Manhattan’s Hudson Yards, got a head start a couple of years ago by plotting their push into South Florida to capitalize on the exodus.
• The coronavirus pandemic, cost of living, and quality-of-life concerns made other parts of the country more attractive for some NYC residents. New Jersey, California and Pennsylvania have also gained residents.
• But not everyone is leaving the state. More people are relocating to Long Island (who doesn’t love a Hamptons party?) and Westchester for instance. Here’s a list of the latest quality eateries in upstate New York.

The Big Take

A red line train at a Metro station in Washington, DC. Photographer: Kent Nishimura/Bloomberg

The US federal government stepped in with $70 billion to get commuter rail and bus service through the pandemic. Now the funds are running out. Read the story.

Opinion

People wait outside the Atocha train station in Madrid after its closure.  Photographer: Thomas Coex/AFP

The power outage that plunged Spain and Portugal into darkness highlights the need for policymakers to focus on integrating renewable energy into the grid to strengthen resilience, and to invest in backup power sources to ensure stability, Javier Blas writes.

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Before You Go

Florence Pugh reprises her role as Yelena Belova. Source: Disney

Despite being a superhero movie about overcoming depression, Thunderbolts* is not dour and actually has a lighthearted tone. Particular kudos goes to Florence Pugh. Our movie reviewer is even looking forward to the prospect of the characters' future roles in the Marvel Cinematic Universe, which continues with upcoming releases like The Fantastic Four and Avengers: Doomsday.