Emma Tucker

1. FROM MY DESK

Early in President Trump's second term, his economic advisers laid out a simple theory: Show the bond market that Washington was serious about closing its gaping deficits, and long-term interest rates would fall on their own. Trump could leave the Federal Reserve alone.

It hasn't worked out that way. Inflation is rising, the Fed is raising rates and the 10-year Treasury yield recently hit its highest level since 2007. Instead of falling, borrowing costs are being driven up by tariffs, energy shocks and an investment boom-leaving a central bank losing patience.

Nick Timiraos and Meridith McGraw examine the moves that backfired on Trump and drove interest rates and inflation higher.

This is an edition of The 10-Point newsletter, a guided tour of the best coverage in The Wall Street Journal. If you're not subscribed, sign up here. If you're reading this in your inbox, tap the headline above for online and audio versions of this newsletter.

2. TODAY'S HEADLINES

-- Egypt warned Israeli Prime Minister Benjamin Netanyahu of an impending attack on Israel before Oct. 7.

-- Peace negotiators are pressing Iran to make a concession on its nuclear program to revive ceasefire talks with the U.S. after Trump rejected Tehran's truce proposal.

-- Trump administration officials said the U.S. has no plans to sell weapons to Beijing after Ambassador David Perdue told an interviewer that the president "at one point" offered to make a deal to transfer American arms to Chinese leader Xi Jinping.

-- Lured by payouts as high as $40,000 a run, tuna fishermen in Manta, Ecuador, are being drawn into cocaine trafficking-placing them in the crosshairs of a deadly drug war unfolding at sea.

3. LIVE FROM THE MARKETS

Follow our live financial coverage all day.

-- Stocks Spencer Jakab is watching: Some companies' earnings hit a downward slope when consumers turn cautious, but Vail Resorts looks like it's on a double black diamond. The ski mountain operator reports full-year fiscal results this afternoon and analysts polled by FactSet see it posting $4.43 in earnings per share, down from a consensus forecast of $7.04 at the beginning of this year. (Get Spencer's Markets A.M. newsletter in your inbox.)

-- U.S. pressure is awakening an energy giant in Canada, writes Jinjoo Lee.

4. READ IT HERE FIRST

Six investing pros weigh in on surging yields-and how to trade them.

Trouble in the bond market is forcing investors to anticipate where the economy-and their portfolios-are headed. The yield on the 10-year Treasury note recently surged past 5% to hit fresh 19-year highs. U.S. debt has topped a record $40 trillion. War with Iran is pushing oil prices higher. The Fed is expected to keep raising interest rates to tame inflation, suggesting mortgage and other borrowing costs won't meaningfully ease soon. So how will the economy handle rising rates-and what should investors do to prepare? Gregory Zuckerman and Jack Pitcher asked Ray Dalio, (BlackRock's) Rick Rieder and other leading money managers for their thoughts.

Do more with your money. Sign up for the WSJ Investing Challenge, a free five-week email course from WSJ columnists that introduces the basics of investing.

5.

Penn State's campuswide cocaine ring was fueled by fraternity hazing.

Spring at Pennsylvania State University is rush season, when hopeful students vie for a spot in one of the school's fraternities and sororities. At fraternity Delta Upsilon, for a short period, that meant prospects were instructed to cut and package cocaine inside the frat house and deliver the drugs across campus. The instigator, according to former fraternity brothers' testimony before a grand jury and criminal complaints, was Thomas Robinson, a senior brother who showed the pledges how to break down a brick of cocaine, mix it with creatine and bag it. This was only one part of a larger campuswide drug ring that Pennsylvania authorities say ensnared 13 current and former students, five fraternities and even one frat brother's father before it all fell apart, report Ashley Wong and Jared Mitovich.

6. SEE THE STORY

Prada is wooing the ultrarich with snorkeling trips and $100,000 skirts.

The fashion house is working to close the gap with rivals in courting top spenders amid a difficult luxury climate. (Prada's) strategy is on display beneath the soaring glass dome of Milan's Galleria Vittorio Emanuele II, where the company spent more than three years renovating around its original 1913 store. The expanded eight-floor complex is part shop, part exhibition space and part private club for Prada's biggest spenders. Watch as WSJ's Nick Kostov takes a tour.

7. HAPPENING TODAY

-- The U.N. General Assembly's general debate concludes in New York.

-- Earnings: Jefferies Financial

-- Today's paper

8. THE NUMBER

$10,000

The check NorthPoint Development offered to send each of the 4,500 households in Hazle Township, Pa., if it was allowed to build a data center in the Pocono foothills. For a township with a median household income of about $60,000, that payout could cover months of rent, groceries or fuel. But regardless of income, job status or location, few of the people in Hazle Township interviewed by the Journal indicated that they are eager to welcome the data center for the $45 million payout.

9. AND FINALLY...

A supermarket opened a pub to get around liquor laws. Now it needs bouncers.

The bar at Lidl's new store in Northern Ireland, called the Middle Ale, is drawing crowds and at least one fight. After failing to get a license to sell wine, beer or spirits in the Belfast store, the retailer found an unorthodox solution: Apply for a pub license. Decked out in Lidl's signature colors and decorated with instant coffee and soup cans, the pub serves takeaway drinks around the back. The workaround is giving unexpected momentum to a long-running debate on loosening Northern Ireland's liquor laws.

-- Speaking of shopping: WSJ readers share their favorite hacks for getting the most out of a $65 annual Costco membership.

10. BEYOND THE NEWSROOM

-- Opinion: New tariffs on U.S. biotech firms will raise prices for Americans and help China's biotech ambitions.

-- WSJ | Buy Side: Consolidating business debt could save your company money and might simplify repayment. See our top business debt-consolidation loans with competitive rates.

ABOUT US

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Today's newsletter was curated and edited by Morgan Smith and Gary Mitchell in collaboration with Editor in Chief Emma Tucker. Got a tip for us? Here's how to submit.

This article is a text version of a Wall Street Journal newsletter published earlier today.